Christmas sales

Jayser100

Free Member
May 21, 2009
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Maidstone
Hi Guys,

I was just wondering what experiences people are having with Christmas sales? We're mad busy on Amazon UK, but Amazon Germany is dead at the moment and ditto our stand-alone websites and eBay - quieter than usual, in fact. This would suggest a huge trend towards buying presents on Amazon in the UK at least. Anyone else found the same thing?
 
Hi Jayser

I think it really depends on your business sector.

There appears to be a lot of disheartened ebay sellers at the moment - ebays current strategy appears to be causing many problems for small to medium business sellers across Europe.

We sell Europe wide via ebay, amazon, and our own site. We have found that ebay has been sluggish in some regions whereas our own site is doing ok. We are too new on amazon to be able to compare. Overall though sales are somewhat muted by the current climate so it may be wise to take a conservative approach to stock and sales projections.
 
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Generally good all over sales wise, ebay Fixed price listings are doing ok but could be better. eBay auctions diabolical. We ran some 1p start's at the weekend and they completely flopped. Very disappointed with ebay in general at the moment.
 
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I think eBay is no longer an option for small to medium businesses for many areas. Stuff is just going toooooo cheap if at all. Amazon unfortunately is doing well. Whenever I find myself as a potential purchaser I now look at amazon first and tend to prefer buying there. The reasons for this are, firstly the price tends to be the lowest possible, and secondly the absolute assurance that if anything goes wrong amazon will ensure its fixed.
 
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Thanks for the replies. We opened an eBay shop quite recently and so far, sales have been underwhelming, considering the listing fees.
 
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Hi Guys,

I was just wondering what experiences people are having with Christmas sales? We're mad busy on Amazon UK, but Amazon Germany is dead at the moment and ditto our stand-alone websites and eBay - quieter than usual, in fact. This would suggest a huge trend towards buying presents on Amazon in the UK at least. Anyone else found the same thing?

By the way, may i know what's your business area ?
 
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I do not know about others, for me eBay seems nearly deserted by watch sellers from the UK.

My verdict, normally December would see sales up to £30000 - £40000, this December officially on eBay £6000.

I can't see a long term future with eBay in my business sector. My own site needs to be improved, eBay shows my sold reputation, and try to make a different strategy.

I believe as serious rethink is required, I would be very curios to know eBay UK's total numbers this December compared to past years. If my numbers are to go by, eBay UK have made a massive own goal with the 12% increase in fees.

Few weeks ago I had an offer on a watch, Best Offer, not my own watch, selling on consignment for a customer. Offer was £5800. I could have sold the watch, and made £200 profit on the watch, ebay/Paypal would have made £870, did I sell it?
NO EFFING WAY!!!!

I rather loose a deal, then see eBay take such a large cut out of my profit, sorry my foul language. But there are a lot of smart people out there, who see it the same way, this includes potenial buyers too!
 
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Depends what you are selling. High value items, work on lower percentage profit, as the figures naturally are larger.

However my example of the item at £5800, shows that something is wrong with the system, 15% to eBay/Paypal is just greedy, and most customers will not accept that either.

So eBay loose both ways, as sellers like me can't sell the conventional way. If you use it as marketing platform it is ok, just don't expect to do to many sales there. Controlling eBay FVF not spiraling out of control has been the major issue, all prices have been setup with 9%, but people don't want to pay this full price to cover the extra fees.

On the example of the item of £5800, the normal approx. avr. fees would have been approx. £350 (approx. 6% for eBay and Paypal)
So the fee increase is nearly 200% by eBay!
So I feel screwed by eBay, why should I not try to screw eBay too?? That's what these new fee FVF policies has created. Because it is do or die for the business if we let eBay get their fees as they have set it up now.
 
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Just drilled down through some eBay figures and t doesn't make for very nice reading if you're a dealer with an average mark-up.

let's say you buy a product for £15.00 from a wholesaler and you sell it for £40.00. This is how it might break down (note: the following presumes the seller is VAT registered, and free shipping is offered on an item that will fit into a Royal Mail 'small packet' weighing up to 250g).

