Before explaining how the calculation of your profits works we should first explain the difference between the break-even % and the fees % shown under the settings & monitor's page.
Please start by reading the following article :
How do we calculate the profit on the Active Listings Page ?
It is simple. Let's take the following example:
Here are the profit settings for this listing (shown when clicking on the notebook icon):
We calculate the profit as follows:
Source price / 100 * additional % + additional $
Keep in mind this is the profit before eBay/PayPal fees and tax*
How is the profit calculated in the Orders Page ?
In this example the Fees (the percentage inserted on the Settings page) is 12.9%
So the calculation for the profit will be as follows:
100 - 12.9 (fees) = 87.1
87.1/100 = 0.871
21.57 (eBay price) x 0.871 = 18.78
18.78 - 0,30 (the extra PayPal charge) = 18.48
18.48 - 14.99 ( source price ) = 3.50
Please note that when it comes to a US supplier which charges state tax, it will be deducted from the final profit shown under the orders page profit. (when placing an order manually you must manually add the tax to the order)
The tax fee cannot be calculated before an item is sold, since the amount depends mostly on the state from which the customer buys the item. Each state has a different tax %.
Q: How does the sell price calculated?
A: Here's the formula for the sell price:
Source Price + Additional $ profit + (Source Price * Profit %)
Then you divide the result with the opposite of the break even as percentage (100-BE%) e.g.. If Break even is 20%, you divide with 0,80
+ PayPal fee (0.3 (US) or 0.2 (UK))
Q: How come my source price on the source site is now higher than the one displayed in my order?
A: It might have occurred between scans, meaning, the item was purchased according to the data of stock and price from the previous scan.
AutoDS scans every 1 hour (one of the fastest in the market today).
Unfortunately, we cannot prevent these cases from happening - there's no 100% guarantee, as there can always be more frequent changes on the source site. You can read more about it here.
If you have further questions that were not answered in this article, please do not hesitate and turn to us at the support chat - we will be more than happy to assist you.