It Is Cheaper to Buy from CreativeDesign2u Online Store than from Ebay. WHY???

Many of you still send me emails asking why is it cheaper to purchase from my online store compare to the stuff I'm selling in my ebay store. Now, I'm already tired of answering the same old questions one by one, imagine I have to copy and paste more than 20 times a day of the same answer except for changing the name that I reply to, and so, I decided to publish the question here and answer it to everybody that are reading this post.

In case you don't yet know, there're fees being charged for setting up an ebay store. (That's how Ebay makes their income right?) I choosed the basic ebay store package and ebay charge me $19.95 monthly for that eventhough I do not make any sales there. So yeah, that's only $19.95 monthly if you consider this as a shop rental fee, which is dirt cheap; except that I am not paying as shop rental and I do not get to put my goods on a physical rack in a physical shop.

Did I mention that Ebay also charge additional fee on each item that I sell? It is call Final Value Fee (I call it a cut to the pimp of my items). See, Ebay is like a pimp that pimps and push my products like hookers (they call it marketing), and when I make a sales, they automatic take a cut from my sales whether I like it or not. How much does Ebay charge in FVF? It's 9% on top of each item's retail price. Example: say I'm selling a T-shirt for $14, eBay takes $1.26.

Well, that's not it, Ebay also charge listing fee on each item that I listed on Ebay. Let's make each item I listed cost $0.20 for 30 days listing period, after 30 days, relisiting an item for another 30 days will cost another $0.20.

So here's a simple calculation if I make only 10 sales sales this month:

Say I have 100 t-shirts that are selling at $14 each listing in my Ebay store,

Listing Fee = 100 X 0.20 = $20 per 30days

Final Value Fee = 10 X 1.26 = $12.60

Monthly fee for having Ebay Store = $19.95

TOTAL cost for selling only 10 t-shirts = $52.55

As you would know, I charge only $4.99 shipping fee on each item, and only $2 if you purchase the second item in combine shipping. This is a very reasonable shipping fee that just nice to cover all the necessary cost in packaging, stamps etc. I don't make any money from this.

So how much do I earn from this 10 t-shirts that I sold this month?

Assume I make $5 from each t-shirt I sell for selling in ebay store before adding the cost in:

10 X $5 = $50

Profit - Cost = Nett Profit

50 - 52.55 = -$2.55

I lost $2.55 for selling 10 t-shirt in Ebay this month!

And oh, did I also mention paypal takes a cut from each transaction my client made payment to me?

That's 2.9% + $0.30 on each item being sold

I sold 10 T-shirts to each individual = 10X ($14 + $4.99) = $189.90

Paypal fee = 2.9%(189.9) + 0.30(10 items) = $5.51 + $3 = $8.51

So what I really make for selling 10 T-shirts this month?

-$2.55 - $8.51 = -$11.06

Total lost in this business is $11.06

Now, what if I sell in my own store?

There will be no Monthly Ebay Fee, no Final Value Fee, and no Listing Fee. Paypal still charges fee because I am using an online store system that provide my customer conviniences and buyer protection from paypal.

So, let's say I sell all 10 t-shirts from my own store:

$30 (Profit for selling 10 t-shirts, say I sell at cheaper price and make only $3 each) - $8 (paypal fees) = $22.00

Hey! I make $22 even though I'm selling at a cheaper price!

I hope the above explanation would answer your question on why I am able to give discount prices from my ebay store and I can't do the same in ebay store.

 

To access CreativeDesign2u Online Store, please visit http://store.creativedesign2u.com

 

 

* All the above calculation was meant to be an example for illustration purpose only, the actual cost of products I am selling are not being disclosed.

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