Ask a guy who makes thousands weekly selling on ebay anything

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How do you handle logistics? Are you working close to your suppliers? Do you ship overseas?

I suppose I can provide pictures and some suppliers invoices, right now I'm going to sleep tough its 2am.

I ship to US, Australia, Canada, and most European countries.

I rent a small wearhouse where I have 10 employees helping me sort and pack merchandise for shipping.

Do you live in the US? Real cheap suppliers are usually at developing countries.

Yea I live in US.

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Hi OP, can you tell us one of your most profitable transactions?

Tell me if you'd need a Turkish supplier.

[email protected]

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I use Taobao. It was way more profitable in 2008 until about 2013. The gap has closed a bit.

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Te scene

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fellow professional ebayer here. Not quite on your level just yet if you're really making thousands a week, but give me time and we'll see

looked for an ebay general but there isnt one, so I'll talk about and ask about it here

After 5 years it's finally happened to me. I always respond to ppl saying buyers send back different items to scam the seller saying in all my time it's only ever happened once, and I only -think- it happened, couldnt be 100% sure due to the nature of the item (A power supply was "cracked in half" during shipping, which was hard to believe because you can slam those things on cement ground and they dont even scuff)

2 Weeks ago I sold a phone for 65 bucks. a week after the buyer contacts me saying he cant get it to synch with the rest of his phone system, I supply directions and a link to the manual in PDF form. He contacts me a few days later saying he couldnt get it to work and needs to return the item. Also said he bought a new battery for it thinking it just needs a new bat.

I thought this was odd, because I test all my stuff before I sell it if its not brand new, I know this phone worked fine. But o well, shit happens, told him to return it no biggy

Upon receiving it back, I noticed the charging base was in rough condition with various scratches on it, which was odd because the entire phone system looked brand new when I listed it...then I noticed sticky residue on both the base and the phone, like they were in a house with little kids and their grubby dirty hands...

Then I tried to charge the phone, doesnt react at all, no power. Odd...I -know- they all worked before.

Then I open it up and see the battery isnt the same as the rest of the phones I still have (wrapped in a white plastic instead of black like the rest),

Finally I check the serial number, and it does not match the rest of the phones from that lot.

At this point I'm fairly pissed because I know how the game works. I know ebay will side with the buyer if I try to argue this, and I know itll result in the buyer being able to neg me on feedback.

At the moment the only thing I can think of is he manually went up to the post office and paid the shipping etc, he didn't do it through ebay and has not attatched the tracking number as of yet.

If I'm lucky I can stay quiet and he'll let it slip for a week or two, then when he asks me why I havent refunded him I can say I need the tracking cause I havent seen anything come - if I'm lucky hes lost the little slip of paper by then and I'm in the clear.

Have any advice on this other than "o well just eat it"? I'm pretty much ready to accept that fate, but figured I'd ask others to chime in

now that I think about it, what about this:

during the dispute I can tell ebay "make him supply pictures of the serial numbers for each of the phone handsets he has, all but one will match the serial for the one he sent back to me, proving he sent back his defective one and kept mine."

I dont know if theyd be willing to do that, but it'd bust him

Not that I'm an expert or anything but why would eBay not side with you if you have proof of diff. Serial number?

If you contact eBay, do you know for sure the buyer will be immediately contacted?

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Ebay and Paypal always screw over the buyer.

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one of the "bad things" about paypal is this type of situation. In order to save face and keep their supply of people that pay them happy (as buyers just list stuff, but (mostly) don't pay unless and item sells

Generally speaking, a list of various things that are 99% of the time decided in buyers favor:

-if they claim the item they received is not the same or in the same condition as the listings claims, ebay will side with the buyer and allow them to return the item for a full refund, regardless if you've set no refunds on said item

-if they claim you never sent anything, but only if you didn't use tracking and cant provide said tracking for proof

-as with my current situation, if they pull the ol' switcharoo replacing your item with their broken/bad/whatever one, or even just sending an empty box and include tracking that says it got delivered to you, Ebay will tell you "we cant tell if he swapped items or if you actually sent a bad item, so we will side with the buyer.

However, if there is a disagreement as such and the total value is under 20 dollars iirc, might be lower but I don't think so - they will often times step in and please both parties, letting the buyer keep the item and get his money back, and allowing you to keep your profits from it via eating the cost themselves

there's a few other tricks sellers can pull as well to accomplish various tings, but I'm not going to go into that.

