Selling items on eBay may not make you rich. In fact, selling on eBay may actually cost you more money than the items are worth. You should make informed decisions before you sell on eBay and research your items first. Be aware of all the associated selling costs before you post to eBay.
Before you start selling:
1. Use the income/ expense formula to determine what you could make selling on eBay. This basic formula also can assist you in determining how much you may owe in taxes.
Income/ Expense Formula
Income minus Expense = the amount of money you made or lost selling on eBay
Income:
Shipping cost included with your eBay listing (if item sells) plus... What person pays for the item they won (if item sells) equals? $$$$
Expense:
Cost of purchasing the item minus Initial eBay listing fees minus Percentage fees after item sells eBay fees (if item sells) minus Cost of shipping materials (if item sells) minus PayPal fees (if you use PayPal and if item sells) minus Cost of gas to drive the item to the post office or FedEx etc (if item sells) minus Actual cost of shipping an item (take this from your shipping receipts after you mail your package if item sells) equals? $$$
2. Know the cost of selling. Conduct research of eBay and PayPal rates.
eBay rates include how much you pay to post an item and how much you pay once/ if an item sells. eBay bills you monthly seller fees based on your sales per month.
PayPal is the preferred method for eBay buyers and sellers to transfer money. PayPal acts as an intermediary between you (the seller), your bank, and the eBay buyer and their bank. Money electronically moves from the buyer's bank account into a seller's account. You and the buyer must sign up for PayPal and link it to a bank account before you can use it.
PayPal takes a percentage of your auction earnings for the privilege of using their services and takes their fees from you for each transaction.
3. Look at past eBay sales to determine the auction worth of your items. Actively check completed items on eBay. This will give you an idea for how much similar items sell, and if they are actually selling. Stay competitive with your pricing. You should not ask for an unreasonable amount as the item probably will not sell.
My son is a great example. He wanted to sell his baseball card collection and looked up active auction items. He saw a similar card listed for $100 on eBay and was convinced he would get that price if he listed his. I showed him the same item in the eBay completed items section. The card sold for $20. No one was buying these cards at $100. He wasn't happy with me but we saved some disappointment by researching the item sale history before we listed.
You should consider actively use this eBay feature.
To research completed items you must have an eBay account and you must be signed into it. Completed items are a checkmark box option in the advanced options tab and prices show up as red and green. The red did not sell, the green sold.
Completed items only go back two weeks, however, so it may be worthwhile to research regularly. You may see the price go up and down throughout the year and selling when the price is high will mean more money for you.
A while ago a new Nancy Drew movie came out and the selling price for vintage Nancy Drew book sets listed on eBay doubled for about a month. They normally sell for $150-$350 but because of the movie they sold, for a brief time, from $700-$900. Nice, although I had already sold my set and I wish I'd had another.
4. Find your niche. A lot of people specialize in certain types of items on eBay. They do their research and find items that sell well. There are collectors of baseball cards and Three Stooges bubble gum cards. Some people collect antiques and college textbooks. Find the items you want to sell and hopefully they will sell well.
Michelle Drumhellerhttp://www.digitaltiff.com
Article Source: http://EzineArticles.com/?expert=Michelle_Drumheller
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