I see people all the time try to sell something on eBay and end up losing money because they did not know how to properly source, list, and ship their items. In this post I am going to take you step by step of what you should be doing when selling on eBay. If you follow the steps below on how to make money on eBay I believe you will be a success.
- Sourcing Products to Sell on eBay:
Something you have to remember is that eBay is a discount website, and when you sell on eBay you have to compete with the prices that everyone else is selling items for. When you go to a thrift store, garage sale, retail store, etc. you need to make sure that the items you buy are going to make a profit after shipping and fees.
This is achieved by using the eBay app, and doing research on your item while you are in the store to make sure you are buying an item that sells for more than the purchase price. When I buy items I like them to be worth at least 3 times what I pay for them that way I am more than doubling my money after fees. For example if I buy and item for $5 I want it to be worth $15 at the bare minimum.
I have attached a video showing how to use the eBay app when sourcing products
2. Listing Items on eBay
When listing an item DO NOT play the roulette auction game. You are in business, and you need to make sure you are going to make money on every sale. Don’t leave you profits to chance hoping someone drives up the price. If you are going to sell on auction include ship price + profit margin for opening bid. Let’s use the $5 dollar item example again. If you are going to sell this item on auction then you need to Put min bid amount at around 12.95 + Shipping costs.
I prefer to do it this way:
- Buy It Now with Best Offer (add 20% to price you want so you can negotiate)
- Free Shipping – (Add shipping into the Buy It Now Price)
- Formula Example: $5 item would look like this formula (item x 3 +.20 + Shipping – formula in numbers 5×3=15x.2=18+3=21) so I would list this item for $21 or $20.95 with Free Shipping.
- Shipping Items on Ebay
3. Shipping items on eBay
Auction = Item + Shipping – $18 with $3 Shipping
Buy it Now – Item + Free Shipping – $21 with Free Shipping
I prefer to purchase items that are below 16oz in weight so that I can ship them USPS first class mail or books medial mail.
If you are going to ship a heavy items you have two options:
- USPS Prioirity Flat Rate – This gives you a flat up to I believe 50lbs
- Fedex Home Delievery – I normally end up using Fedex Home Delivery due to cost and time.
4. Calculate eBay Fees
Remember that you have to pay fees: Avg is 10% ebay + 3% Paypal, so 12-13% of you sell will go to fees unless you are a power seller then ebay fees will drop to 8%
I hope this article has taught you how to make money on eBay, please leave us a comment and let us know what content that you would like us to write about next.