Make Money on eBay

The question of how to make money on eBay is the most fundamental concern of just about every eBay seller.

Within the topic of how to make money on eBay, there’s a multitude of information you can review.  But far be it for me to simply rehash old material.  Instead, the ideas in this article are ones I consider to be of utmost importance and either bear repeating or haven’t been covered enough by others, in my opinion. 

Avoid the 5 high-risk categories

To approach the question of how to make money on eBay, one of the most fundamental questions every seller has to ask is, “What Do I Sell?” There are so many popular categories and products on eBay that this can be a daunting question.  One thing that can help is to eliminate categories and products that will likely be more difficult or problematic than others, particularly if you’re a new seller.   By eliminating the products and categories that are the most fiercely competitive, for instance, you’ll also eliminate most of the products and categories that are considered the most “high-risk”, according to eBay and PayPal.  Here are those categories: Electronics, Cell Phones, Computers, Cameras, and Video Game Systems. 

Think outside the product sourcing box

Another key factor in discovering how to make money on eBay is where to obtain products. The methods eBay sellers use to obtain product are often determined by their financial situation, particularly any capital they may have to invest.  

Many sellers come to eBay with strong financial footing, seeking to expand their success, and are able to easily obtain products in bulk from wholesalers or manufacturers.  But sellers with little to no assets can be successful on eBay as well.  They may just need to be a bit more creative, observant, and patient than other sellers.  One of the easiest ways for them to begin is to utilize drop shipping as their primary method of product sourcing.  Most drop shipping yields much smaller profit margins than wholesaling, though, so it’s important to be on the lookout for new and different ways to source products. 

Obviously, wholesaling is a strong option to pursue once you have enough capital available, but don’t rule out other extremely viable options, such as             contacting manufacturers directly, establishing eBay businesses for local merchants, and/or serving as a Trading Assistant to sell products for other people who don’t know how to sell on eBay themselves. 

Watch your spending

One of the most insidious traps many eBay sellers fall into is overspending.  Many sellers have little to no business acumen and think that the way to make money on eBay is just to sell a lot of items.  They think that the more they sell, the more money they’ll make.  In many cases, that couldn’t be further from the truth. 

To make money on eBay, you need to monitor your “cost of sales”.  This is the percentage of your sales that’s applied to your eBay and PayPal fees.  This amount should ideally be less than 10%.  You can monitor your eBay Sales Reports to keep track of this percentage on a weekly and monthly basis.  

Be careful that your fees are worth it.  Many upgrades and subscriptions aren’t, such as a Premium store subscription.  For a Premium subscription to be worth $49.95 a month, you need to use its additional features, and they must generate enough sales to justify the cost.  Otherwise, it’s a waste of money.