Cost of item - £15.00
eBay final sale fee - £4.00
VAT - £8.00
Paypal fee (3.4% plus 20p) - £1.56
Shipping - £2.50

Total cost of sale = £31.06

net margin = £8.94

Now, there are complications re. the above. If you only sell one of that particular item in a whole month, then the listing fee incurred will be removed from the profit. For a standard shop listing with one extra image and visible internationally, this would be 75p.

if you only sell 30 items in your shop, in the entire month, dividing up the £15.00 monthly shop fee would remove a further 50p (per item) from your profit.

The above illustrates how hard it is to make decent money on eBay, unless your mark-up is very high. It also shows that volume sales are crucial, otherwise factoring in the basic listing costs and the cost of having the shop eats further into profits to an extent where you could be wasting your time and energy.
 
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Depends what you are selling. High value items, work on lower percentage profit, as the figures naturally are larger.

I can't agree with that. The margin should remain the same whatever the price to ensure you get a constant ROI. Otherwise you're stocking expensive items that don't make you as much money. This is presuming you're holding stock and not placing your orders once you have a sale / drop shipping.

On the example of the item of £5800, the normal approx. avr. fees would have been approx. £350 (approx. 6% for eBay and Paypal)

Is this correct? According to:
http://pages.ebay.co.uk/help/sell/fees.html

The Final Value Fee is:
10% of the final selling price (up to a maximum of £40)

So the FVF would be £40 + PayPal fees, NOT £350
 
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Just drilled down through some eBay figures and t doesn't make for very nice reading if you're a dealer with an average mark-up.

let's say you buy a product for £15.00 from a wholesaler and you sell it for £40.00. This is how it might break down (note: the following presumes the seller is VAT registered, and free shipping is offered on an item that will fit into a Royal Mail 'small packet' weighing up to 250g).

Cost of item - £15.00
eBay final sale fee - £4.00
VAT - £8.00
Paypal fee (3.4% plus 20p) - £1.56
Shipping - £2.50

Total cost of sale = £31.06

net margin = £8.94

Now, there are complications re. the above. If you only sell one of that particular item in a whole month, then the listing fee incurred will be removed from the profit. For a standard shop listing with one extra image and visible internationally, this would be 75p.

if you only sell 30 items in your shop, in the entire month, dividing up the £15.00 monthly shop fee would remove a further 50p (per item) from your profit.

The above illustrates how hard it is to make decent money on eBay, unless your mark-up is very high. It also shows that volume sales are crucial, otherwise factoring in the basic listing costs and the cost of having the shop eats further into profits to an extent where you could be wasting your time and energy.

Whilst I agree with the comments on volume sales, the example above shows that you would be making 22.35% on each sale. Whilst the example is only good for that one product, and is not the best way to calculate margins over a range of goods of varied size / weight it does show that you can make money.

If you know you need to cover £60 / week rent for a small unit, business rates are currently free, and you want to take home £300 / week before tax you need to ensure that your takings exceed £1,610 / week. This of course excludes electricity, office consumables, listing fees, items damaged / lost in transit, resending undelivered items, returns etc etc but you get the idea.

You can then work that back to £230 / day takings. That equates to 5.75 / units a day.

Simples!
 
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Seems like Sam has the correct figure to me. That level of margin is pretty good if you can get the sales. If you hit 100 a week then that's £4,000 turnover and out of that you have a net profit of £894. Your rent costs and other costs can be kept quite low if you hunt around for a cheap unit. I reckon about £100 is more than ample.

It doesn't sound like it's loads of money but despatching 20 parcels a day isn't hard work and can be done in about an hour to 2 hours tops. Think it's what some people would call a nice little earner.



Chris.
 
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SamStones - Sorry but you haven't got a clue regarding the business seller rates. (the rates you looked at is for Private sellers - this is business forums)

10% up to a maximum of £40, seriously be prepared if you joining the debate. It is flat fee 10 or 12% - NO LIMITATIONS. (depends what category you in, but I fall under the 12% category)

Prices have to be adjusted compared to competition, my products are second hand items, where there is no fixed purchase price, there are approximate prices, but that's all.

It is normally not possible to buy Product A one day for £5000 and next week for £3000, it will be around +/- 1 to 10% at best. One can not just add a profit margin of 25%, just because one wants to get that kind of profit, 15% going to eBay and Paypal, and 10% me the seller. When previous margins that did work for the consumer would be around 8 to 15%, on high value items, these kind of percentages represent considerable amount of money, people buying online want to have a good deal.

