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.

Labels: ebay, ebay formula, ebay success, sell on ebay

Today the world has indeed caught up with the Internet commerce. In order to cope up with the expanding global business, the Internet had to create a common currency that will cross country boundaries and currency specifications. ( A typical e-commerce site can be viewed at www.rebelnetworks.com )Without a facility like this buying and selling across the world markets would be virtually impossible. The virtual world hence has created its own currency and mode of payment. Let us look the options that we have:

1. Credit cards - this is one of the easiest was of payment over the Internet and maybe one of the most common. The reason for this is that everyone is comfortable with a credit card and for buying anything over the internet; all you have to do is write your name and credit card number. There is a transaction cost that is charged from you by the credit cards(2-3%) and you will need to have a merchant account to receive this type of payment.

2. Paypal - this is Ebays mode of payment, and a very popular online service that facilitates the transfer of money from anywhere to anywhere across the Internet. Paypal also charge a tiny fee, but it is very low and hence a comfortable way to use. You can charge your paypal account with credit card as well as bank transfer. This method is usually added to credit card facility, though sometimes it is also used alone.

3. E-check - this is another convenient way to pay your bills over the net. However, some people shy away from it because of the amount of details one has to give the site in order to process payment.

4. E-currency - there are many types of e-currencies floating around, the most popular being e-gold. This type of currency is backed by gold, and it is used to back up payment over the globe based on the value of gold rather than any particular currency. It is easy and simple and accepted in almost every country.

5. Wire-transfer - this is very expensive way to pay, but it is also fast and very safe. Hence, this is used when large amounts of money are involved. There is most of the time confirmation over the phone when such transactions take place, hence it is indeed safe. It is also very advisable when large amount of money are involved as opposed to cheques or even a credit card, because these have a chance of bouncing but the wire transfer is not.

6. COD - this way to pay is in a way safe and in another risky. Safe because you will not give away the item unless you get the money owed to you, and risky because if your customer refuses to pick it up you end up with the shipping cost tab and also the possible damage to your item while it is shipped to and fro.

The above list is by no means exhaustive. There are many ways more to make payment and cross borders and currency denominations when doing business over the Net. However, it remains to be seen which is the safest first and then the fastest way to get money sent and received across the globe.

About the Author

Domenic is co-founder of Rebel Networks. Rebel Networks is a leading provider of outsourced Internet infrastructure and related managed web solutions. Rebel Networks services include the provision of managed dedicated servers, unmanaged collocation services, domain names services, & shared web hosting solutions. All backed by a 100% SLA visit www.rebelnetworks.com

Labels: auction, currency, ebay, money