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Be Realistic When Selling on eBay


As some of you know, I spent many years buying and selling both on and offline and several of my products are based upon my own experience in this area. I know that the vast majority of my customers and subscribers have an interest in trading whether it be on eBay or at the local market but more and more I am seeing people with completely unrealistic expectations of what they will be able to do. Most commonly these unrealistic expectations are in respect of how much it actually costs to purchase specific products and what they can then be sold on for.

I regularly get emails from people who want to know where they can purchase products such as mobile (cell) phones, new release DVDs, Playstation games and similar at, say, a 50% discount to resell on eBay. The fact is that such a thing is not available - it is a simple case of supply and demand and competition.

Take DVDs for example, most people think that these are excellent products to resell on eBay because they are very popular, not particularly expensive and easy to package and ship. Unfortunately, they could not be more wrong. The DVD market is one of the most competitive that there is - take a look for yourself and see how many auctions there are on eBay for DVDs at any one time. I have just looked and counted almost 300,000! At any one time there will only be a certain number of buyers wanting to purchase a particular DVD and if you take into account the numerous different places there are that each buyer could purchase from, it is likely that in general, there will be more copies of an individual DVD available than there are buyers to purchase them. This situation causes prices to fall. The other factor that forces prices down is the fact that one DVD is the same as another. By this I mean that from a buyers point of view, there is no difference to a new DVD purchased on eBay to one which is purchased from their local DVD store. Often the only way to differentiate is on price and of course, the only way to make the price more attractive to a buyer is to lower it.

The above reasons help to explain why the wholesale discount on a new release DVD is just £1 or £2 at most ($2 or $3 roughly in the US). When you take into account the fact that the large retail chains can purchase thousands of DVDs at a time and receive a bigger discount than individual traders, you soon see why it is very difficult for a small business to compete in such a competitive industry. You simply cannot purchase new release DVDs at 50% discount and even if you could, it wouldn't be long before prices were forced down as there is always someone willing to sell a little bit cheaper than the next man.

It isn't just DVDs that fall into this category. Take mobile (cell) phones. Here in the UK you can walk down just about any high street and get the latest phones either free or for a minimal token payment. The stores are relying on making their money from the line rental contract that you will have to sign in order to get the phone. Of course, the actual cost of the phone is not free - most new mobiles are actually worth £200 or £300 which means that if you want to buy a batch of phones at wholesale, you are going to be looking at a pretty high unit cost. As with most electrical products, the market is competitive and prices have been forced down which means that the difference between your wholesale buying price and your retail selling price is minimal.

There are numerous products that suffer from the same market conditions as DVDs and phones and new/small traders really should avoid trying to sell such items at all costs because it will usually be frustrating and ultimately not financially rewarding. When trying to decide what products to sell, you need to be thinking about the type of market that a particular product is sold in. If there are already numerous sellers and many large companies selling at considerable discounts this is far from ideal. The exception to the rule is if you are able to add value in some way to make your 'offering' more unique. I wrote about adding value last year in one of my newsletters - you can read it here: http://www.thetraderonline.com/jul2204.html

At the end of the day, it is all about research, being realistic and having an understanding of the market that you want to operate in. Whilst it would be great to be able to buy and sell new release DVDs (or whatever) all day long, doubling your money every time, I am afraid that this is just not going to happen.

Copyright 2005 Richard Grady

Richard Grady has been helping ordinary people earn online since 1998. He writes a free newsletter which is published every two weeks. To subscribe (and claim your free gifts), visit: http://www.thetraderonline.com/newsletter.html


TODAYS NEWS BY OFFICEJAX FREE ADVERTISING AND AD EXCHANGE SOLUTIONSMORE RESOURCES updated Sun. July / 05 / 2020

Schools earn $50K in auction | News, Sports, Jobs - Warren Tribune Chronicle
Schools earn $50K in auction | News, Sports, Jobs  Warren Tribune Chronicle

Santa Monica's Pacific Dining Car Auctions Assets as Restaurant Shuts Down - Hollywood Reporter
Santa Monica's Pacific Dining Car Auctions Assets as Restaurant Shuts Down  Hollywood Reporter

Noble Auctions' latest spread is a feast for Porsche lovers - Classic Driver
Noble Auctions' latest spread is a feast for Porsche lovers  Classic Driver

Phillips Brings Back Live Watch Auctions With Geneva Auction: XI - Barron's
Phillips Brings Back Live Watch Auctions With Geneva Auction: XI  Barron's

