9/22/2023 0 Comments Ebay profit calculator![]() ![]() Both interpretations are equally valid, IMHO. ![]() Arguably, igold might interpret it to mean: the cost of shipping to the seller. I interpret it to mean: the cost of shipping to the customer. That depends on an interpretation of "shipping" in the OP. It is just another operating cost that is, it is not a cost of goods sold.Īfter thought. If we exclude ebay and paypal operating costs, I see no reason not to also exclude the shipping cost. The difference is: I do not include shipping costs in the amount that the profit margin is based on. Note that my numbers different somewhat from the other 3 responses. Since you specified a profit margin as a percentage of price per se, you would want the profit applied to all costs. Note that if the profit is applied only to the item cost, excluding operating costs, the profit margin is really a percentage of net revenue (price minus operating costs), not the full price. This necessarily causes a difference in the profit margin. The calculations in columns C and F are the correct calculations, given the real-world requirement to round to unit of currency. They demonstrate that exact profit margin is indeed calculated. The calculations in columns B and E are provided as a proof of concept. If you layout all the base figures on a row you can generate a easy formula.Ĭ10: =ROUNDUP((B1/(1-B6)+B2+B5)/(1-B3-B4),2) 68 subtract that from your sell of 3.73 and you have 3.05 which was your original sell price at a 15% margin. If you go backwards now you will see that Same as before you divide by the reciprocal. Now you have to get another GM of 12.9% which is the total of the Ebay 10% and the Paypal 2.9%. To get a Gross Margin of 15% for item that costs 2.59, you must divide the cost by the reciprocal of the GM. In you example your total cost, is the item cost plus the shipping: 1.72 +. The first thing you have to do is get the selling price of your item that generates a 15% Gross Margin. I can give you the logic but you will have to fill the formula to match your sheet layout. ![]()
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