Selling items under $5-10 - how can you really make money on eBay?

[x.four]

When I calculated it, it seems like selling items that are worth less than $5-10 price range is pretty much about breaking even with the fees. Unless I end up subscribing to the store, which I don't have that volume to move... So how do individual (non-high volume sellers) really make money other than raising the price and unable to compete with the other people?

One example, i just sold 3 generic older phone cases for $3.99 with free shipping. Most run around $1-2 new (with shipping from china or whatever)

Total breakdown:

+ $3.99 - payment

- $0.42 - Paypal fee (2.9% + $0.30)

- $0.40 - FVF

- $1.69 - shipping

= $1.48 net profit?

20.5% of the cost of auction went to ebay/Paypal for their services.

Even if I was selling a single unit for $2 with free shipping, I'd only make less than a buck after all fees... 

[bronx-dog]

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@pretty_good_week_in_vegas wrote:

Yes ... I'm Batman.

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[hondamedic]

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@ohlipcon wrote:

Most of the time, as I have seen here specially those newbie here on the forum that need guideance. Not every newbies are expert right away! They sometime don't know where the right discussion board to  be post or whatever. Old timer, slam them for what they are posted and the location. Is that the right attitude toward the first timer here? 

No need to teach me how to make a profit. I already have. I sell an item which is unique and its bigtime. I am selling item not only here. Amazon, CL and also on flea market on the weekend.

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Let's you and I clear the air here, you're no longer a Newbie.> http://community.ebay.com/t5/New-to-eBay-Board/Make-an-Offer-option-on-listing/m-p/16501013 You're second post to the forums over a month ago and over 40 posts ago, Are you a seller of ebay? If yes! why you don't know what was happening and If you don't know, nevermind. , was caustic and you were told so.

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@janewt-1 wrote:

I don't really care what your native language is.  Replying to someone that they do not know what  they are talking about is an insult any language I have know of.

You are registered from Canada and so should be fluent in either English or French (Quebec).  I suspect it is French based on your attitude toward English.  If so, get over it or else confine your discussions to places where the language is French and all others are considered lower life forms.

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 You continue to post in a manner not conducive to being well received by "old timers".

  You and I are done. Here's hoping you have a life, elsewhere.    

[taadaa58]

Sometimes people sell small inexpensive items to get fast sales to build up their feedback so their funds aren't withheld or their trying rebuild their feedback up after they've been dinged too many times or their DSR's are too low. Then you have some who are weeding out end of season surplus so they price them low to get rid off things fast along with some who ended up with too many items that didn't sell because the market was flooded with them so they mark them down rea There's probably a dozen other reasons too.

I mainly only list items for $20 and over.With all the time spent researching,taking take pics,listing and cost of shipping supplies on top of all the fees items under $20 do not make enough to compensate for everything mentioned,but I will lower the price after it's been listed long enough with no sale.

[skullywag64]

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@ohlipcon wrote:
It is not important to me if your grammar is correct or not or maybe the spelling. The important is, I live in reality.

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AMEN.

It's your God given RIGHT to come off as ignorant as you choose!

Rock on!

[theguitarpartsguy]

My #1 item far and away is an item I sell for $10.99 shipped free. 

The secret to making money in sales is NOT what you sell the item for, it's how well you buy it.  Learn that and you will make money no matter what item you are selling.  This has not failed me in 21 years of being in business.

[theguitarpartsguy]

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@bronx-dog wrote:

              

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BD, this picture might just be the best thing I have ever seen posted here in terms of comedy... LOL!

[ohlipcon]

Here you go! The parade of puppet.

[billy_biggle_fan]

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@x.four wrote:

When I calculated it, it seems like selling items that are worth less than $5-10 price range is pretty much about breaking even with the fees. Unless I end up subscribing to the store, which I don't have that volume to move... So how do individual (non-high volume sellers) really make money other than raising the price and unable to compete with the other people?

One example, i just sold 3 generic older phone cases for $3.99 with free shipping. Most run around $1-2 new (with shipping from china or whatever)

Total breakdown:

+ $3.99 - payment

- $0.42 - Paypal fee (2.9% + $0.30)

- $0.40 - FVF

- $1.69 - shipping

= $1.48 net profit?

20.5% of the cost of auction went to ebay/Paypal for their services.

Even if I was selling a single unit for $2 with free shipping, I'd only make less than a buck after all fees... 

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Cowabunga has it right.

If we assume that the cost of the cover to you is $0.25 each, and your shipping supplies per order average $0.20, then you'll net $1.03 per order.  If you process 2 orders per minute (locate the item, place in bubble envelope, attach label, ship), and have 60 orders a day, then you'll net $61.80 for 30 minutes of work, or $123.60 per hour.

The key is to buy at the right price, maximize your efficiency, and lower your fees as much as possible (PayPal micropayments account, variation listings, etc.).  That's how you make money selling low margin items.

And BTW, on an item such as phone covers, processing 2 orders per minute is slow.  With bulk thermal label printing using a highly organized inventory and picking system, you should be able to do 5-6 per minute.  That's how large sellers of small items make good money.

[kansas_gal06]

OK something needs to be said here....which is, ohlipcon, welcome to the part-timer's board. I don't think I've seen you post before, and I'm always glad to see someone take an interest.

billy, thanks for putting things in perspective on the $/hour wage.

