mallabee's destination price calculator is very smart.
The calculator consists of different calculations and will be discussed in this help desk topic with given examples.
The calculator consists of taking the converted source price (USD price) and applying the following fees & additional requirements, all of them can be changed from the store settings:
- An eBay insertion fee of $0.3 fixed price.
- A PayPal insertion fee of $0.3 fixed price.
- An eBay sell fee of 10% (as this is the average selling fees).
- A PayPal sell fee of 4.4%.
- Additional 6% possibility of price change (which will be added as profit if the monitor was on point with the final price).
- Additional Desired Profit Percentage (DPP) which was inserted by the store owner while publishing or monitoring.
- VAT = 10% - calculated from the source price - currently calculated by USA and is CGT - in the future - will be calculated from the net profit when we will have an accountant - currently we don't do CGT
The calculator also takes into consideration that the store owner would like to have a minimum amount of profit, this is currently stands on $3 by default and takes into consideration the time it takes for the store owner to process an order, which consists of:
- Validation that the final product price is profitable for the store and if not - canceling the buyer request & refund.
- Validation of buyer information, including buyer address.
- Creation of an Amazon Prime account if we don't already have.
- Insertion of the buyer address on Amazon.
- Making the purchase.
- When we receive a tracking number from the source - enter it on eBay.
- When we see that the shipment was good and it seems that the buyer enjoyed - ask for good feedback from the customer
- It might be that the buyer is lying about not receiving an item - in that case we will lose the price of the source item.
Examples
Example 1
Destination item was sold on April 29 at $36.99, on PayPal it showed at 35.06$ (removed the PayPal fees)
Source item bought on April 29, Currency ratio was 1USD equals 3.791ILS
Item: Game 3567 Underwater Light Show and Fountain <https://www.amazon.com/gp/product/B003ZTJ9MI/ref=oh_aui_detailpage_o00_s00?ie=UTF8&psc=1>
Source price: 20.48$
Buyer & Order summary (From amazon):
```
Shipping Address
Scott Dollard
1718 WIND RIVER RD
EL CAJON, CA 92019-4128
United States
Order Summary
Item(s) Subtotal: ILS 77.64
Shipping & Handling: ILS 0.00
Total before tax: ILS 77.64
Estimated tax to be collected: ILS 0.00
Grand Total: ILS 77.64
```
As we can see:
- PayPal sell fees (from the full destination price): 1.62756$ (4.4%) - removed immediately
- PayPal sell fees: 0.3$ - removed immediately
- eBay category sell (from the full destination price): 3.70$ (10% - rounded up from 3.695$) (at end of month)
- Source product price: $20.48
Fees that wasn't inserted:
- eBay sell fees: 0.3$ (don't know if from the end of the month or not but currently we had free promotion)
- USA VAT: it was 0$ so no need to add
So at the end we will receive:
36.99$ - 1.62756$ - 0.3$ - 3.70$ - $20.48 = **10.88$**
The Fees:
- 12% and 3$ minimum (The higher between the two) - Desired Profit Percentage - this percentage goes on the source price because when someone talks about profit he talks about it in regarding to the source price
- 6% - Possible price change - sometimes the source price is going up (or down) and we didn't have enough time to sync that - calculated from the source
- 10% - USA VAT (called sales tax) - מע״מ - calculated from the source - We have this because we are buying an item, some countries don't have VAT at all! - this is removed in case we are paying taxes in Israel because then you report this as outcome
- 0.3$ fixed + 4.4% - PayPal sell fees on Israel - in any case - we are paying that when we have successfully received the payment, this amount can go down if we have different selling volume
- 0.3$ fixed - eBay insertion fees - we are paying that only in case we passed the 50 free items on eBay
- 10% - eBay category sell fees - this is removed at end of every month from the selling amount when a purchase was made, read more in here: <https://www.ebay.com/help/selling/fees-credits-invoices/selling-fees?id=4364#section3>
- 25% (from net income) + 18% (tax from Bruto to get it to personal bank account) - Israel tax - Depending on if we are paying taxes on Israel
- **Notice** - something that isn't calculated - on the time between we receive a purchase to the time we make the purchase on source marketplace - the exchange rate change - this isn't calculated - sometimes it goes to favor and sometimes to negative way
- **Notice** - something that isn't calculated - paying on prime account costs 12.99 monthly
- **Notice** - something that isn't calculated - when percentage fees are removed it's removed by rounding to their advantage - meaning that 3.699 is 3.70
- **Notice** - something that isn't calculated - when we want to withdraw the money from PayPal it costs 40ILS to do bank transfer
- **Notice** - something that isn't calculated - When we want to withdraw the money we pay currency exchange rate from PayPal USD to CreditCard ILS
Example 2
Destination item was sold on April 25 at $8.99, on PayPal it showed at 8.29$ (removed the PayPal fees)
Source item bought on April 25
Pennsylvania sales tax are 6%
Item: Kiss i-envy brow stamp kit Dark brown Makeup, 1 Count <https://www.amazon.com/gp/product/B01H7YIH7O/ref=od_aui_detailpages00?ie=UTF8&psc=1>
Source price: 4.99$ + 0.3$ (VAT) = 5.29$
Buyer & Order summary (From amazon):
```
Shipping Address
Michael Metropulos
5214 Caste Dr
Pittsburgh, PA 15236-1502
United States
Order Summary
Item(s) Subtotal: $4.99
Shipping & Handling: $0.00
Total before tax: $4.99
Estimated tax to be collected: $0.30
Grand Total: $5.29
```
As we can see:
- PayPal sell fees (from the full destination price): 0.39556$ (4.4%) - removed immediately
- PayPal sell fees: 0.3$ - removed immediately
- eBay category sell (from the full destination price): 0.9$ (10%) (at end of month)
- Source product price: 4.99$ + 0.3$ (USA VAT) = 5.29$
Fees that wasn't inserted:
- eBay sell fees: 0.3$ (don't know if from the end of the month or not but currently we had free promotion)
So at the end we will receive:
$8.99 - 0.39556$ - 0.3$ - 0.9$ - $5.29 = **2.1$**
More information regarding eBay final price can be found in:
https://cgi3.ebay.com/ws/eBayISAPI.dll?MfcISAPICommand=ViewAccount