 What is break even? What is percentage profit and what are the differences between these two? This is a very very very common question which I get from many different people in all of the levels from beginners and to very experienced sellers who don't know What are the differences and how to calculate it's right. In this video I want to show you all of the process and what are the differences between these two parameters and how to use it right I'm your opposing and only on CEO for the DS. So let's go First of all, what is break even break even is the amount of Percent of money of profits actually which we need to make to not lose any money It means that it need to close all of our expenses So if we make only break even without any profit means that we don't lose money and we know don't make any profits Profit is the actual amount of percent which we want to take to our pockets. Actually, this is the Money which we take back home from our business So let's see what are the differences between these two First of all break even calculated from the final price from the eBay price Not from the Amazon's price or from our suppliers price which we pay to the supplier Why because we pay our taxes from our income We pay to eBay the subscription from our income and we pay to paypal Also percentage of the money which we get it means that we pay to people from what we get on eBay The profit percent is calculated from the money from the amount which we pay to our supplier For example, if I buy something from Amazon for ten dollars and I have ten percent of profit I will make one dollar It's not the same if I will put ten percent of break even and we will see it on this video First of all how to calculate the break even right So we need to calculate all of the percent of the things which we pay So it's the even fees which is 915 on eBay US if you have store subscription it's four Point four it depends on the country But if you're an international seller you need to check your paypal fees plus add another one percent for the international transactions It depends on the country so you need to check Individually for your specific paypal country if you are from the US and you sell only to US customers We don't have any international fees So we just need to calculate the regular fee of paypal the percentage fee And you need to take in conclusion the tax Estimation which will be in your supplier if you work for example with Ali express You don't have any taxes. So you don't need to add it to your break even and Other payments for example if I pay to gift for gift cards another percentage So I will add it also to the break even the thing is that this is not exactly right many people does this Thing sometimes it's just more comfortable But this is not the right amount because if I pay to the gift cards another three percent It's not from The money that I get on eBay. It's what I Pay so it means that this 3% need to go out of the profit We need to decrease this 3% from the profit and not from the break even now Let's see how how the calculation works. Let's say that we have a product which price is 2229 and the breakman is 19 The profit is 10% our final profit our final price will be 3097 But if we switch between the breakman and the profit here We will put 10 for the breakman instead of the profit and 19 for the profit instead of the break even We will see that the price is completely different Why it happens it happens be because of the Calculation of the break event is from the final prices. It's from the price which we pay to eBay While the calculation of the profit is from the price which we pay to the supplier Actually, it's from the buying price from the price which we purchased the product This is the main Different between these two fields between these two parameters Let's see how it looks here. So this is the example as you can see if I put a nine here The final price will be 3027 if I switch between these two params We will see that the prices are completely different I Will put the formula of how to calculate it for those of you who it's interesting for them under this video But in general, this is the formula so you can see it here. I put it here on the title so you can see As you can see the breakman is not taking when we don't take it from the Source price This is the main difference, but the percent profit we take from the source price So as you can see here the breakman is taking from another place So this formula is a bit complicated But I just made it easier for you to understand what are the differences between the breakman and the profit So profit is from source price break even is from the final price from the sale price I hope that it make the things much more clear for you because a lot of people are asking How to calculate or which percent of break even should I put? I don't like this question because I really want you to understand what should be your break event and why I Hope that you like this video. See you on the next videos Don't forget to subscribe to our YouTube channel here under the video And don't forget to leave a comment with any question that you want about dropshipping about eBay about breakman about anything See you in the next videos. Bye. Bye