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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 Wed. August / 10 / 2022

DNR to hold 2 online confiscated equipment auctions : Aug 8, 2022 | News release - MN DNR
DNR to hold 2 online confiscated equipment auctions : Aug 8, 2022 | News release  MN DNR

ICE to Auctions 500,000 Reforestation Carbon Credits - CarbonCredits.com
ICE to Auctions 500,000 Reforestation Carbon Credits  CarbonCredits.com

Popular toy auction, based in Lancaster County, begins two-day bidding war - WPMT FOX 43
Popular toy auction, based in Lancaster County, begins two-day bidding war  WPMT FOX 43

Aug. 12, 2022: Auction Calendar - Wisconsin State Farmer
Aug. 12, 2022: Auction Calendar  Wisconsin State Farmer

Lineup announced for Philipsburg Concert and Charity Auction - Fairfield Sun Times
Lineup announced for Philipsburg Concert and Charity Auction  Fairfield Sun Times

Famous 'Grease' car signed by Olivia Newton-John up for auction - New York Post
Famous 'Grease' car signed by Olivia Newton-John up for auction  New York Post

Pokémon Red Version: Japanese Copy Up For Auction At Heritage - Bleeding Cool News
Pokémon Red Version: Japanese Copy Up For Auction At Heritage  Bleeding Cool News

A Rare $5 Gold Coin Could Sell for $2.5 Million at Auction - Barron's
A Rare $5 Gold Coin Could Sell for $2.5 Million at Auction  Barron's

Update: Marc Player responds after his father Gary Player calls him out social media for trying to auction memorabilia without consent - GolfDigest.com
Update: Marc Player responds after his father Gary Player calls him out social media for trying to auction memorabilia without consent  GolfDigest.com

Julien's Auctions hosting property from the Estate of Kenny Rogers - The Music Universe.
Julien's Auctions hosting property from the Estate of Kenny Rogers  The Music Universe.

Bobby Bonilla's famous deferred contract agreement with Mets sells at auction for $180000 - CBS Sports
Bobby Bonilla's famous deferred contract agreement with Mets sells at auction for $180000  CBS Sports

Auction Concessions and Pre-CPI Positioning - Mortgage News Daily
Auction Concessions and Pre-CPI Positioning  Mortgage News Daily

PKL S9 Player Auctions Highlights: Pawan Sehrawat becomes most expensive player in PKL at 2.26 crore - ESPN
PKL S9 Player Auctions Highlights: Pawan Sehrawat becomes most expensive player in PKL at 2.26 crore  ESPN

Long-lost Elvis Presley jewelry heads to auction - CNN
Long-lost Elvis Presley jewelry heads to auction  CNN

Hitler's watch sells for $1.1 million at Alexander Historical Auctions - The Washington Post
Hitler's watch sells for $1.1 million at Alexander Historical Auctions  The Washington Post

Planning for Spectrum Auctions - AAF - American Action Forum
Planning for Spectrum Auctions - AAF  American Action Forum

UFC Fighter Auctions Off Used Weigh-In Underwear - MMA News
UFC Fighter Auctions Off Used Weigh-In Underwear  MMA News

Is a Surprise Coming for ACV Auctions (ACVA) This Earnings Season? - Nasdaq
Is a Surprise Coming for ACV Auctions (ACVA) This Earnings Season?  Nasdaq

5 Top Cars And Bids Auctions Of The Week (August 1) - HotCars
5 Top Cars And Bids Auctions Of The Week (August 1)  HotCars

Mego Green Goblin Figure Sets an Amazing Auction Record - CBR - Comic Book Resources
Mego Green Goblin Figure Sets an Amazing Auction Record  CBR - Comic Book Resources

Epicentre expected to remain with current lender after auction - WCNC.com
Epicentre expected to remain with current lender after auction  WCNC.com

RESULT OF RIKSBANK REVERSED AUCTIONS KOMMUNINVEST BONDS - GlobeNewswire
RESULT OF RIKSBANK REVERSED AUCTIONS KOMMUNINVEST BONDS  GlobeNewswire

Slava Medvedenko auctions Lakers title rings for Ukraine Relief - CBS News
Slava Medvedenko auctions Lakers title rings for Ukraine Relief  CBS News

Hitler's Watch Sells for $1.1 Million at Controversial Auction - Smithsonian Magazine
Hitler's Watch Sells for $1.1 Million at Controversial Auction  Smithsonian Magazine

Ford CEO Jim Farley Auctions Himself Off to Charity, Will Have Lunch With You for a Price - autoevolution
Ford CEO Jim Farley Auctions Himself Off to Charity, Will Have Lunch With You for a Price  autoevolution

