How To Make Money on eBay.
By: SmrtySsa
on Saturday, August 27th 2005 at 12:54pm
It's always been a mystery to me how some some eBay sellers can get enough shit to flood the place with cheap 1 cent listings (of items that actually sell) and manage to make money.
From my experience, eBay and PayPal combined make for a wonderfully chaotic tiering system of fees and more fees.
For example, I just ordered a Data Cable for my cell phone for $0.01. Shipping was $7.49. Fine, the seller is getting $7.50 USD from me for this cable. So, lets run down the fees. eBay charges $0.25 up front to list; He's down to $7.25. The seller used 'Buy it Now!' which eBay charges another $0.05 for. Now we're at $7.20. After it sells they charge 5.25% for a "final value" fee; on $0.01 it's irrelevant.
On to PayPal, they charge $0.30 plus 1.9% of the total amount (That's $0.14). Now we're down to $6.76.
This seller uses a 3rd party checkout system; It costs him $0.20 per transaction (on the lowest final value). Now we're at $6.56US
There's two more factors left. Shipping; I have no idea how much the US Postal Service charges - but I'll find out when it arrives. And finally, The cost of the actual item. I'm sure this is a mass-made in China special, but again, it's a number I can't pull out of anywhere. These things "retail" for $30 and up; but knowing capitalism they probably only cost $1 or $2 at the most.
So, after subtracting shipping and original costs, I bet this guy makes $1 on this transaction.
Here's the disgusting part: He currently has a rating of 252,463 - that means he's sold well over that many auction items. In fact, he's pushing almost 400,000 in 5 years of being an ebay user. At a mere profit of $1 per item, That's not a bad paycheque.
And considering the majority of the process is likely automated (with the exception of stuffing envelopes and shipping stuff out) that's probably not a bad way to make money.
So, basically, if you can find a source for cheap imports and have the time to setup some automation, you can make some good money on eBay.
Of course, if this cable sucks donkey nads, I'm out $7.50.
We shall see.
Other Articles
Next: The Ubuntu Upgrade (to 5.10) from SmrtySsa
Previous: Rogers Abuse! Also Known As A False Positive from SmrtySsa
Previous: What Colour is the Sky on Your Planet? from Asrai
Comments for How To Make Money on eBay.
prev . 1 . next
3 Comments
Clayju Wrote...
Tuesday, September 20th 2005 at 11:38am
I am guessing that's why people charge extra on shipping. You buy a cheap item and the shipping is tripple, that's how some of the smart ones make money.
People have to make somewhat of a profit.
Also a great way to make money is to purchase an accoutn like World of Warcraft, set up a free bot, and have it make money for you, although you do have to keep an eye on it sometimes. It's a great wayto make money. Some people will buy a level 60 account for like 350 US dollars. Or you could sell gold, which will make you more and more money. I believe the internet has made most of us into lazy bastards.
cdntennispro Wrote...
Thursday, November 10th 2005 at 1:34pm
I can't believe that people will spend real money to buy fake money.
I guess I did buy replacement Monopoly money once though...
prev . 1 . next
3 Comments
You must be Logged in to leave comments.
Quigley Wrote...
Monday, August 29th 2005 at 12:01pm
i tried selling some stuff dirt cheap on Ebay. it was useless. i think these dudes you're describing are probably the only ones making anything decent. those, and the people with grilled cheese sandwiches that look like religious icons!