Do I take the plunge??

spartan59

Hi all

Long story short

I'm trying the £10000 from £100 in 2010 challenge

My problem is this, I have the opportunity to buy some stock for around £500-£600, however I don't have this money, so it will mean more overdraft spending.

However I know it will sell and could make thousands over the course of the sales.

I've researched the products and think they will sell. Although I think an Ebay shop would help as well as car boots etc

So questions: What are Ebay shops really like? Should I go for it?

I can't wait as I need to make the purchase soon

I have some stock already which I could sell to make over £700 but it will take time and I could also sell this from my shop as the to products are linked

Any ideas welcome

hermum

Have you checked out the completed listings to see how much this stock is likely to sell for|? Don't forget to check out the ebay & paypal fees , to see what you'll be left with. If you already have stock to sell, mightn't you better to concentrate on that at the moment. If you use your overdraft to buy more stock what will you do if you need money in an emergency, car breaks down so you can't get to car boots. You may then have to borrow at a high rate, & knock out any potential profit.

naked

I needed some rubber patches for repairing bike innertubes. To buy them from bike shops/internet was costing a fortune as they were charging about 30p a go plus p&p for what I wanted.
I ordered a couple of boxes from a wholesaler (500 total) and flogged most of them on eBay. I did some sums and worked out I had to sell them in multiples of 10 minimum to make any money after the eBay and PayPal fees while still charging less than others.

If you're selling lots of low value items (£2-£3), the eBay fees will probably kill your idea off.

If they are high value you'll have more of a chance but do some sums first to work it out (remember to allow for postage and packing!)

soolin

With ebay remember that the completed items only allow for the level of competition at that time. If you enter the market the end prices will go down as competitors will try and outsell you.

Also when doing a profit forcast don't forget to take into account all the fees (as mentioned above) plus a certain level of customer returns and losses, plus tax and NI. You do need quite a high mark up to achieve a healthy profit and if you are paying overdraft fees as well I think this needs some pretty serious thought.

spartan59

Thanks for the quick replies

Having looked at the Ebay shop fees etc it doesn't look too bad. However I could just sell off my personal account or is there a reason why I can't??

Also I could still do car boot sales etc

Reference money for emergencies you can't make money with out some risk so I will have to take the chance

soolin

spartan59 wrote: »

Thanks for the quick replies

Having looked at the Ebay shop fees etc it doesn't look too bad. However I could just sell off my personal account or is there a reason why I can't??

Also I could still do car boot sales etc

Reference money for emergencies you can't make money with out some risk so I will have to take the chance

If you are a business then ebay require you to have a business account. With a business account you must abide by all the rules regards returns, and having your full address details on the auction page. However in some instances fees are lower and if you sell a lot you may qualify for additional discounts.