how do some people make any money?

Brooker_Dave

99p inc postage:

http://www.ebay.co.uk/itm/3-5mm-to-3-5mm-Jack-Audio-iPod-Aux-MP3-car-Cable-1-5M-/271176094435?pt=UK_CE_MP3Access_RL&hash=item3f235ad2e3

So they cost 11-15p each:

http://www.aliexpress.com/item/Free-Shipping-via-DHL-300pcs-3-5mm-Male-to-Male-3-5-mm-Audio-Extension-Cable/358414859.html

But the Jiffy bag, ebay fees, paypal fees and the postage?

Where's the profit?

SSGjosh

Not saying that they probably make more than a couple of pence on the cables, but they probably cost a lot less than 11-15p if they buy them in the thousands. As would the packaging, too - they could possibly use mailing bags which in such a volume are likely to cost a penny each if that
. They would also probably get quite a decent volume discount from Royal Mail, and due to the amount they sell they're likely to get the 20% discount on eBay fees. But as I said, they probably don't make too much money on each of them.

Brooker_Dave

SSGjosh wrote: »

Not saying that they probably make more than a couple of pence on the cables, but they probably cost a lot less than 11-15p if they buy them in the thousands. As would the packaging, too - they could possibly use mailing bags which in such a volume are likely to cost a penny each if that
. They would also probably get quite a decent volume discount from Royal Mail, and due to the amount they sell they're likely to get the 20% discount on eBay fees. But as I said, they probably don't make too much money on each of them.

What's the cheapest postage you can get on something like this?

They must be whopping discount surely?

RFW

Brooker_Dave wrote: »

99p inc postage:

http://www.ebay.co.uk/itm/3-5mm-to-3-5mm-Jack-Audio-iPod-Aux-MP3-car-Cable-1-5M-/271176094435?pt=UK_CE_MP3Access_RL&hash=item3f235ad2e3

So they cost 11-15p each:

http://www.aliexpress.com/item/Free-Shipping-via-DHL-300pcs-3-5mm-Male-to-Male-3-5-mm-Audio-Extension-Cable/358414859.html

But the Jiffy bag, ebay fees, paypal fees and the postage?

Where's the profit?

I'm guessing this seller has a few wheezes to save money. Item location Salford, business location Channel Islands.

AliExpress isn't the cheapest for high volume buyers. I'd assume they earn a few pence on each item and rely on high volume, additional sales and future sales. It isn't all about selling at the time.

It's possibly cheaper than advertising to sell a cheap item and use it to send out related promotional stuff.

RFW

Also 99p free postage gets you top of the search, when sorted by price.

That said, some people are stupid. I was just looking at listing a line that sells pretty well at a good price/profit. Someone was selling it at a price that was unlikely to earn them much at all. I'll just wait until they sell out.

Brooker_Dave

RFW wrote: »

Also 99p free postage gets you top of the search, when sorted by price.

That said, some people are stupid. I was just looking at listing a line that sells pretty well at a good price/profit. Someone was selling it at a price that was unlikely to earn them much at all. I'll just wait until they sell out.

You'd need to be really dim to sell stuff at a loss?

RFW

Brooker_Dave wrote: »

You'd need to be really dim to sell stuff at a loss?

Lots of businesses do it all the time. If you're just selling at a loss then you're an idiot, but if you can get customers to buy profitable items or spend money in the future then it can be cheaper than advertising.

Brooker_Dave

RFW wrote: »

I'm guessing this seller has a few wheezes to save money. Item location Salford, business location Channel Islands.

AliExpress isn't the cheapest for high volume buyers. I'd assume they earn a few pence on each item and rely on high volume, additional sales and future sales. It isn't all about selling at the time.

It's possibly cheaper than advertising to sell a cheap item and use it to send out related promotional stuff.

I just used aliexpress as an example, but there's a limit to how cheap these things can get, before the cost of materials outweighs what they're drawing for them.

All their stuff seems to be 99p bits and bobs, sold tons of it though.

What's the story with these?

http://www.ebay.co.uk/itm/High-Speed-SD-SDHC-Memory-Card-Reader-Adapter-Lot-02x10-/390563575035?pt=UK_Photography_MemoryCardReaders_RL&hash=item5aef6734fb

£97??

Brooker_Dave

RFW wrote: »

Lots of businesses do it all the time. If you're just selling at a loss then you're an idiot, but if you can get customers to buy profitable items or spend money in the future then it can be cheaper than advertising.

True, but if you sell stuff super cheap to start with, customers expect more of the same, and you never end up making any money, just being busy.

Strapped

It's possible to squeeze a few pence out of a 99p item but I agree it's a terrible business model if that's all you sell. I have a couple of items at the £1.something mark but they are just feedback generators rather than for the profit (although I don't make a loss on them!)

RFW

Strapped wrote: »

It's possible to squeeze a few pence out of a 99p item but I agree it's a terrible business model if that's all you sell. I have a couple of items at the £1.something mark but they are just feedback generators rather than for the profit (although I don't make a loss on them!)

I keep toying with the idea of doing it in a similar way, essentially it would be samples of bigger lots we sell. It would break even and possibly earn a few pence, but could bring in customers.

Regarding the seller I just searched the company and apparently they don't exist, except on Ebay! It could be the name is spelt wrong.