Them playing nice and eating the cost for both buyer and seller might be exclusive to higher level sellers, not sure.

Can you talk about how you got started like the OP, what you sell, any advice at all? is it worth going into this?

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I think I'm going to copy/save this info because when I mention what I do I always get the same question, lol. (not being rude, is just funny to me)
I have no problem telling you, but I'm going to be leaving specifics to my inventory out

How I got started:
I am an avid collector of [niche]. One day back in like 2009 or so I discovered I can come across [niche] fairly often and at good prices and started buying stuff there. After a few purchases I started realizing something, I know the market for [niche] like the back of my hand, and can instantly tell how good of a price something is, and often had pricing so good I could flip it back on ebay and come out with profit

After a month or two of thinking about and researching it, I finally said fuck it lets see what happens, and made a fairly substantial purchase (300 dollars) to give it a go. I reinvested every dollar this yielded into more inventory, repeated until I was swimming in [niche] and had a large enough bankroll to keep inventory coming in and pay myself.

Eventually I got burned out from [niche], there were too many for too little profit (around $3-25, but more often on the lower side. Shipping 20-30 things a day was a pain in the ass so I started looking into other similar categories and learning their market

Then I started getting into electronics because I discovered a few sources for inventory at good prices, I realized the profit margin was MUCH higher (20 minimum each typically) and slowly migrated away from the original stuff I worked with.

(cont)

>wearhouse
>has 10 employees to pack boxes
>this big of a middleman eBay operation and bragging about "thousands weekly"
I don't believe you any more

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Forgot to mention, with my original inventory I became one of the leading sources for the market, there was a webstore off ebay that was massively popular amongst the collectors but their prices were ridiculously huge and everyone acknowled that. There was one person on ebay that was bigger than me, and a third person who was under me fairly drastically. Eventually the #1 person retired for reasons and I wound up absorbing their customers and sales
================================

I also started hunting for stuff in all kinds of places, always keeping my ears open and eyes out to spot a deal, regardless of what it was (as long as it was reasonably shippable). Over time I developed an ability to pretty accurately mentally price an item without doing research, so I rarely had to risk walking away from stuff and losing the opportunity

I've been doing this style for the majority of my ebay venture now, can make pretty consistent profits and obtain new inventory pretty fast.

>any advice at all?
If you decide to try and start, I highly recommend focusing on what you know in the beginning. Almost everyone has -something- they have a special knowledge of due to interest, be it computer repair, auto mechanic, avid movie buff, etc. figure out how to turn a profit with your interest and go for it, this should help you find inventory faster, calculate profits faster/easier, and keep you from getting discouraged cause you cant find inventory or it bores you to hell and you begin procrastinating

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cont

Once you've got all the gears moving you should have been at it long enough to afford testing new niches and start developing your 6th sense for pricing on the fly decently. Also focus on the various logistics (how to test, store items until sold, etc, also anticipate room for growth). I didn't do this at first and I paid for it, I started moving too fast and obtained -way- too much inventory, wound up filling up half of my garage and couldn't shrink the volume, it kept growing and growing until I realized what I was doing and completely stopped bringing stuff in.

I find my inventory everywhere. I've bought from china, I've bought from wholesellers, I keep eyes open when going into stores, garage sales, craigslist, and occasionally go to fleamarkets and thriftstores (not often though as the ones where I'm at suck balls). Also consider going to traders markets, estate sales, live auctions, storage units, etc but mostly haven't bothered with those

>is it worth going into this?
This is entirely up to you, what type of "work" you enjoy, how much time/effort/money you're willing to put in, how good you become at inventory hunting, and your level of determination to keep going.

The beginning is the hardest part, once you get past the learning curves it gets easy as hell. I've taught my mom how to do it, (ex) gf, a few friends, and handed plenty of advice such as this out. Basically anyone can do it as long as you don't stop.

For me, I love it. I've always hated working for a boss, letting someone profit off all of my efforts, or just being employee 234345234 of a giant company that doesn't care about me. Knowing every dollar I bring in is mine, all my labor is of benefit to only myself, My efforts are the only thing that suggests my pay grade.

The freedom is also great. Being able to work when and how i want, take days off or go do things whenever I please, and being in my own comfy environment...can't beat that

Well damn that sounds sweet.

