How to Calculate eBay Shipping Costs Correctly

The full costs

Many sellers only count postage. But the real shipping costs are higher:

• Postage: Varies by carrier and size
• Packaging: $0.30-1.50 (box, padding, tape)
• Label/printing: $0.05-0.10
• Return risk: Factor in 5-15% return rate
• Labor: 5-10 minutes per package

Free shipping — yes or no?

Free shipping increases conversion by 15-30%. But build the costs into the item price. For items under $15, free shipping rarely makes sense.

Formula

Minimum price = Purchase cost + eBay fee (13%) + Shipping + Packaging + Return reserve (10%) + your profit

With ShopManage you see your real margin per order including all costs. See plans.