Glossary of eBay profit terms
Plain-English meanings of the words ProfitClerk uses: net profit, margin, ROI, cost of goods, FIFO, average cost, estimated cost, payouts and eBay fees.
This glossary explains the words you see in ProfitClerk, in the order you are most likely to meet them. Each entry says what the term means here, and links to more detail where there is some.
Profit and sales
Revenue (Sales) What buyers paid you for the items in the period, as reported by eBay.
Net profit What you kept: the sale, less eBay's fees, postage, the item's cost and any refund. It is the big figure on the Overview and Home. See How your profit is worked out.
Profit by day / This week Net profit added up for each day, shown as bars.
Margin Profit ÷ revenue, as a percentage. Sales with no item cost are left out, so they do not make your margin look better than it is.
ROI (return on investment) Profit compared with what you paid for the item. It tells you how hard your money works. See Margin or ROI.
Units sold How many items sold, counting each one in a multi-quantity order.
Refund Money returned to a buyer, in full or in part. ProfitClerk takes it off the order's profit on the date eBay records it.
Costs
Item cost (cost per unit) What you paid for one unit of an item. You enter it in Inventory, with a restock, or on an order.
Cost of goods (COGS) The total item cost of what you sold in a period: quantity × cost per unit for every sale.
Average cost A way of valuing stock: every unit of an item costs the blended average of everything you paid for it. A restock at a new price moves the average for sales from then on.
FIFO (first in, first out) The other way: each sale uses the cost of the oldest units still in stock, lot by lot. See Average cost or FIFO.
Lot One batch of an item bought at one price. FIFO works through lots in order.
Job lot (lot purchase) One price paid for several different items, such as a box at auction. ProfitClerk shares the price out across the items. See Job lots.
Confirmed, estimated and missing costs A confirmed cost comes from eBay or your own records. An estimated cost is assumed, for example a label cost taken from the postage the buyer paid, or an item that sold more units than you recorded. A missing cost is not known yet, so that sale's profit is overstated. See Add missing item costs.
Cost confidence How much of a period's profit rests on estimated or missing costs. See Cost confidence.
Expense A business cost that is not stock or an eBay fee, such as packaging, storage or software.
eBay terms
eBay fees Everything eBay charged on a sale, read from eBay's own financial records. See eBay fees explained.
Final value fee eBay's main selling fee, charged when an item sells. ProfitClerk shows the amount eBay actually charged on each order.
Promoted Listings (ad) fees What you pay eBay to promote listings. Fees tied to a sale are taken off that order; others are shown in the ad report.
Postage paid vs label cost Postage paid is what the buyer paid for delivery. The label cost is what you paid to post it. The difference is part of your profit or loss.
eBay Labels Postage labels bought through eBay. Their cost comes in from eBay automatically, including labels bought in bulk. See eBay Labels bought in bulk.
Payout Money eBay sends to your bank account, after taking its fees. See eBay payouts.
SKU The code on your eBay listing that identifies an item. ProfitClerk matches sales to your stock by SKU, so use the same one in both places.
Sync ProfitClerk fetching new and changed orders, fees and refunds from eBay: every 15 minutes, or now with Sync now.
Active eBay account With several eBay accounts connected, the one ProfitClerk shows first in Settings and on the Overview's eBay connection card.
Your workspace
Workspace Your business in ProfitClerk: its eBay accounts, stock, orders, reports and team.
Owner, Manager, Viewer The roles in a workspace. The owner can do everything; a manager works with the figures; a viewer can only look. See Team members and roles.
Try pass A one-time pass to try ProfitClerk for a short period. It never renews.
Read-only A workspace without an active plan keeps every figure but cannot change anything or sync.
Tax words
Reporting currency The currency every amount is shown in.
Tax year The 12 months your reports call "This tax year", starting on the date in your tax profile.
Accrual and cash basis With accrual, an item's cost counts when it sells. With cash, stock counts when you pay for it.
VAT margin scheme A VAT scheme for second-hand goods in some countries, where VAT is due on the margin rather than the full price. See The VAT margin scheme.
Questions people ask
What is the difference between margin and ROI?
Margin compares profit with the selling price. ROI compares profit with what you paid for the item. A cheap find can have a huge ROI and a small margin, so it helps to look at both.
Is net profit the same as my payout?
No. A payout is the money eBay sends to your bank, after eBay's fees but before your item costs and other expenses. Net profit also takes off what the items cost you.
Which is better, FIFO or average cost?
Neither is right or wrong; they spread the same costs differently over time. Use the one you or your accountant prefer, and switch any time to compare.
What does an estimated cost mean?
A cost ProfitClerk had to assume, such as a label cost taken from the postage the buyer paid. The profit is close but not exact until the real cost comes in or you enter it.
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