Increased difficulty to sell on eBay as profit margins continue to decline

ebay profit margin calculator

Those who think that selling on eBay simply involves logging into your account and listing an item are mistaken. At least, if one wants make sales while achieving healthy eBay profit margins. Let’s break down eBay’s typical costs of sale to get to our profit margin.

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Why Some eBay Merchandise Should Be Liquidated

unsold eBay merchandise

Liquidation of unsold eBay merchandise can immensely enhance the financial position of your online business.

Do you have new goods in stock that haven’t sold in over three months? Or perhaps you have refurbished / used goods that have been around for over six months? Those items can become harmful to the wellbeing of your organization  – sort of like a blocked supply route. Your cash (or capital) is physically locked in and could hinder your prosperity.

We suggest you start every new quarter of the year by analyzing immovable merchandise. You should always try and liquidate the good that are stuck in your storefront. Remember, unsold merchandise diminish your sales goals.

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Tips to improve eBay inventory management

Tips to improve eBay inventory management

Your sales success on eBay depends on proper management and organisation. Inefficient eBay inventory management can give rise to costly mistakes and create a negative impression of your business. You may lose customers because you find yourself selling items that you no longer have in stock for example and in the end you land up with unhappy customers who leave negative reviews with disastrous consequences on your business’ bottom line. In short, you need to streamline your eBay inventory management processes and you’ll your see profit margins take off.

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Slow Moving Inventory: How to Deal with It (Part 2)

Slow Moving Inventory

You have determined your slow moving inventory items, now what? 

Stock that sits in your warehouse and does not sell or sells extremely slowly costs you money!  The space and the capital they take up can be better utilised on faster moving products.  Once you have identified your slow moving inventory, you have to put a plan in to action to reduce your slow moving merchandise quickly and efficiently.

Some of the simplest methods to reduce stock consist of ‘Special Offers’, where the pricing is reduced to try and turn over the stock as quickly as possible.  There are however a few other methods that you can try before you go this route.  How are the items marketed?

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Slow Moving Inventory: How to Deal with It (Part 1)

slow moving inventory - liquidationOnce you have been selling online for a period of time, you inevitably end up with some slow moving inventory. What’s slow moving inventory? It is the stock that just doesn’t move or moves very slowly in comparison to your other stock items.  These items take up valuable space as well as retain the capital you expended in purchasing the items.  Sometimes, as the items age, they can become even less valuable and result in further losses.  Your business growth could be hampered and even totally stifled by having too many slow moving inventory items.  So what can be done to reduce the problem?

What is slow moving inventory?

Slow moving inventory item for you might not be the same for a different seller. Also, how you define your slow movers could differ too.  Here are a few basic ways of determining a slow moving inventory item.

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Retail Business on Amazon or eBay: Profit Margin Calculator

eBay and amazon profit margin calculator

Frankly speaking, there are two main components to running any online trading business. They are demand for your product and your profit margin. Profit margin calculator can help you assess the economics of the potential business. After careful analyzing the demand for a specific product or service, you are in a better position to conclude whether or not the opportunity is worth the time and investment. Once that part is clearly understood, you can more accurately estimate the profits you may earn. However, it all begins with whatever you decide to sell. So before getting into the finer details, let’s quickly look at the steps on how to properly understanding margin and gauging the demand.

Gauging Demand

So here’s a question. Are there really people out there searching for, or even more importantly, purchasing what you have to sell? Whether you are a seller on Amazon, eBay (Etsy, Shopify, etc) or all – the demand structure is easy to understand. Before making use of our Profit Margin Calculator, you should find out  how many people are actually looking for what you have to sell. To do that, use the Google Keyword Planner Tool.  However the tool will give you a vague traffic estimate at times,

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