What would you spend? How far would you go?

[randazzo1]

Your second operation sounds like a regular business complete with employees & a brick/mortar location. If so I'd love to hear more about it.

It is a regular business for the most part except that the principals (4 of us) all have another job. It was very difficult to get it off the ground part time but is up and running smoothly (knock on wood) at this point. Very simple business plan -- sell in the largest volume possible while minimizing transaction costs. While I'd love to have a totally independent site one day, its not possible right now. Ebay and Amazon are incredible selling platforms. They both spend millions upon millions of dollars bringing customers to the door. The problem with both sites (and similar sites) is that its difficult and time consuming to get items listed ( if like us you are dealing in items that are all unique). If you are doing it on your own -- even full time -- it's hard to break past 100 items per day listed -- and at 100, you working around the clock.) In order to having a going concern - you need to list 1000's of items. The only way we've found to be able to do that is to hire full time help and outsource as much of the work overseas as possible. Once you want to bring on employees - you have to get out of the house and into an appropriate space. If you add up all those costs - you are taking on fixed costs for every item you sell. So that limits the sales range. We used to sell a lot of things for $9.99 - but we would really lose money on them now. If we're slow, I'll put them through for listing just to keep money coming in and products moving. This only works though if you have excess capacity (e.g. employee who is being paid but not working - might as well let her photograph $9.99 items rather than sit there).

 

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[Iron Patch]

I am curious how much you might spend for an item that retails for $100 on ebay.

There is an estate auction this coming Saturday, but I won't be able to make the sale. I am thinking about leaving absentee bids with the auctioneer for several items.

One of the items is a book that is now out of print. A very specialized book, but it is going to require the use of ebay to find a buyer. These books are consistently selling for $100 on ebay, but the only copies on there now are priced at $200 to $400, but not selling at those prices.

Another item has sold consistently in the $130 range. How much would you pay for this $130 item?

How much would you pay for an item that is consistently selling for $65??

What about a $35 item, also for reselling on ebay?

I've been to a million auctions in my life, but this will only be the second time ever that I'll be leaving absentee bids.

I am interested in hearing what your margins need to be.

BTW, we ebay and buy/sell for a living, and do this full time.

Thanks in advance!!!

Interesting question. Most of my bidding is off ebay so I tend to do things a little different than most because I bid what I think is break even price, and make my money from everything that sells under. Of course I do pick and choose my items as you can't bid on everything, and in the run of a week I generally come out pretty good. I can't really answer what I'd spend with those prices you listed because I never run out of stuff I want to buy, and what I'm willing to put into an item greatly depends on how much free cash I have. If things are well I might buy something for $130 just to make $25 because it's easy, but if cash is tight I might look for lower cost items to make the same money and try to conserve a little until the cash is good again. Obviously everyone is different and is a matter of finding what works best.

 

[diggummup]

Interesting question. Most of my bidding is off ebay so I tend to do things a little different than most because I bid what I think is break even price, and make my money from everything that sells under. Of course I do pick and choose my items as you can't bid on everything, and in the run of a week I generally come out pretty good. I can't really answer what I'd spend with those prices you listed because I never run out of stuff I want to buy, and what I'm willing to put into an item greatly depends on how much free cash I have. If things are well I might buy something for $130 just to make $25 because it's easy, but if cash is tight I might look for lower cost items to make the same money and try to conserve a little until the cash is good again. Obviously everyone is different and is a mater of finding what works best.

Iron Patch, I have to commend you for being able to turn a profit on things you purchase and resell on the same site. That takes dedication, patience, skill and knowledge.

 

[Iron Patch]

Iron Patch, I have to commend you for being able to turn a profit on things you purchase and resell on the same site. That takes dedication, patience, skill and knowledge.

I started in 2000 with $300 and am still going today. It was Winter, had no job and that was my last money... and my first buy was for $150. It was sink or swim and fortunately I was able to tread water and catch a good current. This is a good example how things have changed because I definitely could not do this today with the knowledge and experience I originally went in with.

