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Selling a $5 Free Shipping item on eBay

Selling Low Cost Items on eBay Profit Calculation

I’m looking again at the cost of selling low value items on eBay and if you can really make a profit on selling something for $5 + free shipping. This only works in a category where the item can be mailed in an envelope via eBay standard envelope for the current rate of $0.57 (as of 2022) Here is the breakdown of costs and fees that you will pay to eBay to generate this sale:

eBay Profit Calculation
$5.00Sold Price with Free Shipping
-$0.57– eBay standard envelope shipping
-$0.93– eBay final value
???Does not include COGS, Shipping Envelope, Advertising, Taxes

The brings the NET Profit down to a grand total of $3.50 this is without factoring what you paid for the item you are selling (Cost of Goods), shipping supplies used to mail it, envelope and mailing label, any advertising fees to make the sale or taxes you will eventually pay on your ebay bussiness. The eBay selling fees total 30% of the item sell price for a low dollar item with final value and shipping fees.

K.B. Helm - 100simplebooks.com