Question

I’m looking for an Excel formula that could help me forecast the price I need to list the item in order to make an 20% NET profit from all products.

The data I have is:

1. eBay & paypal fees.

(e.g: ebay fee is 7% off sellig price + $0.3

paypal fee is 2.9% off sellig price + $0.2)

1. product cost.

2. shipping cost.

SO: if the product cost $50 and lets say the shipping is free then I need to list the product for $66.78 in order to make a NET profit of 20% = $10. (ebay fee: $4.54 | paypal fee: $2.24)

How can I use a formula to forecast the “$66.78” cell?

Some helpful links:

1. eBay.com Fees for eBay Stores

2. eBay Fees Calculator.

Best Regards,
Tomer S.

Answer 1

Based on the information you have given, you have:

Revenue = Selling Price x (1 - % Fees) - Flat Fees - Shipping
Profit = Revenue - Cost

And you also want:

Prodit = 20% x Cost

So you need:

Selling Price = (1.2 x Cost + Flat Fees + Shipping) / (1 - % Fees)

So in Excel, you can use the following (lines 12 and following are just a check):

By the way, the answer to your example is $67.15, not $66.78.