Discount profit impact
How many more sales does a discount need to pay for itself?
A discount shrinks the profit on every sale. Enter your price, cost and the discount to see the new profit per sale, and how many more sales you need to earn the same total as before.
Your numbers
Most US categories are around 13.6%. Rates differ by category and store plan, so check eBay's fee page.
eBay US charges $0.30 on orders of $10 or less and $0.40 above that. Check the current amount.
Result
Profit per sale
Extra sales you need to break even on profit
66.7%
Profit per sale after the discount
$3.88
New price
$26.96
Profit per sale before
$6.47
These are planning aids built on the numbers you type in. They are estimates, not forecasts, and they know nothing about your supplier, carrier or marketplace beyond what you enter.
Using it
- 1
Enter price and cost
Today's price and the source cost.
- 2
Enter the discount
A coupon, a sale price or a price cut: the same arithmetic applies.
- 3
Compare the volumes
If the extra sales you expect are below the figure shown, the discount loses money.
The arithmetic
1new price = price x (1 - discount)
2profit after = new price - fees - cost - tax
3extra sales needed = profit before / profit after - 1
Sample run: A 10% discount on a $29.95 item with $6.47 profit leaves about $3.88, so you need roughly 67% more sales to earn the same.