Everyone who sells on eBay has just one basic question in mind and that is how to make money on eBay. There is a lot of information that can be studied on the topic of how to make money on eBay. Although it will be easier for me to package old ideas as new, this article has ideas that have not been covered by anyone and those that are so important that they need to be repeated.
What do I sell, is the basic question that needs to be asked by every seller who wants to make money on eBay. This can be a tough question to answer as there are many popular categories and products that are sold on eBay. Categories and products that are difficult to sell or will create problems need to be avoided, especially if you are new on eBay.
Knowing where to obtain products is another important factor that will determine how to make money on eBay. The financial situation of the eBay seller will determine which method they use to get the products and this is truer, if they have to invest capital on their own.
Sellers who have strong financial strength and who would like to expand their business are those that come to eBay. These people will also be able to get products from wholesalers and manufactures in bulk. However even those sellers who have little or no assets can leave a trial of success on eBay. All that will be required of them in comparison to other sellers is to be more creative, observant and patient.
Utilizing drop shipping can be used as a primary method of product sourcing and this is one of simplest way to begin. However when compared to wholesale, drop shipping gives a smaller profit margin. New and different ways to source products should be determined due to this.
If there is enough capital available, it would best to opt for wholesaling, however other options should also be used and these include getting in touch directly with the manufacturers or setting up eBay business for the local merchants or helping other people who are not aware about selling products on eBay on their own by becoming their Trading Assistants.
Many eBay sellers unwilling fall into the trap of overspending as they think they will be able to make a lot of money by selling plenty of items and this shows lack of business acumen. There is usually a misconception that the more they well the more they will be able to make money. However the actual fact is that cost of sales will need to be monitored if any real money needs to be made on eBay.
The percentage of sales that is applicable to the eBay and PayPal fees is known as cost of sales and if it is less than 10%, it would be considered ideal. This percentage can be tracked on a weekly and monthly basis by accessing the eBay sales reports.
You will need to be careful about it as your fees will be dependent on it. Upgrades and subscriptions like the premier store subscription will not form part of this. This will help you learn about how to make money on eBay without overspending.