Forgot your password?

Make Money from Home with Ebay- Ebay Arbitrage Strategies

By Edited Nov 13, 2013 1 3

One of the best make home from money with Ebay strategies ever is Ebay Arbitrage. What is arbitrage exactly? The term arbitrage comes from the financial world and means the simultaneous purchase and sale of the same product or commodity. People who make money from arbitrage buy low and sell at a higher rate without holding onto the product or commodity for more time than is absolutely necessary. They make their money off the flux in prices in the marketplace.

How to Make Money on Ebay

Arbitrage on Ebay is just exactly what you may be thinking. You look for very low priced items at auction which are closing soon and are a steal to purchase. Usually these items have very poorly written auction listings, new sellers, or sellers with questionable feedback ratings. Most auctions closing in prime time will go for prices either at or above market value, although some will close lower than they should. In general though, auctions closing at less peak traffic times or on slower days will be where the values are most easily found. You are looking for items with huge value that you can pick up for a pittance, relist either at auction or in an Ebay store immediately and resell quickly. You take your profit margins off the difference between what you buy for, what you sell for, less your listing and closing fees.

The higher your potential profit margins the better your chances of making a solid return on your investment for your time.

What You Will Need to Make Money on Ebay with Arbitrage

Making money selling with Ebay arbitrage is not difficult, but you will need a few basic skills to get you started. First, it helps if you have an idea of what collectibles and other unique goods are worth. Knowing your prices is helpful, but not essential to your success. If you question the worth of a product you are considering buying, your best bet is to sign into your Ebay account and do a search for the item you are considering purchasing for immediate resale. Go to the advanced search section, put in the description title of the item as it is listed and tick the box which shows closed auctions. Your search will now bring up the history of the closing prices of similar items and what they have closed for. Take a look at the auction listings and see how the ones with the highest closing prices were written and then incorporate the basic layout in your auction listing.

Once you have done your basic price research, you will know the possible upside potential of the items you are thinking about buying to resell. Look for items with at least 200% markup wherever possible and a solid history of 50% or better auctions closing as sales. You will also need to take the condition of the item and the number of listing competing into consideration when making your selections. The only thing you are after is a way under priced product that you can relist immediately and resell quickly for a profit. The higher your potential profit margin, the lower you can list your auctions to guarantee the auction will close with bids. Everyone loves a deal on Ebay. Provide one and you will make the sale.

After you have established that you have an item which is potentially profitable, you can go ahead and place your bid. The easiest way to do this and avoid auction fever, with the resulting over payment, is to set up autobid. Autobid allows you to make your initial bid and then authorize your bids to rise at a set amount if someone else out bids your offer. With autobid, you set the upper limit of your bidding range so there is no worry that you will end up paying more than you wanted to for the item. Another advantage of using the autobid feature is that you do not need to baby sit the auctions you are bidding on at any time, the program does it for you. Make the decision on an item and move on looking for other great items to resell.

Upon winning an item you should make your payment immediately to the seller via Paypal to speed the transaction. As soon as you have sent your payment, rewrite and relist the item for auction. Be certain to make your auction listing better than the one that did not sell, or adjust the closing time of the auction a bit to help improve the selling price. As a rule, auctions closing during the evening hours throughout the week and during daytime hours to early evenings on the weekends do the best price wise. Do give yourself every opportunity to improve the selling price of your Ebay auction listings. One other point, your auction listings must also close with enough time for you to have the item mailed to you before you can reship it to another, so be careful of your time frames. Time is money, so limit the amount of time the item is in your possession to maximize your profitability.

Another way to improve the profitability of your Ebay business is to decrease the cost of your Ebay listing fees. If you have enough money to let your items sit around for awhile before you resell them, making use of an Ebay store rather than auctions is a good way to go. Ebay stores are much less expensive for volume listings and will result in lower overall selling fees increasing your profit margins. If you have some money to invest and don't mind waiting a bit to maximize your returns selling through an Ebay store is a good way to accomplish your goals. Some people elect to do both, turning the more expensive parts of their merchandise around more quickly by listing a portion of their items at auction and then promoting their store via their auction listings. Utilizing both a storefront to lower selling costs and auction listings for fast product turn over and store promotion is a useful strategy.

Make money with Ebay at home is both an excellent and legitimate way to earn extra money fast. Even more astonishing is how rapidly you can build a full store inventory of highly profitable items with very little front money. If you are careful in your research and look for high quality, high profit margin items to resell you will easily be able to generate a solid income through the use of Ebay arbitrage. Focusing on unique products with high desirability will allow you to turn over your merchandise quickly enough to keep even the most rabid bargain hunter browsing through your Ebay stores looking for your best and latest deals.



Oct 4, 2010 10:19am
This system has some flaws ,if you re-list an item as soon as you win, and the original seller is slow to ship, or item gets lost in mail, you will not be able to fulfill your order, and you might get negative feedback.
Also take into cosideration shipping costs.
Your better off just wasting the day at www.dorm-room.net, chow
Oct 4, 2010 1:00pm
Great info. I never realise the importance of listing end date and time. Thanks for this article.
Oct 31, 2010 6:12pm
Certainly you will want to wait until the item ships and then select an ending date and time that will be sure you can fulfil your orders. It would be foolish to do anything other. Bear in mind that when you list, you control the closing date of your auction. Advanced Ebay users know this and use this system successfully all the time.
Add a new comment - No HTML
You must be logged in and verified to post a comment. Please log in or sign up to comment.

Explore InfoBarrel

Auto Business & Money Entertainment Environment Health History Home & Garden InfoBarrel University Lifestyle Sports Technology Travel & Places
© Copyright 2008 - 2016 by Hinzie Media Inc. Terms of Service Privacy Policy XML Sitemap

Follow IB Business & Money