How I Make Money On eBay Part Four

I strongly suggest reading this series from the beginning there is alot of useful information How I Make Money On eBay Part One

Now before you run off and think OKAY I found the golden goose that lays gold eggs, there are a few stumbling blocks to over come... YES I will be the first to admit that eBay is a never ending money tree, they provide millions of people from around the world with paypal account ready to spend...

But there are alot of hidden cost invovled, there is listing fees, seller fees, store fees, postage, packaging, and the list can get very long depending on your product. I am going to discuse some of the issues that have come up and still come up for me...

eBay Fees There Are Many

Look around the internet, and you will find many people complaining about eBay fees, there are tips and tricks on how to save on eBay fees, and it seems their fees are every wheres.

You have to learn and know what the fees are on eBay, and you better know how much your fees are before you price your item... Now I wont go into details of every fee they have.. but I will give you a general overview...

Listing Fee this is a fee eBay charges just to list the item on their site. depending on where you list it and what your starting price is. currently if your item is 99 cents or less it is 10 cents to list. if it is $1 to $9.99 it is 25 cents. the reason I am not posting a fee schedule is it changes yearly and this is meant to help now and in the future....

Selling Fee this is a fee eBay charges if your item sells, it depends on selling price, your ebay score, and whether it was an auction or a store item... The main point here is do your research if you list one item and it sells there will be at least TWO fees from eBay.

Listing Upgrades these are things that help your ad stand out, just like advertising in the newspaper, if you want fancy stars around your ad there is a fee, if you want bold heading there is a fee... I rarely use these so I dont know a whole lot about them... I know in some categories everyone seems to use them... Just know if you add them there will be a fee...

eBay Store Fee this is rent, you are renting a store front on eBay's website, unless you are ready, there really is no need for a store, I use buy it now listings, for a long time, and if you learn how to use them you can say alot of money...

Now with all that said, I am going to try and be brief, as I will be devoting a days writings about how I save money on fees, not short cuts, but real ways to get eBay's buyers to your ads and still save money...

If you stop and look at the fees, they real arent bad, you got a listing fee, well guess what call your local paper and ask them what it cost to run an ad in their classifieds... you got listing upgrade fees, while you got the paper on the phone ask them if they will put fancy stars and a picture in your classified ad...

The you got this seller fee thing, well this one bite me on the butt for a long time, damn eBay, you get me coming and going, why dont you just be happy with your listing fee like the newspaper... Then I looked back, when I sold used cars and went to the auction they had two fees, a listing fee and a seller fee, most auctions do... want to know what a big chunck of that money goes to.... YOUR TRAFFIC.... thats what they use to get the millions of people to look at your item...

If you look at it as traffic & a secretary you wont have such a hard time swallowing the eBay fees, why do I say secretary it is simple every list something in the newspaper?? how many times did the phone ring during dinner?? middle of the night some kids calling prank?? Well ebay is there 24-7 for you... I know once I seen eBay fees in a different light it made paying them easier...

eBay Store Fee I know I currently pay 49.95 for my ebay store, plus each listing in the store, first if you are ready to open a store, the small fee wont hurt you... second have you been to the mall lately??? the traffic is way down because of eBay, many stores are empty... and the rent forgetaboutit has gone through the roof to make up for all the vacant spaces... I even seen empty stores in our mall last month during Christmas...

Here is another one everyone complains about... I have never had a problem with this one, look at the picture to the right, see those credit card logos, well you cant take them without paying a fee, and if you want to take VISA, the most used card ion the world, you have to have a big reserve.. A reserve is money in the bank in case someone files a claim of fraud against you...

Paypal fees really are not that bad, everyone complains because it is widely known that eBay bought Paypal, and now collects 3 fees on most sales.. but you know what, go get a merchant account, thats what you need to take credit cards, first you have to have all the business paper work, business checking account, and then they charge you fees approximatly the same as Paypal, BUT you will wait 3 days to get your money, sometimes longer... How do I know, I have a merchant account for my website, South Jersey Flags

So how can you avoid this fee, take money orders and checks, but then you will lose alot of your business as people like paypal they feel safe and secure, and then you have to worry about the ones that bounce as well...

Packaging & Postage

When you think of postage you think stamps, well I am here to tell you not on eBay, you have stamps, ink, bags, wrapping stuff, your time, boxes or bags depending on what you ship... I know when I started I bought from office supply houses, I now buy most of my shipping supplies on eBay, in large quantities... I buy 6x9 envelopes 2500 at a time... 10x13 envelopes 2000 at a time, my shipping labels 2800 or more at a time... which saves me alot of time and money... but in the begining if I didnt count the cost of my supplies I would have lost money.... becareful shipping can be a pitfall...

Depending on what you ship you need to shop and compare rates, if you are like me and most of your packages will fit flat rate or first class mail the post office cant be beat... plus they deliver all my flat rate stuff to my front door... and remember flat rate envelopes come in two sizes, you can fit MORE in a legal size one...

When I started, I used the kitchen floor and 4 boxes, within two months, I had out grown that space, without a lot of room for storage I started looking for a warehouse, now Mom let me use her unfinished basement for a while, but that was to much work and traveling on the days I didnt have Dad... I needed a warehouse... so I opened the paper and started to look around...

Thats when I drove by a storage unit facility... So after talking with them, I looked at a couple and found the right one for me... The best part is the one I am in has 24 hour security, a to go office, which is an office I can use with a fax machine (I dont need one often) desk to meet customers at, printers, and wifi... it really is like an office if you need it... I dont use it much except for faxes...

Now the best part about where my warehouse is located, is that when I get shipments of products, they take it to my unit and set it right inside the door, I dont have to worry about UPS or FedEx leaving a package on my doorstep, or worse not leaving one I really needed...

Most eBay sellers work out of their houses, for me there just isnt the room, and it is nice to be able to lock the door and leave it away from the family sometimes...

Fees Fees Fees

In closing whether you sell on eBay, In The Mall, Flea Market, or the local paper there is going to be fees, sometimes more then others, some higher then others, but if you really look close, without the fees how much business would you have...

Yes I work hard at paying lower fees, but I do not try to get away without paying them, I know in the end if I am paying more fees I am making more money because I know what my fees cover... so I hope I have to pay ebay twice the fees this year as last... ( it will make me smile)

How fees affect your pricing are part of the next in this series How I Make Money On eBay Part 5...

God Bless and grace you with peace