When it comes to listing an item on Amazon or eBay or any of the other myriad of online marketplaces that permit 3rd party sellers, there is little that is more important than price. Get that wrong and you could sell at a loss or never sell at all if the price is too high.

When you buy in your goods at cost you’ll want to list them with an appropriate mark up, but how can you arrive at a mark-up that you are 100% confident doesn’t leave you in trouble. The problem is there are a wide range of costs you need to include.

You need to think about postage and packaging, listing fees, final list fee commission, sales tax and VAT. If you don’t calculate those correctly and in the correct order you’ll go wrong. And in particular you’ll need to include the final listing commission within the final price you come up with – which is a bit chicken and egg.

If you would like to get to grips with how to accurately calculate things then the answer lies within the “How To” manual on the Seller Dynamics site. It takes you through the workings of how to calculate your minimum margin, it’s trickier than you think – it’s not just a case of adding on 50% or so and hoping for the best. You might be surprised if you try the formula against some of your listings.

The ecommerce handbook for marketplace sellers.


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