 

[trdhrdr007]

It is a regular business for the most part except that the principals (4 of us) all have another job. It was very difficult to get it off the ground part time but is up and running smoothly (knock on wood) at this point. Very simple business plan -- sell in the largest volume possible while minimizing transaction costs. While I'd love to have a totally independent site one day, its not possible right now. Ebay and Amazon are incredible selling platforms. They both spend millions upon millions of dollars bringing customers to the door. The problem with both sites (and similar sites) is that its difficult and time consuming to get items listed ( if like us you are dealing in items that are all unique). If you are doing it on your own -- even full time -- it's hard to break past 100 items per day listed -- and at 100, you working around the clock.) In order to having a going concern - you need to list 1000's of items. The only way we've found to be able to do that is to hire full time help and outsource as much of the work overseas as possible. Once you want to bring on employees - you have to get out of the house and into an appropriate space. If you add up all those costs - you are taking on fixed costs for every item you sell. So that limits the sales range. We used to sell a lot of things for $9.99 - but we would really lose money on them now. If we're slow, I'll put them through for listing just to keep money coming in and products moving. This only works though if you have excess capacity (e.g. employee who is being paid but not working - might as well let her photograph $9.99 items rather than sit there).

That all makes sense....& looks do-able with a little luck & a good bit of hard work. I haven't hit the ebay listing wall yet. In fact, my biggest obstacle is finding enough items at a price that makes the effort to sell worthwhile. I'm not going to ask for a roadmap & guide book, but I am curious about what type items you are selling.

 

[trdhrdr007]

Iron Patch, I have to commend you for being able to turn a profit on things you purchase and resell on the same site. That takes dedication, patience, skill and knowledge.

I agree. It's one thing to find stuff in a market you can resell in another for a profit, & quite another to be able to buy & resell to the same customer pool. I have a display case at the local antique mall & I buy from other dealers on a fairly regular basis. The vast majority of those purchases are sold through ebay or to out of area contacts I've developed. Very few of those things can be resold in the same store.

 

[Iron Patch]

I agree. It's one thing to find stuff in a market you can resell in another for a profit, & quite another to be able to buy & resell to the same customer pool. I have a display case at the local antique mall & I buy from other dealers on a fairly regular basis. The vast majority of those purchases are sold through ebay or to out of area contacts I've developed. Very few of those things can be resold in the same store.

Yes, anyone with a decent gut instinct can do the yardsale thing and pick up interesting items for cheap and make a buck, but when you go head to head with people who know the items there's much less margin for error. It can be frustrating at times, but even ebay and all the competition things still do slip buy.... and they do for one reason... I buy based on the top price one person will pay me, and chances are even if 100 people view that item they will not see the thing being worth as much, and I will win. That is exactly what happened earlier today. I bid on a 1700s counterfeit coin and did so with a certain buyer in mind, a guy from Belgium of all places. He bought the last three I had all between $175-$200. So today I bid $150 thinking if I paid my max I'd try to squeeze a little over $200 on it, but I ended up winning for $40 shipped. The seller made a bad mistake only showing one side, because people will always wonder if he is trying to hide something.... but I asked for a pic earlier in the week and it was just as good as the side shown.

 

[clovis97]

I started in 2000 with $300 and am still going today. It was Winter, had no job and that was my last money... and my first buy was for $150. It was sink or swim and fortunately I was able to tread water and catch a good current. This is a good example how things have changed because I definitely could not do this today with the knowledge and experience I originally went in with.

Pretty impressive, IP.

 

[clovis97]

IP,

I am now actively watching some tool stuff on ebay, just for the hope of flipping it again to the same buying market.

Of course, you are leap years ahead of me, and in a much tougher market, whereas most of mine will be dumb luck...but I am trying.

 

[clovis97]

IP,

I am now actively watching some tool stuff on ebay, just for the hope of flipping it again to the same buying market.

Of course, you are leap years ahead of me, and in a much tougher market, whereas most of mine will be dumb luck...but I am trying.

I am now officially in the game. I just bought an item on ebay, just for the sake of reselling it to the same market on ebay.