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I often see questions from new sellers trying to decide what/how to buy for resale here. I am primarily a vintage/collectible/antique reseller, but I think the same basic premise would apply for any items considered strictly resale here. At some point, you become a large scale seller, you will probably be working with spreadsheets and specific formulas. This guide is not for you. But I have seen way too many new sellers disappointed or disgruntled when they realize they have made very little if any profit for their efforts here. So for those just starting out, I offer some basic "seat of the pants" ideas to get you started & hopefully keep you out of trouble.
When at auctions or shows deciding if I want to purchase an item for resale here, I automatically figure my selling costs here on eBay at about 20-25%. Actual is usually lower, and of course varies due to listing method - Auction, Fixed Price, Store, category, ship cost, Bin or not BIN, etc., but that way I am sure to have my costs here well covered. (Remember, I want to be pleasantly surprised with your experience selling here, not turned off.)
Ex: I see an item for $25 at an auction or sale that I can easily re-sell here for $50, I immediately knock $10 off my estimated projected profit for fees here. So my "profit potential" for that $25 outlay would be only about $15. Since I want a potential profit of at least minimum of double my investment, I wouldn't buy it.
Ex: I find a lot of 300 postcards for $25. I can cherry pick the lot & keep 25 PCs I can sell for average of $8.00+ each. I resell the remainder of the lot locally for $15, now my total cost for the 25 I keep is $10 or 40 cents each. My total cost to sell them here at 25% is $2.00 each. So my total cost per card - investment & fees will be $2.40. I net min of $5.60 per card x 25 for a total of $140 profit on my $25 investment. I would buy them.
I also am very conscious of time it will take to list & package an item for shipping. I can list and package a postcard very quickly & easily. However, if I have a large vintage toy, it will require much more time for detailed listing with lots of photos and extra time & care in packaging. If I can net $5+ selling a postcard, I may not mind, but even if my initial cost for the toy is the same (or even $0), no way I am going to put all that time into it to only net $5.
I also consider storage space when I consider an item. A tuba takes up a alot of space. I can store a lot postcards in a shoebox. I am more likely to keep 100 postcards in stock than 100 tubas. By selling more "small items" with the same net potential, I have saved on packaging costs (takes a lot of packing tape to package a tuba) & time as well as possibly storage rental costs. Now of course if I am going to make a quick $100 profit on a $5 investment per tuba, heck, I'll take the tubas too.
Everyone has a different threshold for what they consider to be worth their time to sell here and only you can decide what you need/want. Maybe you would be happy with a net of $100 per week working 40 hours here. Maybe not. Either way, before actually purchasing any inventory to sell here, be sure to research completed listings here to get approx. selling value here. Ignore price guides or suggested manufacturer's retail. You need to know what an item will sell for on the venue you are selling on. And then consider all fees & what your time is worth for the net result you want/need.
Perhaps if you are just trying to clean out unwanted items in your home, any profit is acceptable. But if you are considering selling here full or part-time to make a viable income, you need to be much more concerned when estimating your costs and potential profit before investing in any inventory for resale
Deciding "what to sell" here is only part of the selling process here. You also need to look at tutorials, guides, etc.with regards to PayPal seller protection (and often lack of), how to write a good listing, take good photos, preferred shipping methods and packaging, etc. But hopefully I have addressed at least that initial "what to sell" to give you something to start with. BEST OF LUCK TO YOU !
When at auctions or shows deciding if I want to purchase an item for resale here, I automatically figure my selling costs here on eBay at about 20-25%. Actual is usually lower, and of course varies due to listing method - Auction, Fixed Price, Store, category, ship cost, Bin or not BIN, etc., but that way I am sure to have my costs here well covered. (Remember, I want to be pleasantly surprised with your experience selling here, not turned off.)
Ex: I see an item for $25 at an auction or sale that I can easily re-sell here for $50, I immediately knock $10 off my estimated projected profit for fees here. So my "profit potential" for that $25 outlay would be only about $15. Since I want a potential profit of at least minimum of double my investment, I wouldn't buy it.
Ex: I find a lot of 300 postcards for $25. I can cherry pick the lot & keep 25 PCs I can sell for average of $8.00+ each. I resell the remainder of the lot locally for $15, now my total cost for the 25 I keep is $10 or 40 cents each. My total cost to sell them here at 25% is $2.00 each. So my total cost per card - investment & fees will be $2.40. I net min of $5.60 per card x 25 for a total of $140 profit on my $25 investment. I would buy them.
I also am very conscious of time it will take to list & package an item for shipping. I can list and package a postcard very quickly & easily. However, if I have a large vintage toy, it will require much more time for detailed listing with lots of photos and extra time & care in packaging. If I can net $5+ selling a postcard, I may not mind, but even if my initial cost for the toy is the same (or even $0), no way I am going to put all that time into it to only net $5.
I also consider storage space when I consider an item. A tuba takes up a alot of space. I can store a lot postcards in a shoebox. I am more likely to keep 100 postcards in stock than 100 tubas. By selling more "small items" with the same net potential, I have saved on packaging costs (takes a lot of packing tape to package a tuba) & time as well as possibly storage rental costs. Now of course if I am going to make a quick $100 profit on a $5 investment per tuba, heck, I'll take the tubas too.
Everyone has a different threshold for what they consider to be worth their time to sell here and only you can decide what you need/want. Maybe you would be happy with a net of $100 per week working 40 hours here. Maybe not. Either way, before actually purchasing any inventory to sell here, be sure to research completed listings here to get approx. selling value here. Ignore price guides or suggested manufacturer's retail. You need to know what an item will sell for on the venue you are selling on. And then consider all fees & what your time is worth for the net result you want/need.
Perhaps if you are just trying to clean out unwanted items in your home, any profit is acceptable. But if you are considering selling here full or part-time to make a viable income, you need to be much more concerned when estimating your costs and potential profit before investing in any inventory for resale
Deciding "what to sell" here is only part of the selling process here. You also need to look at tutorials, guides, etc.with regards to PayPal seller protection (and often lack of), how to write a good listing, take good photos, preferred shipping methods and packaging, etc. But hopefully I have addressed at least that initial "what to sell" to give you something to start with. BEST OF LUCK TO YOU !
Guide created: 06/11/09
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