posted on March 23, 2001 02:53:20 PM
I've been thinking about some points raised in the recent "bookseller" thread about maximizing profits by attempting to sell books for no less than $10.
It seems to me that this isn't a book issue, it's a sales issue. Is there any point in selling stuff for low dollar amounts? Is this just personal preference...the seller doesn't mind moving a lot of product in order to add up the sales? Or do sellers of low-cost items make sure to earn a little extra on each sale through "handling"? [not to start any arguments about that!]
For scroungers, if you are buying stuff for $1-$10, and resell for $5-15...is that a good profit? Or is it a waste of time?
To answer as a buyer, I frequently want to buy something for under $10. If I want to pay more, I can go to the mall! So I count on sellers who are willing to sell for lower profits. I am thinking about things like secondhand clothing, maybe the occasional video or toy.
Should the low-ticket sales be strictly for the hobbyist seller, or can it be a meaningful business approach?
posted on March 23, 2001 03:20:46 PM
I'm sure a number of considerations go into this decision.
There are many items which can be sold in regular or Dutch auction format that would be profitable. New items, in quanity, are usually the best choice.
I've struggled with certain items that are at best marginal. Recently I tried common LP's which had little demand. I could get them for .03 to .05 cents each and sold them for $4.95.
eBay listing fees ate up any potential profit for selling on that venue. I did use YAHOO with some success before their recent problems and fees. They had to sit for weeks and sometimes months before a buyer showed up.
Considering acquistion, sorting, research, image, description and listing time plus emails from potential buyers and post sale activities, I made a very low dollar amount per hour. I'm sure other could do a faster and better job but for me it just didn't work.
I'm slowly learning that I have to work within my limits and that many items are better for me to pass on or to group into lots.
posted on March 23, 2001 03:44:46 PM
I tend to sell low end items. I've been selling for a year. I guess it depends on why you're doing it. I worked outside the home since I was 15. After I got married because of the nature of my job a lot of our tax deductions were mine and of great benefit. Last year we decided I could now stay home with the kids. Well I needed something to keep my brain going. My interests were reading, crafts, and I love old things (probably from reading too many historical novels).
Anyway for me the money I make from E-Bay was to give me home office deductions, and enable me to do the things I like best.
Last year I had 4.000 in sales over 6 months. Not too bad.
This year things are slower and I'm trying to be more selective, use what I learned etc. I like it when one of my little items takes off, doesn't happen often but the ones that have I rarely paid more than 1-2.00 so if I got 50-60 that's great to me. I have one now that I bought for 1.00 because it was cute. Turned out to be Tiffany and is at 70.00 with 2 days to go. That's fun.
It is a lot of work, I could be more organized and I am at the point of re-evaluating what I'm doing.
I guess what I'm trying to say in this long winded speech is that it depends on what you want to get out of it. If you want to be a millionaire then probably not good.
If you want to be independent, not have to put out a lot of money at a time, have fun, and make enough to satisfy whatever your need is then it's great.
As for the buyer, I think the need is there. I'm with you keziak if I'm going to spend a lot of money, I go to the mall. Antique, or otherwise over 100.00 I want to see it, feel it smell it etc. Sorry so long.
I frequently price my paperbacks at a dollar and about half the time that's what they close at.
Of course it's not what I prefer and most of the inventory is stuff left over from mistakes I made in the early stages of ebay frenzy, but I don't mind doing it. It's not profit making, but I enjoy getting the grateful emails from people who otherwise couldn't afford it.
But I'm not in ebay to make a living, I'm a hobby seller who loves the thrill of a really great ebay sale.
posted on March 23, 2001 03:54:08 PMShould the low-ticket sales be strictly for the hobbyist seller, or can it be a meaningful business approach?
I think it depends on what you're trying to accomplish and what you actually need from your online sales. There are many different classifications of sellers, I believe, and there is no one-size-fits-all approach.
Take for example:
Seller A: Wants/Needs to make a living at online sales.
Seller B: Doesn't need a full-time income from online sales, but does need some extra spending money vs. taking an additional part-time job.
Seller C: Just trying to get rid of stuff around the house and would rather sell it online rather than throw it out in the garbage.
Seller D: Doesn't need the money as much as something to do to add to one's self-esteem, but realizes the need to make it profitable to be worth the time at all. Runs online auctions from a business viewpoint, but does not need to make a living at it.
I am seller D.
Now for some facts:
I was averaging around $300 to $500 per month in sales until December of last year when I got cable. For the last 3 months, sales were slightly over $600 each month. My profit margin is around 50%.
Seller A could not survive on what I make and it wouldn't even be worth their while to dabble in low-ticket items. Too risky to their survival.
Seller B might be able to make it dependant on how much money they actually needed to supplement their main source of income. But they still might need to throw some higher-ticket items in there to really make it work.
Seller C isn't concerned with anything much beyond making more space in the house/garage/barn, and can look at the money brought in as a partial recovery of cost so they can go out and buy more stuff. That is, as long as they're at least recovering their listing fees, packaging costs, etc. and not actually spending more money to have someone take it off their hands.
