Sunday, 31 August 2014

How to make money on ebay

How to make money on ebay
If you are starting out on ebay and wondering how you can make money, I’ve composed this guide to give you some hints as to where you can start.

Over the years, selling on ebay, I’ve noticed there are 4 main methods you can apply to sell items on ebay for profit. Below is a list of these methods and what they mean.

1. Buying low, selling high

This method requires you to buy items, generally in bulk, at a low price per item. You should make sure that you get a good, low price for each item since you are buying in bulk, also the more you buy, the cheaper each single item should actually be. You then sell the individual items for a profit – charging more for each single item than they cost you in the bulk order. Basically like any shop would. This method requires you to be able to source the bulk items from somewhere. Also, don’t forget to factor in the cost of postage into the price of your individual items, especially if you are ordering from somewhere like China.

2. Breaking down

Under this method, you buy an item (you can still buy in bulk) and then break down the item for parts, selling the sum of the parts for more than you paid for the original (complete) item in the first place. An analogy for this method would be buying a car and then selling the individual parts: engine, doors, seats etc. This type of method can be extremely profitable if some of the components of the original item are desirable by the current market.

3. Limited editions

This method for making money on ebay requires a little more research than 1 and 2. The basic premise is that you buy something which only exists in limited edition (maybe a limited edition of a book for example) and then sell on ebay. The exclusivity of the item should ensure you get a bit profit for it as customers are willing to pay ‘over the odds’ for something that they can no longer get from normal outlets.

4. Treasure hunting

This method requires you to go ‘treasure hunting’ in car boots (or possibly markets). The idea is to try and find those hidden gems that people don’t realise they have and are selling on the cheap, whilst trying to clear out their house. You pick them up for a bargain and sell on ebay for a profit. This method obviously requires you to have detailed subject knowledge about the items you are hunting for, as you will need to know roughly what they sell for.

In my experience, I’ve had a lot of success with method 2 and am starting to dabble in method 3, which is also bringing some success. However, the method that will suit you best depends on the type of items you want to sell as well as the subject knowledge you have of your niche.

Happy selling.

1 comment:

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