Know the Real Cost of Items That You Sell
Saturday, February 24, 2007
One of the challenges that constantly face those who make money on eBay is the desire of most buyers to get a bargain. That bargain for the buyer equates to a lower price being received by the seller. For the person who is selling more as a hobby, or to clear out excess items from their house, attic or garage, getting any amount of money from items is better than just tossing them away. However once you begin running an eBay business that is targeted to make a profit, everything changes. Items are purchased for resale with the goal of making a profit on every sale, every time.
Sellers who make money on eBay know that not all items will sell on eBay. They know that market research is required before items are even purchased for resale. They know that there are costs far in excess of the price paid for the items that they sell. For example, they factor in costs such as: * freight * e-Bay selling fees o Listing fees o Final value fees * PayPal fees * Costs associated with their time
These are seen as costs associated with conducting their eBay business. All of these costs are included together with the actual purchase price of the item to determine the real cost of each item.
While there will be cases where a seller has made a mistake, or where the market has changed, the goal is to never lose money. To make money on eBay, the very minimum that you can accept is to periodically break even when mistakes are made. However, even breaking even is something that cannot happen often. There is still an investment of time, and that time could have been spent on items that will produce a profit.
Your goal is to buy 'low' and to sell 'high'. In other words, you need to pay the lowest possible price while minimizing associated sales cost. Then you must sell for as much as possible.
On the buy low side of the formula, there are many theories: * Sell Name Brands only * Pick only the most popular items to sell * Sell Information Products only * Sell 'Hot' items as their popularity is rising
Each of these strategies has its strengths. Each could work for you. However in every case, the only way to be aware of exactly which items are most likely to sell is to conduct research. That research must occur before the item is purchased for resale.
If you want to know how to make money on eBay, then never lose sight of profit. Your goal is to maximize sales prices while minimizing all costs associated with making those sales.
To Your eBay Success!Labels: ebay, ebay formula, ebay success, sell on ebay
