I see many sellers selling NWT Gymboree clothes in wholesale lots
who advertise that you should buy their lot in order to get started
selling Gymboree on ebay and make a huge profit. BEWARE! I
have sold Gymboree on ebay for 5 years, and I am telling you it just
isn't that easy to make huge profits. Before bidding on a
wholesale lot with the idea of getting some things to resell, do some
careful research. The most important aspect of these wholesale
lots is what percentage of the retail value is the seller
promising. Many sellers are offering lots where you win 2 times
your bid in retail value. This is not a good deal if you are
planning on reselling the clothes. Check many finished auctions,
and you will find that auctions for specific pieces usually go for 30%
to 50% of the retail value of the piece. For very in demand
pieces you can get 70% if you have the piece in a size that is in
demand (but do you really think wholesale lot sellers are going to
include the most in demand pieces in their wholesale lots?).
Consider that when you buy the wholesale lot and then resell it you
have to cover the cost of what you bid, cover the shipping to you,
cover ebay and paypal fees (a minimum of 8% of the final price you sell
the item for). So, suppose you buy a $100 lot to resell at 2 x
BID in Retail Value. You get $200 in retail value in Gymboree and
have to pay $10 to ship it to you. So far your costs are
$110. Now you list 10 auctions on ebay, each for a piece that
cost $20 ($19.50 is a common price point for Gymboree shirts).
Each listing costs you about $0.40 just to list. So now your
costs are up to $114. When your auction ends you owe final value
fees and paypal fees that are > 8% of the final value (paypal fees
are also paid on the shipping amount). So suppose you have a nice
shirt from a new line in a good size, it might sell for $13 if you are
lucky. You paid $11 for it in the original auction (with the
shipping), $0.40 to list it, $0.65 in final value fees, $0.75 in paypal
fees. Your profit is $0.20. So, if you sell all 10 shirts
that were in your lot for $13, you make a bid $2 for all your
efforts. And that is if you sell the shirts for $13 each, which
is actually an extremely good price for a NWT Gymboree shirt.
Many shirts from many lines will sell for only $8, or $10, in which
case you lose money on your auctions. So, before you decide to
jump in and start a home business selling Gymboree on ebay, find a lot
that offers a really high ratio of your cost (including shipping) to
retail value. BEFORE you bid, contact the seller and find out as
much as you can about the lot. What sizes, is it, is it a mix of
boys and girls or all girls, is it all one season, what year are the
lines from, do they guarantee outfits? You need to know all you
can before you can tell if it is a good lot to resell. The best
lots to resell are LARGE, this reduces the cost of shipping to you on a
per piece basis. And do lots of research on finished auctions of
the type you think will be in your lot (girls, winter, 2006, size 3 for
example). Find out how much of the retail value people are really
getting, add in your extra costs like shipping to you, paypal and ebay
fees. Try to estimate if there is any real margin left to make a
profit. Another important tip is seasonality. One way to
make a modest profit is to buy off season and wait and sell the stuff
when it comes back in demand as the weather changes.
Guide created: 10/09/06 (updated 09/17/09)


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