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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 Sun. May / 09 / 2021

Sotheby’s, Christie’s Expect to Sell $1 Billion in Art at Spring Auctions - The Wall Street Journal
Sotheby’s, Christie’s Expect to Sell $1 Billion in Art at Spring Auctions  The Wall Street Journal

Bezos's Blue Origin auctions seat on first New Shepard spaceflight with passengers – Spaceflight Now - Spaceflight Now
Bezos's Blue Origin auctions seat on first New Shepard spaceflight with passengers – Spaceflight Now  Spaceflight Now

eBay Selling Strategy: Auction versus Buy It Now - EcommerceBytes
eBay Selling Strategy: Auction versus Buy It Now  EcommerceBytes

ACTION AUCTIONS PUBLIC ESTATE AUCTION GREENSBORO, NC MAY 15, 2021 - Greensboro News & Record
ACTION AUCTIONS PUBLIC ESTATE AUCTION GREENSBORO, NC MAY 15, 2021  Greensboro News & Record

Anti-racism, tattoos, and no more ‘wench auctions:’ Changes at Disney spark a conservative backlash - The Boston Globe
Anti-racism, tattoos, and no more ‘wench auctions:’ Changes at Disney spark a conservative backlash  The Boston Globe

Michael Jordan college jersey fetches $1.38 mn at auction - FRANCE 24
Michael Jordan college jersey fetches $1.38 mn at auction  FRANCE 24

HiBid Auctions Top $53 Million Last Week, with Horses, Motorcycles, Appliances, and More Now Open for Bidding - PRNewswire
HiBid Auctions Top $53 Million Last Week, with Horses, Motorcycles, Appliances, and More Now Open for Bidding  PRNewswire

Fevered bidding for bankrupt Hertz reaches courtroom auction - Financial Times
Fevered bidding for bankrupt Hertz reaches courtroom auction  Financial Times

Tom Brady's first-ever NFL touchdown pass football up for auction - Fox Business
Tom Brady's first-ever NFL touchdown pass football up for auction  Fox Business

Could NFT auctions be moving away from Ethereum? One new group is betting they will - TechCrunch
Could NFT auctions be moving away from Ethereum? One new group is betting they will  TechCrunch

Second Chance opens online auction to help pets in need - WWLP.com
Second Chance opens online auction to help pets in need  WWLP.com

Kurt Cobain's Hair Is Up For Auction - BLABBERMOUTH.NET
Kurt Cobain's Hair Is Up For Auction  BLABBERMOUTH.NET

Sotheby's accepting cryptocurrency for upcoming Banksy auction - Art Critique
Sotheby's accepting cryptocurrency for upcoming Banksy auction  Art Critique

Inside the story of Keith Haring's fridge, at auction with Madonna’s 'tag' - New York Post
Inside the story of Keith Haring's fridge, at auction with Madonna’s 'tag'  New York Post

Yields on 10-year JGBs fall ahead of new bond auctions - Reuters
Yields on 10-year JGBs fall ahead of new bond auctions  Reuters

Chevyland USA Car Museum Collection Goes Up for Auction - Motor Trend
Chevyland USA Car Museum Collection Goes Up for Auction  Motor Trend

Come to the Table virtual auction reveals diverse menu of options - Evening Observer
Come to the Table virtual auction reveals diverse menu of options  Evening Observer

South County Trolley company on the auction block - WJAR
South County Trolley company on the auction block  WJAR

Football from Tom Brady's first NFL touchdown pass going up for auction - ESPN
Football from Tom Brady's first NFL touchdown pass going up for auction  ESPN

'I am emotionally drained': Oklahoma farmer auctions off animals, equipment to survive - KOKH FOX25
'I am emotionally drained': Oklahoma farmer auctions off animals, equipment to survive  KOKH FOX25

Auction raises money for Newton County Fairgrounds - KoamNewsNow.com
Auction raises money for Newton County Fairgrounds  KoamNewsNow.com

Rental-car companies crash used-car auctions to find scarce vehicles - Marketplace
Rental-car companies crash used-car auctions to find scarce vehicles  Marketplace

Say Yes to Selena's Dress: 8-year-old auctions off her dresses online to raise money for PATH - Tyler Morning Telegraph
Say Yes to Selena's Dress: 8-year-old auctions off her dresses online to raise money for PATH  Tyler Morning Telegraph

Rare Kashmir sapphire glitters in Geneva auction - Moneycontrol
Rare Kashmir sapphire glitters in Geneva auction  Moneycontrol

Stunning 1958 Kurtis Kraft IndyCar Is Heading To Auction - HotCars
Stunning 1958 Kurtis Kraft IndyCar Is Heading To Auction  HotCars

