eBay Selling Strategy #1 - Know How Much Money You're REALLY Making
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There are many sellers who are working full time at selling on eBay. In fact,
it is their primary source of income and yet they have no idea how much they are
making, I mean really clearing from the whole endeavor.
It's easy to get carried away when you first start listing on eBay by the
sheer volume of work. I remember working well past midnight running on pure
adrenalin and excited by the fact that there was money coming into my Paypal
account daily from the items I was selling.
But like Coach John Wooden says "Never confuse activity with achievement".
Just because you are moving like a whirling dervish doesn't mean that you are
necessarily meeting your financial objectives. So how do you know how much you
are really making on eBay? It is possible to figure it out but you have to start
with real numbers. The traditional profit calculation:
Revenue - Expenses = Profit
can be somewhat helpful but only if you plug in the accurate numbers. The guy
who bought something for $1.00 sold it on eBay for $5.00 and thinks he make a
$4.00 profit is way wrong. He has actually lost money on the sale. But to
understand how he lost money we need to look at the right way to calculate your
eBay earnings. If you have set $30,000 a year as your financial objective then
you need to actually clear about $82 per day on eBay.
If you are looking to sell an item that costs you $10.00 and generally closes
at auction for about $20.00 with a 70% sell-through rate, then you need to list
12 of these actions a day, everyday, in order to clear your $82.00 per day.
This translates to 70 auctions a week for your item and it better continue to
produce for you. If your weekly auctions go much over this 70 auctions per week
you will surely have to hire help thereby adding to your expenses and wreaking
havoc on your financials as outlined above.
This scenario is not meant to scare you but to make you aware of the real
dollars and cents of selling on eBay. So what is the solution to this? To find
and sell item that you can sell over and over again, thereby reducing the amount
of labor involved and being sure that you buy low and sell high.
You have to continually evaluate what your time is worth and factor that into
the items you sell and the time that it takes to list them. All auctions are not
created equally. Some items are decidely more difficult and/or labor intensive
to list than others; with clothing being one of the most time-consuming.
Photographing your items for auction is one of hte most laobr-intensive tasks
you will have to do for your auction. so having an item that you can just sell
over and over again makes the process of listing and relisting a lot easier.