Pricing

sjh101

Hi
So I've previously posted on here that I intend to set up a shop on ebay selling things that have been made, or bought at a cheaper price elsewhere to sell on. I have recently found an item on a website selling for 99p and noticed they have been sold on ebay for around £5. After taking a closer look at the ebay seller selling these, it appears that they are the same shop where I found the item for 99p and they themselves are selling the item on ebay for a significantly higher price than their own online website. 
Reason I'm asking on here is that I want to make sure I'm not breaking any rules if I buy from their website and effectively do the same as them and sell for profit on ebay.  Why would a company sell an item so cheap on their own website and then the very same company (just on ebay) sell at a higher price on their ebay shop? 
Thanks 

theonlywayisup

Ebay shops (and ebay trading in general) is more expensive than your own website.  There is nothing stopping you from buying from them at 99p and selling on, but if they are the sole seller of this widget, then you may find you have a short life with it. 

soolin

sjh101 said:

Hi
So I've previously posted on here that I intend to set up a shop on ebay selling things that have been made, or bought at a cheaper price elsewhere to sell on. I have recently found an item on a website selling for 99p and noticed they have been sold on ebay for around £5. After taking a closer look at the ebay seller selling these, it appears that they are the same shop where I found the item for 99p and they themselves are selling the item on ebay for a significantly higher price than their own online website. 
Reason I'm asking on here is that I want to make sure I'm not breaking any rules if I buy from their website and effectively do the same as them and sell for profit on ebay.  Why would a company sell an item so cheap on their own website and then the very same company (just on ebay) sell at a higher price on their ebay shop? 
Thanks 

Nothing stopping you at all but remember an established seller is likely to achieve better prices than a new seller just entering the market. If you can chives £5 then you are barely making £1.50 an item, EBay and PayPal fees are likely to be around 90p, plus 35p listing fee plus postage, wrapping costs etc. That assumes a large letter 2nd class postage and with your packaging bought in bulk. Add to that costs of losses, returns or unsold items. 

Also are they selling well on eBay, listing at £5 is not the same as selling at £5. 

forgotmyname

Because people will buy it as its only £5 and cheaper than finding a local shop selling the item. How many will they sell

at that price is the question?

Also whats the return ratio going to be like.

Item cost + postage is not the whole story.  What is your true cost to purchase them and then package them again

ready to resell then add on all the fees and some profit and that £5 seems cheap and where did the potential

profit go?

Mate was selling some hand made items and when I asked how much it cost to make each one he didnt know.

Thinking how can you sell something when you dont have a breakdown of the costs. One damaged in transit

or a claim that its faulty and your profit on the next 5 maybe just paying the loss on that.

There are probably items that cost £1 to buy but more than £5 to post never mind paying fees.