Selling for a Profit on Ebay
When looking for a part time income, many people turn to selling on eBay. Unfortunately, it can be very expensive to sell on the site, and many new sellers end up losing money. Simply looking at the monthly sales figures can be a misleading way to see how much you are really making each month. Researching the fees and the cost of inventory and supplies can help you to understand how much is really coming in.
How much are you spending for inventory?
Keeping track of what you spend for the items you sell is the first step to maintaining a profit. The price you pay for each item should be cataloged, and each items should be priced high enough to garner a profit. This sounds easy, but it’s much more complicated than simply setting a price above the price you paid. If the starting price is high, it will attract fewer bidders and may end lower than it would have with a lower starting price. If you start the price just above what you paid, the profit you make will be eaten by the eBay and PayPal fees that will be due on the ending price. For items that you know will go high, start the price much lower than what you paid in order to attract more bidders. If you have an item that you aren’t sure will sell for higher than you paid, set it high enough to cover your purchase price, the eBay commission, PayPal fees and the cost of packing supplies. Anything anyone pays above that amount will be your profit.
How much are you paying in fees?
Be very familiar with the fees that will be due before you list anything. By knowing the fee schedule, you can price your items effectively to avoid unnecessary fees. New sellers often price an item with a starting bid of $10. If the starting price had been $9.99, the fee would have been .40. But, at the $10 price, the fee is .60. Over the course of the month, mistakes like that can add up to a noticeable cut in profits for small-time sellers.
How much are you paying for shipping supplies?
The cost of envelopes, padded mailers, bubble wrap and other supplies can be overwhelming if not researched in advance. Buying these items one at a time can be extremely expensive- one padded mailer can be as much as $2. But, if bought in bulk, you can get them for less than .50. Look online for bulk retailers of shipping supplies, or go to the USPS website. If you sell items that you intend to ship via Priority Mail, the supplies are free from the post office and are shipped directly to your door.
Keep track of what every items costs you to purchase, sell, package and ship. If you find that in the end, you have not been making a profit, it’s time to change the way you price or package your items. Or, it may mean that you need to find different items to sell that can bring in a better profit.