Did you start selling online?

Prospect Park PA

03 November, 2020

4:27 PM

Description

It certainly is an exciting time to be apart of the business world. It may be 2020 and the brick and mortar economy may be getting destroyed at an astrometrical rate, but the eCommerce side of the business is booming. This is sad and amazing at the same time and as with business, it all stays the same but still changes. So what if you are starting to get into eCommerce and you made your first sale. Did you know that there may be a whole lot of fees and costs that you maybe didn't think about? Well if you are about to start a company I want you to know what costs always happen when you make a sale online. It is a huge change and difference from buying in a brick and mortar shop and there are lots of extra costs and fees that are tacked on to the seller and I don't want you to be surprised about it. Don't be afraid of starting a business. This is all just normal, but knowing about it upfront allows you to prepare and save money when it comes to it happening. So let us just say you are selling on eBay or Amazon. Each company will take 10% of every single sale you make. So make sure you are adding that amount into the listing. If you know you need to make 100 dollars. Then up your price enough for the fees from the platform to be acceptable. That means that you need to make sure the product you are selling can be profitable on that platform with 10% instantly gone from each purchase. But there are also other fees that come with it. Processing and the fees that come from the credit card or PayPal also costs money. This is usually a 3% fee but can be up to 5% depending on the cost of the product. so you may be losing 10 to 15 percent of every single transaction. Make sure you price your product to incorporate those prices. Look for other products likes yours and make sure you can still make money knowing that 15% of the sale may be gone instantly. Just factor that in before you go and invest your life savings into this. It is a big deal and could cost you dearly. Now another section is getting the package to the customers. Shipping supplies are also a huge cost in online retailing. You have to package each product in a box, bag, and send it away. So think about the cost of a box and then also the cost of the labels to print it. Now factor in the cost from USPS or UPS and see how much money is leftover from the sale. That is possibly a huge amount of money missing, but you can lower those costs by shopping correctly. You can buy shipping supplies from huge online retailers and get big discounts. That is how you cut down on the cost of each item sold and it is by shopping wisely and getting the right deal. I suggest calling these companies up and talking to them about your products so you can get the right packaging for each and at the lowest cost. Now you know, the hidden fees side of eCommerce, plan accordingly.