posted on December 15, 2001 07:37:33 AM new
author needs to clarify that 20-30,000 a month he/she is making?
is that gross sales,is that gross margin(sales-cost of goods sold),is it profit before tax or is it net profit from operations after tax??
one can sell 20-30,000 dollars a month if one uploads 200-500 items of digital cameras,scanners,pc,laptops,servers,projector etc to ebay every month,say average sales price is 500 ,then selling 40 items will hit the 20,000 sales mark.
selling 60 items will hit the 30,000 sales mark.
i know quite a few sellers of electronic goods are selling that much if not more.
now making 20-30,000 a month(meaning profit before or after tax) is a different matter and is more difficult to achieve.
you must consider not just the cost of goods sold,but the cost of borrowing ,cost of freight & insurance,salary & benefits and other operating expenses.
since markup of these goods on ebay is less than b&m stores (100% markup),so the gross profit margin is less than 50% of sales .
take that less than 50% gross profit margin and use it to offset your operating expenses,you will get your profit before tax??
now if that number is 20-30,000 most of the sellers here on this board will be very impressed,so if your tax rate is 50% bracket,this will still leave 10-15,000 in your pocket.
i will drink to that!!!!!!!
