How To Make Your Own Free EBay Profit Calculator

You already know that Chinavasion is your best source for high quality, low price consumer electronics that are perfect for selling on eBay.

You also know that eBay, like most things in life, isn’t free.

But do you know how to calculate your profit before you list an item on eBay?

In this simple guide, we’ll show you how to make a simple, yet indispensable tool: a dynamic eBay profit calculator.

First, you’ll need to know the relevant fees for both eBay and Paypal. Information on eBay’s fee structure can be found here ( pages.ebay.com/HELP/SELL/fees.html ), and Paypal’s fees are here ( paypal.com/us/cgi-bin/webscr?cmd=_display-receiving-fees-outside).

You’ll also need to know how Excel works.

If you have never ever used it before, or are like the guy who’ll be editing my post, and only use Excel for storing and recording data you might not know how to get the most out of the equation bar.

It’s much like a calculator in that you have the five simple sum buttons:

• + is add
• – is subtract
• / is divide
• * is multiply
• = is calculate

You need to start and equation with = and use the cell numbers as figures. There are lots of cool tricks you can do with brackets and words like sum.

You will also need to ensure that all figures are in the same currency and that you have the equation bar turned on.

It is calculus all over again and if you are interested in the mechanics you can learn more at office.tizag.com/excelTutorial/excelformulas.php.

But, like I asked in my blog on free eBay templates, why reinvent the wheel when you can take a spin in someone else’s Ferrari?

Ok, let’s begin!

STEP ONE Open a new Excel file and make a simple chart with these headers (or just copy and paste these titles here into excel, whichever is easiest):

• A1 – Purchase Cost
• B1 – Shipping Cost
• C1 – EBay Insertion Fee
• D1 – EBay Final Listing Fee
• E1 – PayPal Fee
• F1 – Total Cost
• G1 – EBay Price
• H1 – Profit

 

Just click on the picture to make it largerSTEP TWO Fill in the “Purchase Cost” and “Shipping Cost.”

 

Just click on the picture to make it largerSTEP THREE Then fill in the eBay insertion fees, which for fixed price listings is $0.35.

 

Just click on the picture to make it largerSTEP FOUR Now skip the next three boxes ad fill in “eBay Price.” It doesn’t matter what number you put in for now.

 

Just click on the picture to make it largerSTEP FIVE Now go back to the “eBay Final Listing Fee.” If your item’s selling price is $50 or less, the eBay final value fee is “8.00% of the closing value”, so input this formula:

=G2*0.08

Or, if your selling price is $50.01 or above, the eBay final value fee is “8.00% of the initial $50.00, plus 4.50% of the remaining closing value balance.” So you would input this formula:
=(50 * 0.08)+((G2-50)*0.045)

If you’re really going for broke and selling something for $1000 or more (say you are selling Batman’s Tumbler or your pet Ewok online) then the final value fee is “8.00% of the initial $50.00, plus 4.50% of the remaining closing value balance up to $1000 and another 1% commission on the remaining closing value balance past that. So you would input this formula…

=(50 * 0.08)+((G2-50)*0.045)+(G2-1000)*0.01)

In this case let’s just stick to $120

 

Just click on the picture to make it largerSTEP SIX PayPal’s fee structure for any item under $3,000.00 is “2.9% + $0.30”. So in the field below “PayPal Fee”, insert this formula:
=(G2*0.029)+0.3

 

Just click on the picture to make it largerSTEP SEVEN To sum up all your costs, use this formula in the field below “Total Cost”:

=SUM(A2:E2)

 

Just click on the picture to make it largerSTEP EIGHT Now the last, and most rewarding step: profit! Put this formula into the field below profit to subtract your costs from your eBay selling price:

=G2-F2

 

Just click on the picture to make it largerThat’s it! Now you can experiment with the “eBay Price” to see how changing your eBay selling price affects your profit margin.

When you change the eBay selling price, the eBay final listing fee, Paypal fee, and profit values will all change automatically. Cool, right?!

Chinavasion’s website lets you see all product prices and shipping costs upfront, and now with this simple eBay fee calculator you can see all eBay and PayPal fees before you decide to sell a product.

Dropshippers, armed with all this information you can become a lean, mean eBay powerselling machine! So keep an eye on our new Products page every day and be the first to sell our latest gadgets from China on eBay! Make us proud!