How to Calculate Your Real Profit Per Item on eBay

The profit formula

Profit = Sale Price − (Purchase Cost + eBay Fees + Shipping Cost + Packaging + Returns Reserve)

Costs most sellers forget

• eBay final value fee: 11-13% of total (including shipping)
• Promoted listings fee: 2-15% if you're advertising
• Packaging materials: $0.50-$3 per item
• Returns: Budget 5-10% of revenue for returns
• Time cost: Your time has value — factor in listing, packing, and shipping time

Example calculation

You sell a shirt for $30 + $5 shipping = $35 total

• Purchase cost: $8
• eBay fee (13%): $4.55
• Shipping label: $4.50
• Packaging: $1.00
• Returns reserve (8%): $2.80
• Real profit: $14.15 (40% margin)

Without accounting for returns and packaging, you'd think you made $17.95 — a 27% overestimate.

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