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How To Increase eBay Profits


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 "Travel Safely With Your Pet". A back-end sale to the ebook could be a item that helps your family travel safely with your pet.

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.

Author info: L. C. Peterson is a writer and web marketing consultant. Her sites include http://www.new2auctions.com, http://www.LCPeterson.com, and http://www.publishingebooks.com. For more information on online marketing, content and ebook creation and online auctions take a look.


MORE RESOURCES:

CNET (blog)

How I almost got scammed selling my old iPod Touch on eBay
CNET (blog)
My collection of JVC Videosphere TVs--an eBay success story. After checking out various resale sites such as Gazelle.com, which offered my $43 for my device ...
eBay account-closed lesson: Don't shareWalletPop (blog)

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IBTimes Hong Kong

Buffett-Autographed Dairy Queen Spoon Raises $4500 for Charity
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The five-pound spoon drew 61 bids since July 21 in an Internet auction that ended yesterday, according to EBay Inc.'s website. ...
$4500 wins Buffett DQ spoonOmaha World-Herald

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Reuters India

EBay 2Q Profit Rises 26%; 3Q View Below Estimates
Wall Street Journal
EBay's gross merchandise value, or GMV, the total value of goods sold on its marketplaces websites, excluding cars, was up 13% driven by a 20% jump in ...
EBay Lowers Forecast as Falling Foreign Currencies Cut Into Overseas SalesBloomberg
EBay Q2 Profit Beats StreetABC News
EBay shares up on better-than-expected resultsMarketWatch
Forbes (blog) -American Banking News -Auctionbytes
all 598 news articles »


PayPal Returns to Online Casinos
Online Casino Reports
The company has stayed largely away from online gambling since a 2002 decision by its parent company eBay after the United States federal government accused ...
Going for a SongTheStreet.com (subscription)
Paypal Again Processing Ladbrokes Online Gambling TransactionsCasino Gambling Web
Paypal returns to internet gamblingLondon Bingo News (blog)

all 4 news articles »


eBay Lacks a Pulse
TheStreet.com (subscription)
By Sham Gad eBay is at its most attractive valuation ever, and its growth prospects are significant. By LA Little Shares of the Internet auctioneer show ...



Rockstar Energy Drink UPROAR Festival EBay VIP Ticket Auction Puts You ONSTAGE ...
Music Indistry News Network
Beginning Sunday, August 1, 2010 and running for ten-days, fans can bid on eBay for a once-in-a-lifetime chance to receive two (2) VIP tickets to the ...

and more »


Kansas City Star

PayPal Goes to Japan…Without eBay
Digitaltrends.com
PayPal has announced plans to enter the Japanese market...but it's going in alone, without parent company eBay. At a press event in Tokyo, online payment ...
PayPal makes Japan moveFinextra
PayPal making belated foray in Japan, without eBayOne News Page
PayPal Looking to Expand Payments Service Into JapanDigital Media Wire
TMCnet -Barron's (blog) -The Associated Press
all 131 news articles »


Approaching Support- eBay
TradersHuddle.com
New York, July 30th (TradersHuddle.com) - Shares of eBay Inc. (NASDAQ:EBAY) are trading very close to calculated support at $19.92 with current price action ...
Approaching Support- McAfeeTradersHuddle.com

all 3 news articles »


International Business Times AU

eBay sellers beware, the ATO is coming
Ninemsn
By Alice Uribe, ninemsn Money The Australian Tax Office (ATO) will crack down on people who run businesses through eBay and The Trading Post and don't ...
ATO's green light to hunt eBay tax cheatsHerald Sun
ATO goes after eBay sellersCRN Australia
ATO targets eBay and Trading Post sellersSmartCompany.com.au
ZDNet Australia -Sydney Morning Herald -CFO World
all 48 news articles »


In Silicon Valley, Forget Your Wallet — But Not Your Phone
Wall Street Journal (blog)
In one, eBay's PayPal online payments business is equipping some 2000 of its own employees in San Jose with stickers from a company called Bling Nation that ...
Bling Nation Launches Introductory PayPal Program in Palo Alto to Tap-and-Pay ...PR Newswire (press release)
Bling Stickers at PayPal's HQAmerican Banker (subscription)
PayPal employees can pay via Bling NationSan Jose Business Journal

all 14 news articles »

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