The Real Cost of Reselling on eBay
HTML-код
- Опубликовано: 6 июл 2024
- Knowing where your revenue is going is important for a business of any size so in this video I'll reveal every single expense that I have to run and operate my 6 figure store reselling on eBay.
00:00 What it costs to run an eBay store each month
00:36 eBay final value fees
00:59 Promoted listing/advertisement fees
1:33 eBay store fee
1:51 International sales tax
2:22 Cost of goods & inventory
2:58 Fuel expense
3:25 Postage
4:03 Packing & office supplies
6:22 Stationary & printing
7:06 Software
7:33 Phone & Internet
7:45 Utilities
✦ Website
drewdtrott.com
✦ Socials
/ drewdtrott
/ drewdtrott
/ drewdtrott
/ @drewdtrott
/ drewdtrott
/ discord
✦ Gear
Camera: amzn.to/43XMwsr | (AU) amzn.to/3Ooj2yZ
Lens: amzn.to/3rZY5SM | (AU) amzn.to/3SFdYcj
Battery Kit: amzn.to/3nck7iL | (AU) amzn.to/48Uu1bU
Microphone: amzn.to/49Cr67I | (AU) amzn.to/42GGWMj
Light: amzn.to/3G7pCGj | (AU) amzn.to/3OpSXzT
Softbox: amzn.to/3OM72rW | (AU) amzn.to/3Oo3AmC
✦ Disclaimer
Clicking the links above earns me a commission; I only endorse and promote tools/resources I use and recommend.
#ShipStation #ebayreseller #reselling
Thanks for sharing your numbers Drew - as Beowulf said its one of the most thorough breakdowns a reseller has shared (with Chris & Brad/Jaz) and it allows us other resellers to gauge how we are performing. Would love to hear more about shipstation. Great work
Thanks Dave that means alot. I'm so glad you guys are enjoying this one and is giving some food for thought around the operation side of things. I'll be working on a Shipstation video shortly also.
Great video mate! You can see you've really thought through the expenses over time and experience of running the business. For instance that little change by thrifting less not only saves on time but also the fuel. You can make little changes like this across a range of categories and it all adds up!
Thanks Ethan, trying to keep it lean at the moment as I know storage space will be added to this list in the next 6-12 months so making sure all the monthly ongoing stuff is in order before taking the leap. It was a fun video to put together and get my thoughts out on my operation, I’d love others to do similar videos to see where we can all trim the fat. Appreciate the help and support as always mate
Great video man, lots of food for thought & I think I need to go over my data again too and see if there's anywhere I can cut down expenses.
Appreciate you watching Bianca, every business operates based on purpose and what their customer desires. Always plenty of unnecessary steps or tools or supplies to cut out the make things better and more efficient
Best breakdown I've ever seen. Hurts a bit doesn't it ha-ha. *Maybe just leave the harder and heavier items for the laundromat? that might halve that cost? Other than that, I'm sure there will be a lot of comments on cutting costs BUT it does come down to how you like to run your business after all, I'm sure your return customer numbers are getting higher than you ever thought? Well done Drew.
That means a lot thank you, powerful exercise to do for any business. So many ways to reduce expenses and I’m all ears for suggestions so I appreciate the input. The return customers are coming back quite frequently and generally buy the same sort of items in the same sized bundles so I’m learning alot about what those loyal customers want. Thanks again for taking the time to leave your feedback
Nice breakdown I need to work mine out ..one day ...maybe
Thanks Nelly, maybe find an hour over the next month to break it down and see where you at. I have no idea what % would be considered super lean or wasteful but if my video can help create a bit of a gauge for others then that’s all that matters. So glad you enjoyed it
Great Video Drew- thanks for sharing real figures! It’s super helpful.
No problem, I thought it would be an interesting experiment to break it down in video form rather than just living on a spreadsheet. So glad it helped
Very interesting video, would luv to see how you do your tax, tax reductions and tax return.
Thanks for watching. I like the suggestion however it’s a bit out of my scope and area of expertise - probably not something I could give clear enough info on.
Great video as always!!! If I was you I would employ S M Zeus!!
Great video mate. Thanks for the share. Would you be able to share what you do when it comes to tax?
Thanks Jym, appreciate you taking the time to watch. In terms of tax I put a certain % aside every payday from eBay using the Profit First technique (you can google and read up about this), then see my accountant who deals with all the specific tax stuff. The main thing is figuring out what % to put aside to cover your tax needs depending where you're located or what other income streams you may have. Hope that helps champ
Great breakdown mate. Yeah, I usually look at sales, fees and postage. I need to start looking at every expense like you are. Thanks
Thanks champ appreciate the comment. I usually just look at the profit per item and some rough numbers each month but sometimes they don’t factor in other important expenses to get a real Birds Eye view of the store. Hope this helped
@@DrewDTrott yes, very helpful.
This is awesome!! Going to add this to my list to see where else I can save some $$ moving forward and generate more profit 🎉🙌
It’s a must I think, I wouldn’t stress about doing it all the time but once a quarter will help put things into perspective a lot more. It’s helped me a bunch looking at it from this angle rather than just each itemised sale
Upgrade to a feature store and save ~$200/mth in fees. Aren't you paying GST? That's another $2K+ expense. Do you see this as sustainable? The average full time male salary in Australia is ~8K/mth.
Appreciate your insight Claire, some others have mentioned upgrading my store so I’ll look into that next week. Yes, I am registered for GST but it’s not exactly as simple as paying a $2k expense , as I pay GST on business purchases as well. In regards to comparing to other salary options, I guess it depends on where you choose to source your data from, what life you want to live, what industry you want to work in and who you want to answer to. I believe it’s sustainable otherwise I wouldn’t be doing it. Thanks for leaving a comment and raising some food for thought
Solid insight mate! The laundromat one is interesting I’ve been researching how to bring in to the scope of the business… my location is a killer as no one delivers/picks up here haha… almost joked to myself… should start a laundromat business and then it would have a constant flow of income… haha from myself 😅🤓
Keen to see this in 6months :) or 1 qtr
Thanks champ, it was really convenient and we were getting prioritised a lot compared to other customers due to the sheer volume but it started to cut into the amount available for new stock. Having everything prepped and folded was a great time saver but I’ve changed up the approach a bit and commit time once a week to getting it all done at home, I think I may go back to the laundromat after Opex has really built up where it’s not impacting other expenses. Appreciate the comment buddy 💜
You know what? That's not a bad idea ha-ha, except for the power costs. NSW is a killer. 😊
@@DrewDTrott they way I’ve been trying to assess is modeling it into the purchases meaning breaking down the cost average per item. Works out like $1.4 per or so, even less in some instances.
That makes sense, could totally work that out because I know exactly how many items fit on each set of racking (as mentioned in last video knowing the exact amount of cubic space). Not far off from a storage unit just holding out until next FY
Haha you’re not wrong, it’s much cheaper to do from home but at a certain point the time spent rotating stock is taken away from the business. It’s a fine balance that I’ll work out over time
Don't forgt GST.
Thanks for the feedback. I just lodged my first BAS statement so GST is new to me and I will touch on it next time I do one of these videos when I have more helpful info about it. Still a rookie at this - appreciate the comment
@@DrewDTrott Another thing. I would recommend upgrading your ebay store to the mid tier store. $74.95 a month. But, ebay fees come down to 10.7%. So that extra $50 a month is really no big deal.
@@jasonfoster7403 thanks mate, I haven’t considered that honestly and will be something I’ll look into going further. I plan on scaling the store alot more this year so that lower fee would be fantastic. Thanks again for the comment