How a 40/60 Profit Split Works on a Managed eBay Store
A plain-English walkthrough of how we split profit with store owners, what counts as net profit, and where the extra 5% cashback comes from.
When people first hear "you keep 40%", the usual reaction is: 40% of what? Fair question. Here's exactly how the money moves, with a real-world example so you can check the math yourself.
What "net profit" actually means
Net profit is what's left after every cost of running the store has been paid. On an eBay store, that's usually:
- The product itself. What we pay Amazon when an order comes in.
- eBay fees. Final value fees and any promoted listing costs.
- Tools. Things like repricing or stock-monitoring software, if the store uses them.
Whatever is left once those are paid is the net profit. That's the number we split, not total sales. Splitting sales would sound bigger but would mean nothing, because most of a sale goes straight back out to buy the product.
The split: 40% to you, 60% to us
You get 40% of net profit. We take 60% for doing all of the work: product research, listings, pricing, orders, customer messages and keeping the account healthy.
It's a simple deal, and it keeps us honest. We don't charge a monthly retainer, so if the store doesn't make money, we don't either. Our only way to earn more is to make your store more profitable.
Where the extra 5% comes from
This is the part people miss. Every order is bought on Amazon using your card. If that card is an Amazon Prime Visa, you get 5% back on those purchases, and that cashback is entirely yours. It isn't part of the split.
On a busy store, that adds up quickly, because inventory is the biggest cost.
Card rewards depend on the card issuer's current terms and your Prime membership. Check the latest details before you apply.
A worked example
Say the store does $10,000 in sales in a month at a 15% net margin.
| Amount | |
|---|---|
| Net profit (15% of $10,000) | $1,500 |
| Your 40% share | $600 |
| 5% cashback on ~$7,000 of Amazon purchases | $350 |
| What you take home | $950 |
| Our 60% share | $900 |
So while the headline split is 40/60, you end up with roughly 63% of the store's net profit once the cashback is counted. The calculator on our home page lets you try your own numbers.
Why we set it up this way
Agencies charge in different ways. Flat fees make the agency comfortable whether the store grows or not. Revenue-based fees push you to chase sales even when they lose money. A profit split is the only model where we only win when you do.
The honest caveats
- Margins move. Prices change on Amazon and competition shifts on eBay. Some months are better than others.
- Nothing is guaranteed. The examples here are illustrations, not promises.
- You'll need working capital. Products are bought before eBay pays out, so your card needs enough room to cover that gap.
If you want to see what the split could look like for you, book a quick call and we'll walk through it with your numbers.