They go and buy some stuff and then write a wonderful auction, take some brilliant pictures and wonder why they aren't making as much money as they thought! The secret to making money on eBay is to keep your expenses low (Don't opt for high vis auctions at premium prices) and to buy your stock to a given projected markup! The key to makingprofits on eBay is getting your "Buy Price" right at the start. That is where you make your money. WHEN YOU BUY YOUR STOCK!
When you sell on ebay you have to take into consideration your initial buy price, the Final Value Fee (Ebay's scrape off - FVF), and the Paypal fee (if you take Paypal payments, which applies to the WHOLE AMOUNT including POSTAGE FEE). Also any error on postage price asked also comes out of your profit - So get that right!
ALL products have a BUY PRICE ratio... This is the difference between the price you 'buy-in' and the 'selling price'. It is very important to allow for the fees and charges when planning your sell price - This dictates your buy price.
Here are my buying rules:
If you sell anything for less than 5 you need to make 250% profit or more to make it worthwhile. (can be done / must be done!)
The 1/4 rule on items selling from 10to 25If it is a single item that will sell for at least 10, I will not pay more than 2.50 for it.
Buy Price 2.50 - 7 Sell Price 10 - 25The 1/3 rule on items selling from 25to 50If the item is selling on eBay for between 25 - 50 I will try to pay 1/3 of the price.
Buy Price 8 - 17 Sell Price 25 - 50The 1/2 rule on items selling from 50to 125On items that sell in this price range I normally try to pay 1/2 price for them.
Buy Price 25 - 63 Sell Price 50 - 125
Above 125 if you can get35 to 40% mark up you're still on the money
One thing to think about is this:
Here is an example of the way things work out because of the different rates for different prices...
Rough working...20 items bought at 1.20 and sold at 2.50 (total=50)results in only approx 6.80 profit BUT 1 item bought at 25, and sold at 50 (total=50) gets you approx 17.50 profit!
Basically - The higher the price of the things you sell the lower the ebay scrape off the profit. BUT The lower you buy in the less this has an impact! BUY in accordance with my guide and you'll make bigger and better per sell profits :o)
Addendum- If you think it can't be done let me say that currently (August) I am buying in my winter stock at car-boot-sales. I am paying between 0.40p and 1 for clothing items that will sell for 6 - 12 believe it or not! And my very first item I bought specifically to 'sell-on' brought me around 500% profit! Look after your expenses and your profits will look after themselves!
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A final point - IF, in the column to the right of this guide, there is an auction for the 'Ebay Selling Tool - Profit Modeller', DON'T BUY IT!
It's useless - It fails to take into account the FVF and the PayPal charge. As such it is a 'Basic Profit Modeller', what's the point of that? Basic profit is so far off the actual profit it is virtually useless as a guide!
If anyone is offering "Ebay Selling Secrets" or "Selling Tips"- Don't pay for it - Just use these guides! There is a wealth of FREE information out there for free on ebay guides - Don't pay someone to tell you something you can get for FREE!
Thanks for your time, I hope I've been helpful!
SuperCooper
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