An age old question (since the time of eBay at least) and one of the most common queries that’s sent in to me by my blog readers – how are some items for sale on eBay at such a low price? You know what types of listings I’m talking about – £0.99 with free shipping or sometimes even bulkier items for sale at £2.99, which is just barely enough to cover the Royal Mail postage fee, never mind any packaging or the item itself – so HOW do they do it?
Well this is exactly what Julie asked me in a recent email I received from her:
I’m a huge fan of your blog – you’re really doing an amazing job with it so thank you very much! As a newbie eBay seller I learn so much from every post and whenever I’ve asked a question in the comments section you’re always so quick to answer, so thank you again!
I wanted to ask you one further question if possible?
I started selling on eBay last year, just as a hobby as I have a full-time job and two young kids to look after. Recently I’ve started to look into ways to grow my business to the next level and hopefully even get it to the stage where it can replace my current job in the future.
But there’s something that really worries me whenever I look into doing this properly and that’s the fact that there seems to be so many sellers offering items at such cheap prices! I just don’t understand how they do it and how they can possibly make any money like that.
I mean, are these genuine sellers/products or is it some sort of eBay scam?
Hi Julie and thank you for your email – it’s great to hear that you find my blog valuable and that it’s helping you with your business! 🙂
In answer to your question – yes these are genuine sellers, to put it simply.
The first thing you need to understand is that sellers aren’t necessarily making any profit at those prices. In fact I would go as far as to say that the majority of the time they’re not.
There are several different scenarios in which an item would be sold at what appears to be an impossibly cheap price and I’m going to run through a few of them for you now, so that you can see exactly what I mean: [Read more…]