They are no longer getting a good deal if I have to add such margins on my products, as there will be PLENTY high street/local shops being able to sell for much less then me.

On my example, of £5800, I would be left with £4930 after eBay / Paypal had taken their cut. Let's say this would be the cost of the item, it means for me to have at least 10% I would need to price the item at approx £6380. (I know the exact maths are wrong here, but approximates.

So product must be sold for £6380, I will get approx. £600, eBay Paypal around £900 - Tell me now if you are the consumer, would you want to buy this product from this way? When you are overpaying by £900 because of eBay/Paypal?

Now you say it should be the same percentage profit as low cost items, wrong, because I need to sell fewer items to recover my costs and make a profit. And such items are not possible to sell in large bulk, as there are simply not that many customers that you will sell large bulk quanities.

If I was to sell all as normal trough eBay, I would be with current fees have to pay £3000 - £5000 in eBay / Paypal fees in December. There are simply not such margins available, that will also give a decent profit.
At £3000 in fees, and to make £3000 in profit that month, I would need to sell for £20000, with a 30% profit margin, and I am sorry, but in my business there is no such margin, if there was, I would certainly not have been selling it on eBay.

Secondly much of my business was based on consignment sales, agency sales. They would give an item, at a fixed price, to be competitive I would a total margin of 8 to 15%, this no longer is possible now.

Prices for UK sellers become like lottery win number, because we have to add extra 9% price on our previous fees/sales price. Most prices on eBay does not end up being fixed anyway, offers auctions etc.

And why should other sellers in Europe and USA have a different and much cheaper eBay fee system? Why is the main target to screw is UK and Irleand sellers? (Selling on eBay UK?)

What did I do? I will continue to screw eBay every day I can, eBay is good to advertise, do a few low cost sales there, and find other ways to sell the item, in the end it is the buyers right to know about all his options, and get a detailed break down of his purchase, and from that can make adult decisions of what is the best way forward.

I have been over 10 years with eBay, but promise the next 10 years will NOT be with eBay. Probably in the cockpit of an Airbus 320 instead, so fed up of all eBay UK and their extortionate fee structure for UK sellers. (Add taxes and VAT, what is the use, to make eBay rich?? No way)
 
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SamStones - Sorry but you haven't got a clue regarding the business seller rates. (the rates you looked at is for Private sellers - this is business forums)

10% up to a maximum of £40, seriously be prepared if you joining the debate. It is flat fee 10 or 12% - NO LIMITATIONS. (depends what category you in, but I fall under the 12% category)

The "debate" exactly. If you had bothered to read my post, I said:


I asked a question, provided the "evidence" to where I had got these figures from and I now stand corrected. The correct link is:
http://pages.ebay.co.uk/help/sell/businessfees.html and I agree there is no limit for business sellers.

If I was to sell all as normal trough eBay, I would be with current fees have to pay £3000 - £5000 in eBay / Paypal fees in December. There are simply not such margins available, that will also give a decent profit.
At £3000 in fees, and to make £3000 in profit that month, I would need to sell for £20000, with a 30% profit margin, and I am sorry, but in my business there is no such margin, if there was, I would certainly not have been selling it on eBay.

Then I would suggest ebay is not for you. eBay doesn't owe you anything. Perhaps invest this money in your own web site / platform?

Secondly much of my business was based on consignment sales, agency sales.

I did allow for this when I referenced holding stock. If you're selling it on commission / consignment then you can make a much smaller profit obviously.

What did I do? I will continue to screw eBay every day I can, eBay is good to advertise, do a few low cost sales there, and find other ways to sell the item, in the end it is the buyers right to know about all his options

Again, ebay does not owe you anything. There are other platforms out there. If ebay doesn't work for you then don't use it.
 
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We I only run a small site but it is popular.

This last week has been very poor but the week before was manic in our terms and steady before that. As for the year ? it's our best and our 11th.
 
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Correct, eBay does not owe me anything, and I do not owe eBay any loyalty either in my business transactions.

It is thanks to traders like me, and another 20 (that I know have stopped selling on eBay), that eBay has built a solid and reputable platform in the UK.

