Here is why "buying and reselling" on eBay isn't as profitable as you think (but still fun).

Say you buy something at an auction that is guaranteed to sell for $100, and will cost $20 to ship. You snag it for $5. Current profit if sold outright, $95.

You decide to go the eBay route. Guaranteed sell in 3 days, vs. weeks on Craigslist.

You take 6 photos, then start the listing at $10.00, because if nothing else, you'll double your money. Fees so far, $1.25. Current profit, $93.75.

Your item sells for $100! Plus 9% fees for the item total+shipping, total profit, $82.95.

They pay through Paypal, and they take their chunk (3%) of total ($120). Total profit, $79.35

Then (if you do it as a business) you have to pay Self Employment taxes on this. It amounts (for me, by the time you add all the taxes up) to about 30%. Total profit, $55.54. Minus gas, etc. It's under $50.

Isn't that ridiculous?

This is why I DO "flip" on craigslist. I don't care about the wait... if it takes a week or a month, so be it - gives me time to work on other things instead of having to nurse my ebay acct. every couple of days. You can't beat free listing, no Paypal etc.

Yeah, I tend to use Craigslist a lot as well, I just get sick of the no-shows, people trying to get something for next to nothing, etc.

It doesn't matter what it is, whether it's a Bose Sound System, or a old jukebox speaker, the ratio of replies to people who show is ridiculous. At least with eBay, you bid on it, you win the auction, its yours. You don't pay, you get a strike. Three strikes, you're out.

Thanks for the lesson on selling on ebay. I have purchased a few things but have never sold. I knew there were fees but did know to what extent! I learned some thing new today so that means my day wasn't wasted!! Thanks for the education!!!!

Lynn

Still, a thousand percent NET isn't bad, I'll take that kind of margin any day of the week.