Although it is quite simple, it is THE # 1 skill you MUST have in order to sell anything successfully on eBay. You ready for this!?!? Okay, lets go!
- # 1 KEY CONCEPT
Before I buy anything to resell for profit, I check the average selling price on eBay. This is done through a completed listings search. Here is how to do it: Next to the search button on eBay, there is another one for advanced search. Click on this, and you will be taken to a search page with more options. There will be a box you can check that says Completed listings only. Check this box, and then do your search. This will show you all of those items that have recently sold (or not sold) on eBay, and how much they did or didnt sell for. If the price is green, it sold. If the price is red, it did not sell. Surprisingly few people use the completed listings search. I use this all the time! This is the main, deciding factor as to whether or not I will buy something to resell.
- PROFIT MARGIN
As a general rule of thumb, I will buy an item in quantity if I can make at least a $ 5 profit per item. When calculating net profit, do not forget to include shipping (the shipping you pay the seller and the shipping you plan on charging your customer). Only accept a $ 5 profit per item when selling in large quantities. When buying in smaller quantities, shoot for a significantly higher profit margin.
- SUPPLY AND DEMAND
No matter what kind of deal you are getting, if none of the items have sold on eBay anytime recently, I probably would about it. OR, lets say there have been a few that sold on eBay, but only A FEW. Instead of loading up on this item, I would only buy as many that you think you could safely sell in a short period of time. In other words, buy as many items that there is a market for. For example: Yesterday, there was a watch selling on a website for $ 250. The same watch just sold on eBay for $ 398! Thats around $ 150 of profit per watch! Now, knowing that only two of these watches sold in the last few weeks, did I go out and buy a dozen? NO !!! I bought two, figuring I could safely sell a couple. Even if I sold each for $ 350, that is still $ 200 profit for an hours worth of work!