I'm trying to figure what it your niche is. Is there any way you can be specific about it without compromising yourself?

I know a lot about guitar stuff, but looking at alibaba, it's just a bunch of junky products that I wouldn't want to touch with a ten foot poll.

Few things I just thought of and think important- when you first start consider it and treat it like a hobby. Keep a regular job and play with the eBaying to learn the ropes, eventually you make sustainable income and then you can transition to full time eBay

sorry but no. It doesn't really matter though, you don't need to know my niches because like I said, focus on utilizing your own interests and knowledge to find ur beginning niche(s)

there's a vast amount of profitable markets out there, just need to hone in one some

speaking of Alibaba - another thing I'd recommend is avoid drop shipping at all costs. It's damn near a guaranteed way to fuck your account up unless you're a real pro with access good drop shippers (which can be all but impossible to find for some)

It's also a good idea to do everything yourself in the beginning, every single step. That way you learn exactly how to do everything needed to sustain your business, you'll never be trapped under someones thumb, and will have a better chance at handling drop shipping because of the new experience you'll have obtained.

Even knowing that though, I would still never recommend out-of-country drop shipping, especially from Chinese wholesalers and drop shipers aka Alibaba (Assuming you're in the US) because there's a huge risk of damaging your accounts. Instead I recommend ppl work with US based logistics companies that specialize in drop shipping and only drop shipping, and has a good reputation

I do however say its fine to try to source inventory from other countries, just make sure you do NOT buy fake/bootleg/knockoff/unlicensed branded products under any circumstance, you dont want the potential consequences that comes with it.

I assume you probably know about guitars, their parts, the value of things, and how/where to find a deal. if you perform you might know sister niches as well (Drums, stage lights, etc)

Think how to utilize, do your research, and jump in

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How do you make your announcement more public and desirable? Also do you always let the shipping payments be handled by the buyer?

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I can care how much you GROSS. What is your profit margin and post proof.

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Know a guy that makes 300k a year on eBay. He buys motor cycles then breaks em down and then sells the parts separately

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I am tired of people saying they make thousands and millions in sales.
SALES!! I dont care a shit about your sales I care about net income.

why nobody came and open a thread about "look how I make 1% of profit selling on amazon"

get something at 60% profit margin (kind of difficult)
shipping to your house is 15%
shipping to fba is 5%
amazon fees 15%
fba fees 10%
prime fees 50 month
boxes and shipping stuff 2%
ppcs are 15%
photos and listing 20%
income taxes 39% over income.
state taxes 8%
giveaways for reviews 40%

where is the profit? you need to source something at 95% margin or 1000% mark up

what am I doing wrong?

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I have known about this for years (only i considered cars, not motorcycles) but never did it because I fucking -hate- mechanic work, granting stripping something down is a lot easier than putting it back together.

I realized back when I first started ebaying, if you were to buy a car (or motorcycle) and part it out on ebay (and moving the heavier non ship stuff locally via criagslist etc) you could make a KILLING.

you can get dead cars with a cracked block for under 1k. The taillights alone can be 50+ each (and can go up past the hundreds easily). Seats 200, headlights 50+, hood 100+, window motors 60+, door handles 10+, rims 100+, the list goes on and on. even the smallest of parts, like the knob off the radio, can fetch 10 dollars. if you bought a car for 800 you could sell every single part @ 10 dollars and break even on your 80th piece (excluding fees and shipping ofc), and while I don't know how many parts a car has, I'm sure its well over a couple hundred pieces, and obviously many/most of them will fetch far more than 10 bucks. Every time I have to fix something on my car I'm typically out 50-100 dollars.

the amount of profit off a parted out car is ridiculous. It's really a shame I hate mechanic work so much.

