Why You Are LOSING MONEY Selling on eBay and How to Fix it FAST!
I hear a lot of beginner eBay sellers complaining that they’re losing money when they first start their eBay business, and I want to talk about the number one reason people get started selling on eBay and end up losing money.
It’s really simple. The thing that they’re not doing is spending the time to research the item appropriately before they buy it. They see an item—it might be some toy or game that to them is very special because they’ve enjoyed it. They’ve liked it. They think, “Wow! This is amazing!” And they just buy it.
What They Don’t Do
They don’t research the price it’s selling for. They don’t research the market of how often it’s selling. They don’t research the competition. They just buy the item without doing research.
And that’s it. Before you buy an item to sell on eBay, especially when you’re new, you’ve got to make sure you’re researching the item. You’ve got to take into consideration the risk versus the reward. You’ve got to take into consideration how much profit you could potentially make if you sold it.
Now, are you calculating that profit based on the top end of the market? The low end? The middle range? Are you researching how many have sold over the last 30 to 90 days? Are you researching the seasonality? Are you looking to sell a summer item in the middle of winter, potentially tying up your money in the item until it is more in demand?
What You Should Do
Do your research before you buy an item, especially when you’re new or on a budget. A lot of people start an eBay business and only have $100 in their bank account. Maybe they only have a couple hundred dollars. Maybe they’re working a full-time job, so they don’t have a ton of time to put into it.
When you’re first getting started, it’s better to actually move slowly. You want to research almost too much. You want to take your time. You really want to make sure that what you buy is going to be a winner.
When you are first getting started, I would rather see you buy things that flip quicker for a smaller profit instead of going toward something that’s more complicated that might be a bigger profit but is a higher risk.
You want to start the process of completing the flip. You want to get accustomed to the eBay platform. You want to learn about the various processes from listing to photography to shipping. You want to build that strong foundation.
People are losing money when they first get started selling on eBay because they’re not researching enough. They’re getting into items that they don’t really know that well.
They might buy an electronic item, and even though the sold listings might be looking good and there might be a high profit, they don’t even bother to test the item. They might not even know how to test the item. They don’t understand the market.
Take It Slow to Avoid Some Common Mistakes
Take things slowly when you’re starting your eBay business. Get in the habit of making sure that when you buy something, it’s a good risk versus reward. Make sure there’s enough profit margin in case things go wrong.
What happens if you do your calculations and you think you can make $20, but when you go to ship the item, you’ve miscalculated and it ends up costing an extra $15? I’ve made that mistake. You’ve pretty much eliminated most of your profit, so you really want to do your research.
Big tip: download the eBay app onto your phone, and research the item before you buy it. Make sure that the item has sold multiple times. Make sure that the item you’re looking to invest in is actually pretty close to or the exact item that is selling.
Is it the same color? The same size? The same condition? Study the sold listings and see what the competition is doing in terms of their descriptions and their listings.
People lose money because they’re trying to rush the process too much at first. It’s a long game, and I can promise you this: If you learn how to study items and research items properly, if you learn how to take great photographs and set up an awesome eBay store, if you learn about different items and really build a strong foundation, you could make money selling on eBay for years.
This Is an Amazing Opportunity for You
It’s an amazing skillset that they don’t teach in schools, but there are so many opportunities. It’s insane! Garage sales, thrift store, flea markets, Facebook Marketplace, craigslist—I mean, I could go on and on! Consignment shops, pawn shops, the free section on Craigslist. There is sniping items on eBay to flip on eBay, sniping from merchants on Amazon to flip on eBay or back onto Amazon FBA. I could go on and on.
Building up this skillset is going to be worth it for you, so don’t try to rush things too much at first. You’re probably losing money because you’re moving too quickly.
Take it slow. I know—you probably watch a lot of YouTubers, and you think, “They make it look easy.” Maybe even I make it look easy. But at first, it’s not. It’s tough. It is a learning experience. You’re going to make mistakes, and it’s okay. We got your back.
That’s what the reseller community is all about.
Stick with it. Don’t give up. I’m telling you right now, you’re going to build a skillset that allows you to make money for the rest of your life.
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