There are two categories of people that look at ways of making money on
eBay. Both categories have the potential to make money. Knowing which of
the categories you are in determines what steps you need to take to assure
that you reach your goals and achieve the income that you want when you
begin working on the auction site.|
The hobbyist seller is a person who may be selling regularly on eBay, but doesn't work eBay as a business. Perhaps you love to go to garage sales or flea markets. Many of the people who sell on eBay get to fulfill their love of finding great deals and making a little money on the side to support their shopping.
Some hobbyist think that they are making more money than they actually are. The reason for this is that they may have a "general" idea of their costs for operating their business, but don't have a business plan or growth strategy in place. There is often a collection of items in the garage that seemed like they would sell, but didn't and will eventually be sold at a garage sale.
In order to begin earning a steady income in this category person needs a plan. First, getting items that will sell even when they are used will be important. Decide on the items that you want to focus on, then check eBay to see what your competition is selling the same products for. Next, you will want to figure out if buying the item at a garage sale, adding the cost of shipping, posting fees, etc., will still result in a profit for you. And, how much will the profit be.
Some people just enjoy selling items on eBay and their profit is not that much of an issue. Therefore, they count anything over what they paid for an item as profit when they sell it. However, if you are not making a profit over and above what your total costs are, you are not making money on eBay.
Comparing the prices and costs of items on eBay in the UK, France, Canada, etc., expands your opportunities for making money. When you sell your product in the country where it will get the most return, you will increase your overall profits. Before listing your item, check shipping costs to the country and include that in your reserve or starting bid.
In order to increase your potential earnings as a hobbyist, it is important to make a list of items that are hot sellers and focus on those when you are shopping for bargains at the flea markets and garage sales. Include in your list the highest you will pay for an item to get the profit you want from selling it on eBay.
For most people, profits from selling items on eBay are tied to volume. The more items you sell, the more money you will make. However, it is also important to remember that you profit margins will differ greatly with items and your profit will depend on the final difference between total costs of getting and selling the item.
Some hobbyists sell craft items they make or specific types of items that they have a personal interest in. While these are often smaller niche markets, the hobbyist finds it much more rewarding and fulfilling to sell these products. In addition, the potential for profits is much greater when a person knows the intricacies of the item or has all of the information about the collectible they are selling on eBay.
The professional seller has a business plan and strategy that includes a means for purchasing bulk items from an identified source and reselling on eBay. This individual will have a marketing strategy that often has an e-commerce site, eBay store, and other locations on the Internet where they sell their products.
The professional works with a wholesaler, dropshipper, or other provider of bulk items at a low cost. Depending on the space available, they may keep items stored in their home or have items shipped from the dropshipper they work with. There is a lot of planning and preparation in developing a successful business selling on an auction site. It requires that a person constantly be aware of the hot items that are being purchased and the locations where their products will provide the highest return.
There are many providers and programs that offer the market research needed to effectively determine which items will have the highest return and the most profitable countries to focus sales on. Some business owners find a greater profit in purchase items at a lower rate from one country and selling the item on ebay in another country. When this is the chosen strategy it is necessary to have two eBay accounts, one for purchasing and one for selling products.
Whether a person wants to start making money on eBay as a hobbyist or a professional, it will be important to do research to determine the most effective ways to ensure a steady, profitable income. Using the right strategies and methods, it is very easy to begin making money on eBay within a short time.