Nigerian Central Bank Devalues Naira by 5.3% at Currency Auction - Bloomberg
Nigerian Central Bank Devalues Naira by 5.3% at Currency Auction  Bloomberg

Austin, Texas, Mansion With Three Elevators and an Art Gallery Heads to Auction With No Reserve - Mansion Global
Austin, Texas, Mansion With Three Elevators and an Art Gallery Heads to Auction With No Reserve  Mansion Global

Mecum's Indy auction cleared to go live July 10-18 - The ClassicCars.com Journal
Mecum's Indy auction cleared to go live July 10-18  The ClassicCars.com Journal

28-Carat D-Color Diamond Sets Online Auction Record Of $2.1 Million - Forbes
28-Carat D-Color Diamond Sets Online Auction Record Of $2.1 Million  Forbes

Sodinokibi gang begins dark web celebrity data auctions - ComputerWeekly.com
Sodinokibi gang begins dark web celebrity data auctions  ComputerWeekly.com

Former Pittsburgh Pirates Owner to Auction 63-Acre Estate - Mansion Global
Former Pittsburgh Pirates Owner to Auction 63-Acre Estate  Mansion Global

Treasury Dept. Announces Details Of Long-Term Securities Auctions - Nasdaq
Treasury Dept. Announces Details Of Long-Term Securities Auctions  Nasdaq

Emerging Artists Smash Estimates at Phillips Auction - Barron's
Emerging Artists Smash Estimates at Phillips Auction  Barron's

An Original Boxed Copy Of Super Mario Bros. Is Up For Auction - Bleeding Cool News
An Original Boxed Copy Of Super Mario Bros. Is Up For Auction  Bleeding Cool News

Phillips Geneva $31 Million Watch Auction Breaks World Records - Forbes
Phillips Geneva $31 Million Watch Auction Breaks World Records  Forbes

LeBron James Rookie Card Tops Seven Figures At Auction - BET
LeBron James Rookie Card Tops Seven Figures At Auction  BET

Art Auction or Game Show? Sotheby’s Tries Something New - The New York Times
Art Auction or Game Show? Sotheby’s Tries Something New  The New York Times

Household.HiBid.com: A Dedicated Site for Auctions Featuring Furniture, Housewares & Other Household Goods - Yahoo Finance
Household.HiBid.com: A Dedicated Site for Auctions Featuring Furniture, Housewares & Other Household Goods  Yahoo Finance

Live Jewelry Auctions To Return, But Online Sales Will Persist - pymnts.com
Live Jewelry Auctions To Return, But Online Sales Will Persist  pymnts.com

Lidl brand clothing auctions for 10x list price after viral frenzy - The Brussels Times
Lidl brand clothing auctions for 10x list price after viral frenzy  The Brussels Times

Mint-Grade Tropical Mega Battle Zapdos Pokémon Card On Auction - Bleeding Cool News
Mint-Grade Tropical Mega Battle Zapdos Pokémon Card On Auction  Bleeding Cool News

Disputed African Artifacts Sell at Auction - The New York Times
Disputed African Artifacts Sell at Auction  The New York Times

Long Prairie Area Auction • Saturday, July 11th | Auctions - ECM Publishers
Long Prairie Area Auction • Saturday, July 11th | Auctions  ECM Publishers

Auctions offer companies a reliable way to liquidate assets - Smart Business Network
Auctions offer companies a reliable way to liquidate assets  Smart Business Network

Pie auction returns to Seneca - KoamNewsNow.com
Pie auction returns to Seneca  KoamNewsNow.com

Score a deal on the upcoming FCC Bid & Buy Online Auction | The Globe - The Globe
Score a deal on the upcoming FCC Bid & Buy Online Auction | The Globe  The Globe

Iconic Kurt Cobain guitar becomes most expensive sold at auction - Guinness World Records
Iconic Kurt Cobain guitar becomes most expensive sold at auction  Guinness World Records

PDMA to auction more T-bills next week | Kathimerini - www.ekathimerini.com
PDMA to auction more T-bills next week | Kathimerini  www.ekathimerini.com

Kurt Cobain’s ‘MTV Unplugged’ Guitar Sells for $6 Million at Auction - Rolling Stone
Kurt Cobain’s ‘MTV Unplugged’ Guitar Sells for $6 Million at Auction  Rolling Stone

Final bids due for McClatchy bankruptcy auction - New York Post
Final bids due for McClatchy bankruptcy auction  New York Post

Auto-auction firm proposes new use for site of Atco Dragway - Burlington County Times
Auto-auction firm proposes new use for site of Atco Dragway  Burlington County Times

