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Considering all the fees, how do people make money on eBay?

 
 
Reply Tue 18 Jan, 2005 08:03 pm
Considering all the fees, how do people make money on eBay?

I've done a bit of eBay sales over the past 18 months, and the biggest frustration is that I'm finding it difficult to make a profit.

Ebay has a fee for every little thing, plus the most popular form of payment, PayPal (an eBay company, no less), takes a couple percentage points, too.

I know that many people are selling their "garage sale" items on eBay, so profit is not the motive. But if I'm going to sell brand-new product, and still be competitive with "bricks and mortar" stores, I have to find a less expensive way to eBay.

To add insult to injury, eBay just sent me a notice that their fees are increasing...they included a table, but suffice it to say that their fees are increasing by an average of around 30% (my guesstimate). This includes raising the Store fee by 50%.

Worse yet are the increases in listing fees, and final value fees.

Please tell me how people can actually make a profitable business out of eBaying.

I'm finding it hard to do an hours' work of writing an ad, listing it, answering buyers' questions, processing the PayPal transaction, packing and shipping an order for only $4 gross profit. Then Uncle Sam gets his share off of that.

Now, to make matters worse, a growing business will need to hire employees--how can I pay someone even $10 an hour when eBay and PayPal extract so much profit from every transaction?

Your opinions and expertise are welcome. Thanks for helping!

General Tsao
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roger
 
  1  
Reply Tue 18 Jan, 2005 08:50 pm
That's nothing. I sent an inquiry to a site, hoping to find a custom license plate. I got two personal responses, one of which referred me to another, and unrelated, site.

Maybe the others are making it on the shipping and handling fees, Tom. What do you sell, by the way?
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GeneralTsao
 
  1  
Reply Tue 18 Jan, 2005 09:02 pm
roger wrote:
That's nothing. I sent an inquiry to a site, hoping to find a custom license plate. I got two personal responses, one of which referred me to another, and unrelated, site.

Maybe the others are making it on the shipping and handling fees, Tom. What do you sell, by the way?


I began with my photography--calendars, stationery, prints, etc.--but soon found the meaning of "Starving Artist" so I've added other things. I now sell mostly LED lights and novelty light strings.

I just got back from the Atlanta America's Mart and have brought on new LED lights products and am considering a couple lines of candles, one of which will be soy. The other perhaps beeswax. Oh, I did get a line of LED candles (paraffin).

There's an LED light that turns on when you light the candle--way cool!

But how to make money on eBay...that's the question...
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OCCOM BILL
 
  1  
Reply Tue 18 Jan, 2005 09:10 pm
That was my thought Roger. Ebay doesn't charge a fee on the shipping amount so many folks go with the 1 cent listing and S&H for the actual price. Also, avoid the frill nonsense they sell you. People want it or the don't. If you want more than 1 pic, host it someplace else. eBay Stores are cheap too... and items in them are perpetually available for 2 cents per month. You should probably search the eBay message board for more tips and solutions. Good Luck!

Oh yeah, and media-mail on any type of media is a couple extra bucks in your pocket too.
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farmerman
 
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Reply Tue 18 Jan, 2005 09:27 pm
IVE NEVER SOLD ON EBAY BUT I SELL ANTIQUES AT AUCTION. THE TOTAL FEE FOR A PIECE OF GOOD ANTIQUE FURNITURE CAN VARY FROM 15 TO 20% DEPENDING ON THE SIZE (THE BIGGER DOLLAR PIECES GET A LOWER PERCENTAGE USUALLY).
ID LIKE TO GET AN IDEA OF FEES AS A % OF TTHE SOLD ITEM. I ALWAYS HEARD THAT E BAY HAD THE LOWEST FEES FOR AN AUCTION ANYWHERE. SOME AUCTTION HHOUSES CHARGE AS MUCH AS A TTHIRD OF THE SELLING PRICE AND TTHEN ADD A BUYERS PREMIUM WHICH IS PAYED BY THE BUYER AND NOT THE SELLER SO TTHE AUCTION HOUSE CAN OFTEN GET UP TO 40% OF A PRICE. TAX NOTT INCLUDED
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squinney
 
  1  
Reply Thu 20 Jan, 2005 09:12 pm
All sorts of complaints on the community boards there about the recent increases. I'm not selling right now, but in the past I have sold new items (teapots, salt & pepper shakers, canister sets, Cookie jars, etc) that were uniqe and therefore had excellent sales with a minimum 100% profit. Eventually, others found my unique source and undercut my prices to the point of them not making any profit and me not selling anything.

Anyway, I went digital. I created / wrote a few of my own how to ebooks which sold VERY well. Little to no competition due to the niche, but still high enough demand that it beat the heck outta the physical goods. Everything outside the listing /final value and Paypal fees was profit.

That's the only thing I would bother selling on Ebay now days. They have priced the small sellers out of the market. Buyers have the impression everything is cheaper on Ebay, and won't buy and pay shipping if they can get it from Walmart. For most items, that doesn't leave any room for the seller to make it worth while unless they are already a major conglomorate. IMO, Ebay has catered to the IBM's and other large corporations in combination with building a reputation for being bargain prices. The only exception I have found to this is antiques /collectibles or where new items aren't available.

Definantly host your own pics at imageshack or something, even if you are only using one pic per listing. Don't bother with bold or other upgrades. Don't make it obvious you are profiting from s&h. You can add a dollar or so to the s&h without much fuss, but if you do I suggest printing your own postage with the amount not printed on the sticker. (stamps.com could do that when I was selling last year)
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