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PRICING 12 min read

Margin math: the only spreadsheet you need

Most sellers calculate margin wrong. They forget promoted listing fees, return shipping, chargebacks, and PayPal disputes. Real margin is 4–7% lower than the number on your spreadsheet.

Margin math: the only spreadsheet you need

The full margin formula

Real margin = (Sale price − eBay fee − payment fee − promoted listing fee − shipping cost − return reserve − chargeback reserve − COGS) / Sale price

12.9%

Avg. eBay fee

3–8%

Avg. promoted listing

2–5%

Return reserve

Numbers to track per SKU

  • Landed cost (product + inbound shipping + duty)
  • eBay final value fee (varies by category)
  • Payment processing (~2.7% + $0.25)
  • Promoted listing rate (your set %)
  • Outbound shipping (often subsidized)
  • Return rate × return cost
  • Chargeback rate × chargeback cost

READY WHEN YOU ARE

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