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personally, i never discuss how much I make in net sales, but I also prefer to keep quiet about my yearly income. I typically only divulge profit margins to people close to me that I trust, and even then I normally just discuss the profit margins on a particular item that is the topic of conversation, not net sales revenue or YTD profits, but to answer you a little:

>get something at 60% profit margin (kind of difficult)
Typically, I need to get 15% below the going rate to break even, so that is my minimum. 10% + 2.9% + $0.30 per PP transaction (actualy a bit less since I run a store , top rated, power, etc) - then shipping costs which is normally 3-5 bucks for most stuff

>shipping to your house is 15%
I factor any additional costs (sales tax, shipping, etc) when deciding to purchase the item(s), so it's nothing to talk about

>shipping to fba is 5%
I dont use FBA and I'm not sure why so many people talk about it now. It's expensive as all hell, and (especially for newbies just starting) it is better to start off doing everything yourself so you have maximum profits, complete control, and understand every aspect of your business. That way no matter what you will never be under someones thumb and will never rely on someone to keep your business functional (Shit happens, ur setup will change over time, it always does). Once you've gotten established and smoothed out hte process you can start considering outsourcing various parts of the job, it'll be easier and you'll have a clearer view of how beneficial a service is.

>amazon fees 15%
as I said Im on ebay and use paypal, so its 10% + 2.9% + $0.30 per transaction for me. I also get a bit of discount due to my account stats

>fba fees 10%
again, no fba

>prime fees 50 month
isnt prime just "free shipping on amazon purchases"? Why would a seller need that?

(cont)

>boxes and shipping stuff 2%
I actually rarely pay for boxes, I'm a nightowl by nature and tend to go grocery shopping in the middle of the night, no lines or traffic. This allows me to catch the stores during stock time and I just ask if I can have their boxes when I see the right size, I normally wind up with a trunk loaded to the brim which lasts me a good few weeks if not months. Occasionally I'll buy boxes when I need specific/unique sizes.

I invested in a laser printer and high capacity toner/drum, total setup cost under 50 bucks when I did it, After 5 years I just started getting a low toner notification last week, bought a replacement cartridge for under 9 bucks, just waiting for it to completely fail and then swapping out, should be good for another 5 years.

I also buy printable shipping labels, bubblewrap, fragile/do not crush stickers, packaging tape, and cleaning supplies (for used stuff). Most of those are so cheap their cost is negligible. All of them are bought very cheap in bulk from china normally, sometimes in the US.

The exception is packaging tape. It's the worst (in price) by far and a real pain in the ass. I go through it all the time and it's like 15 bucks for a new stack. I should probably look into wholesale purchasing it from china now that I think about it.

Also have to be careful when buying Chinese labels as some of them are really poor quality and will literally peel up and off your package. I complain and get a full refund if that occurs (I always forget where I bought the good ones from last time and have to find them again)

(cont)

>ppcs are 15%
pay per click? Advertisment? I don't bother with advertisement, but I dont know why people would use PPC as their advertisement method for selling various products. PPC is typically used when youre creating a following to your site or brand, which isnt typically how ebay/amazon sellers function. beyond that thinking in terms of % would be a really weird way to factor the cost for PPC, and imo sounds massively high to me. PPC's are normally 1 dollar per click on the VERY high side, under 50 cents for the lower.

>photos and listing 20%
i have no idea how youre figuring photos and listings costing 20% of an item (or anything at all), literally no clue. I have enough free listings to cover my monthly quota so listing doesnt cost me anything, but if i were to grow past my allotted listings itd only be 20 cents each or so

>income taxes 39% over income.
Any time I discuss profits or my income, its always "before tax", which is completely normal for people to do

>state taxes 8%
see above

>giveaways for reviews 40%
the only people that need to review stuff are ones that are creating a brand. I am not an amazon seller so maybe I'm wrong and you need your own reviews for a product you sell even if its got tons of reviews from buyers on other peoples accounts, I really don't know how that works. But regardless, you can easily pay a VERY small margin to hire people for reviews, or as you said can just give out a single item to them, but either way unless its a very high priced item, handing one out here n there wont hurt too bad.

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nicely wew'd my lad

I would put money on the fact that OP doesn't make more than $12,000 in gross sales a year which is standard with sellers on eBay. I don't believe OP knew much about the fee structure until posting here.

This is OP's business.
>Sell shit from around the house
>Sell shit found from thrift stores, garage sales
>talk shit about people who resell items sourced from China
>don't pay taxes, because not a lot of money is being made
>be intentionally vague about paying taxes because paying taxes isn't an understood concept but tries to play it off like it is understood not talking about paying taxes sounds smart.

This is why OP won't post his eBay seller ID or add a small msg about Veeky Forums in a couple his item descriptions to verify he owns the account.