Seller D can make it meaningful as I have, or take the position that no, if they'd make more money flipping burgers, they don't want any part of it. Give me the expensive stuff to sell. Just depends on the viewpoint with this one.
posted on March 23, 2001 03:55:01 PM
The better part of what I sell, sells for under $10.00 most of my inventory is bought in large quanities as I also sell at two Flea Markets and move inventory very fast.I use the same ad over and over again so its no big deal.
posted on March 23, 2001 04:06:57 PM
We start almost all of our auctions at $9.99. Most close within a few dollars of the opening bid. At that price, we make a decent profit and we sell enough items to make a reasonable income.
eBay is a business for us, and our main source of income. Selling low-ticket items means having to sell a lot of items, yes, but it's a not as much of a financial risk, and low-dollar merchandise is easier to find.
So no, I don't think it's pointless to sell low-dollar items.
posted on March 23, 2001 04:21:21 PM
I think a lot of it depends on what you can afford to invest in inventory and what you have access to. I spend about as much time managing auctions as I do cultivating current and new sources of inventory.
Obviously, I'd rather run 20 auctions per week and make, let's say, $1000 profit, than run 100 auctions per week to make the same amount of money.
I don't think the latter is poor business, but I'm much happier doing the former.
posted on March 23, 2001 04:36:25 PM
I have a lot of small low price items. If I have other work or better items to list fine - but when things are slow if I can make a little selling these it is better than having nothing at all to do.
posted on March 23, 2001 07:03:35 PM
The key to profits on ebaY is to list low-priced items ($1.00 - $10.00) but end up getting $40 - $60 from the high bidders (I use dutch auctions almost excusively) before the end of the transaction. This is EASY to do. Simply turn your EOA into a sales letter.
My EOA is 3 pages long, 2 1/2 of which are offers for the winning bidders to upgrade the item they purchased, or even better, purchase additional items along with the one they won in the auction. And when you ship the item(s) to the buyers, ALWAYS include a 1 page flyer for even more merchandise.
NEVER settle for ending a transaction without at least OFFERING the seller an upgrade or additional merchandise! He/she saves on shipping costs, you sing all the way to the bank.
About 1/3 of my winners end up paying me a lot more than the winning bid amount. This is the secret to ANY successful mail order operation (yes, ebaY is mail order). By taking advantage of "piggy-back" sales, you pay listing fees and FVFs on $1 - $10 but you take in several times that amount. Sweet, very sweet!
posted on March 23, 2001 08:23:39 PM
I'm not sure "sweet" is the word I would use for that practice...but, to each his own. Personally, if I was a buyer and got a 3 page EOA...yuck! But it obviously depends on what you are selling, and if you perceive eBay as an auction site or a storefront. Unfortunately, eBay has in many ways become the latter.
posted on March 24, 2001 09:23:30 AM
My lowest end items are trading cards and sets from Pokemon sets (90% of that are the TOPPS cards - for those who follow Pokemon). My market is other collector's who are missing just the right cards to finish THEIR sets... so its very hit/miss with those items. The sets usually sell very well - I have almost 100% sellthroughs on the sets from the most recent set, for example - and some of those are at excellent profit margins . The profits from those cover some of the fees for those that didn't sell.
The best part though - is I continually add collector's to my "watch list" - meaning they come to look at my auctions when they know there is a new set out, because they think I"m a good seller to deal with - I price well and pack well. THAT is the key for my low-end items - repeat buyers. That's why 2/3 of my total feedback doesn't count towards my total - they are from repeat buyers.
My "high-end" are buy for $3-$5 and sell for $5-$20 - sometimes the low-end stuff becomes high-end when I get a bidding war for things... None of my auctions have ever made it to "hot" status, but still had some good showings. I can hardly WAIT for next weekend when I get to do my March books...
*rubhandstogether*
And to diversify I'm adding handmade doll clothes to my categories - and they can be made to specifications of the buyers, which hopefully will do well. 8)
posted on March 24, 2001 09:37:56 AM
I used to sell so many books in the 3 to 20 dollar range, but I was slaving away writing great descriptions and at the end of the day seeing that I was making less than minimum wage. it was discouraging, even though I love selling books and I was making 500% to 2000% profit on each one.....it still added up to less that I could have earned working at McDonalds.....I have switched to hand made items in the $100 range, I am much happier since I have so few descriptions to write and only have to take a few packages a week to the PO and not 50 a week.
I put all my stock of books on Marketplace instead and did well for a while, but sales have definitely dropped off there. Oh well, Marketplace was good money while it lasted...
posted on March 24, 2001 10:16:14 AM
I'm guessing what this thread is about is auction businesses because if you said all BM businesses, then you'd have included 65% of all businesses that sell items under $10.
I'm not even sure what you mean by "poor business." A business that is profitable no matter the dollar level is a good business to me. The biggest factors for me is profits, profit margins and sales. As long as I'm doing good in those three then I'm quite happy selling under $10 items.
Whenever you start selling high priced items your biggest threat is being undercut. New cars can be undercut by used cars; Homes can be undercut by apartment leasing; origional paintings can be undercut by prints. Mint Antique tables can be undercut by
one in average condition.
A $10 book? Library? Probably not, the library hardly gets enough books to satisfy the demand for titles. Who is going to cut back on a $10 vintage toy? It's just ten bucks, why cut back?
