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How to Earn Money on eBay
Some sell on eBay to clean out their garage or
attic. Some sell to make a little extra money here and there. But for some, eBay
represents a chance to create a second income or start a home business. Product
choice is important. But to really increase profit you must know how to increase
the number and amount of bids per item. An eBay seller must maximize each
product's profit margin. This article describes techniques to make as much
profit as possible.
1. Sell like products at the same time. Bidders look to see what else you have
for sale they might be interested in. Combined shipping saves postage for the
buyer. Packing in the same box saves time and packing costs for the seller.
2. Bundle a less desirable item with a more desirable item increases sales. This
is an old offline auction technique. If the bidder wants the better item he has
to buy both. If two sellers offer the same item, the buyer bids on the two item
auction. Bundling two low cost items together also increases bids. A buyer may
not be willing to pay shipping for one item, but would for two.
3. Remember seasonal issues. Don't sell snow skis in July, water skis in
January. Be sure to offer seasonal items early enough to allow for shipping.
Don't expect to sell many Christmas items that must be shipped during the second
week of December.
4. Understand profit margins. Don't buy to resell for only a $5 profit when you
can make $20 on a different item. Determine your desired monthly income and
choose products appropriately. Want to make 1000 a month? That is $250 a week.
That's ten successful actions at $25.00 profit, or five items at $200 a month,
or ten items at $100 each. Also packing 10 items takes less time than packing 20
items. Always consider time as a cost.
5. Don't forget back end sales and secondary products. Offer similar products
during the payment process or on your auction store/web site. If you sell
underground fences for dogs, an up-sell item is a customized collar. A secondary
product could be a pet door. Another secondary product could be a ebook on pets.
6. The List - For many successful online sellers the mailing list is where their
money is made. Using a autoresponder, sellers automatically email customers on
their list at regular intervals. Including content with announcements of
upcoming sales increases back end sales. Once a customer buys, they are more
likely to buy again from same person or company.
7. Customer demographics should be considered. Collectors have expectations
non-collectors don't. Example, some book buyers that are allergic like to see
"book from non-smoking home" in ad. This would earn you a higher bid. What does
the customer expect to see in a description?
8. Auction terms and conditions should be included with each auction. What
shipping options are available? Do you take questions? Do you ship only certain
days? What kind of payments do you take? Type whatever standard terms you offer
in a word processor and cut and paste into your auctions. This saves time. For
some sellers, typing the content for each auction is one of the most time
consuming tasks.
Profit involves keeping costs reasonably low and creating higher bids. We've
described some techniques for increasing profit. Sit down and mentally run
through the process of auction selling and come up with some of your own ideas.
EBay is a great business opportunity but like any business, sellers must be wise
in their product choice and sales techniques.
Important Steps:
1. Signup for an eBay account, it's free
here.
2. Signup for a Paypal account, it's free
here.
3. Invest in an effective eBay selling course
online
here.
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