Have you ever found it difficult to calculate how much exactly are you profiting from your online store? There are so many variables, right? Between the store & PayPal fees, taxes on source site, returns & refunds, and monthly payments, it’s easy to get lost. In this article, you will learn how to do it accurately and account for each cent.
Disclaimer: This table is not supposed to replace your data and statistics on DSM tool, but only help you by collecting those hard to reach numbers.
Find your drop shipping profits
Because we are about to give you the link to a csv file containing the table we had built for you, there is no need to explain how to create it from scratch, instead, we are going to explain about the fields in it and their formulas, so you will be familiar with all aspects of it.
Look at it, isn’t it marvelous?!
As you can see, the table is divided into 4 main areas: Orders (Green) on the left-hand side, Refunds (Purple) on the right-hand side, summary (Cyan) in the middle, and the totals (Orange) in the bottom. We used eBay for our target and Amazon as the source here, but this table can be tweaked to be utilized in every drop shipping scheme.
Let’s start with the Orders Section:
– First is the items field, asking how many PayPal transactions were made in this order. You can also count the number of lines of sales in your DSM sales & profits page. Because PayPal is charging 0.3c per transaction in addition to the fees, we must account for it to get it right. If a buyer ordered 2 items in one order, you still have to count it as just one transaction.
– The Amazon price field is asking how much did you pay for the items on Amazon. Make sure to use the final amount that was charged from your payment method.
– The eBay price field is asking how much you charged your buyers on eBay before fees. If they paid any extra for fast shipping, make sure to include that.
Those three fields are always empty and waiting for you to place orders and fill them out. Now, let’s calculate:
The eBay fees field = (eBay price*10%) If you have a store account on eBay, use 9.2% instead of 10% unless your fees are different.
The PayPal fees field = (eBay price*4.4%) + (Items*0.3) If your fees on PayPal are less than 4.4%, make sure to adjust, check the merchant fees section.
The Profit field = (eBay price – Source price – eBay fees – PayPal fees)
Moving on to the Refunds Section:
The Items field is the same as for the orders section, the exact number of PayPal transactions.
The eBay refund field is asking how much did you refund the buyer.
The Source refund field is asking how much did the source refund you.
Same goes here, you insert these 3 fields, and the eBay & PayPal fees are automatically calculated.
Next up is the Totals Section:
Located at the bottom of the table in orange color, the Totals are self-calculating and there’s no need to enter any data there. The formulas under the refund section are only summaries of their respected columns so let me just show you the formulas under the Orders section:
Source total = (summary of source price – source refund total)
eBay total = (summary of eBay price – eBay refund total)
eBay fee total = (summary of eBay fees – eBay refund fee total)
PayPal total = (summary of PayPal fees – PayPal refund total)
Total profit = (eBay total – Source total – eBay fee total – PayPal total)
Last but not least, is our Summary Section:
In the box located in the middle of the table, we account for our monthly payments and see the final profit number. Add your own subscriptions and all other store-related expenses like your virtual assistants, outsourcing projects you paid for etc. Also, if you paid extra insertion fees remember to add it to the eBay store field, along with other payments to eBay you can find on your monthly bill.
The Sum field is just = (Total profit – summary of monthly payments)
Let me show you some basics for adjusting and customizing the table:
Remember that this table is nothing but an example, so you have to add your own values, monthly payments, and data. If you have to pay an extra fee on your gift card, or perhaps getting some cash-back, make sure to add another column and calculate it to stay accurate. More great information about that can be found in our lowering prices article.
Start with going to File > download, and save it on your computer. Hope this helps to count them dollar bills, if you have anything to add or share, please do so in the comments below!
***This table is available for download and you can copy its content, however, we will not grant users access to edit it.***
- Shai is the editor of DSMagazine and our marketing expert. His eBay account is open since 2011, and he just moved out of Thailand after living there for 5 years to travel the world with his laptop. Also, he firmly believes in single-tasking. (P.S, He can speak Hebrew, English, and Thai!)