Keanu Reeves auctions himself off for a Zoom date, plus more proof stars are nothing like us | Gallery - Wonderwall
Keanu Reeves auctions himself off for a Zoom date, plus more proof stars are nothing like us | Gallery  Wonderwall

Lightning to celebrate Pride Month with auctions, mystery pucks - Official site of the Tampa Bay Lightning
Lightning to celebrate Pride Month with auctions, mystery pucks  Official site of the Tampa Bay Lightning

Extremely Rare Grade 9 Mint Kangaskhan Pokémon Card Up For Auction - Bleeding Cool News
Extremely Rare Grade 9 Mint Kangaskhan Pokémon Card Up For Auction  Bleeding Cool News

Prestige automobile auctions resume in Monaco - Malay Mail
Prestige automobile auctions resume in Monaco  Malay Mail

LIT complex draws a blank in 3rd auction - The Tribune India
LIT complex draws a blank in 3rd auction  The Tribune India

Nearly $28M in Assets Sold Through HiBid.com Last Week; Coins, Office Supplies & More for Sale in Upcoming Auctions - PRNewswire
Nearly $28M in Assets Sold Through HiBid.com Last Week; Coins, Office Supplies & More for Sale in Upcoming Auctions  PRNewswire

Unseen Picasso portrait of lover and muse to appear at auction - The Guardian
Unseen Picasso portrait of lover and muse to appear at auction  The Guardian

Gross value of auto auction unit sales climbs above $111 billion in 2019 - Auto Remarketing
Gross value of auto auction unit sales climbs above $111 billion in 2019  Auto Remarketing

Iconic Austin Tex-Mex Chain Trudy’s Goes Up for Auction - Eater Austin
Iconic Austin Tex-Mex Chain Trudy’s Goes Up for Auction  Eater Austin

Salamonie Mills locations up for auction, Agland Grain claims hearing date announced - WANE
Salamonie Mills locations up for auction, Agland Grain claims hearing date announced  WANE

1982 CART Road America winner at auction to benefit MSHFA - RACER
1982 CART Road America winner at auction to benefit MSHFA  RACER

Historic music memorabilia auction boasts ultra-rare artifacts - FOX 32 Chicago
Historic music memorabilia auction boasts ultra-rare artifacts  FOX 32 Chicago

J. Martin Auction, LLC accused of violating executive order at end of May - FingerLakes1.com
J. Martin Auction, LLC accused of violating executive order at end of May  FingerLakes1.com

‘Fore’ a good cause: Virtual golf-themed auction raises $40,000 for education non-profit - Houston Chronicle
‘Fore’ a good cause: Virtual golf-themed auction raises $40,000 for education non-profit  Houston Chronicle

Foundation fights auction by so-called Hawaiian princess - Hawaii Tribune-Herald (subscription)
Foundation fights auction by so-called Hawaiian princess  Hawaii Tribune-Herald (subscription)

Memorabilia, décor and more from Home of the Brave up for auction - Pacific Business News (Honolulu)
Memorabilia, décor and more from Home of the Brave up for auction  Pacific Business News (Honolulu)

Sotheby’s Art Auction Breaks Records - National Review
Sotheby’s Art Auction Breaks Records  National Review

Wirecard debt that facilitated SoftBank investment put up for auction - Reuters
Wirecard debt that facilitated SoftBank investment put up for auction  Reuters

Open Roads online auction is added to RM Sotheby's summer catalog - The ClassicCars.com Journal
Open Roads online auction is added to RM Sotheby's summer catalog  The ClassicCars.com Journal

Merchant's Ice Tower on Logan Street has sold after years of staying vacant - WHAS11.com
Merchant's Ice Tower on Logan Street has sold after years of staying vacant  WHAS11.com

Woodward Livestock auction results | Livestock Markets | hpj.com - High Plains Journal
Woodward Livestock auction results | Livestock Markets | hpj.com  High Plains Journal

Manheim Auctions Reopening Select Locations to In-Lane Bidding - http://cbtnews.com/
Manheim Auctions Reopening Select Locations to In-Lane Bidding  http://cbtnews.com/

Mary's Gourmet Diner auctions off artwork, gives proceeds to another struggling restaurant - WXII12 Winston-Salem
Mary's Gourmet Diner auctions off artwork, gives proceeds to another struggling restaurant  WXII12 Winston-Salem

