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Make Money on eBay ~ How to Cut Costs

Lets face it, eBay buyers want to find bargains when they make purchases on eBay. Those bargains equate to high quality items for low prices. For the seller who simply views selling on eBay more as a hobby, or as a method to clear out excess items from their house, attic or garage, getting any amount of money from items is a bonus.

For the seller who views eBay as a business and wants to make money on eBay selling at bargain prices creates a challenge. For that seller, items are purchased for resale with the goal of making a profit on every sale every time.

The secret to make money on eBay and still offer bargains for your buyers is lowering the costs associated with products that you purchase for resale. In fact, the goal is to buy at a low enough price that profits are possible, even while selling to bargain hunters. The savvy seller must pay the lowest possible price while minimizing associated sales cost.

There are several actions that can be taken to reduce the price of items that sellers purchase for resale. Each of the strategies that follow can greatly reduce the cost-of-goods-sold for the seller with a goal to make money on eBay.

Combine Orders
Just as many buyers on eBay will make multiple purchases and then combine shipping to reduce cost, so can you. Often there will be excess room remaining in boxes and on pallets of merchandise that you have purchased. That room can be used for additional products. Often those extra products will cost almost nothing to ship. That is especially true when you buy pallet loads.

Buy Wholesaler Closeouts and Specials
Wholesalers often offer closeouts and specials to move excess or end-of-life merchandise. The discounts can be significant. Just be sure that there is a market for the products that you purchase. Use this strategy in combination with combining orders and you could save a boatload of money!

Negotiate for a Lower Price
Many wholesalers are willing to negotiate for lower prices. Typically the trigger to make this happen is to increase the quantity in the order. Just be sure that you dont purchase so much of an item that you cannot profitably resell. One of the worst things to have happen would be to have five-thousand left-handed flanges sitting in your garage for the next 20-years!

Split Wholesale Purchases with Other Sellers
This is a strategy that we have used. We have split loads of merchandise as well as freight costs with others. This strategy requires developing enough trust so that both feel there will be a fair and equitable deal. It works especially well with sellers who are in marketplaces other than eBay.

Cherry Pick Loads and Resell the Rest to Others
Caution: this strategy does require some labor. It does open the opportunity to make discounted purchases of mixed lots. Upon receipt of the merchandise, simply inspect and remove the products that fit your need. Inventory the balance and resell it on the wholesale market.

Each of these strategies has some real strengths and could work for you. However in every case, be cautious that you are not simply buying a wholesalers problems. If you do, those problems can sit in your basement, garage or warehouse eternally as merchandise that you cannot sell. On the other hand, with care and planning you can make money on eBay by using these strategies.

To make money on eBay requires that sellers never lose sight of profit. The goal is to minimize the cost of goods sold. Reducing the price that you pay for items allows your buyers can get a bargain and you to make money on eBay


To Your eBay Success!


About the Author: (c) 2007 Bob Hamilton
Bob is an entrepreneur, author, writer, consultant and trainer.
Visit http:www.OnlineAuctionsMadeSimple.net for a FREE dropship report!
http://www.MarketingSuccessCenter.com




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