Rare Plymouth Hemi Cuda Convertible Could Fetch $6.5M At Auction - Motor1
Rare Plymouth Hemi Cuda Convertible Could Fetch $6.5M At Auction  Motor1

Amy Winehouse's family is auctioning some of her most iconic clothes 10 years after her death - Insider
Amy Winehouse's family is auctioning some of her most iconic clothes 10 years after her death  Insider

Pistols belonging to Alexander Hamilton go on auction Friday, May 14th, in Rock Island - WQAD.com
Pistols belonging to Alexander Hamilton go on auction Friday, May 14th, in Rock Island  WQAD.com

Zebra escapes Tennessee auction house, seen wandering rural neighborhood - FOX 35 Orlando
Zebra escapes Tennessee auction house, seen wandering rural neighborhood  FOX 35 Orlando

The last Plymouth ever built is up for auction - Fox News
The last Plymouth ever built is up for auction  Fox News

A Pair of Alexander Hamilton’s Pistols up for Auction - Barron's
A Pair of Alexander Hamilton’s Pistols up for Auction  Barron's

Parts of Original Mackinac Bridge Steel Placed on Auction - U.S. News & World Report
Parts of Original Mackinac Bridge Steel Placed on Auction  U.S. News & World Report

AAMC Foundation hosts annual fundraiser through online auctions - Index-Journal
AAMC Foundation hosts annual fundraiser through online auctions  Index-Journal

L-A theater to hold silent auction May 16-30 - Kennebec Journal & Morning Sentinel
L-A theater to hold silent auction May 16-30  Kennebec Journal & Morning Sentinel

Iconic Auctions' online Amazing Music Auction, May 15th, features Bob Dylan's handwritten lyrics to Blowin' in - EIN News
Iconic Auctions' online Amazing Music Auction, May 15th, features Bob Dylan's handwritten lyrics to Blowin' in  EIN News

Leonardo da Vinci bear drawing expected to fetch £12m at auction - The Guardian
Leonardo da Vinci bear drawing expected to fetch £12m at auction  The Guardian

Adidas launches Reebok auction, China row may dent Asian interest -sources - Reuters
Adidas launches Reebok auction, China row may dent Asian interest -sources  Reuters

TREASURIES-Intermediate-dated yields rise after auctions - Reuters
TREASURIES-Intermediate-dated yields rise after auctions  Reuters

Auctions: Grand Seiko Makes A Grand Entrance On The Auction Circuit - HODINKEE
Auctions: Grand Seiko Makes A Grand Entrance On The Auction Circuit  HODINKEE

‘Fathom’ No. 1 Cover Hitting Auction Block as NFT (Exclusive) - Hollywood Reporter
‘Fathom’ No. 1 Cover Hitting Auction Block as NFT (Exclusive)  Hollywood Reporter

101 carat diamond goes up for auction - WKRG News 5
101 carat diamond goes up for auction  WKRG News 5

As a Sotheby's auction looms, scholars protest Newark Museum of Art's plan to sell a Thomas Cole painting and other works - Art Newspaper
As a Sotheby's auction looms, scholars protest Newark Museum of Art's plan to sell a Thomas Cole painting and other works  Art Newspaper

Crabcake Factory USA in Ocean City heads to auction after declaring bankruptcy - Delmarva Now
Crabcake Factory USA in Ocean City heads to auction after declaring bankruptcy  Delmarva Now

Phillips Auction House to Accept Crypto for Banksy Artwork Sale - CoinDesk - CoinDesk
Phillips Auction House to Accept Crypto for Banksy Artwork Sale - CoinDesk  CoinDesk

This coastal Rhode Island estate will soon hit the auction block for $7.85M - Boston Business Journal - Boston Business Journal
This coastal Rhode Island estate will soon hit the auction block for $7.85M - Boston Business Journal  Boston Business Journal

New York firm wins auction to buy Henry Ford Village out of bankruptcy - Detroit Free Press
New York firm wins auction to buy Henry Ford Village out of bankruptcy  Detroit Free Press

Art World Players Rethink the Auction Marketplace - The Wall Street Journal
Art World Players Rethink the Auction Marketplace  The Wall Street Journal

This rare jewelry set up for auction once belonged to Napoleon's daughter - CNN
This rare jewelry set up for auction once belonged to Napoleon's daughter  CNN

Analysis: Big U.S. Treasury auctions could restart rise in yields - Reuters
Analysis: Big U.S. Treasury auctions could restart rise in yields  Reuters

RubiX Set to Hold NFT Art Auctions Full of “World's Firsts” - GlobeNewswire
RubiX Set to Hold NFT Art Auctions Full of “World's Firsts”  GlobeNewswire