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>I plan on enrolling to university next year

Well there's the bullshit. If you're netting thousands a week on ebay (every week as you imply), not riding this out would be the dumbest thing you can do.

Saged

>Typically, I need to get 15% below the going rate to break even, so that is my minimum. 10% + 2.9% + $0.30 per PP transaction (actualy a bit less since I run a store , top rated, power, etc) - then shipping costs which is normally 3-5 bucks for most stuff

I was paying
15% in ebay fees per sale.
4% in paypal fees
since my items were over 14inch and 16oz I had to ship it by priority mail and it was from 8 to 12 dollars.
from china to my house it was like 5 bucks per item.
my item was like 7 dollars
selling at 25 (the average was 18) I made like 1 dollar per item.
getting something at 7 dollars and selling it at 25 and I just made 1 dollar thats what killed my motivation.

I dont get why you dont want to discuss margins and nets, we dont know who you are or what you sell.
thanks for you advice anyway.

>doesn't make more than $12,000 in gross sales a year which is standard with sellers on eBay

I'm pretty sure you're pulling that figure out of your ass, and probably are not, and possibly never have, sold anything on ebay

I'm not OP, and I'm not claiming to make thousands per week, but I assure you there is a significant portion of us making well past 12k a year, that's just silly.

Assume 1 sale a day, 365 days a year, 12.9% + 0.30 cents in fees (ignoring shipping/fee/material costs since they're not concrete numbers) and we need to clear $13,657.50 a year to meet that minimal goal. Assume the typical items weighs in at 8oz or less (using this number becasue 95% or so of my inventory is as such) and costs 2.60 to ship, were now looking at 14,606 in net sales.

Shipping materials can be had for free if not such a low cost its negligible to mention. a few bucks for thousands of labels, free boxes everywhere, a single marker, 9 dollar laser printer toner cartridge that lasts 5-10k pages, etc.

$14606.50 / 365 = need 40 dollars a day in net sales (again, ignoring cost of item as that varies greatly)

That's easy. anyone who's been at it for any amount of time can match that fine. I'm currently sitting on $181.15 for the day, and it's been a very slow day/week/month for me in sales, listing efforts, and product sourcing because I've been busy as shit with other things. I assure you my costs are well below even the 40 dollar mark for todays sells

I think 12k is probably what I was at during my first year, which included the entire learning and growing experience and was still working a "real" job

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>15% in ebay fees per sale.
not sure what world you're in. eBay/PP fees are the highest they've ever been, which is currently 10% final value fee, and paypal is 2.9% + $0.30 per transaction, aka 12.9% + $0.30 per trans. They also get cheaper as you grow and get a store / top rated / power seller / etc

>4% in paypal fees
see above. 2.9% + 30 cents per trans.

>since my items were over 14inch and 16oz I had to ship it by priority mail and it was from 8 to 12 dollars.
you should have been using flat rate shipping options then. $5.xx for flat rate envelope that can hold fairly large things, $11.xx for medium flat rate boxes which are big enough to hold VCR's etc. also should have sourced friendlier items on shipping.

Pic related, shipping rates for 16oz/1 pound.

from china to my house it was like 5 bucks per item.
Where the fuck do you live, north pole? you can source just about anything from china for "free" shipping. I can buy a single item for 58 cents and somehow they can afford to mail it to me with no additional fees.

my item was like 7 dollars
selling at 25 (the average was 18) I made like 1 dollar per item.
no, simply no. unless ur selling lead weight via the most expensive shipping option possible, just no.

Every piece of what you stated does not add up, you're either completely lying or grossly unaware of what you were actually paying, not sure which

shit. forgot pic

>rates for 1 pound / 16oz shipping

I just realized you said -over- 16oz, so okay, shipping does spike up from there, but its still

8.15 priority mail
5.75 flat rate envelope
11.95 flat rate box

Assuming every item you sold is >14 inches, your best bet was probably priority mail, so sure, 8-11 shipping sounds realistic, you get a point for that one

everything else is still way the fuck out there, and more importantly, if the cost of shipping outweighs the cost of purchase, you have a really shitty product and should really find alternative inventory ASAP.

What is your process for finding a niche.

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[spoiler]I'm so broke[/spoiler]

Of active eBay sellers within the past year, how much of a percentage make more than $12,000 a year? How about $100,000? How about $1mil?

I think you will find this number lower than you assume.

