How to REALLY make money with your eBay business
After speaking at eBay’s annual convention and training event eBay Live last June, one thing became very clear to me…
So many eBay sellers had blinders on when it came to what was really going on with their eBay business.
As an entrepreneur selling on eBay, you tend to have this deep urge to see your sales numbers increase. After all, we all want to be “Titanium PowerSellers” right? The problem is, so many eBay sellers are so caught up in the idea of growing that they ignore how much PROFIT they are generating from their eBay business! In the end, isn’t that why we all sell on eBay in the first place?
The key ingredient that so many eBay sellers are missing when it comes to making money on eBay is understanding their profit margins and their risk of selling on eBay.
Make sure you understand your eBay insertion fees, eBay final value fees, listing upgrade fees, PayPal fees, labor costs, cost of packaging materials, cost of postage, customer service costs, the list goes on…
And not only that… did you think about your listings that don’t sell right away? What happens to those..? Depending on the profit margin you are starting with, listing an item in an auction or fixed price format that doesn’t sell for a number of weeks may cut your profit in half or generate an overall loss for the sale of the item if it doesn’t sell quickly enough.
Wow, all of this sounds really negative doesn’t it?! Does this mean I think selling on eBay is a bad idea? Absolutely not! In spite of all the challenges that come with an eBay business, I’m still chugging along selling on eBay. eBay has an unbelievable customer base (212 million+ users), you won’t ever get that many customers at your fingertips selling on your own site (believe me, I’ve tried). Your eBay fees should be considered your marketing budget, you just need to know how to best spend those marketing dollars!
I could go on for hours on this topic, but I’ll save more specifics for next time. Until then…!
Corey Kossack is one of eBay’s “top sellers” through his eBay store, Koss DVD. He is also author of eBay Millionaire or Bust and creator of ProfitBuilder software that maximizes profits for eBay sellers.