Tiger Group Online Auction on May 20 Features Machining Centers, Industrial Robots and Other High-Utility Assets - PRNewswire
Tiger Group Online Auction on May 20 Features Machining Centers, Industrial Robots and Other High-Utility Assets  PRNewswire

227-Year-Old Prototype for First US Dollar Sold at Auction - Hyperallergic
227-Year-Old Prototype for First US Dollar Sold at Auction  Hyperallergic

Sotheby's to accept bitcoin and ether for an upcoming auction of a Banksy painting - CNBC
Sotheby's to accept bitcoin and ether for an upcoming auction of a Banksy painting  CNBC

State resumes online auction of surplus equipment and vehicles - Vermont Biz
State resumes online auction of surplus equipment and vehicles  Vermont Biz

Auction at the Wass a success - Times Bulletin
Auction at the Wass a success  Times Bulletin

Christie’s to Auction $17 M. Bellotto Landscape Poised to Break Record - ARTnews
Christie’s to Auction $17 M. Bellotto Landscape Poised to Break Record  ARTnews

Ocean City's Crabcake Factory heads to auction - WBAL TV Baltimore
Ocean City's Crabcake Factory heads to auction  WBAL TV Baltimore

‘I miss you’: JFK’s intimate letters to Swedish mistress up for auction - The Boston Globe
‘I miss you’: JFK’s intimate letters to Swedish mistress up for auction  The Boston Globe

Here's what you can buy at the Oklahoma Turnpike Authority's first-ever surplus property auction - Oklahoman.com
Here's what you can buy at the Oklahoma Turnpike Authority's first-ever surplus property auction  Oklahoman.com

Knights to Hold Virtual Charity Auction | Community News | independentnews.com - Livermore Independent
Knights to Hold Virtual Charity Auction | Community News | independentnews.com  Livermore Independent

TREASURIES-Trouble-free note auctions keep a lid on yield gains - Reuters
TREASURIES-Trouble-free note auctions keep a lid on yield gains  Reuters

Cosmic: 400+ Film Treasures to Land at a Mega Auction - NBC Southern California
Cosmic: 400+ Film Treasures to Land at a Mega Auction  NBC Southern California

Bid In the Books for Hope Auction to Raise Money for India’s Covid Relief! - Book Riot
Bid In the Books for Hope Auction to Raise Money for India’s Covid Relief!  Book Riot

Silver dollar prototype once owned by Texas Rangers co-chairman Bob Simpson sells at auction for $840,000 - ESPN
Silver dollar prototype once owned by Texas Rangers co-chairman Bob Simpson sells at auction for $840,000  ESPN

The Historic First Appearance of Captain Atom Up for Auction - Bleeding Cool News
The Historic First Appearance of Captain Atom Up for Auction  Bleeding Cool News

Blue Origin targeting July for first crewed flight, opens auction for a seat - The Verge
Blue Origin targeting July for first crewed flight, opens auction for a seat  The Verge

Rare 1971 Plymouth Hemi 'Cuda Convertible Is Heading to Auction - Motor Trend
Rare 1971 Plymouth Hemi 'Cuda Convertible Is Heading to Auction  Motor Trend

STORAGE TREASURES AUCTION ONE FACILITY - MULTIPLE UNITS | Sale Auction | gwinnettdailypost.com - Gwinnettdailypost.com
STORAGE TREASURES AUCTION ONE FACILITY - MULTIPLE UNITS | Sale Auction | gwinnettdailypost.com  Gwinnettdailypost.com

WhistlePig Whiskey FarmStock 'Beyond Bonded' Barrel to Hit Auction Block This Month - BevNET.com
WhistlePig Whiskey FarmStock 'Beyond Bonded' Barrel to Hit Auction Block This Month  BevNET.com

Auctions for potential Arizona Samsung sites postponed - Phoenix Business Journal - Phoenix Business Journal
Auctions for potential Arizona Samsung sites postponed - Phoenix Business Journal  Phoenix Business Journal

Queen Victoria's Satin Slippers Are For Sale at Auction - TownandCountrymag.com
Queen Victoria's Satin Slippers Are For Sale at Auction  TownandCountrymag.com

Umbrella Arts Center auction continues through May 15 - Wicked Local
Umbrella Arts Center auction continues through May 15  Wicked Local

Henry Ford Village sold at auction to New York firm; court must rule on winning bid - Crain's Detroit Business
Henry Ford Village sold at auction to New York firm; court must rule on winning bid  Crain's Detroit Business

Iconic Classic Car Collection In Central Nebraska Up for Auction | netnebraska.org - NET Nebraska
Iconic Classic Car Collection In Central Nebraska Up for Auction | netnebraska.org  NET Nebraska

