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eBay has spawned a multitude of online businesses and has allowed many people to work from home, a new American Dream for time-pressed folks of the 21st century.
eBay claims that 150,000 people make a living via its services. Of that group, between 35,000 and 50,000 were enrolled in its PowerSellers program when the requirements were a minimum of $2,000 in gross monthly sales, with a similar amount meeting the criteria but not having enrolled in the program.
But a close-up look at a few PowerSellers and their lifestyles begs the question: is it worth it?
The number-one seller on eBay in terms of volume is Jay and Marie Senese's business reselling CDs on eBay. (To give you an idea of how tight their profit margins are, they call their business "1 Cent CD"). The couple has been selling on eBay since 1998 and closes some 5,000 auctions a week.
A recent article in Fortune reported that while the couple makes a six-figure income, they have little time to enjoy the fruits of their labor. According to the article, Jay and Marie took their first vacation in four years last summer!
So what is a would-be eBay entrepreneur to do?
Although I've been selling on eBay for a few years now, I've been careful to avoid letting my selling turn into the type of all-consuming affair that drives people away from big corporate environments in the first place. I have come to a few conclusions about how to maximize your profit per transaction while minimizing the time it takes.
1) Sell fewer, upper-end items that will bring in higher profits
The key is picking and finding the right items. I thought about some of my highest-profit sales to date; in two cases, they were designer, luxury items - both highly desirable, but not necessarily even new. One was a beat-up old Louis Vuitton duffle bag, which I grabbed for $5 at the start of a community yard sale and promptly flipped on eBay for $75 profit. Lesson: Vuitton is a hugely desirable luxury brand and even old vintage items can resell well. (Just be aware of eBay's VeRO program: if you sell counterfeit designer items, you auction will likely get pulled.)
2) Sell items in "big lots" - items that people look to buy in bulk
I noticed that many of the higher dollar final eBay sales are for big lots of stuff. In an attempt to experiment with "big lot" sales, I decided to unload all the videos my kids don't watch anymore. In researching some recent eBay sales, I found that lots of videos could fetch nice prices, and "name" videos like Disney sold particularly well. One recent lot of Lot of 61 VHS Walt Disney Movies went for $346.05; another lot, of Lot of 30 Disney Movies "Classics VHS," sold for $152.50.
3) Develop a lucrative niche
Find items where you have a specialized knowledge that is relatively rare, or sell items that can't be found everywhere, so their demand in other parts of the country is greater.
Of course, with so many people selling full time on eBay, there must be plenty of happy campers out there. Although some people may be questioning the quality of life, others have found it to be a great solution.
"I am currently a PowerSeller and I can tell you that for me, it's definitely worth it," said one seller, Christine. "There are slow periods for sure, and I'm not sure I could do enough on here if it was our sole income. But, it can be done. You will not get rich overnight. It takes countless hours of research (you think you eyes could fall out at any time!), and for me, it all comes down to being at the right place at the right time. My income isn't as good as my husband's management job, but I am definitely making more on here than if I had a "real" job - after daycare, etc...,"
Another eBay Seller says there are down times, but the good times make up for it: "I can't think of anything else I would rather do. I am a full timer. It is a bit slow at times, but ohh those good weeks make up for it."
I think my own feelings are best summed up by the words of this eBayer: "It's fun. I make a little money. It's fun. I learn a lot. It's fun." (Did she mention it's fun?)
Yes, we do eBay for the money. Just remember to take time to enjoy it!
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