[SOLVED] Formula to calculate listing price after ebay, paypal and postage fees?

Zachary on 10/09/2017 - 02:29
Last edited 10/09/2017 - 19:51

Answer: (Profit + Postage + Paypal fixed rate) ÷ (1 - (Ebay + Paypal % fee))

Saves anyone else whose in the same position as I was and instead of having the trouble of scrolling down and reading all this when you can just skip to the formula…

Original thread post:

Ummm, hope this is the right section, I thought there'd be a maths section but there isn't one here….so I guess "Education and Work" would the next closest thing? If not please move it to the appropriate place however you see fit…

My maths is really really rusty - haven't used it in like a few years long kinda rusty and I'm having trouble figuring this out….lel yes I know it looks very simple, at least to me, but for some reason or rather, my brain isn't working…or I lost some brain cells after a while…? GG Anyways, there is already an online calculator for it but it doesn't take into account any postage and handling cost nor does it allow you to edit the ebay fees (should be 10.9% or 10.89% NOT 10%) at the reverse calculator section: http://www.newlifeauctions.com/calc.html

Now assuming all buyers will pay via paypal, so far this is formula I have:
Profit = Listing price - ebay and paypal fees - postage cost

…which can be rearranged to:
Profit + postage cost + ebay and paypal fees = Listing price

Lets say I want to profit $100 on an item, postage is $10, ebay fee is 10.89% of listing price(or 10.9% as apparently they've decided to round up one decimal point…. …and assuming I'm taking advantage of their free insertion fee offer and that I don't have any other costs/expenses involved) and paypal fee is 2.6% of listing price + $0.30, what should the listing price be?

If using the above rearranged formula, I get:
100 + 10 + (100 x 0.135 + 0.3) = List price
-> 110 + 13.8 = $113.80 $123.80

Therefore $113.80 should be the listing price, yeah? But when I do the reverse which is how ebay and paypal will look at it from:
Profit = Listing price - ebay and paypal fees - postage cost
-> 100 = 113.80 123.80 - (113.80 x 0.135 + 0.3) - 10
-> 100 = 113.80 123.80 - 15.663 - 10
-> 100 ≠ 88.137 98.137

So how do I get 100 = 100, and not 100 ≠ 88.137 98.137? Unless I'm doing all this wrong, in which case, do please enlighten me…?

Education & Work

Comments

  • oscargamer on 10/09/2017 - 08:10

    List it for $200, then give the excess to me.

  • IdLikeToBeATree on 10/09/2017 - 08:29

    Profit + postage cost + ebay and paypal fees = Listing price

    I don't think it works this way because you don't know what the ebay & paypal fees are until you work out the listing price?

    and
    110 + 13.8 = $113.80

    is actually = $123.8

    using your other formula
    Profit = Listing price - ebay (10.9) and paypal fees (2.6%) - postage cost

    Profit = 123.80 - 13.5% - 10
    = 123.8 - 16.71 - 10
    = 97.09

    But I believe ebay fees are inclusive of postage.. So you'd have to use

    e.g listing price 123.8 postage 10

    Profit = listing price - postage cost - ((listing price + postage cost) x .135) - 0.30
    =123.8 - 10 - (133.80 x .135) - 0.30
    =113.8 - 18.063 - 0.3
    Profit =95.43

    • Zachary on 10/09/2017 - 12:44

      I don't think it works this way because you don't know what the ebay & paypal fees are until you work out the listing price?

      That's why I wrote up a formula…so in an attempt to get it so that listing price = such and such… and from there I would input values to test… which I either failed to do or did it incorrectly…

      and
      110 + 13.8 = $113.80

      is actually = $123.8

      Wooops, that must have been typo…or had a brain fart….it was late at night after all! :P I'll go amend that…

      Profit = Listing price - ebay (10.9) and paypal fees (2.6%) - postage cost

      Profit = 123.80 - 13.5% - 10
      = 123.8 - 16.71 - 10
      = 97.09

      You forgot that paypal also charges a fixed rate fee….

