Sunday, September 19, 2010
Is eBay Dead?
A few years ago eBay was a great way to sell your unwanted stuff. As eBay grew so did the number of buyer and sellers. It was a gold mine for those who wanted a quick way to make money online. If you could find enough items that would sell for a profit you could make some serious cash. As more sellers entered the market margins got thin and eBay and Paypal fees started to cut into profits. The number of sellers from China also grew and created a problem for sellers who were buying items for resale on eBay as now they had to compete with their own suppliers. An example would be of a popular headphone I was selling on eBay at one point I was making on average $15 profit per sale. Once sellers from China started selling the same item my sales dried up. They were selling the same item for less then $5.00 and charging very low shipping. How could I compete with these sellers. The secret for sellers with no control on common items is to move away from that business model. If you want to make more money on eBay then you need to expand into niche items. If you can find items that are hard to find online you might have a hit with people who really want that item and are willing to pay. There was a story I read in an eBay related magazine about I guy how came across a warehouse full of old car mats for autos from the late 70's early 80's. This unique find turned into a million dollar business for this entrepreneur. If you look around I am sure you will find items that can be sold on eBay for a good profit, but stay away from mass produced items which you can not control the price.
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