Do Power Sellers make money?  Seems like a “no-brainer” right? I mean, of course they make money! They are Power Sellers! 

Well, let’s look at that a little more closely. 

The criteria for making Power Seller is based not on net income, but on gross income and number of sales and customer satisfaction, as demonstrated through the eBay feedback system.  So, to become and maintain the Power Seller status requires the seller to average $1000 in sales per month (30 days) for three consecutive months, sell an average of more than 10 items per month during the same three consecutive months, and maintain a 98% feedback rating or above.

An Example

Let’s say I sell T-shirts (yes I do.) Let’s say, I sell each for $15.00.  If this is ALL I sell, I will need to sell approximately 67 T-shirts every month to maintain the sales criteria.  That is 2+ T-shirts per day. 

Now, let’s look at the costs involved in selling my T-shirts on eBay.  Let’s say I pay $8.50 per shirt.  I can list shirts in multiples, so I can keep the listing fess fairly low using my eBay store, but my eBay store costs me money too.  A typical breakdown, for the Featured Store is:

$50.00 per month for the store
$100.00 (or more) Listing and final value fees for selling at least $1000 worth of T-shirts for the month
$50.00 (or more) PayPal fees for the $1000 gross collected for my sales.
$570 for the merchandise itself.
$30.00 for shipping supplies/print cartridges, etc.

Total cost for the sale of $1000 = $800.

Results?

Now, I did come out ahead.  I made $200.  That is $200.00 I did not have before.  But I must consider that I must list a lot more items if I hope to sell 67, so there is more cost involved.

The point I am trying to make is that Power Sellers may or may not be enjoying a big income from their sales. Non-Power Sellers often clear more than Power Sellers. 

Certainly, finding merchandise to sell at a better profit margin is the key to success, but making the Power Seller status should really come as a RESULT of profitable, consistent selling, and not be the goal itself.  There are some perks that go along with being a Power Seller, but those perks mean nothing  if you are not turning a reasonable profit.