How many $500 sales to pay back $10,000, and how many days?
Research question: If you need to spend $10,000 up front on stock or setup, how many $500 sales does that take to pay back, and how many days would that be at 10 sales a day?
Break-even is the sales amount that covers both fixed and variable costs, leaving zero profit 1. Before any fees, $10,000 divided by $500 is 20 sales, though the facts define break-even but do not state this division 1. Etsy's 5% transaction fee cuts a $500 sale to about $475 net, which raises the count to roughly 22 sales, or about 2 to 3 days at 10 sales a day 7. Payment processing of 3.0% to 4.5% plus a flat fee, and a $0.20 listing fee, would push the number higher, but the facts do not give the flat fee amount 89. The newest fact is dated 2022-05-02, more than four years before October 2026, so these fee figures may be outdated 10.
Sources
"The break-even point (BEP) or break-even level represents the sales amount—in either unit (quantity) or revenue (sales) terms—that is required to cover total costs, consisting of both fixed and variable costs to the company. Total profit at the break-even point is zero."Break-even point
"The break-even analysis was developed by Karl Bücher and Johann Friedrich Schär."Break-even point
"The break-even point is a special case of Target Income Sales , where Target Income is 0 (breaking even)."Break-even point
"Target Volume (#) = [ Fixed costs ($) + Target Profits ($)] / Contribution per Unit ($)"Profit-based sales targets
"Target Revenue ($) = Target Volume (#) * Selling Price per Unit ($)"Profit-based sales targets
"Target volume (#) is the unit sales quantity required to meet an earnings goal."Profit-based sales targets
"Etsy fees include the 5% transaction fee that an Etsy seller pays for each completed transaction, inclusive of shipping fees charged, the $0.20 listing fee for each item listed (for up to four months), and fees for Etsy Payments, our payment processing product."10-K ETSY INC (ETSY) (CIK 0001370637) 2020-02-27
"Etsy Payments processing fees vary between 3.0% to 4.5% of an item’s total sale price, including shipping, plus a flat fee per order, depending on the country in which a seller’s bank account is located."10-K ETSY INC (ETSY) (CIK 0001370637) 2020-02-27
"the $0.20 listing fee for each item listed (for up to four months)"10-K ETSY INC (ETSY) (CIK 0001370637) 2020-02-27
"For REO Properties, we would earn 25% of the sell-side real estate commission and, if the initial buyer contact came through the Marketplace, 75% of the buy-side, paid by the listing real estate brokerage as a referral fee."1-K preREO LLC (CIK 0001846798) 2022-05-02