Auction Partnerships - Artsy
Auction Partnerships  Artsy

Better Call Saul Auction Offers Fans Chance To Own A Piece Of Breaking Bad Universe - GameRant
Better Call Saul Auction Offers Fans Chance To Own A Piece Of Breaking Bad Universe  GameRant

Machinery Auction Merger: BigIron Auctions Acquires Sullivan Auctioneers LLC - Agweb Powered by Farm Journal
Machinery Auction Merger: BigIron Auctions Acquires Sullivan Auctioneers LLC  Agweb Powered by Farm Journal

USApple NextGen silent auction to benefit Apples4Ed | Produce News - The Produce News
USApple NextGen silent auction to benefit Apples4Ed | Produce News  The Produce News

Matt Baker's St. John Era and the Crime Reporter Switch, at Auction - Bleeding Cool News
Matt Baker's St. John Era and the Crime Reporter Switch, at Auction  Bleeding Cool News

The US treasury auctions off $42 billion of 3 year notes at a high yield 3.202% - ForexLive
The US treasury auctions off $42 billion of 3 year notes at a high yield 3.202%  ForexLive

Online Watch Auctions Go Deeper Into Luxury Territory - The New York Times
Online Watch Auctions Go Deeper Into Luxury Territory  The New York Times

One of the World's Biggest Camera Collections is Going to Auction - PetaPixel
One of the World's Biggest Camera Collections is Going to Auction  PetaPixel

Auction for Savannah Mall officially underway - WTOC
Auction for Savannah Mall officially underway  WTOC

ELITE AUCTIONS Announces August 19 Auction of Historic Mansion & Local Landmark in Suffolk, VA - PR Web
ELITE AUCTIONS Announces August 19 Auction of Historic Mansion & Local Landmark in Suffolk, VA  PR Web

Grand Prix Tampa items head to auction after business permanently closes - FOX 13 Tampa
Grand Prix Tampa items head to auction after business permanently closes  FOX 13 Tampa

Event Worn Memorabilia Available Through New UFC Collectibles Auction - UFC
Event Worn Memorabilia Available Through New UFC Collectibles Auction  UFC

1955 Chevy Corvette Mecum Auctions Monterey Bound - GM Authority
1955 Chevy Corvette Mecum Auctions Monterey Bound  GM Authority

Unusual Jewelry Finds Eager Buyers In Online Auctions - National Jeweler
Unusual Jewelry Finds Eager Buyers In Online Auctions  National Jeweler

Body found in trunk of car sold at Lynnwood auction - KING5.com
Body found in trunk of car sold at Lynnwood auction  KING5.com

Benvenuto: Food for Kids to host Italian-style auction Friday - Duncan Banner
Benvenuto: Food for Kids to host Italian-style auction Friday  Duncan Banner

Mink Coat Owned by Legendary Jets QB Joe Namath Up for Auction - Sports Illustrated
Mink Coat Owned by Legendary Jets QB Joe Namath Up for Auction  Sports Illustrated

What to Know About a Car Auction | Chase - Chase News & Stories
What to Know About a Car Auction | Chase  Chase News & Stories

Inside the Market: Szabolcs Bozó’s Playful Paintings Are Selling for Serious Sums at Auction - Artsy
Inside the Market: Szabolcs Bozó’s Playful Paintings Are Selling for Serious Sums at Auction  Artsy

Beatles auction rekindles memories of 1963 royal variety show - The Guardian
Beatles auction rekindles memories of 1963 royal variety show  The Guardian

The Question Returns In Charlton's Mysterious Suspense #1, at Auction - Bleeding Cool News
The Question Returns In Charlton's Mysterious Suspense #1, at Auction  Bleeding Cool News

1971 Fiat 500F Jolly Clone Is Our Bring a Trailer Auction Pick of the Day - Car and Driver
1971 Fiat 500F Jolly Clone Is Our Bring a Trailer Auction Pick of the Day  Car and Driver

WCA's auction supports developing next generation of woodworkers - woodworkingnetwork.com
WCA's auction supports developing next generation of woodworkers  woodworkingnetwork.com

Launch of Global Dairy Trade (GDT) Pulse Auctions - Business Wire
Launch of Global Dairy Trade (GDT) Pulse Auctions  Business Wire

Andy Warhol's family plans to auction 10 art school paintings - TribLIVE
Andy Warhol's family plans to auction 10 art school paintings  TribLIVE

Brooklyn's Weekly Foreclosure Auctions: Who Goes and Why? - Curbed
Brooklyn's Weekly Foreclosure Auctions: Who Goes and Why?  Curbed

