Another Friday, another Reader’s Question blog post!
Today I want to talk about profit margin and specifically what margin you can and should be ready to accept when selling on eBay. Pretty much the same principles will apply to Amazon too but if you’re running your own online shop, these numbers will be (well, they should be) different as the whole point in having your own online shop is to have much healthier margins compared to eBay and Amazon. More on that later.
So here’s the email Karen sent in:
Hope all is well!
Love reading your blog, so thanks for that!!
Just wondering – was reading your latest post and it got me thinking – what would you consider a good profit per item on eBay? 30p? 40p? 80p?
What sort of profit per item should you aim for?
Thanks again and keep up the good work!
Thanks for your email & question, it’s a good one! 🙂
First of all – you can’t really talk about potential profit per item without taking into account things like:
This is probably the most important one – you can’t expect to make the same level of profit on an item that sells for £2 and an item that sells for £50 or £100. I mean of course you could accept just £1 profit on a £50 item but why would you want to? If you get one return or defective item out of 50 sales and have to refund, you wipe away all profits you made from the last 50 sales.
So you need to look at the target selling price to see how much profit you should aim for. [Read more…]