Why do some items show negative profits?
Sometimes your search reports will show negative profits as shown in the screenshot below:
Does this mean that this eBay seller lost money on this sale?
The answer is NO it doesn't mean that they lost money on the sale.
This is because:
- The profit column is based on the CURRENT source price of the item, which may be different than what the source price of the item was at the time the sale was made.
- The profit column is based on YOUR eBay final value fee / listing fee as well as YOUR paypal fee. If your fees are much higher than the seller you're scraping, then the profits would appear negative.
- The other main reason why profits are negative is that the seller you have scraped is simply NOT using eBay to Amazon arbitrage - they may have sourced their items from a cheaper supplier and therefore appear that they didn't make a profit when in reality they may still might have.
In any case, if MOST of the sellers items are showing a negative profit then you should:
- Review your eBay fees and Paypal fees settings and ensure they are not too high. eBay final value fees are usually around 9 - 11% on average. The eBay listing fee is around 0.10 cents. The Paypal % fee is between 2.9% and 3.4% and the Paypal fixed fee is around 30 cents.
- If you have reviewed your fees and they are OK, you should search for different sellers. Make sure you have watched our training video on finding suitable sellers to scrape.