Real-life MMD: Should I buy up cheap stock from a friend so I can flog it myself?

louisajoyce · 12 March 2014 at 11:28AM

I would be happy to buy cheaply and sell on...I don't believe there are any moral issues regarding the friend. Anyway, they probably well know that selling on ebay can be hit and miss and they may not get rid of the stock for months which is why they don't want to go down that road. Good luck!

tgroom57 · 12 March 2014 at 11:38AM

I would say go for it, but with a few provisos.

Firstly, I'm asuming you already sell on ebay, have 100% feedback, know about postage rates and small parcels (can't send any parcel for less than £2.60, going up next month) and the new 10% ebay fees on P+P.

I wouldn't overstretch myself for the reasons given in earlier posts, and would only take stock that I'd dealt with on ebay before, so knew something about the market for it. So if her stock was sports clothing & I'd never sold any on ebay, I wouldn't do it.

I'd get a move on too- last weekend was not free listing, but next weekend may be; and you have a load of photos to get ready before then.

Sonic_The_Hedgehog · 12 March 2014 at 12:16PM

It's fine you are buying a gamble, and taking friends problem from her. eBay isn't as easy as it once was plus bear in mind listing fees, messing about, 10% fee on item AND postage if it sells from the whole amount taken, plus Paypals 3.4% plus 20p off the full amount taken. Check postage and cheack how sellable these items are design a strategy, and decide whats best, how else would you sell them? Plan B boot sale Market etc?

potbelly · 12 March 2014 at 12:43PM

If suggesting ebay, just take into account their fees amount to 15% of the selling price (listing fees, final valuation fees - which are now levied on both the item price AND the postage, Paypal fees -which they insist you offer as a form of payment), and there are many fraudulent buyers, from which sellers have no protection from ebay. I used to sell a lot on ebay but they now take too much for what they offer, so I use other sites to sell my wares.

iclayt · 12 March 2014 at 1:08PM

I'd have no moral qualms about doing this, the friend of a friend (so not really your friend?) has had her chance to flog it elsewhere so it's fair game to me.

That said, if she can't sell it cheaply in a shop, I'm not sure how it would appeal to people buying online with added delivery costs. How much do you realistically stand to make? I earn more doing a big car boot, once you take fees into account. The days of making easy money on eBay are long gone.

thriftyemma · 12 March 2014 at 1:28PM

I don't see the problem in buying your friend's stock. If they want to get rid of it quickly, you're almost doing them a favour.

Just a word of warning. You will need to register as a business seller.
You should register as an eBay business if you:
sell items that you have bought to resell
make items yourself and sell them, intending to make a profit
are a Trading Assistant
buy items for your business
The Unfair Commercial Practices Directive (April 2008) makes it an offence in the UK for a business to falsely represent itself as a private individual. So if you are misleading potential buyers into thinking that you are a private individual when you are in fact a business seller (ie: by not registering as a business seller with eBay), you will be breaking the law.

You will also have to have a Distance Selling Regulations (DSRs) compliant returns policy. Under the DSRs, a buyer has a minimum of 7 days after they receive the item to cancel the purchase and return the item for a full refund including outbound postage costs (but not return). If you fail to comply with these regulations, the buyer has a lot more lee-way in returning it. For instance, the buyer will be entitled to a full refund, without having to return the item (they just have to make it 'available' for you to collect).

Selling on eBay is a minefield, you have to factor in lots of things such as listing fees, final value fees, paypal fees, cost of postage, materials such as postage labels and mailing bags. The list goes on. You will also have to deal with the occasional idiot buyer, which is never fun.

It's not so simple as buying stock and bunging it on eBay. Think very carefully before you go ahead.

cazpost · 12 March 2014 at 3:29PM

If you are absolutely certain about doing this,given all the previous posts warning messages,then the best thing would be to say directly to your friend,'I'm buying this off you for £xx,I'm going to resell it on eBay,are you OK with that?' I used to sell a lot on eBay, but it has become very expensive,a lot of hassle and a lot of bad buyers on there now,claiming not to have received items etc. Good Luck !

EcoGardener_2 · 12 March 2014 at 4:27PM

One thing to be aware of is to ensure your friend actually owns the stock she is selling to you. Has she paid for it, or does she still owe the company which has supplied it. If she still owes them money, then they still own the stock.

Also, I completely concur with the posters who have mentioned the hassles of mailing stuff unless it's small and the need to be totally above board with purchasing products to sell for profit on eBay. It is not the same as selling your own second-hand stuff, and the revenue is increasingly all over it.

Hope this helps!

gaving7095 · 12 March 2014 at 4:33PM

I don't really see any "moral dilemma" - you've discussed this with the person, they seem to think it's not the way to go & you disagree - that's all. I'm sure they'll be delighted to shift their stock to you :-)

However, I would be very careful & consider why your friend doesn't want to do this. They might have some insight which you don't.
eBay's weird, sometimes there's very good money to be made, often you get practically nothing. If you flood it with items which are even selling well, you may be surprised how that WILL drive the price / value of those things down, and other sellers will respond accordingly.

JeremyCH · 12 March 2014 at 6:15PM

I've been in a not disimmilar situation, a friend had a pile of stuff they bought cheaply but then never got around to selling it so I offered to buy it of them at a price they were happy with making it clear that I was looking to move it on and make a profit which they were more than happy with. It took a little longer than planed but I near on doubled my money and I made no bones about it with m y friend - obvioulsy i didn't ram it down their throat but when asked I was honest with them and they were fine as it helped them out becausew they weren't prepared to put the time in and I was was.

You've made teh suggestion, they've declined to follow it through so go ahead and buy it at a price that they (and you) are happy with and get selling, irt is perfectly resaonable for you to so do as, sure as apples are applesa, that's excatly waht someone else will do.

Just remember that profit and loss are part of the same equation

Real-life MMD: Should I buy up cheap stock from a friend so I can flog it myself?

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