      But I believe ebay fees are inclusive of postage.. So you'd have to use

      e.g listing price 123.8 postage 10

      Profit = listing price - postage cost - ((listing price + postage cost) x .135) - 0.30
      =123.8 - 10 - (133.80 x .135) - 0.30
      =113.8 - 18.063 - 0.3
      Profit =95.43

      Listing price is supposed to also already include the cost of postage…so no need to add an extra 10 to that 123.80 figure. But the thing is, I wanted to find what the listing price needs to be to have my targeted profit figure…

  • callum9999 on 10/09/2017 - 08:33
    +1

    Aren't the eBay and Paypal fees calculated on the list price? In which case the formula would be:

    Profit + Postage + eBay/Paypal fees = List price

    100 + 10 + (0.135 * List price + 0.3) = List price

    110.3 + 0.135 * List price = List price

    110.3/List price + 0.135 = 1

    110.3/List price = 0.865

    110.3 = 0.865 * List price

    List price = $127.51

    • Zachary on 10/09/2017 - 13:08

      ….ah yes……

      I had the ebay/paypal fee multiplied by the profit figure for some reason…and not the listing price, you're right!

      …

      And if we input this figure into the reverse calculator that ebay/paypal will use to work out their cut:
      Profit = Listing price - ebay and paypal fees - postage cost
      -> 100 = 127.514450867052 - (127.514450867052 x 0.135 + 0.3) - 10
      -> 100 = 127.514450867052 - 17.51445086705202 - 10
      -> 100 = 100

      Awooaaaaa perfect! Thankyou! Where do you live? I might send some eneloops to you for thanks! :P If not, you have my up most gratitude and respect!

      Now to turn this into a calculator of sorts(So I don't have to keep doing this manually everytime for a different profit value) so that I can input any value for profit and get the listing price needed that will cover ebay, paypal and postage costs and still meet the targeted profit figure!

      • Zachary on 10/09/2017 - 19:44

        Aha got it:

        (Profit + Postage + Paypal fixed rate) ÷ (1 - (Ebay + Paypal % fee))

        …in case anyone cares…do what you will with this equation. 😁 I've made an Excel spreadsheet with this equation and works, so I'm set!

        Thanks for those of you who contributed! ☺

  • barbarella on 10/09/2017 - 09:59
    +1

    Are you including what the item cost you originally?

    • Zachary on 10/09/2017 - 13:14

      No, I am assuming item cost is $0. I'm just a casual, not a hardcore businessman selling all sorts of stuff on ebay as my main source of income, hence why I mentioned about the free insertion fee offer and that no other costs are involved in the calculation, other than ebay, paypal and or postage. 😛

      • Aniseed Steed on 10/09/2017 - 13:20

        Are you charging the buyer the actual postage cost, with no handling fee? If so, you will be at a loss, with respect to the postage cost, since both eBay and PayPal will take a fee out of the postage that you charge the buyer.

        • Zachary on 10/09/2017 - 13:50

          OK, I guess I should have re-worded my thread post more explicitly, but no; postage cost also includes any handling charges as well as the postage…. So the separate postage cost will be "Free", as shipping and handling is also included in the listing price.

  • Aniseed Steed on 10/09/2017 - 10:36

    Net profit = (Final Sale Value + Postage & Handling charged) - (Cost Price + Actual Postage + eBay Fee + PayPal Fee)

    • Zachary on 10/09/2017 - 13:58

      Yes, but I don't charge a separate postage and handling fee( as it's all included in the final sale value as you say it, if any), nor do I take into account the cost price of the item.

      My goal is to set the net profit and find out what the final sale value, as you put it, should be for me to receive my targeted net profit value.

  • koalafied on 10/09/2017 - 13:17

    Here you go, does the job http://finalfeecalc.com

    • Zachary on 10/09/2017 - 13:52

      …you can't edit the ebay or and paypal fee as their values are different to what we have in AUS….

  • peter on 04/03/2019 - 01:06

    It's worth reading this: "The Full Cost of Selling on eBay" at https://www.channelreply.com/blog/view/cost-to-sell-on-ebay. Short version: If you want your customers to cover the cost of selling on eBay, calculate the price you will charge as "x" using the following formula: x – [(total percentage fees * x) + total fixed fees] = amount you want to receive after fees.

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