Mecum's Gone Farmin' auction hits 95 percent sell-through - The ClassicCars.com Journal
Mecum's Gone Farmin' auction hits 95 percent sell-through  The ClassicCars.com Journal

HiBid.com Reports Record Auction Total and Over $32M in Assets Sold Last Week; Coins, Restaurant Equipment & More for Sale in Current Auctions - Yahoo Finance
HiBid.com Reports Record Auction Total and Over $32M in Assets Sold Last Week; Coins, Restaurant Equipment & More for Sale in Current Auctions  Yahoo Finance

Holdingford Area Auction • Sunday, July 12th | Auctions - ECM Publishers
Holdingford Area Auction • Sunday, July 12th | Auctions  ECM Publishers

Schlumberger puts 21 surplus properties on the auction block - Houston Business Journal
Schlumberger puts 21 surplus properties on the auction block  Houston Business Journal

Long Island mansion to hit auction block with $1M discount - New York Post
Long Island mansion to hit auction block with $1M discount  New York Post

Youth Arts Foundation seeking artists for virtual art auction - Paso Robles Daily News
Youth Arts Foundation seeking artists for virtual art auction  Paso Robles Daily News

Albany Area Auction • Sunday, July 12th | Auctions - ECM Publishers
Albany Area Auction • Sunday, July 12th | Auctions  ECM Publishers

Museum Of Photographic Arts To Host Vendor Auction - Patch.com
Museum Of Photographic Arts To Host Vendor Auction  Patch.com

Dalhart cattle auction results | Livestock Markets | hpj.com - High Plains Journal
Dalhart cattle auction results | Livestock Markets | hpj.com  High Plains Journal

Art Auction Supporting Journalism - Rockland - Camden - Knox - Courier-Gazette - Camden Herald - Courier-Gazette & Camden Herald
Art Auction Supporting Journalism - Rockland - Camden - Knox - Courier-Gazette - Camden Herald  Courier-Gazette & Camden Herald

Britain and India's Bharti win auction for OneWeb satellite company - Reuters
Britain and India's Bharti win auction for OneWeb satellite company  Reuters

Auction Report: Antiquorum Sets Three New Rolex World Records - HODINKEE
Auction Report: Antiquorum Sets Three New Rolex World Records  HODINKEE

Swine, Goats, Cows Ready For Bidders At Virtual Mother Lode Fair Auction - MyMotherLode.com
Swine, Goats, Cows Ready For Bidders At Virtual Mother Lode Fair Auction  MyMotherLode.com

Paramount Triggers UCC Auction on Kushner's Times Square Retail Condo - Commercial Observer
Paramount Triggers UCC Auction on Kushner's Times Square Retail Condo  Commercial Observer

Cars.HiBid.com Is HiBid's Auction Portal for Exotic Cars, Late Model Trucks & Other Vehicles - Yahoo Finance
Cars.HiBid.com Is HiBid's Auction Portal for Exotic Cars, Late Model Trucks & Other Vehicles  Yahoo Finance

Apache cattle auction summary | Livestock Markets | hpj.com - High Plains Journal
Apache cattle auction summary | Livestock Markets | hpj.com  High Plains Journal

Who Was the Best-Selling Artist at Auction Worldwide in May? There’s a Clear Winner—by a Long Shot - artnet News
Who Was the Best-Selling Artist at Auction Worldwide in May? There’s a Clear Winner—by a Long Shot  artnet News

Crypto Exchange Owner Admits Laundering $1.8M in Online Auctions Fraud - CoinDesk - CoinDesk
Crypto Exchange Owner Admits Laundering $1.8M in Online Auctions Fraud - CoinDesk  CoinDesk

Ransomware Gang Auctions Off US Healthcare Data for Bitcoin - Cointelegraph
Ransomware Gang Auctions Off US Healthcare Data for Bitcoin  Cointelegraph

Auction House’s New HQ Serves Out-of-Town Clients - GlobeSt.com
Auction House’s New HQ Serves Out-of-Town Clients  GlobeSt.com

Legend to offer top early dollars at fall Las Vegas auction - Coin World
Legend to offer top early dollars at fall Las Vegas auction  Coin World

People are bidding online for million-dollar cars -- without seeing them in person - CNN
People are bidding online for million-dollar cars -- without seeing them in person  CNN

These Are the Most Valued Auction Items to Go Under the Hammer - Prestige Online
These Are the Most Valued Auction Items to Go Under the Hammer  Prestige Online

CBRS auction creates challenges, opportunities for utility companies - Urgent Communications
CBRS auction creates challenges, opportunities for utility companies  Urgent Communications