In most business, you will reward your loyal and customers that invest much money and time, you will not look to put them in a major disadvantage compared to competition from Europe and the USA.

eBay is supposed to be a global platform, how come they have not introduced these draconian fees for other eBay countries? Why is UK and Ireland the only countries?
Does not stimulate the economy doing this, does it?

eBay has grown to become a monster out of control, due to lack of serious competition, I can see the future demise of eBay in it's current version, as they will be targeting larger companies, that's the whole reason for eBay making it simple to understand eBay fees, they do not want to have small/medium size companies doing business in the long term.

SamStones, I don't know, maybe you working for eBay, with your views, a business that existed for 10 years, has been thrown into turmoil with very little warning time to prepare or restructure. It is not like eBay advertised these changes 12 months in advance, so us sellers knew what was coming.

I admit at periods I made very good profit on eBay, and eBay used to be good to me, in what world in business, would you see fees on your product increase with 200 -500%, within only few weeks warning?

And let's get this UNDERSTOOD, THIS APPLIES ONLY FOR ITEMS LISTED ON EBAY.CO.UK

What does this mean?

This means when Mr Cowboy in Texas lists one item, and requests international visibility for his listing, this will show the item visible in the eBay UK, but they will only pay fees applied by eBay.com - which again for high value items, works out on average approx. 3%, like the old system in eBay UK.
Would eBay dare to set up similar fee structure in the USA? I doubt so, there would be a massive protest, as they did in the past, for much smaller changes.

It's pretty petty to have such an arrogant and supportive view of eBay, when you see the reality of what they have done, the worst there are people like you who happily except all changes that are thrown against them, I guess this is a typical English phenomena, because UK is the only country where eBay have been able to do this. Accept any garbage these companies throw against you!

Of the 20 dealers that stop selling on eBay, incl. me, we used to have average eBay fees of £1000 - £1500 a month, for eBay this is nothing, but we was each turning around figures of around £200.000 - £300.000, so even if profit margin was not 30%, there was a healthy profit margin in the business, now there is no margins left, because I do not accept that eBay have a larger profit margin then myself on my sales.

I am astonished by lack of vision by eBay, and some people here too. But this is a typical society, corrupt politicians just suck more and more taxes from people, to make sure they look after themselves, and can find new ways to drain money from it's people, to cover their expenses, this is corporate greed, eBay UK showing the worst of all, and the The Federation of Small Businesses is spineless, joke, who also does not have a clue.

There should have been a cap for high value items, they do this on cars, properties etc. A sliding scale would have been the most fair system. Just because you/some have a set mind that you have to have a certain percentage profit for a business to be viable, I can tell you this completly BS, as somebody can be selling example cups for £6 each, and have a margin of 200% , but to make example £4000 a month he will have to sell 1000 pieces, which is very unlikely to happen. While with a much lower margin I could maybe sell 15 to 20 items with similar margins. (with the old fee structure)

Now counting the costs, somebody selling 1000 items a month will probably need somebody to help him with that, while a business like mine would be able to work for myself (I don't, but with such a requirement of sales, it would be possible for somebody to do this himself)

So the big bulk seller will run up additional costs, but a 12% fee on a 200% profit margin does not seem so bad.
But because the nature of say my business, the numbers are larger, and now because of the new fee structure, what would be a healthy sales margin of between about 5 - 10% after fees have gone, and the only is to screw the customers, by putting up the prices!
The customers then again see and understand this, and goes somewhere else to buy, when they understood they are paying over the market price for items. eBay looses, other ebay sellers looses, as confidence in the market place will decay, as people are aware.

It is so right what you say, eBay owes me nothing, that's why I owe them nothing, and you know what? I used eBay good this year, I sold for £25.000 or more, all by taking people out of eBay, not paying them fees, and giving my customers good price and quality. eBay was the advertisement tool to do this.

So the motto has to be, USE eBay, we helped create eBay, and we can help destroy eBay too, and if that happens, everybody looses!
I know of many who are doing exactly this, eBay shot itself in the foot, and have a created a system where it is worth to cheat the system, is that something other eBay sellers are comfortable with?

Or are you NEW sellers, now not understanding how royally screwed you are by eBay UK? Just accept whatever they throw against you, because you will be screwed by them when you least expect it, like happen with many of us this summer.

Me personally I do not see a long term future in this, I have better things lined up for me, I did use some of the money I made to secure myself another profession. As for eBay, it's going to be me, me and then again me! Use them, abuse them, and screw them, thanks and goodbye!
 
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