I don't understand how these people make money on Ebay (fees, transaction)
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So yesterday, I bought this car charger for my Nexus 4 cellphone on ebay. $2.54 + free shipping
I looked at sold items section there were many sold for cheaper but this seems to be average.
The item is made in china cheap and generic. I started to wonder how much this guy is making.
Went to alibaba.com and all other sites where you can buy a case of them. The cheapest I was able to find was $0.54/piece if you buy 300 of them in one box + free shipping
So let's calculate
Costs
0.54 cost of item
0.30 ebay listing
1.25 shipping first class
0.10 packaging
Total $2.19
I know all these costs because I sell on ebay and amazon frequently
Was the item shipped from China? If so, the Chinese government subsidizes their shipping (e-packet) + exchange rate is artificially low so Americans will buy their stuff + poverty level in China is around $1000/year, so even if you are middle class, a profit of .35 is decent.
If it was a US seller, it could be a loss-leader to bring people to their listings. Do they sell other electronics?
It is not shipped from China, it is shipped from USA
I searched the whole internet and cheapest was like 50 cents if you buy 300 in a box delivered for free to your home.
How can they be buying for cheaper and from where?
Most likely the place you are finding them at 54 cents for 300 bought them from another place at 45 cents for 300. who might have gotten them from a place for cheaper than that. If you can cut out a middle man or two, it'll up your profits.
If they are selling other electronics, it builds up their rating. Also, one successful deal for $3.00 can bring a buyer back for every electronic they purchase. It's that trust issue thing.
Treat the buyer fairly and he will be back for future purchases.
So yesterday, I bought this car charger for my Nexus 4 cellphone on ebay. $2.54 + free shipping
I looked at sold items section there were many sold for cheaper but this seems to be average.
The item is made in china cheap and generic. I started to wonder how much this guy is making.
Went to alibaba.com and all other sites where you can buy a case of them. The cheapest I was able to find was $0.54/piece if you buy 300 of them in one box + free shipping
So let's calculate
Costs
0.54 cost of item
0.30 ebay listing
1.25 shipping first class
0.10 packaging
Total $2.19
I know all these costs because I sell on ebay and amazon frequently
So this guy made only 35 cents on this item?
Why waste precious time for 35 cents?
I am not understanding.
You left out the transaction fees the seller has to pay either Paypal or some other merchant vendor for processing the payment.
Most likely the place you are finding them at 54 cents for 300 bought them from another place at 45 cents for 300. who might have gotten them from a place for cheaper than that. If you can cut out a middle man or two, it'll up your profits.
No the place brought them at .31 and bought 10,000 of them.
I dont think they paid that much. I used to work inventory at a theme park. You know those stuffed animals you spend $75 or more on the games to win? They bought them in lots of 100,000 at $0.07 each with flat shipping of $200 per order. Some of the small pieces they get for less that a penny each.
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