St. Mary's auction marks its 37th year on Sunday - Le Mars Daily Sentinel
St. Mary's auction marks its 37th year on Sunday  Le Mars Daily Sentinel

Colombia to prioritize carbon neutrality in ... - BNamericas English
Colombia to prioritize carbon neutrality in ...  BNamericas English

Northeastern Grad Student Puts Together Art Auction for Ukraine - News @ Northeastern - Northeastern University
Northeastern Grad Student Puts Together Art Auction for Ukraine - News @ Northeastern  Northeastern University

Former Los Angeles Lakers player Slava Medvedenko auctions NBA title rings for native Ukraine - ESPN
Former Los Angeles Lakers player Slava Medvedenko auctions NBA title rings for native Ukraine  ESPN

Princess Diana's Turbo Escort up for Auction - Car and Driver
Princess Diana's Turbo Escort up for Auction  Car and Driver

‘Broad Harbor’ auction this weekend will benefit The Grand - WABI
‘Broad Harbor’ auction this weekend will benefit The Grand  WABI

Gillioz Theatre hosting auction for its collection of artists’ posters - KY3
Gillioz Theatre hosting auction for its collection of artists’ posters  KY3

Hotel Felix heads to auction block - The Real Deal
Hotel Felix heads to auction block  The Real Deal

Heritage Global Partners to Conduct State-of-The-Art Lab Equipment Auction From Former Covid-19 Test Site - Business Wire
Heritage Global Partners to Conduct State-of-The-Art Lab Equipment Auction From Former Covid-19 Test Site  Business Wire

10-acre Bay Area estate can't find buyer, heads to auction - SFGATE
10-acre Bay Area estate can't find buyer, heads to auction  SFGATE

Drought driving increased traffic to Texas cattle auctions - FOX 7 Austin
Drought driving increased traffic to Texas cattle auctions  FOX 7 Austin

Arlington International Racecourse to Hold a Series of Auctions - NBC Chicago
Arlington International Racecourse to Hold a Series of Auctions  NBC Chicago

Mecum Auctions sets new record for event in Harrisburg - WGAL Susquehanna Valley Pa.
Mecum Auctions sets new record for event in Harrisburg  WGAL Susquehanna Valley Pa.

At auction, what’s old is new again - Westfair Online
At auction, what’s old is new again  Westfair Online

HiBid.com Auctions Approach $40M in Sales Last Week; Bidding Now Open for Coins, Furniture, Antiques, Collectibles, and More - PR Newswire
HiBid.com Auctions Approach $40M in Sales Last Week; Bidding Now Open for Coins, Furniture, Antiques, Collectibles, and More  PR Newswire

1991 Chevy Corvette ZR-1 Headed To Mecum Monterey Auction - GM Authority
1991 Chevy Corvette ZR-1 Headed To Mecum Monterey Auction  GM Authority

Old Lyme Shopping Center heads to online auction - theday.com
Old Lyme Shopping Center heads to online auction  theday.com

Virginia zoo holds naming auction for baby siamang - UPI News
Virginia zoo holds naming auction for baby siamang  UPI News

FCC Boosts Rounds in Sluggish 2.5 GHz Auction - Next TV
FCC Boosts Rounds in Sluggish 2.5 GHz Auction  Next TV

Rhode Island RGGI auction raises $9.5M - Providence Business First - The Business Journals
Rhode Island RGGI auction raises $9.5M - Providence Business First  The Business Journals

Illinois prepares for unclaimed property auction - wcia.com
Illinois prepares for unclaimed property auction  wcia.com

Hamptons Icons on Ammunition Boxes Auction Benefits Ukraine - Dan's Papers
Hamptons Icons on Ammunition Boxes Auction Benefits Ukraine  Dan's Papers

Rowley Auctions accepting consignments for upcoming auction - upnorthvoice.com - Up North Voice
Rowley Auctions accepting consignments for upcoming auction - upnorthvoice.com  Up North Voice

Heritage Rounds Up With Video Games Signature Auction - Antiques and the Arts Online
Heritage Rounds Up With Video Games Signature Auction  Antiques and the Arts Online

Why Mecum Auctions at the Pa. Farm Show Complex is a ‘rock concert’ for car collectors - PennLive
Why Mecum Auctions at the Pa. Farm Show Complex is a ‘rock concert’ for car collectors  PennLive

Feds could seize and auction off Scott Maddox’s classic cars - WCTV
Feds could seize and auction off Scott Maddox’s classic cars  WCTV

Leslie Charteris and the Mystery of Avon's The Saint #4, at Auction - Bleeding Cool News
Leslie Charteris and the Mystery of Avon's The Saint #4, at Auction  Bleeding Cool News