Auction of Income Store's Lancaster office contents begins to recoup money for victims of $100M fraud - LancasterOnline
Auction of Income Store's Lancaster office contents begins to recoup money for victims of $100M fraud  LancasterOnline

Rocky Point Fire & EMS host fundraising auction online - Klamath Falls News
Rocky Point Fire & EMS host fundraising auction online  Klamath Falls News

Berkeley County surplus auction set for Aug. 22 | West Virginia - Herald-Mail Media
Berkeley County surplus auction set for Aug. 22 | West Virginia  Herald-Mail Media

Big 3-day car auction coming to Osceola Heritage Park in August - WKMG News 6 & ClickOrlando
Big 3-day car auction coming to Osceola Heritage Park in August  WKMG News 6 & ClickOrlando

Preliminary clearance rate improves while fewer homes taken to auction - Elite Agent
Preliminary clearance rate improves while fewer homes taken to auction  Elite Agent

Some of Abigail Kawananakoa’s items are going up for auction. That’s raising concerns - Hawaii News Now
Some of Abigail Kawananakoa’s items are going up for auction. That’s raising concerns  Hawaii News Now

Ultra-Rare LeBron James Card Hits Auction Block, Expected To Sell For $1 MILLION - TMZ
Ultra-Rare LeBron James Card Hits Auction Block, Expected To Sell For $1 MILLION  TMZ

Positive virus test halts auction site in Halifax County - YourGV.com
Positive virus test halts auction site in Halifax County  YourGV.com

Here’s Your Guide to the Top Lots in the First-Ever Hybrid Marquee Summer Auctions, Taking Place Simultaneously In-Person and Online - artnet News
Here’s Your Guide to the Top Lots in the First-Ever Hybrid Marquee Summer Auctions, Taking Place Simultaneously In-Person and Online  artnet News

2020 Killin Online Auction (Live and Silent) - goeags.com
2020 Killin Online Auction (Live and Silent)  goeags.com

Over $5 Million Realized in Stack's Bowers June 2020 Santa Ana Auction - CoinWeek
Over $5 Million Realized in Stack's Bowers June 2020 Santa Ana Auction  CoinWeek

Iconic Prince Guitar, Once Considered Lost, Sold For Over $500,000 At Auction - CBS Pittsburgh
Iconic Prince Guitar, Once Considered Lost, Sold For Over $500,000 At Auction  CBS Pittsburgh

An Entire Fleet of Abandoned Duck Tour Boats Is Now Going to Auction - The Drive
An Entire Fleet of Abandoned Duck Tour Boats Is Now Going to Auction  The Drive

Kutztown Folk Festival quilt auction continues online through Monday - Reading Eagle
Kutztown Folk Festival quilt auction continues online through Monday  Reading Eagle

Sotheby’s to Auction Late Financier Felix Rohatyn’s Art Collection - The Wall Street Journal
Sotheby’s to Auction Late Financier Felix Rohatyn’s Art Collection  The Wall Street Journal

Nigeria weakens naira at retail FX auction in a move to align rates - Reuters Africa
Nigeria weakens naira at retail FX auction in a move to align rates  Reuters Africa

Spring-A-Pet Auction happening through Sunday - WITN
Spring-A-Pet Auction happening through Sunday  WITN

A Benin Bronze With Fishy Provenance Goes to Auction - Hyperallergic
A Benin Bronze With Fishy Provenance Goes to Auction  Hyperallergic

A Virginia city finally removed its 800-pound slave auction block after years of deliberation - CNN
A Virginia city finally removed its 800-pound slave auction block after years of deliberation  CNN

Sotheby's to Auction Off Unseen Portrait of Picasso's Lover and Muse - HYPEBEAST
Sotheby's to Auction Off Unseen Portrait of Picasso's Lover and Muse  HYPEBEAST

‘I’m Willing to Be the Guinea Pig’: Why Famed Auction Dynamo Loïc Gouzer Raced to Get Out an Experimental Art-Sales App in a Very Risky Climate - artnet News
‘I’m Willing to Be the Guinea Pig’: Why Famed Auction Dynamo Loïc Gouzer Raced to Get Out an Experimental Art-Sales App in a Very Risky Climate  artnet News

Sotheby’s experiments with live-streaming its art sales - The Economist
Sotheby’s experiments with live-streaming its art sales  The Economist

Rare Connor McDavid rookie card sells for $135,811 at auction - ESPN
Rare Connor McDavid rookie card sells for $135,811 at auction  ESPN

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