How do I figure out how many sales I need to stay on top of my Bills and Daily expenses?

I don’t ask myself how much money do I need to make each month. I break it down into what do I need to list each day to end up with the sales I need to cover the amount of money it takes to live today, tomorrow, next week, next month. What I mean by this is I pull out all of my bills and write on a calendar, I use a white board, and I write down on the date the bills are due what it is and how much is owed. Then I know how much I need to bring in each week prior to that to pay those bills.

The rule of thumb on ebay is if you sell a $100 then your net will end up being approximately $30. Lots of sellers use the 1/3 rule. There are selling fees, inventory expenses, you have to pay for your gas to go find it, etc. Now if you only buy items that cost $1-$5 then are able to turn it into $15-$20-$30+ then your profit margins may be much better but you will not always be able to do that. You will have items that you think are never going to sell that just sit there. I have figured out that the things I think are going to sell really good don’t and the things I’m not even sure about listing actually seem to sell really fast. So it’s tough for me right now to prioritize my listings. Children’s clothes always seem to sell good so that’s a safe item but kid’s clothing usually sell for smaller profit margins so try to start with higher profit with a quick sell thru rate. Clothes in general move better than coffee cups or dishes but I have sold many of each. Bedding has been really slow for me but with large profits that were worth the wait. It is a good idea to know the turnaround time (how long will it takes to sell it (#sold vs. #listed = sell thru rate). A faster sale that’s lower priced can be better than waiting on the higher priced items with long wait times to sell. For bill paying funds I prefer mostly quick sellers with a few higher valued items as more of a bonus!

All of these things have to be considered when choosing how many listings you need to list to make the number of sales you need to make. It helps your mind differentiate and categorize your inventory to know which items to buy at the thrift shops or pull from already purchased stored “deathpile” inventory.

Here is examples of how I do the math

If I want to earn $1,000 per month:

• 20 / $5 Listings per day = $100/day in New Listings
• 10 / $10 Listings per day = $100/day in New Listings
• 5 / $20 Listings per day = $100/day in New Listings
• 4 / $25 Listings per day = $100/day in New Listings

List $100/day x 30 days = $3,000 in uploaded items now for sale online

If you sell half of these listings over the next 30 days then you will have $1,500 in Gross Sales but once you take off your fees/expenses then you will end up with between $500-$1,000 depending on how much you had to pay for your inventory, listings fees, selling fees, paypal fees, any storage fees, postal and shipping fees, shipping supplies.

$1,500/3(the 1/3rd Rule) = $500 mth in estimated Net Profit on $3,000 per month inventory listed. Now this is just an estimation to try to project sales. You must look at your own sales and consider your own quantities and dollar amounts.

If I have a bill for $500 that I pay each month, say a loan payment or child support, and I know I have to pay this every month then I also know that I need to list $1500 per month to cover this bill.

I map it all out on a calendar and project how many listings I need to complete on the work days I have available to do it on. I may need to schedule drafts to go live on days I’m unable to work to meet my daily listing goal each week/month. eBay algorithms respond best when you are active every day on your account so it’s better to schedule a minimum daily number of listings rather than get it done and go live all in one day.

Always try to stay 1 Month ahead on your bills vs. $$$ in the Bank.

Remember the listings you list today will pay your bills next month. These listings may not pay any of your bills this month. It can take time to sell them. What you do today will affect what you can pay next week on this day or next month on this day.