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.
— John Wilkerson 🎙 (@jwilkers) January 12, 2017
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.
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