Gaining High Profit Margins on eBay

The following is a guest post by Philip

eBay transfers millions of dollars worth of products every month. It is the most popular e-commerce service. eBay has over 50 million registered users who sell everything from cars to key chains. It’s large user base and easy transaction system makes it a perfect place to gain high profit margins when selling. Try out for high profit margin items to sell on eBay.

The Value of Low Cost Products

Generating high profit margins by selling products on eBay is all about selling low-cost products at a high price. To do this, you must first identify the best products to sell. Inexpensive and small products are the best types of items to generate a high profit margin, particularly if the products have a significant market demand. You won’t be selling many products if nobody is interested in purchasing them. However, if there is a demand, you can sell products at a premium price that is 2 to 4 times more than what you originally paid for.

Importing from China

Once you have identified the products you want to sell and know that there is a market demand for them, it’s time to find wholesale distributors who can import the products from China for you. The products you wish to sell most likely are already produced by manufacturers in China. So, instead of purchasing the products from a US retailer, you can purchase the imported products from China through a wholesale distributor at a less than retail price.

Wholesale distributors allow you to buy in bulk, and low-cost products are extremely cheap when purchased in large volumes. You’ll be able to generate a higher profit margin by finding the best price on low-cost products when cross comparing wholesale distributors, and if this is your end goal then you the first step to gaining these outrageous margins would be to learn how to import from China.

Imported Low Cost Products on eBay

eBay allows you to create any kind of storefront you want. If you are interested in selling a specific set of products or just plan on following the latest trends, you can establish your own eBay storefront that is catered to your specifications. You will have a greater chance of generating high profit margins if you focus on selling a specific set of products in a market that has few rival sellers. Alternatively, you can sell various low cost products based on the hottest market trends to create a diverse eBay storefront.

Regardless of which path you wish to take, it’s important to stay on top of the market demand activity by selling all of your low cost products in the quickest manner possible. You may even want to take a cut in profits when selling the first set of low cost products to establish a good eBay seller’s reputation. Once you’ve established yourself as a worthwhile eBay seller and have detailed auction listings for all of your products, you can begin to import products from China in larger quantities to expand your business and gain higher profit margins.

Get Yourself a Bugatti Veyron

It’s on eBay and it’s only $1.2 million so far.  That was the starting bid and it has one already.  Of course, it hasn’t reached it’s reserve just yet… 2008 Bugatti Veyron 16.4 on eBay.

Now, where am I going to find the pocket change to pick this one up for my batcave? 😉

Nikon D80 in the House

Nikon D80 DSLR Digital Camera KitI buy items rather frequently to resell on eBay. I don’t make as much doing that as I with my portfolio of sites, but I do make money. Today, I got a shipment of two items that I had bought. One is a HD-DVD player (collectors item I suppose.) and a Nikon D80 Kit. Now, I’ve had my eye on a Nikon D series camera for quite some time. I really want one. I can’t afford one. So, I have to resort to buying one to resell just so I can take 5 minutes with it and test it. The nature of the items that I sell (store returns mostly) requires that the item be tested so that I can vouch for its usability. Darn. I’m going to hate testing out that D80.

Once I get it tested and can verify that it’s in full working order, I’ll be listing it on eBay. Should go live sometime this weekend. If you’re interested, you can take a look at thatedeguy’s auctions and make a bid!

eBay Changed Their Affiliate Program

I got the email about this several days ago, but have put off writing anything about it because it is unclear what the impact will be to those of us who use the affiliate program. I think it would be silly of eBay to not continue to allow the redirection of their current links, but based on the email, they will.

The eBay Partner Network and Commission Junction will run in parallel for one month through this process, so please plan to complete your migration by May 1st, 2008.

Sounds like broken links all over the place to me. They do mention that the affiliate API will still work. That’s good as there are lots of programs and sites that make use of it. Build a Niche Store and the 45n5 mashup script are two well know examples. But the individual publishers that have been doing a lot of link insertion without redirection could run into problems.

One bright spot here is that any old links that go to auctions will be void anyways since the auction will be over. You’ll still lose out on the cookie and any resulting sales, but since the auction is over, the click-through should be small and the loss even smaller.

What is even more exciting is the ability to do affiliate work with all the eBay sites around the globe. Very nice. Instead of being restricted to the US or Canada sites, we can now sign up with the UK, Australia, France and other international sites. That could open up for a lot of new opportunities for some people.

As an added incentive to switch over as fast as possible, they’re offering a 5% bonus to all sales made through the new system during April. Very nice.