On last nights show with Danni Ackerman – Ask The Danni App… we saw this question asked several times:
Is their a huge difference in fees for Amazon FBA vs Selling On Ebay??
NOTE: You can listen to this show here: http://www.spreecast.com/events/ask-the-danni-app-show-ebay-power-hour
I took up the challenge to find out exactly what it “costs” to sell a product on Amazon FBA vs. Ebay.
(This is sort of like trying to figure out the diffence in selling a product through Auction or Buy It Now or Ebay Store listings… I’m always confused).
If I get this wrong – you be sure to give us a shout out and set us straight.
I chose a product that didn’t sell quickly – so I could add in storage fees to the Amazon side of things.
I’m going to compare selling a book on Amazon FBA vs Selling it in a store on eBay. This seems like an Apples to Apples comparison.
Bought for $3.00 / Sold for $25.00/ Amazon paid me $18.16/Profit $15.16
Bought at a Thrift Store – 7 months to sell. Storage Fees .07 – Shipping fees – .25 (For the book shipped to Amazon Warehouse)
Net Profit = $14.84
Condition = Used – Very Good
You can see that Amazon charged me a total of -$6.84 in fees (not including storage fees).
I paid .07 to store this book for 7 months.
I paid .25 to ship this book to Amazon.
Total charges $7.16
This does NOT include additional Pro Account Fees (I will explain that in just a bit).
What If I Sold This Book On Ebay?
Sold in Ebay Store – $25 (I used the eBay Calculator: http://pages.ebay.com/sellerinformation/news/Feecalculator.html#
I did NOT include the shipping cost or FVF for shipping. If your comparing apples to apples – you are offering free shipping to your customers as Amazon will for a $25 product.
So… what does it cost to ship a book this size? I’m guessing $2.50? Am I close?
Now your fees have increased to $5.95.
Store Fees VS Amazon Pro Account
Beth and I have an Amazon Pro Account – which means we are charged $39.99 per month – no matter how much (or little) we sell. If you choose not to use an Amazon Pro account flat fee… you will be charged an extra $1 per product sold – no matter how much (or little) you sell.
A basic store on Ebay costs $15.95 per month.
So for this instance – I will calculate that I pay $1 per product sold for my Pro account. This assumes I’m selling 40 products per month.
A basic Ebay store seller would calculate .40 per product – based on selling the same 40 products per month.
Additional Paypal Fees
Ebay sellers also have an additional Paypal fee… 2.9% transaction fee on the total sale amount plus a $0.30 fee per transaction. It looks like the fee for this transaction would be .73 cents plus .30 – right?
Paypal fees total $1.03 on a $25 sale.
The Grand Total For Selling This Book On Ebay
$5.95 – shipping and Ebay fees
$.40 – store fee
$1.03 – Paypal fees
Total = $7.38
The Grand Total For Selling This Book On Amazon FBA
$6.84 in fees (not including storage fees).
.07 to store this book for 7 months.
.25 to ship this book to Amazon.
$1.00 – Pro Account Fee
Total = $8.16
It Did Cost Me More To Sell This Product On Amazon FBA
Difference = 78 cents
I’m all for saving a few pennies… but the benefits of Amazon FBA outweigh the time I save.
p.s. As an added little tid-bit of information… almost every product I sell on Amazon qualifies for selling Internationally. AND… I couldn’t find this specific book sold on Ebay for $25 (including shipping).
Beth and I are not against selling on eBay – we just don’t have time to do it all. We go where the most profit is.