Scaling Up and Dealing With Customer Service

High Margins & Fewer Sales Per Day Approach

Alex Lv avatar
Written by Alex Lv
Updated over a week ago

READ TIME: 60 seconds

So you've made it
You've reached the 10,000+ listing mark!

🎉 Congratulations 🎉

You should be making a lot of sales per month now. So many that it's could a bit of a burden to deal with all the customer service; returns; cancellations and such.
You have some options that could really help alleviate this work load.

  1. Consider using our FBE Service where we manage this stuff for you!

  2. You can employ Virtual Assistants (VAs) to handle your labor for you. 

  3. Increase your margins

Which would you prefer? 🤷

100 sales per day making $1.00 per sale; ($100 profit per day)
or 10 sales per day making $10.00 per sale (also $100 profit per day)

These both will yield $100.00 profit per day, but the first option will also yield more returns, questions, and customer service.
The 2nd option will yield fewer returns, the same profit, and a few emails from people asking you if these prices are a mistake or not. Those are bargain shoppers and you wouldn't have made a sale to them anyway.

Mine is a test account so I mess with my numbers a lot but for the most part it's something like this below and I'll update mine from time to time.
If you have very low margins compared to mine and you instantly raise your prices this high, be prepared for an extremely low amount of sales per day; but an extremely high amount of profit per sale.

You need to make sure that your seller limits are high enough on eBay for something like this also. Read about seller limits here.

At the time of writing this, I have 25,000 listings up and I make 5-15 sales per day. My lowest profit is usually ~$20.00 and my highest so far has been ~$400.00. Daily I'll make $150 - $400 profit.
My gross sales are around $20k/month and my fees + source costs are around $14k/month.
So after fees I can net around $6k/month 💰
Will I really make sales with prices this high?
Buyers care most about things in this order...

  1. Is it what I want?

  2. How much is it? (for some people)

  3. When will I get it?

  4. What is the sellers feedback score and %

  5. How nice is the template? (This definitely ranks less than 5% of a buyers decision)

Yes you will still make money and sales. Try coupling this with Promoted Listings and you'll soar.

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