eBay is a very specific marketplace. That is why some products have advantages and some disadvantages when being sold there.
We will talk about cheap and average priced vs expensive items. Each of these 2 groups have their pros and cons.
The advantage of selling cheaper items – they are easier to sell because of the price. Many people look for bargains on eBay.
Another advantage – not that many returns.
One more advantage – it is easier to get your hands on this type of products.
The disadvantage of selling cheaper items – small profit margin which means more work to do.
With the expensive products the advantages and disadvantages simply turn upside down; that is why there is not need to specify on them.
Another way to classify the products for online auctions is new products?vs old products.
The advantage of new products is their “freshness” on the market. Plus they are under warranty.
The disadvantages – with hot items it is almost impossible to get your hands on. We talked about it in other posts of this blog and provided certain solutions, but this is still a problem. And you also have to compete with more people including stores that usually sell these things for a discount.
Used products have their own pros and cons.
The advantage – not much competition. Plus used products are also easier to get your hands on.
The disadvantage – they are not new and no warranties.
Now let’s look in close details about choosing things to sell on eBay.
The key in the success of selling anything is to be doing what you like. Usually this refers also to selling the things that you like. As with any business, you better like what you do.
The point is like this: you are more likely to sell better if you are selling something that you like. That is why a wise step can be writing down your interests and focus on them.
This does not mean you are getting into the hobby-like issues. This is a business. But business with passion has mroe guts inside. You will be happy to do that and you will do that.
Happy attitude attracts success. Surely it’s about commissions, market research, finding the best price for the product and many other absolutely business things to take into consideration. But it is also about having the spark inside.
This post is devoted to one of the most tricky issues for online auctions and eBay – the minimum quantity orders.
This is about the cases when the hottest product has just come out and you want to get it to sell on eBay. And then you find out that in order to get even one item you need to order at least 1000.
But don’t worry – there is a possibility to solve this problem. Contact the owner of product and ask to allow you ordering less than the minimum, and in return for this special treat you will give them away a part of the profits (this can be 20% or so). Just because it says that the minimum order is 1000 units this does not the ultimate decision. Human beings can change their decisions in case they get special perks.
This is not likely to work all the time. But you lose nothing on trying to do that. And in return you can get access to the product that will be a hit with eBay audience.
What is OPP and OPM in Internet auction business? These terms are important for people who want to make money on eBay or other best Internet auction sites.
OPP and OPM means Other People’s Products and Other People’s Money.
For example, you sell something that belongs to somebody else for a fee. You sell the item, collect the money, and then take your fee from it, giving the rest to the person whose product it was. This scheme is great because using OPM you do not need to invest your personal money!
Find someone who wants to sell something and work as a broker. Let’s say they want $100 and you negotiated $20 fee for selling it. The best part of it is that in case the product is sold for $140, you can take not $20 but $40! Surely you need to negotiate that issue before, so that people don’t call you scammer. But basically it’s your problem how to sell it higher, they just need their $100.
By the way, you can work as a broker not only for sales, but also purchases. If one is ready to spend $150 for an item, and you buy it on the auction for $110 – the rest is yours (surely "the rest is yours" should be negotiated before, but this will not be a problem).
What is common about both of these scenarios: you didn’t use any of your own money or your own product. You use OPM and OPP.
You see, eBay is starting to be interesting. More great tips in the next chapter.
Ok, let’s get down to what to sell and where to get the stuff from for selling on eBay.
By the way, this part is it is the toughest part of this whole business. The tip is pretty simple – you need to know where to look for a good supplier. They are definitely on the market: it’s their business to sell goods via retailers – people like you.
One of the ways to get access to the wholesalers is to go right to the people sell these things on eBay. Those of the eBay sellers who have very big loads of the products can agree to give you a discount just for the sake of "getting rid" of the big pack of products at once. In any case they will leave some commissions above the real wholesale price. This can be a nice chance to start.
If you setup the profit margins lower for a start, this can be absolutely realistic to make money and test the niche.
Meanwhile you start digging, re-digging and re-re-digging the net and looking for the real wholesaler. Here you can get a real help from search engines and industry forums – these are the places where people can shortcut you to the real wholesalers.
It is time for you to know what is ok with eBay and what is a big no-no. Take these tips seriously, because many people failed on eBay just becase of taking this as a mixture of some kind of virtual game and money making.
Buying Too Much
A typical mistake. Do not be over optimistic; surely it is great that you want to start the business as soon as possible and sell loads of goods, but better try selling a smaller portion first.
Take It Seriously
Aelling on eBay is not a hobby. Those who treat it like a hobby will to get a hobby income.
No Guessing
Do not guess the next new hot item to sell eBay. Research is the mother of all money made on this onlien auction. Base your success on the plan and research.
Fraud Issues
eBay has much fraud. This is not their mistake, it is the mistake of people who try to cheat other people on eBay. If you are going to be among the cheater and try to make a "shortcut" sooner or later this will be a knockoff. Make sure everything you sell is authentic.
Set Up a Home Office
You need a place to work where no one is disturbing you.
Separate Accounts
This is very important – get a separate bank and PayPal account specifically for eBay. This will help you to keep accurate records for tax purposes and for keeping in contact with customers. And – this is safer!
Get a Digital Camera
One of the things that many successful sellers do is that they are taking a lot of photos. The better your photos are, the more sales you will make – visual psychology.
Read more about making money with eBay in the next post of this blog.
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