Hi Gang!
Today I want to share with you how to make money (or at least break even) on your eBay auction shipping costs. This is really very simple!
The first thing you need to know is what your maximum cost per shipment is. For most of my products I use the USPS Priority Mail service. The added bonus for using Priority Mail is that you get all of your shipping boxes for free. Another added benefit is that you can ship your auction product and create the USPS Priority Mail label directly from PayPal or from USPS Click N Ship. What I do is figure out the highest possible weight for a product. For instance, if I'm shipping several models of the same item I figure out which package weighs the most. Then I go to the USPS Rates & Fees Simplified page and click on "priority mail".
When you click on this link you will see the highest possible price for shipping by weight for Priority Mail. I always choose the highest rate, and add my insertion and final value fees to the total cost , and come up with my shipping rate. Let's look at an example: I'm shipping a package that weighs 4 pounds and 3 ounces. I go to the rate page and find out what the most possible shipping charge for this weight class is. In this example it is $10.35. Then I look at my insertion fee and my PayPal fee and my most likely final value fee to find out the total cost.
If a product is most likely to end at $100 and I can start the price at a penny, then I know that my insertion fee is 30 cents, my PayPal fee will be $3.20 and my final value fee will be $3.37. All totaled together my eBay fees equal $6.87. If I add the $6.87 to my most expensive shipping cost of $10.35 I come up with $17.22 which I would then round up to a $17.95 total shipping fee for that product.
Following this model I can effectively eliminate all charges that I would incur in running my auctions. And most of the time, the fees are actually less than the estimated cost so I end up making money! Let's hear it for more profits!
That's all for today. Log in again later . . . same Bat Channel . . . for more ways to increase your online eBay profits!
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