How You Can Get Your Ebay & Paypal Fees For Free!

There are only selected few that know how this is done. They are the eBay elite you'll find them amongst the top rated and power sellers and usually have over 100,000 transactions. The reason why they have managed to achieve great success is because they have never had to pay their ebay fee's and Paypal fees from their profits. They Know every month that their calculated profit is going to be 100% accurate because of this method I am about to show you.

Do you think Paypal & Ebay charge too much for their fee's? Then why do you?! Ebay and Paypal fee's are part and parcel to Ebay! If you started your own online auction website which you can quite easily do you think you would be able to generate the amount of traffic Ebay produces? Do you think that even if you got the traffic people would actually want to buy from there? No! Just look at eBid, This is one of the closest auction sites to being a eBay competitor yet after being around for many years and thousands of signed up sellers hardly anyone buys on there. So if your moaning about ebay and paypal fee's you really need to see what your getting for your money. Where else could you go, place something for sale and it potentially sell within in minutes and being paid virtually instantly too? Nowhere. Ebay is one of the best ways to start making money online today.

Yes ebay and paypal eat in to your profits but if you had an old fashioned high street shop you would have to pay, rent,utilties,employees,rates. These are far more than what ebay charge. So is there anything you can do about these fees? Yes you can. The way you do this is intergrate the fees into your sale price before you start! So many people get confused how to actually calculate their fee's before they list an item and then cry about their fee's at the end of the month. If you calculated them in the first place you wouldn't think twice about them.

Here is how you do it.

First up if your selling your own item and it no longer has a cost price you just want to sell it. Lets say you want to get £50 for the item that is the amount you want to get after all fee's deducted. Now you're also going to find out exactley what it will cost the post the item out, lets say it will cost £10. So you now need to work backwards to find out the minimum price you will need to list the item for to make sure you end up with the £50 you want for the item.

Lets just be general for the fee percentages as these do change on ebay depending on catergory and starting price. So lets just say that ebay charge 10% of the sale price and Paypal charge 5% for any monies entered into your paypal account. Now you might be think just add 15% to £50 or even £60 (£50 sale + £10 postage = £60 ). Wrong!

Lets say you did that + 15% to £50, that will = £57.50. Lets say you list it as £57.50 buy it now with £10 postage. Total sale price £67.50.

Now lets work the fee's out properly. Ebay take 10% of the sale price ( not including postage ) and paypal take 5% of total amount of monies entered in to your paypal account ( including postage fee ).

So ebay will take 10% of £57.50 (can you see your already going to be out of pocket yet? ) that leaves you with £51.75. Paypal are now going to take 5% of you £67.50 the amount that went in to you account. £67.50 - 5% = £64.13. So paypal fees were £3.37. Take that away from what you was left with after ebay fee deductions. £51.75 - £3.37 = £48.38 so you haven't met your £50 sale price you wanted by just adding the fee percentages to price you want for it. There's also the listing fees as well. Now £2 out may not seem a lot on one item but if you get this wrong on multiple items your selling your fees will soon start to add up.

So you have to work backwards to get your desired profit you must go by your selling price not by your desired profit price. So you can start by saying list the item for £60 + £10 postage lets work out the deductions.Ebay fees - £60 - 10% = £54 (£6 ebay fee total ) Paypal fees £70 - 5% = £66.50 = £3.50 paypal fees £54 - £3.50 = £50.50 minus 40p listing fee = £50.10. Ok we go to your £50 profit target but remember Paypal took 50p of your postage charge so your actual amount you get profit is £49.60. Its not far off but this is where people get their fee's very wrong and do not calculate everything in to them before they start.

So lets say your happy with £49.60 pure profit from your £60 buy it now listing with its £10 postage how much can you wihdraw form paypal? all of it? no. Payapl take their cut straight away. You can on draw £49.60 + your £10 postage as the rest is taken by ebay at the end of the month. so lets do that £49.60 + £10 = £59.60. £59.60 - (£70-5%=) £66.50 = £6.90 and that is what is what you pay in ebay fee's and that is what should be left in the account.

Lets see if that's right. £6 ebay fee + £3.50 paypal fee + the 40p listing fee ( I bet you forgot that bit ) = £6.90

And that is how you get your ebay and paypal fees for free! By incorporating them correctly in the first place.

If you know exactley what you can draw out ( in this case it was £59.60 ) of Paypal, you will never have to "pay" for your fee's as the amount will always be left in there. You will always be happy too as you will always get what you wanted for the item.

If you're looking to make a living on eBay and living the life you've dreamed of then check out this site. You'll be amazed as to how you make money from the comfort of your home.

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