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Posts Tagged ‘Margins’

I want to start selling a lot of stuff on Ebay. Whats a good place to get stuff wholesale?

January 11th, 2013 1 comment

Also, what do I do about my income tax? Do I turn in the income from Ebay or just my regular Job? Thanks!

Trust me; you want no part of the “wholesaler” game. What once was a great idea has now spread so everyone and their mother is doing it. Margins are razor thin at best and I suspect non-existent when you factor in most drop shippers "Membership fees" along with eBay and PayPal’s cut.

Clothing is a BIG business on eBay. Try shopping a discounter like TJ Maxx, Ross for Less, Marshalls or whatever it is called in your area for women’s clothes from designers like Ralph Lauren, BCBG or Tommy Hilfiger. Often times you can find, for example, a woman’s shirt that sells in the mall for $50 on sale for $10. Odds are if you put it on eBay for $25, you’d sell it. The customer thinks they saved $25 and you made $15. 🙂 Now multiply it by 100 sales and you’re in business. I do about $2K a month in sales and I profit about $500 and that’s from just working part time. It’s not "easy money", you do have to work at it, but if you’re willing to invest the time and effort, you can do it.

Regarding your taxes – Find yourself a good CPA – I managed to write down all of my eBay profit and actually showed a “loss” once I factored in expenses. If you are running your auctions as a business, you may write off a portion of your mortgage/rent, utilities, mileage, internet, paypal fees, postal supplies etc. In addition, if you did any shopping while on vacation you may write off a portion of your hotel bills, your food bills and your mileage there as well.

Ebay Selling Techniques

November 7th, 2011 No comments

The second likelihood present is an eBay selling strategy that absolutely everyone should certainly use if attainable. It was developed to enable sellers to sell their merchandise to the subsequent highest bidder in case the winning bidder backed out for any cause.

Those of us who sell information and facts merchandise on eBay, have a whole numerous use for this function. We use it to sell way more of our items, with no encountering further eBay fees.

1 of my eBay mantras if you will, is to cut down my eBay fees as low as I possibly can. This is not considering their fees are in particular high, as most many people complain about, but it is considering margins for most sellers are exceptionally low. Your profit margin is the percentage of the merchandise income that constitutes the sellers profit.

In other words, if you sell a item for a dollar, but the item expense you $.90 then your profit margin is ten%. As of this writing, eBay final value fees are 8.75% at the lowest item value. For this reason, you can see from this example that most of your margin will be consumed by your selling fee. This, by the way, does not even incorporate your insertion fee.

My point here is to cut down your eBay fees as considerably as attainable. If you are selling information and facts merchandise, you will consistently be in a position to make a second likelihood present for any auction with various bids. You should certainly use this solution no matter what the bid is for your item.

Information and facts merchandise expense just about absolutely nothing to generate anyway, and if you are carrying out it perfect, most of your profit is coming from your shipping charges anyway.