Mecum Auctions' 30th annual motorcycle auction spotlights gorgeous bikes - Lasvegasmagazine
Mecum Auctions' 30th annual motorcycle auction spotlights gorgeous bikes  Lasvegasmagazine

Bulls' Michael Jordan Basketball Card Breaks Record at Auction - NBC Chicago
Bulls' Michael Jordan Basketball Card Breaks Record at Auction  NBC Chicago

The Roger Federer Collection: Sold to Benefit the RF Foundation - Christie's
The Roger Federer Collection: Sold to Benefit the RF Foundation  Christie's

Cresting Flood of U.S. Treasury Supply May End Auction Woes - Bloomberg
Cresting Flood of U.S. Treasury Supply May End Auction Woes  Bloomberg

Roger Federer To Auction Off Grand Slam Memorabilia - ATP Tour
Roger Federer To Auction Off Grand Slam Memorabilia  ATP Tour

Clearing out: CCH to hold auction in place of garage sale - The Courier
Clearing out: CCH to hold auction in place of garage sale  The Courier

One of the Rarest, Early Rolex Submariners Is Heading to Auction This Weekend - Robb Report
One of the Rarest, Early Rolex Submariners Is Heading to Auction This Weekend  Robb Report

Four Square Friday set May 14 with silent auction - Uvalde Leader-News
Four Square Friday set May 14 with silent auction  Uvalde Leader-News

Last chance at Love’s Bakery: Auction gives public opportunity to take home piece of bakery - KHON2
Last chance at Love’s Bakery: Auction gives public opportunity to take home piece of bakery  KHON2

Auction Dilemma: Isuzu Trooper Vs. Mitsubishi Montero | HotCars - HotCars
Auction Dilemma: Isuzu Trooper Vs. Mitsubishi Montero | HotCars  HotCars

Wilt Chamberlain 100-point game ticket stub up for auction - WIBW
Wilt Chamberlain 100-point game ticket stub up for auction  WIBW

Asian Auction House Phillips Will Accept Crypto at Auction for a Physical Piece of Banksy Art – Bitcoin News - Bitcoin News
Asian Auction House Phillips Will Accept Crypto at Auction for a Physical Piece of Banksy Art – Bitcoin News  Bitcoin News

US C-band auction becomes world's costliest mid-band 5G auction yet - S&P Global
US C-band auction becomes world's costliest mid-band 5G auction yet  S&P Global

Kiwanis Club of Roanoke hosts annual Pancake and Auction day in drive-thru fashion - WDBJ7
Kiwanis Club of Roanoke hosts annual Pancake and Auction day in drive-thru fashion  WDBJ7

Auction Sales Top $39 Million Last Week on HiBid.com, with Rare Coins and Classic Cars Now Up for Bidding - PRNewswire
Auction Sales Top $39 Million Last Week on HiBid.com, with Rare Coins and Classic Cars Now Up for Bidding  PRNewswire

This New Disneyland-Themed Auction Is Full of Joyful Gems - NBC Southern California
This New Disneyland-Themed Auction Is Full of Joyful Gems  NBC Southern California

Napoleon’s adopted daughter’s jewels up for auction - WANE
Napoleon’s adopted daughter’s jewels up for auction  WANE

São Paulo government puts 22 small airports up for auction and plans new regional routes - The Rio Times
São Paulo government puts 22 small airports up for auction and plans new regional routes  The Rio Times

‘Revealing’ Letters JFK Sent to Swedish Lover Up for Sale at Boston Auction House - PEOPLE
‘Revealing’ Letters JFK Sent to Swedish Lover Up for Sale at Boston Auction House  PEOPLE

186-year-old account of US diplomatic visit to Holy Land surfaces at auction - The Times of Israel
186-year-old account of US diplomatic visit to Holy Land surfaces at auction  The Times of Israel

10 Standout Auction Lots on Artsy This Week - Artsy
10 Standout Auction Lots on Artsy This Week  Artsy

Piece of Hudson Valley History Could Bring .5 Million at Auction - wpdh.com
Piece of Hudson Valley History Could Bring .5 Million at Auction  wpdh.com

ACV Auctions co-founder Joseph Neiman talks about why he moved to Florida - Buffalo Business First - Buffalo Business First
ACV Auctions co-founder Joseph Neiman talks about why he moved to Florida - Buffalo Business First  Buffalo Business First

Art auction to get underway this weekend in Allentown - 69News WFMZ-TV
Art auction to get underway this weekend in Allentown  69News WFMZ-TV

Bidding starts Sunday for Baum School of Art auction - 69News WFMZ-TV
Bidding starts Sunday for Baum School of Art auction  69News WFMZ-TV

Stockings and a bloodied cloth for auction on Napoleon's bicentenary - Reuters
Stockings and a bloodied cloth for auction on Napoleon's bicentenary  Reuters

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