[disneyshopper]

I agree with taadaa58.

I rarely list items under $20 unless I get them at a really good price.  It takes just as long to take pictures, write up the listing. and package a $5 item as it does a $40 item, so why not go for the item that brings a higher profit?

[kansas_gal06]

erm...I just read the link honda posted where ohlipcon posted before. Which had some rude stuff from ohlipcon.

OK, so there still needs to be something to be said here, and manners are important in any culture. It's how we let people know we care about them.

And a good lesson on clikcing on relevant links before making your own post

[hondamedic]

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@kansas_gal06 wrote:

OK something needs to be said here....which is, ohlipcon, welcome to the part-timer's board. I don't think I've seen you post before, and I'm always glad to see someone take an interest.

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First post to the forum:



Return to forum post:

If you like being called a Sock Puppet and a Liar then their interest is all yours!

[uncle_thrifty]

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@disneyshopper wrote:

I agree with @taadaa58.

I rarely list items under $20 unless I get them at a really good price.  It takes just as long to take pictures, write up the listing. and package a $5 item as it does a $40 item, so why not go for the item that brings a higher profit?

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If it's a one-time item that you're not going to continually carry, I would agree with this 100%.  It only makes sense.  However, if it's an item you are going to stock and sell all the time, then you have to take that into account, because the time you take to take photos, write up a listing, etc., you only have to do one time, then every time your listing ends you can just hit "sell similar" and it's back up in two or three quick clicks. 

[theguitarpartsguy]

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@billy_biggle_fan wrote:

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@x.four wrote:

When I calculated it, it seems like selling items that are worth less than $5-10 price range is pretty much about breaking even with the fees. Unless I end up subscribing to the store, which I don't have that volume to move... So how do individual (non-high volume sellers) really make money other than raising the price and unable to compete with the other people?

One example, i just sold 3 generic older phone cases for $3.99 with free shipping. Most run around $1-2 new (with shipping from china or whatever)

Total breakdown:

+ $3.99 - payment

- $0.42 - Paypal fee (2.9% + $0.30)

- $0.40 - FVF

- $1.69 - shipping

= $1.48 net profit?

20.5% of the cost of auction went to ebay/Paypal for their services.

Even if I was selling a single unit for $2 with free shipping, I'd only make less than a buck after all fees... 

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Cowabunga has it right.

If we assume that the cost of the cover to you is $0.25 each, and your shipping supplies per order average $0.20, then you'll net $1.03 per order.  If you process 2 orders per minute (locate the item, place in bubble envelope, attach label, ship), and have 60 orders a day, then you'll net $61.80 for 30 minutes of work, or $123.60 per hour.

The key is to buy at the right price, maximize your efficiency, and lower your fees as much as possible (PayPal micropayments account, variation listings, etc.).  That's how you make money selling low margin items.

And BTW, on an item such as phone covers, processing 2 orders per minute is slow.  With bulk thermal label printing using a highly organized inventory and picking system, you should be able to do 5-6 per minute.  That's how large sellers of small items make good money.

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Being able to efficiently pack and ship your items is key.  For my top selling item, I already know what it weighs, and how many I can add to the package before the shipping weight changes, so I can just click through the shipping label page rather quickly.  Speaking of efficiency, you MUST buy a shipping scale if you don't have one, if you want to make the most of your shipping time and money.  It will pay for itself within 5 or 6 sales.  Next, if you have something you always stock, keep shipping supplies on hand all the time, and if it's something you always sell, buy shipping supplies in bulk.  If I go to walmart or staples to buy size #000 padded mailers, they cost me 65 cents each.  However, I just bought 300 in bulk here on eBay for 7 1/2 cents each.  That's a HUGE savings. 

I have a set way I pack and ship this particular item.  I bought a paper cutter, a heavy duty one, and I use it to cut  cardboard into 3X5 inch pieces, which I keep about a hundred cut up all the time.  I use one of these inserted, along with a paper bag folded over (with the item(s) inserted in it), and it all goes into the mailer, along with an eBay generated packing slip.  I have them all stored on a small shelf in the middle room of my shop, just off the sales floor, so I can walk around the corner and grab it when I make a sale.  Makes my time to pack an order of this item about 30 seconds, max.  I can of course grab multiples for packing if need be, too, making my time more efficient. 

Finally, I bought a Zebra 2844 label printer.  Yeah, the labels cost me from 3-5 cents each, but I make up for it in time saved and in shipping tape not used.  I used to print labels on plain paper and tape them to mailers, but that took too much time and too much tape.  I can now peel the label and just stick it right on the mailer and I'm done.  5 seconds max, and no more wasted tape.  I estimate the label printer paid for itself within the first month or two I had it, just in time saved.  It may sound like money wasted for a cool little toy, but your time is worth something, and anything you can do to make it more efficient is money in your pocket. 

The above things have gotten me to the point that if I am at the shop and sell one of my top items, I can have it packed and have my customer a tracking number posted within 2-3 minutes of the sale, provided my eBay app on my phone goes off and lets me know I have a sale.  Lately the app has been working sometimes and sometimes not, but that's a complaint for another thread.