I’ve sold more on eBay in the last three months than in the last 5 years combined. Despite that I’ve come to realize that I need to have more inventory in order to reach my goal.
Also, I’m going to have to start sourcing soon. Once the garage sale season hits, prices will drop because more people will be listing what they’ve found. Watch the video…
You’ve found products you want to flip but how much will you have to #hustle to profit (not earn) $20,170?
We’ll keep the math simple. First, let’s round down to $20K. Now, let’s assume you sell each item for $10, that’s 2000 items you need to sell just to get $20K in sales. You need to sell (not list) about 168 items a month at $10 each just to get to $20,170 in sales.
PayPal is going to take 3% of your sales and eBay is going to take 8%-11% in fees. These are conservative estimates. Let’s take the lower eBay estimate and say a total of 11% in sales goes to fees. So, if we factor in the fees, you need to get $22,663 is sales now.
If you have buyers pay for shipping on all items, that’s pretty much it (there’s cost of shipping supplies but that can be easily mitigated—more in a later post). But, if you want offer free shipping (on small items under 6 oz. you should) you need to calculate the cost of shipping into your sales. Assuming $3.50 an item for shipping and packaging you need an extra $7000 bringing your total to $29,663 dollars. Let’s call it $30K.
So, if you want to profit, not just earn $20,170 this year, you need to sell $30K on eBay. At $10 an item that’s 3000 items in a year or 250 items for $2500 a month. Assume that 1/3 of your sales will go to fees and shipping.
I know there are a lot of assumptions here. You could sell some big-ticket items and there are ways save on shipping but I’m willing to bet that on average, if you want to profit $20K this year you’ll need to #hustle more than you think.
Here’s something else to consider: if you only earn $20,170 from flipping products you’ll keep about $15K after you’ve paid fees and shipping. It’s still not a bad little bit of pocket money.
Looking for an easy way to ship items? Try ShipStation today.
Podcast: Play in new window | Download
This year I’m challenging myself to earn more money online. I’ve been earning money online for years but lately I’ve been coasting. As a result, my extra earnings have dropped. So, to get myself in gear I’ve decided to participate in the #2017FlipChallenge. If you haven’t heard about the #2017FlipChallenge yet, check out this video (Warning: language):
Honestly, I find it hard to believe I can earn an extra $20K this year. It would require a lot of time away from my current obligations but if things go well, I could get at least half that much.
I’ve decided to set some personal goals for the challenge:
- $2,017 worth of sales in one month. Garage sale season comes late around here but I think if I hustle enough, I can sell that much in a month. That’s a summer-time goal.
- Double my affiliate sales. I have affiliate agreements with a few companies and I’d like to double those numbers this year.
- Earnings equal to 10% of my current salary. I’m not going to reveal that number but a 10% bump in my earnings would go a long way.
- A stretch-goal of earning 20.17% extra of my current salary. That’s going to be real hard.
OK, some definitions:
A sale is the final value of an item or service sold. Earnings is the amount of money earned from affiliates and items and services sold (after cost of items sold, fees, etc.).
How about you? Do you have any plans to earn more money online this year? Share them in the comments below!
What do you think? Share your thoughts with me on Twitter using the hashtag #10podcast.
Help spread the word about the podcast. Take a minute or two and rate and review the podcast in iTunes.
Disclosure of Material Connection: Some of the links in the post above are “affiliate links.” This means if you click on the link and purchase the item, I will receive an affiliate commission. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”