Help with Figuring out an eBay Financial Return

[swarmee]

I guess my question would be: for what purpose? For taxes or to make you feel better?

[ibuysportsephemera]

Good question...self edification. I never used to look at the eBay reports but now with managed payments I am paying more attention. In business I prepare and oversee million dollar budgets. I am the treasurer of my Volunteer Fire Company, so I am no stranger to numbers. I just can't seem to figure out which is correct and it is making me nuts. Any thoughts?

Jeff

[oldeboo]

What if you offered free shipping?

I'm pretty sure the Ebay calculation is right, your net divided by total brought in. Of course you can figure out a way to twist any number however you want to.

Much like when I'm a buyer on Ebay. My purchase price is item price+shipping+tax. Some people want to ignore that they paid shipping and tax, not how I see it.

I'm no finance guy though. (Maybe I'm thinking about this wrong too)

[ibuysportsephemera]

Originally Posted by oldeboo

What if you offered free shipping?

I'm pretty sure the Ebay calculation is right, your net divided by total brought in. Of course you can figure out a way to twist any number however you want to.

Much like when I'm a buyer on Ebay. My purchase price is item price+shipping+tax. Some people want to ignore that they paid shipping and tax, not how I see it.

I'm no finance guy though. (Maybe I'm thinking about this wrong too)

I absolutely agree with you as a buyer that the total cost including the shipping and tax is the purchase price.

Jeff

[D. Bergin]

I'm no accountant but I think you're overthinking things. You took in $25.95 total and after you paid for shipping and fees, you saw $18.72. End of story.

Not sure why you're giving yourself more credit for the shipping overage. It's pretty irrelevant to the total.

You're sticking it to yourself come tax time, if you keep your logs like that.

........................I think.......

[D. Bergin]

If I cleared 93.58% on every Ebay sale I made, I'd never complain about Ebay ever again!

[CTDean]

Both sets of figures are right.

You are doing the total return on sale price and shipping profit.

Ebay is doing the total return on the total collected - $25.95

[Jewish-collector]

Does it matter how much you paid for the item you're selling ?

[ibuysportsephemera]

Originally Posted by Jewish-collector

Does it matter how much you paid for the item you're selling ?

I keep detailed records of all of my purchases...but for my question above the purchase price is not a factor.

Thanks,

Jeff

[oldeboo]

Originally Posted by CTDean

Both sets of figures are right.

You are doing the total return on sale price and shipping profit.

Ebay is doing the total return on the total collected - $25.95

This is the answer above IMO, apples to oranges. They are calculations for two very different things depending on what you are trying to figure out. Neither number really has much value to a seller without calculating in item cost and other expenses, but if you are looking to isolate either of the above, that would do it.

[ibuysportsephemera]

Originally Posted by D. Bergin

If I cleared 93.58% on every Ebay sale I made, I'd never complain about Ebay ever again!

Dave..for the last 4 years (on my calculations) I average around 90% (without factoring in the monthly store cost).

Jeff