Curious of current sale ratios you guys use

[vettefever17]

Given today's market environment, I feel like we have been more stressed than ever trying to understand and respond to account metrics amid inflation and competition.

Specifically:

1. Profit margin. What are you guys currently experiencing on your TRUE GROSS margins? I know markup has gone ape****.

2. For shiggles, what markup do you guys consider to even be feasible in today's market?

3. What ROA metrics do you guys have with promoted listings? I am currently deep-diving into the value aspect of this ratio on eBay.

I will share a vague picture of where I am with my inventory. I have realized that anywhere from 300-500% markup is needed to even think about selling (retail cost over wholesale cost). Gross profit sits around 75-150% (net profit over wholesale cost). While on paper that may look good, 30-36% is going to eBay, and 10-25% goes to shipping; the sale ends up at about 15-30% profit based on retail price for all of your work.

As for ROA, 6-9 points.

[agent006140]

what do you sell,300-500% markup?
You offer free shipping !

[solefoodbk]

Build a website, problem solved.

Use AI to market. If you get sales on eBay there is literally no reason why you cannot get it on a website.

[agent006140]

Originally Posted by solefoodbk

Build a website, problem solved.

Use AI to market. If you get sales on eBay there is literally no reason why you cannot get it on a website.

then why do all these websites also sell on Ebay?

[phaz0rz]

It's roughly the same for me. Items are listed for 4-5x what I paid for them on average but just like with you the selling and shipping costs eat up most of price. It's very hard to calculate exact margins now in the pay per click model (since the fees for promoted priority are charged separately once a day and don't show on sales records) but my margin is around 15%. On two different accounts, ROAS has been in the 5-6.5 range for months now.


I've been experimenting around with the different ways to promote listings (trying to find the most cost effective method) since I made that thread a few months back.


What I've settled on is:
- For items I know are very popular and are likely to sell fast, I use promoted priority with the offer being $.25 or less per click.
- For things I know will take a little longer to sell I use promoted general with an ad rate around 8-10%
- For bulk bundles that I know will sell without the extra attention, I don't promote the listing at all and simply wait for whales to bite.

[phaz0rz]

Originally Posted by solefoodbk

Build a website, problem solved.

Use AI to market. If you get sales on eBay there is literally no reason why you cannot get it on a website.

Most buyers won't shop outside of the apps they always use. Very expensive to get any traffic at all unless you're selling something specialized. How is AI marketing for you?