Whether you are selling on eBay, Mercari, or Poshmark, understanding your true net profit is critical. Many new resellers forget to account for the "hidden costs" like shipping label overages and payment processing fees.
Doing mental math often leads to losing money. A "break-even" calculation helps you decide if that item at the thrift store or military auction is actually worth buying. If your margin is less than 20%, it is usually too risky to purchase.
Does eBay charge fees on shipping?
Yes. eBay charges their final value fee percentage on the total amount of the sale, which includes the item price, shipping, and sales tax.
How do I lower my fees?
On eBay, becoming a "Top Rated Seller" can grant you a 10% discount on your final value fees. Additionally, opening an eBay Store subscription can lower fees in specific categories like electronics or collectibles.