Does anyone make a living on eBay?

ballisticbrian

As for wholesalers - I was rather naive a few years ago and rushed into buying from them only to find that actually the profit was tiny

Thank you for your honesty in that as it may help many new sellers.


I often think the critical mass of over optimistic sellers on eBay is a bit like the crowd of people trying google advertising; it's so badly placed and often ineffective (a waste of money) but there's so many businesses entering the market constantly to provide a lucrative income for google despite it's uselessness. And eBay is a bit like this. "Surely if they can make money selling this item for 50p, then me on government scheme, or disability can make it work." Surely?


I have one product line which I don't like selling for 1.39 which I just list to help my customers out buying a different item (as an add-on). I didn't realise I was causing other sellers to clamber over me to sell this item from 99p to 1.38 and one disgruntled seller sent me a message saying, "that's it, I've had it trying to make no money at all selling this item, do you want to buy my stock?", and I'm like, "no - I don't even want to sell this item for any price. Go away."

RFW

ballisticbrian wrote: »

I often think the critical mass of over optimistic sellers on eBay is a bit like the crowd of people trying google advertising; it's so badly placed and often ineffective (a waste of money) but there's so many businesses entering the market constantly to provide a lucrative income for google despite it's uselessness.

I know what you mean about Google ads, I've wasted a fair amount on it myself and seen others pour tens of thousands for no return. There are far more effective ways of advertising, some are even free.

As for Ebay selling, people will think it's as simple as listing an item and waiting for it to sell. There's everything from sourcing to after sales that makes a difference. Some people are good at all of it from the outset, most aren't.

soolin

RFW wrote: »

I know what you mean about Google ads, I've wasted a fair amount on it myself and seen others pour tens of thousands for no return. There are far more effective ways of advertising, some are even free.

As for Ebay selling, people will think it's as simple as listing an item and waiting for it to sell. There's everything from sourcing to after sales that makes a difference. Some people are good at all of it from the outset, most aren't.

Just read the community boards, sometimes the threads are quite surreal. New sellers asking about their business and being shocked when regulars ask them a simple question like 'how are you going to make a profit on your £1.50 free post item?' You then discover they haven't checked the fees, they have no idea what postage is going to cost but put it as free as that is what some of the bigger sellers are doing, so it must be right.

A lot of people no longer sit down and actually work out profit margins.

RFW

soolin wrote: »

Just read the community boards, sometimes the threads are quite surreal. New sellers asking about their business and being shocked when regulars ask them a simple question like 'how are you going to make a profit on your £1.50 free post item?' You then discover they haven't checked the fees, they have no idea what postage is going to cost but put it as free as that is what some of the bigger sellers are doing, so it must be right.

I think it's because it looks so easy, someone who sells an unwanted Christmas gift on Ebay thinks they can do it long term, professionally. What they often forget is that they may well have got £10 back for something that cost them nothing, but Auntie Jean paid £20 for it.

It may still look like an even playing field, and in some respects it is, but the bigger sellers get postage discounts, pay less for stock and can afford for the odd product to not sell each week.

What a small seller can offer is a personal service and hopefully a knowledge of what they are selling. That is worth a higher price and is rewarded with customer loyalty. That type of seller is the one that can be successful.

mattcanary

soolin wrote: »

Just read the community boards, sometimes the threads are quite surreal. New sellers asking about their business and being shocked when regulars ask them a simple question like 'how are you going to make a profit on your £1.50 free post item?' You then discover they haven't checked the fees, they have no idea what postage is going to cost but put it as free as that is what some of the bigger sellers are doing, so it must be right.

A lot of people no longer sit down and actually work out profit margins.

And I've seen threads on here moaning about people asking them questions about items they are selling on Ebay, and then moaning when these people don;t bid for or buy the item.

That is what selling products often involves - when I am looking for something to buy, I will ask questions if I am not sure if the item is suitable for me. If I find out from this it is not suitable, then I don;t buyit. Simple really and commonsense that this will often happen when you are selling products.

Yet some sellers complain bitterly about this......

RFW

mattcanary wrote: »

Yet some sellers complain bitterly about this......

I think some people use the Basil Fawlty guide to business, they want to run a hotel but don't want any guests spoiling it.

forgotmyname

My mates one of those. He has bright idea's. Buys the kits off ebay to start your own business. Sells a few items to family and friends and then gives up.

Last time he started up, I asked how much each item cost and he didnt have a clue. Err how can you sell them without knowing what they cost?

Custom made items. So he will needed to budget where one doesnt quite turn out properly. But not a clue at all...

So you have raw materials, Deduct a few which maybe flawed and unusable. But maybe worth less than returning them.
Then materials that you use + a margin for waste and errors.
+ packing materials, +postage + electricity to run all the equipment, + fuel to take them all to the post office. Then a bit more to cover breakages and items that do not arrive etc.

Probably missed some somewhere... But if you dont add a cost for everything your working at a loss and each time you buy stock you using your own money or buying less stock than last time...

Probably lots making that mistake.