Why Your eBay Business Might Be Making Less Than You Think

 


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eBay is a great market platform since it allows sellers to quickly turn over their merchandise.

Within 7 days of an auction being created the eBay seller can receive payment for his products. Since the eBay seller quickly sees his products being sold he immediately start another auction.

But while it’s easy to sell merchandise, how easy is to track the actual profits being made?

The following expenses of running an eBay business are often overlooked.

It is important for eBay sellers to have an accurate count of their true expenses. Once their expenses are monitored they can determine the actual profitability of their businesses.

eBay Expense #1

Listing fees. Listing fees do add up. Even though they may be small, they are still absorbing a portion of your sales. While this figure might often be negligible, it is still must be combined with other expenses.

eBay Expense #2

Packing materials. When sending out an order make sure to subtract the cost of the packing materials. When you study this expense you might realize that you need to look for an alternate source for packing materials. Or, you might reconsider the use of your current packing materials.

eBay Expense #3

Rent. Even if your eBay business is currently based out of your home you should assign a rent expense to it. This will help you decide if your eBay business has real potential. If it can’t afford to pay rent, you will not be able to expand into a larger space that would require you to pay rent.

eBay Expense #4

Your time. After calculating your net profits you should divide them by the hours spent running your eBay business. Ask yourself if the time spent is worth the money being made. If you are home bound, or simply must work from your house, then you can disregard this expense. But if you have other income producing choices, you should make sure your time is being used optimally.

Donny Lowy runs http://www.closeoutexplosion.com an online wholesale and closeout business that supplies brand name products to eBay sellers, retailers, and flea market vendors.

Donny can be reached at 718-389-5502.

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