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My best friend, and my Father both sell on E-bay. Neither do it as a full source of income... they simply do it as a supplemental. One owns a store, and lists items on Ebay for the same prices as things in his store. The items range from easy to get, to items that are limited productions from the manufacturer. The other has a car/home audio installation business. He lists his inventory at a small profit on e-bay.
In my opinion there are two ways to make money on e-bay. Sell something that is very rare, or created by yourself at a profit. Or you can sell like most of the other people...small profit margins at high volumes. It's so big now, there's tons of competition.
If I was to throw out an idea... I would say wander around to the specialty shop stores that sell stuff for local artists. If you see something that people may like, call the artist, and see if you can sell for them. If you get enough, you could create your own e-bay store...
To me it seems like a lot of work to actually make a living from it. I think most people supplement their current business, or just sell stuff on the side while they work their day job.
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