Make Money Online

Every day hundreds of thousands of auctions end on the number one online auction website, eBay.  Many of these auction sellers are simply everyday people like you and I selling off goods that we no longer want, however, a large number of sellers are in fact in business for themselves, making money on eBay.  Since it’s launch years ago, eBay has grown to be one of the largest ecommerce sites on the net, however, as more competition encroaches on their territory, such as Amazon.com, eBay has been forced to reduce their rate structure, making it much more affordable for those looking to earn a living selling on the auction site.

eBay is no longer just for auctions, however.  In fact a large quantity of their items listed are storefront items which are for sale at a fixed price.  If you are looking to make money on eBay, it is important to understand the difference between a fixed price item you sell, and an item you auction off.

Fixed priced eBay items will sell at whatever price you list them for.  Buyers may make you an offer below the sell price, however, you do not have to accept any of these offers.  Auctions on Ebay work entirely different and have several key elements to them.  You could have an auction which you list starting at 1 cent, or you could list it with a minimum bid close to it’s retail value.  The auction’s reserve price is another key element.  As a seller you can set a price in which you will not sell the item under.  This means that if you set your reserve price at $100, and no bids come in at, or over, that price, you are not required to sell it.  Setting a Reserve price often scares would be bidders away, who don’t want to waste their time bidding on a product which they may not win even if they have the high bid once it ends.  As a seller you need to find the right combination of a minimum bid and reserve price that sells the maximum quantity of whatever you are looking to auction off.

Finding The Right Product to Sell on eBay

Because of the vast number of sellers on eBay, it is often difficult to find a niche product which is not already over saturated by sellers.  If too many people are selling a product it becomes difficult to make an actual profit.  Some sellers have a strategy of buying bulk quantities of newly released electronics.  For instance.  When the Nintendo Wii first came out, they were selling on ebay at a 50% premium over what they were getting at the retail outlets.  It’s all about supply and demand.  If you can quickly acquire several in demand products on launch day, you may be able to make quite a bit of money reselling it at auction.  In the case of a highly in demand item with limited quantities, it is best to use the auction format, as prices could climb much higher then you may have imagined.

Other sellers rely on wholesalers.  If you can find good, honest, reliable wholesalers both internationally and nationally, you can often buy bulk quantities of products much cheaper then their retail prices, and then sell them on Ebay for markups anywhere from 5-100% or more.  This takes leg work, calling around, and establishing long term relationships with suppliers.  It’s not easy, but you can find several large wholesalers online, searching Google and other directories.  Prior to negotiating a deal with a wholesaler, figure out the average price the specific item gets on Ebay, and then deduct any fees that you are charged from eBay themselves, as well as Paypal or whatever payment intermediary you may use.  It is so important that you go into negotiations with a wholesalers with the proper figures after doing adequate homework.

In conclusion, money can be made on eBay if the proper homework is done, the individual who is selling the products have a clear understanding of the niche they are dealing with, and an understanding of general supply and demand concepts.  Starting off as an eBay entrepreneur may mean a lot of trial and error.  You may not make huge profits from the start, but as you and your business grow, you will likely be able to develop a model for your business, and a strategy which will increase your profits in the long run.  Like anything, don’t just jump into this money making opportunity.  You need to spend days, if not weeks investigating the business, and deciding, then, if it is the right thing for you.

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