Ebay is an online auctioning site. This popular site allows users to buy and sell things online in an auction format. In this article I will go over how to make some money with Ebay.
Making money on Ebay is not as hard as people think. Many people have earned six digit income on Ebay. Anyone can set up an Ebay account and make money.
Setting up an account on Ebay is easy. All you need is a paypal account a phone number and access to the internet. Once you have a paypal account with a bank account or credit card hooked up you simply apply for an Ebay account which can take less then 10 minutes.
Once you have an Ebay account, you have to build a feedback. Don't try to jump right in and sell a 500 dollar item. Start by buying and selling small things. Look around your home and sell things like book, dvds , giftcards almost anything sells. You will be surprised with how much stuff you have that you don't need. When you are putting your first few items for sale make them really cheap. People are hesitant buying from a seller who has no feedback.
The first item I ever sold on Ebay was a book I had found in my closet. I bought the book new for 15 bucks and I ended up selling it for 3. Other people were selling the same book for about 7 dollars but since it was my first auction, I was just focused on building a good feedback rating.
When selling on Ebay I use an auction setting 90% of the time. I find that I make the most money in an auction setting, plus its exiting. Making auctions are very easy. Simply take a picture of the item you want to sell go to Ebay and fill in the amount of money you want to ship it for and the starting bid/buy it now bid. Always do a buy it now, even if it costs you an extra 5 cents. When you do a buy it now price do about 10-50 percent more then fair market value, meaning if an item sells on Ebay consistently for 100 dollars, make the buy it now price 110. This is low enough so people will consider buying it but high enough so you dont run the risk that the auction could have gone higher then the buy it now price. On Ebay I consistently see people put a buy it now price that is 80% higher then what the product sells for. This is foolish in my opinion because no one is going to pay that much. For instance If a book sells on Amazon for 10 bucks who would pay 30 dollars to buy that book on Ebay?
There are fees associated with buying/selling an item. The fees constantly change, so I will not write them in this article but in general when selling an item, you pay listing fees. These fees are small fees you pay to list an item for sale. They tend to be very small and Ebay usually has a sale going on for new sellers which makes it completely free to list an item.
When an item you list sells, you have to pay a small fee. The fee is a percentage fee and it takes a percentage of the sale price. For small items the fee is around 5% and for big items it is around 9%.
Once you have built up a strong feedback rating you are ready to start making money. You will need to get products and services to sell. Below I have listed a few ways you can do this.
Garage sales: at garage sales, people sell items for well below their market value. If you know what you are buying, you can buy items at garage sales and quickly resell them for a nice profit. I have done this before with great luck!
Drop Shippers: Drop shipping is a method that many Ebay sellers use. It involves signing up with a drop shipping company and listing products on Ebay for sale. When the item sells, you notify the drop shipper, and they ship it for you. Basically drop shippers do all the work for you. Because of this, drop shipping is a low margin business since many people are doing it there is a ton of competition.
Wholesalers: Once you have enough money and experience you can start buying items in bulk and selling them. There are many wholesalers who are willing to sell you items in bulk at a great price. When buying wholesale, you will need a place to store your items. Once you get the items you sell them on Ebay. This is a very simple process. Here is an example. Lets say I find a wholesaler online who ships to me 200 mink hats for 2,000 dollars. I will then sell each hat on Ebay for 20 dollars a piece. After fees I should be able to make a nice profit. When buying wholesale there is always a risk that you will be stuck with the product and not able to sell it. This problem can be solved below!
Knowing What Sell
When picking an item to sell, you must know your market. The more demand there is for an item, the more competition, and the less demand the less competition. The key to making money on Ebay is finding the right niche. You should try to find a product that has a high enough demand so that you can sell it quickly but not too much competition. These niches can be hard to find. When finding a niche start by writing down a list of products you wna to sell. Maybe you like electronics and want to sell those or you like books. Also write a list of products you are able to acquire. This is important because if you cannot buy the items you can't sell them. Once you have made your two lists, see which items match. Then look those items up on Ebay. See a few auctions and see what prices they are selling for and who is buying. My rule of thumb is, when I find an item I click on 10 auctions for that item and watch them. If less then 6 end up selling, I move on, If more then 6 sell, I look to see at what price they are selling for. If the price is higher then my costs to buy the item by over 15% I will have found my niche, if not then I will not sell that product. Here is an example. Using my lists I find that I can get a Kindle Fire for 150 dollars. Then I see on Ebay that out of 10 auctions I watch 8 of them sell and the average price they sell for is $180. I will then go on to sell the Kindle Fire. If I find that out of the 8, the average price is $158, I will not sell the Kindle because my margins would be too low.
Making money on Ebay is be very fun and exiting. People all across the globe are making hundreds even thousands of dollars selling items on Ebay. Using the site is not very complicated, in fact it can be done with very little money. I have been selling on Ebay For a few years now and have made a lot of money doing so. In this article I have shared some of my tips for making money with the site, please read my other articles for my information on how to make money online and on Ebay!!