So you want to make money on ebay?
The myths:
1. Anybody can make money off ebay
2. Anything sells on ebay
3. It's easy to make money on ebay
4. I can quit my job and make money on ebay
The truths:
1. Anbody can make money off ebay for the most part. But you have to have a plan. Just putting up items and spending a lot of money on listing fees is not the way to go. You have to find items that will sell which leads into myth 2.
2. Not everything sells on ebay. Items where you can ship cheaply tend to sell much easier. Unless you are getting a big discount who wants to spend hundreds of dollars on shipping a tv or furniture when it would be about the same even with the discount if they go around the corner and get it for about the same price. It's also harder to find margins on items such as clothes. While some can do it, I stick to what I know I can make my profit margin.
3. You have to be thrifty. Don't spend $50 to sell a $10 item. I've made many mistakes of selling items where I've lost money. It's fine if you are doing it to increase attention on bigger profit margin items from time to time. However, I just can't understand how you can make money off 1 cent items unless you make it back on the shipping. Buyers have become more savy in those tricks and it's just not fair to charge $10 to ship something which only cost you $2.00 with shipping and handling.
4. Don't quit your job yet. It takes time to learn what to do. I've yet to figure out a way to quit my job. I find it to be a relaxing deviation from work at night and the weekends and a way to make a little extra spending money. Even items where I've found a big profit spread, those items don't last and I have to find something else.
Some mistakes I've made and how to avoid:
1. Bad customer service - I've not been quick to get items out on time. Also customers become irate if you don't send them follow up emails if shipping has been delayed. You have to be quick or you will get negative feedback or disputes. It's easier to handle with an I'm sorry email because. If you are honest buyers can tell and will wait patiently. You must communicate. Negative feedback can hurt your ability to sell. If you and another seller have the same item and they have no negative feedback and you have some they will buy even for a higher price with the other guy. Especially if you have just started, negative feedback will destroy your reputation.
2. Spending too much money on listings. It is hard to get people to notice your items. I've found more information on the listing or good pictures is better than some of the add ons like borders or bold. certain items you should buy these, but avoid on low dollar amounts. You can eat up all your profit in listing fees.
3. Not marketing your items correctly. A good trick I like to use is bundling items together as a lot. People like gift packages and it makes your listing stand out. Don't just use the standard listing item. While it will save you time. Add to your listing. Why should buyers buy from you opposed to Buddy's Store? Make it a fun experience.
4. Stock up on inventory quickly. You need to keep your store and listings going. Don't wait until you are depleted. Always look for a good bargain or a good deal. There is always something to find.
5. Research your items before you spend money. Don't buy high dollar items such as computers or tv's and get stuck with them. Low dollar amounts in bulk may be a better option. You just have to find stuff that will sell and sell for a nice profit.
In conclusion:
Start small. Don't overwhelm yourself our family. You can find items to sell from friends and family. It is much easier than going out and spending a lot of money on suppliers and wholesale. Unless you find a unique or new source everyone knows those tricks. When you get more experience you will understand that you can gain a competitive advantage with smart listings. Make those listings and find the right time to start and end your listing. Even more advanced sellers will gain greater gains with buy it now and reserve price auctions. Wait and learn how to use an auction by research and then go make your money.
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