Now that you’ve taken the plunge into cross listing, one of the next steps is to create a different pricing strategy for each platform, taking into account the different fees charged by each platform. Know your numbers! I cannot stress this enough. Reselling fluctuates quite a bit so it’s the little things like this that make the biggest difference in the end. This is the part that you can control so taking initiative is key, ultimately you’ll gain more control over your roi. The price you sell an item for is not the only time you make money, the cost of the item plus the cost to sell the item minus the sale price should be taken into account when deciding if the item is worth selling or if you should keep searching.
Below is a simple breakdown of the current fees. eBay is a bit more complicated due to all the promoted options. I just have a simple basic fee breakdown.
“If you don’t know your numbers you don’t know your business.” – Marcus Lemonis
For all sales under $15, Poshmark takes a flat commission of $2.95. You keep the rest. For sales of $15 or more, you keep 80% of your sale and Poshmark’s commission is 20%. Once your sale has been delivered and received by your buyer, the earnings from your sale are yours.
Mercari charges sellers a market competitive rate of 2.9% plus $0.30 for each payment received from the buyer. We do so with the added convenience of not requiring you to sign up for a separate processing account.
Grailed’s 9% + 2.9% and a 30 cent Paypal fee equates to 11.9% + 30 cents.
Etsy fees are .20 cents per listing, 5% transaction fee, and an Etsy payment processing fee typically costing 3% + $0.25 which allows you to accept payments from your buyers!
eBay has so many fees that it would literally take a novel to explain it all but here’s a very basic run down:
Store subscription options start at $4.95 a month and go as high as $2995.95 per month but that includes 100,000 listings a month! Can you imagine storing all that inventory?! Listing insertion fees do vary depending on your store subscription. In addition, most item categories incur a fee of 12.9% on the total amount of the sale up to $7500 per item plus .30 cents.
However, clothing fees are 15% of the total amount of the sale if the amount is $2,000 or less, calculated per item or 9% if total amount of the sale is over $2,000.
Also Promoted Listings Standard is available to Above standard and Top Rated sellers in with enough sales activity. And eBay also offers promoted listing express and promoted listings advanced … it gets pretty complicated..like I said I could write a novel…. Or two if you include how to implement them.
In addition to creating different pricing strategies based on fees, your offer sending strategy should also be revised to consider fees. Generally speaking I take lower offers on mercari & posh than eBay because in addition to a store subscription fee I use promoted listings which extremely bumps up fees.
It’s a lot to think about, but it’s necessary. In the end every penny counts especially as a small business. Resellers often wear alot of hats. Personally, I am my own IT dept., I handle my own customer service, inventory management, sales & marketing., management, sourcing, listing & crosslisting, and shipping but the most often and easiest over looked is the financial aspect. If someone were to ask you, ”What your net sales were last year, across all platforms?” How long would it take you to answer?
“Know your numbers. What do you need to be financially independent? You can’t run towards a finish line you have yet to establish.” -Ann Marie Houghtailing