Auction Ninja and Patty's Portico Find Common Ground - Greenwich Sentinel
Auction Ninja and Patty's Portico Find Common Ground  Greenwich Sentinel

IRS auctions off Sherwood house on 20 acres Monday with bids starting at $482,818 - OregonLive
IRS auctions off Sherwood house on 20 acres Monday with bids starting at $482,818  OregonLive

Hunt Auctions Holds Glittery Event During Baseball’s All-Star Week In Los Angeles - Forbes
Hunt Auctions Holds Glittery Event During Baseball’s All-Star Week In Los Angeles  Forbes

July 22, 2022: Auction Calendar - Wisconsin State Farmer
July 22, 2022: Auction Calendar  Wisconsin State Farmer

Hotels Continue to Lead CMBS Loan Auctions - Commercial Observer
Hotels Continue to Lead CMBS Loan Auctions  Commercial Observer

Needless noise over mop up from 5G spectrum auction - The New Indian Express
Needless noise over mop up from 5G spectrum auction  The New Indian Express

Hip Hop Icons DJ Drama, CeeLo Green, Twista, Dead Prez and EPMD Auction Rare Memorabilia with the Launch - Benzinga
Hip Hop Icons DJ Drama, CeeLo Green, Twista, Dead Prez and EPMD Auction Rare Memorabilia with the Launch  Benzinga

Ingham, Eaton counties to auction off about 80 foreclosed properties - Lansing State Journal
Ingham, Eaton counties to auction off about 80 foreclosed properties  Lansing State Journal

STORAGE AUCTIONS - Columbia Star
STORAGE AUCTIONS  Columbia Star

'Fantastic' Sales At Heritage's Key Comics Showcase Auction - Antiques And The Arts Weekly - Antiques and the Arts Online
'Fantastic' Sales At Heritage's Key Comics Showcase Auction - Antiques And The Arts Weekly  Antiques and the Arts Online

Skeleton of a Gorgosaurus Sells at Auction for $6.1 Million - The New York Times
Skeleton of a Gorgosaurus Sells at Auction for $6.1 Million  The New York Times

Collector Auctions-Off Eleven Like-New Rolex Submariner Hulks - HYPEBEAST
Collector Auctions-Off Eleven Like-New Rolex Submariner Hulks  HYPEBEAST

Local Jewelry Dealers Use Online Auctions To Find Bidders Worldwide - National Jeweler
Local Jewelry Dealers Use Online Auctions To Find Bidders Worldwide  National Jeweler

Mile-Long Lines at Texas Livestock Auction: Drought Persists as Feed Costs Rise - Drovers Magazine
Mile-Long Lines at Texas Livestock Auction: Drought Persists as Feed Costs Rise  Drovers Magazine

Missouri auctions off unclaimed property in Kansas City - WDAF FOX4 Kansas City
Missouri auctions off unclaimed property in Kansas City  WDAF FOX4 Kansas City

Auctions see high owner-occupancy rates for foreclosed homes - HousingWire
Auctions see high owner-occupancy rates for foreclosed homes  HousingWire

HiBid.com Auctions Bring in $28.7 Million, with Coins, Gucci Handbags, and Sports Memorabilia Now Open for Bidding - PR Newswire
HiBid.com Auctions Bring in $28.7 Million, with Coins, Gucci Handbags, and Sports Memorabilia Now Open for Bidding  PR Newswire

HiBid.com Auctions Generate Nearly $40 Million in One Week; Bidding Now Open For Rare Collectibles, Fitness Equipment, Guitars, and More - PR Newswire
HiBid.com Auctions Generate Nearly $40 Million in One Week; Bidding Now Open For Rare Collectibles, Fitness Equipment, Guitars, and More  PR Newswire

IDL Now Offering Opportunity to Participate in Property Sale Auctions Virtually - bigcountrynewsconnection.com
IDL Now Offering Opportunity to Participate in Property Sale Auctions Virtually  bigcountrynewsconnection.com

Henderson Auctions Holds Highly Successful June 2022 Collector Motor Series Auction at Barber Vintage Motorsports Museum in Birmingham, Alabama - GlobeNewswire
Henderson Auctions Holds Highly Successful June 2022 Collector Motor Series Auction at Barber Vintage Motorsports Museum in Birmingham, Alabama  GlobeNewswire

Louisville impound lot: How to bid on abandoned vehicles, extra items - Courier Journal
Louisville impound lot: How to bid on abandoned vehicles, extra items  Courier Journal

Auction houses say the art market is booming. But what lurks beneath these shiny numbers? - Art Newspaper
Auction houses say the art market is booming. But what lurks beneath these shiny numbers?  Art Newspaper

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