How Hard Do You Need to Work to Make Money on Ebay?

This calculator explains roughly what work it takes to make money on Ebay. The two inputs are your profit goal – how much money you need to earn – and your expected average sale price.

The calculator makes a bunch of assumptions that probably won’t apply to your business. If you have a “business model”… you’re way beyond using this calculator. Don’t even comment to complain. This thing is for curious people and newbies.

The average sale price is just what you think things will sell for. So, for example, if you are buying a lot of comic books, and expect them to sell for $8, enter that. If you’re going to be picky about it, maybe the number will be $15.

It assumes the profit margin is 33%. For whatever reasons, this is a number that comes up a lot as a typical profit. You have some home runs, some triples, and many singles… and some strikeouts.

The calculator assumes that you can buy and list only 4 items an hour. That’s one of those assumptions that depends on what you’re sourcing and listing, of course, but 4 is a reasonable number if you’re buying something like collectibles. If you’re listing books, you can list way faster. If you’re buying expensive things, you’re going to take longer to source product.

So, have at it. Talk about your numbers in the comments.

If you felt like you needed $1,000 a week, and put that in, I’m sure the numbers are shocking.

You need to start small.

When you sell 1% per day, at the end of 30 days, you still have 70% of your inventory, more or less. So, you start the next month with a lot more inventory, and the 1% sell-through will mean more things sell, per day.

Eventually, the inventory will grow to the point where it’ll sustain your profit goal. However, the profit margins will drop as you reach this goal, because you will need to spend money on rent, on shelves, etc.

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