The Real Cost of Selling Yourself

The Real Cost of Selling YourselfHi Everyone!
Iíve just had a customer offer me some of his cards, and using my own calculations against me :) he valued them at the recent finishing prices on ebay. His calculations included the price he would sell them including the FREE POSTAGE that eBay like you to use (as they then earn 10% of your postage costs too.)
He had 94 cards, some multiples, but 74 different cards in the offering. The ebay finishing prices valued them at £120.00, so he felt that between £60 and £70 was a fair price. Sounds good so far?

I sat down and had a look, 
1) The free postage element of the cards value totaled 94 x 53p (second class post) Ė totaling £49.82. Thatís how much youíd have to pay to send the cards out. 
2) Then thereís ebay fees - 74 listings @ 10p per listing (£7.40), plus 10% of the finishing price (£12.00) Thatís £19.40.
3) Then there are PayPal fees. These are the biggest hidden cost for selling low value items on ebay. The cost amounts to about 30p PER ITEM when sold individually. So thatís £27.98 for his cards. 
4) Total all these fees together and you have £97.20 

So on a sale of £120.00, you would receive £20.80 out of the £120.00. 

Then thereís your time:-
To create 74 listings, scan the cards and upload them all to ebay. Letís say you are a computer genius Ė this would probably take about 2 hours in total.

Then thereís the time for Ďhandlingí. No-one want to pay for this so youíll have to include this in your free postage :) To pick, pack and send the cards, Itíll take about 3 mins per item to deal with the emails, send out invoices, wait for payment and print the invoice. So thatís about 4Ĺ hours work.

Plus youíll have to go to the post office about 5 times which takes maybe another 2 hours in total.

Then there are a couple of extra costs:-

1) Your invoice and ink (letís say the paper and ink are 1p each Ė I think thatís fair) Ė 94p
2) Packing - For a top loader to stop the card getting damaged in transit plus a cheap envelope - letís say 10p per card so thatís another £9.40.
3) Returns and lost items Ė out of 94 items youíll have a customer who returned it and wants a refund, and a customer whoís item was lost in the post. Letís call that £2.00 in losses

So from £120.00 total received for your 94 cards youíll end up with - £8.36.
Youíll have to work for 8Ĺ hours Ė thatís £0.98 per hour.

Now you can nit-pick about the maths but this even if things were 4 times better youíd still not achieve a reasonable return, and this assumes everything sells first time and DOES NOT even include the cost of the cards in the first place!

My biggest revelation from all this is EVERY item sold on ebay for 99p with Free Postage costs the seller at least £1.10 to sell. 
They are giving you the card for free and paying for selling it too!

Sunday 17th of August 2014 13:22:02Back to News List

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