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8(priority 2 day flat rate, I didnt found any other option cheaper)
+ 5 (shipping from china air rate is 12 per kilo by dhl, the shipping was exponential so it doesnt matter if I order 1000 they were gonna charge the same. those guys were assholes one of the reason I dropped them)
+7 cost of item.
+3.8(19% of 20 because I offered "free shipping" of course I added to the price)

that equals 23.80 + the box and the bubble wrap.

I sold them at 25. I did the same process with a lot of products and found I can do more flipping burgers at mcdonalds (yeah I had sales but at the end of the day I wasnt making any money) BUT I was contacted by a big distributor for some commodities. Doing the full containers I was able to reach 30% margin at distributor prices(standar for a distributor). if we are going retail we can make that 80% margin and thats a lot of money.
we are still negotiating prices with the freight forwarder.

I was convinced I was doing something wrong
I found a product for 4 bucks in Mexico selling at 25 in amazon.. I wasnt able to sell it because it is gated and in ebay they were by 7 I sold them at 16 and I broke even
12 shipping and fees and 4 of the item.

all of this is from alibaba to ebay/amazon. I know what you are saying to get free shipping but it takes like one month. I was thinking to do that but I was contacted by the distributor and I am working with them now.

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Do you have your own proprietary business system for things like:

Automatic price reduction for old stock
On the fly profit reporting
Creating new products in the system

I'm asking because very few ebay sellers have this, and it provides an important competitive advantage

its not gonna be permanent at all the bigger guys will shut him out retard, college is a good idea here

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I will not be a bitch ass and post my niche that got fucking destroyed but can still make around $400 a month in profit! I sold Mexican omeprazole..got it for 4 sold it for 18$, but now ebay list those filthy India sellers and totally raped my sales..I just can't compete anymore but I do have my regulars..plus mexican wholesalers that cross a ton illegally have also had a severe effect on business..the price is so low that no one is getting a decent return..120 omeprazole pills for 5$ is insane

nicely wew'd my lad

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Who is your supplier?

basically:
-see thing of interest
-research cheapest option for thing
-compare ebay value of thing
-if margin is there, buy into thing

not going through a billion shit items to find one that is profitable is really just a sort of 6th sense you obtain over time through experience. I always suggest start with niches you have an interest in already as it makes it easier since you already kind of know the market

no clue, but I know 12k is a REALLY low guess. I'd designate that value to people in their first year or two, and ebay hobbiests/housewives that just sell their random shit as kids grow out of things to clear room and make a few extra bucks, treating it like an online garage sale

sounds like you got things figured out decently, awesome. I would say if you have that much trouble with your item and the profit margin is that low, its simply not a good item to be working with and I would have continued hunting for different things. WIth that said, even if the profit was 50 cents, if you could automate the process where theres no hands on work for you beyond listing and hitting a button to begin shipping process then I'd happily take those 50 cents all day long

not OP, but I don't use anything to manage inventory as of now. I drop prices on old stuff I want to move with a few clicks of a button, I have spreadsheets that keep track of all the numbers so I can look at exactly what I'm doing at any point, and creating new listing is easy enough, not sure you can automate that too much

>I will not be a bitch ass
>only willing to discuss the niche because its basically dead now

you actually called me/us "bitch ass" because we dont tell you exactly what to compete with me in? words cannot describe.

Word. I can take in $600 from eBay on a good month, but only $100 or less of that is usually profit. Likewise, I got a case of new remainder books almost for free, but I'll probably only make 50 cents to $1.50 off each one, even though the cost was less than a penny per book.

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Have you invested in URRE you sound fairly sharp.

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"get paid pupper"

get paid pupper!!!!!!!!!!!!!!!!!!!

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I Have been approaching it all wrong and im having some downtime whilst I remodel everything.

Been watching another seller for a while and saw he sold a chair for £174. Found out where he got it from and after fee's he made £76 from one transaction. His price mark ups are ridiculous and people still buy from him . He as around 750000 items listed and its all a u t o m a t e d.

I don't understand the whole "Niche" thing. If something sells, then sell it. Why limit yourself by not selling other items?

All that matters is that you are taking advantage of people who are too stupid to compare prices on different sites before they buy.

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why did brexit kill your margins?

so is selling digital items on ebay a nogo or do you have to be more careful?