Inventory Metrics

[vettefever17]

As some of you know, I am an accountant by trade. I have always wondered how some of your metrics stack up to mine. I know everyone has completely different models, but I am more curious about active versus idle inventory. How much cash value or inventory do you have that cannot be sold because of risk versus your mainstays that turnover well. For instance, after years of doing this I have around 2300 in value that will have to be liquidated elsewhere than on ebay. But I typically run a 30 day complete turnover on other items that total 6-8k (wholesale) depending on product.

Also, what do you typically target as needed profit margin after cost? Do you run a value based system with depending on how high dollar the item is or a flat rate per item. Just curious about overall metrics, this is not a personal dig thread. Just a business nerd thread.

[Sunspot144]

$2 min profit. Then factor in time it takes to fill order.

My orders avg 3.5 minutes to prepare and package with the baseline $2 min profit. Comes out to $34.28/hr, but I know I'm making much more. Easier for me to think about it like that then to add it all up, which happens come tax season anyway.

I'd consider selling something with a $1 profit, if it took 2min to fill, which still comes out to $30/hr. Or even $0.5 per 1min.

Anywhere between 8k - 10k in inventory per month. Personally don't sell anything VERO or against a policy. TBH I don't actually know how many dollars worth of product I move every 30 days. A lot of my products after preparation are worth less than a dollar up to maybe $7. If I had to guess maybe in the $5,500 range...

Come next year though when USPS introduces their new zoning system with First Class Packages, it's going to wreck havoc on a lot of seller with small profit margins. If I remember correctly shipping a 4oz item across the country will cost as much as shipping a 16oz item now anywhere. I think we might see a lot of isolation and people buying locally, or from very nearby states.... then throw in some internet sales tax... but back to topic....

[Kajunrook]

LOL, I look for a $1 item to sell for $10, a $2 item to sell for $15 and a $4 item to sell for $20, a $20 item to sell for $100. When I get a $1 item that does not sell, I list for $.99 plus shipping and ship for 50cents so I make $3.48 before ebay and paypal. Some of my drop shipping items that come from Hong Kong I just mark up $2-3 and since shipping is free I am going to make the $3.49 shipping as profit plus 2-3 dollars.

[MM78]

I look for $15 items to sell for $90, I want massive profits.

[Sunspot144]

Just know $2 is being modest.... Some orders will match half the profit of all the rest together... this thread is asking for trouble anyway.

[ebaystealth1974]

Originally Posted by Sunspot144

I'd consider selling something with a $1 profit, if it took 2min to fill, which still comes out to $30/hr. Or even $0.5 per 1min.

Oh boy... I remember the high-volume low-profit days! My big-selling listing was only $1.45 profit each, but I could process 100 an hour. A killer rate that really paid off when you packed orders for a couple hours a day.

Wish I wouldn't have let that account go to sh1t. :(

[vettefever17]

Man, I never expected so much high volume low profit margins. I have a portion of items that are 2-6 dollars, but their overall mark up is around 300-500 percent. I mostly use low profit items as fillers. My idea is to make 100 dollars every month with one low value item. Then I have bigger items with major blocks of profit. Those items are getting hard to come by. 20 dollar plus profit items are tough these days with saturation and price wars.

[vettefever17]

Originally Posted by MM78

I look for $15 items to sell for $90, I want massive profits.

If only these items were abundant. haha

[Sunspot144]

Have to love how it all stacks up at the end of the day.

[newjerseymax]

I want at least 20% ROI with no longer then 60 days to turnover.

I don't care what the product is.

It has to be

1. In demand
2. 20% ROI
3. Wholesale (So I don't pay for ads)

[Kajunrook]

LOL I just posted 4 $2 items up for bid for $14.99 starting price and with 3 days left they are at $19.99, $23.50, $22.50 and $19, here's hoping it doubles in the next 3 days.

[Sunspot144]

Originally Posted by Kajunrook

LOL I just posted 4 $2 items up for bid for $14.99 starting price and with 3 days left they are at $19.99, $23.50, $22.50 and $19, here's hoping it doubles in the next 3 days.

Big profit margins aren't everything.... I recall you stated what you make in ecommerce... so I've got you beat selling at $2 min profits PT.

Yes I want a cookie now.

[Kajunrook]

LOL happy for you, I do this part time and I make mid 6 figures at me real job, this is my made money.

[Sunspot144]

Hats off to you, sir. That's more than most small-business CEOs.

[rsot]

Originally Posted by Kajunrook

LOL happy for you, I do this part time and I make mid 6 figures at me real job, this is my made money.

#golfclap

[phaz0rz]

- $40-50k wired monthly for inventory, probably a little more this time of year. Last year we sent $600k for inventory so that would average to $50k/mo.
- 90% of inventory sells within 3wks or so
- Boatloads of the same or similar items - not very diverse. Maybe 70 unique products total.
- Probably $7500-8k worth of dead inventory sitting around which can't be sold for one reason or another
- 5-20% profit margin


Kajun if you're making $500,000/year working in the food service industry, then you're wasting your time on eBay.

[Kajunrook]

My bad with my SS salary and rental income I make around $200,000 sorry I misspoke. I meant to say six figures.