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Being Cheeky With eBay Stock

by justlukeyou
6 replies
Hi,

I have spent the last two weeks searching for dropship suppliers. I found one supplier which lists a minimum RRP which helps massively. However I found around 10 others where their stock including selling fees is actually more expensive that those listed on eBay.

However, I have found stock on highly reputable consumer merchant stores which is heavily discounted in regular sales. For example cushions with RRP $40 but selling for $12.

If I purchase this cushion and sold it for $24 I will stay make a decent profit but the question is why wouldn't someone purchase it from the merchant at $12.00
#cheeky #ebay #stock
  • Profile picture of the author LandenLakewood
    About the only reason I can think of is that the customer doesn't know they can get it for $12.00, or there is a minimum quantity or something.
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    • Profile picture of the author justlukeyou
      Originally Posted by LandenLakewood View Post

      About the only reason I can think of is that the customer doesn't know they can get it for $12.00, or there is a minimum quantity or something.

      There is no minimum order. I will be purchasing the item from one site which is heavily discounted and selling it on another.

      If I order more than $40 there is also free delivery.

      Its just that I am purchasing it from a merchant and selling it on eBay. Has anyone tried this?
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  • Profile picture of the author LandenLakewood
    I do it all the time. My margins aren't often huge, but there are "Buy Low/Sell High" opportunities everywhere if you look hard enough.

    Just watch out that the market price isn't shifting downward for your product. With tech items especially, they may sell for say, $50 consistently for months and then suddenly you see an opportunity to buy for $10 - and don't realize until you are loaded with product that you can't sell them for more than $15. Sometimes these dips can be cyclical fluctuations, sometimes not. I recommend not getting too heavy into inventory unless you are positive the price you can sell for is pretty stable.
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    • Profile picture of the author justlukeyou
      Originally Posted by LandenLakewood View Post

      I do it all the time. My margins aren't often huge, but there are "Buy Low/Sell High" opportunities everywhere if you look hard enough.

      Just watch out that the market price isn't shifting downward for your product. With tech items especially, they may sell for say, $50 consistently for months and then suddenly you see an opportunity to buy for $10 - and don't realize until you are loaded with product that you can't sell them for more than $15. Sometimes these dips can be cyclical fluctuations, sometimes not. I recommend not getting too heavy into inventory unless you are positive the price you can sell for is pretty stable.
      Thanks,

      There are also some high quality luggage suitcases RRP $120.00 selling in the sale for $45.00. Im looking to purchase items that I dont mind if they dont sell and test it with around $50.

      What really concerns me is that they dont sell and also the logistics. I am not familiar with posting parcels.

      Should I use plastic parcel bags
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  • Profile picture of the author LandenLakewood
    Here's a simple breakdown of what you need to know:

    Current actual "street" price of item - Not RRP

    Price you are paying, including shipping (your cost)

    Dimensions and weight of item so you can calculate shipping on several carriers to find the lowest shipping cost.

    Any selling fees you will incur on ebay, etc.

    Cost of shipping materials and handling, such as driving to post office.

    An Example:

    Your item costs $50 shipped to you. You can sell it for $79 on ebay, buyer pays the actual shipping cost from you, we'll use $15.

    The calculations I use are $79 + $15 = $94 (money collected from customer)
    $94 * .13 (ebay and paypal fees) = $12.22 fees
    $94 - $12.22 (fees) - $15 (shipping cost) = $66.78
    $66.78 - $50 (cost of purchase) = $16.78 Potential profit

    I say "potential profit" because you may have incidental packaging/labeling costs, your item may sell for less than $79, or your item may not sell at all. This should give you a rough guidleline though to see if it's worth the risk. I personally wouldn't touch this scenario unless I knew this item sold for $79 or more every single time. By the time I take pictures, list it, watch the auction, and ship it, that $16 and change doesn't go very far, especially once you roll taxes into the equation.
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    • Profile picture of the author justlukeyou
      Originally Posted by LandenLakewood View Post

      Here's a simple breakdown of what you need to know:

      Current actual "street" price of item - Not RRP

      Price you are paying, including shipping (your cost)

      Dimensions and weight of item so you can calculate shipping on several carriers to find the lowest shipping cost.

      Any selling fees you will incur on ebay, etc.

      Cost of shipping materials and handling, such as driving to post office.

      An Example:

      Your item costs $50 shipped to you. You can sell it for $79 on ebay, buyer pays the actual shipping cost from you, we'll use $15.

      The calculations I use are $79 + $15 = $94 (money collected from customer)
      $94 * .13 (ebay and paypal fees) = $12.22 fees
      $94 - $12.22 (fees) - $15 (shipping cost) = $66.78
      $66.78 - $50 (cost of purchase) = $16.78 Potential profit

      I say "potential profit" because you may have incidental packaging/labeling costs, your item may sell for less than $79, or your item may not sell at all. This should give you a rough guidleline though to see if it's worth the risk. I personally wouldn't touch this scenario unless I knew this item sold for $79 or more every single time. By the time I take pictures, list it, watch the auction, and ship it, that $16 and change doesn't go very far, especially once you roll taxes into the equation.
      Thanks,

      I would really like to get into furniture drop shipping from eBay. I have listed 8 products but they are from a mid market furniture brand .(TV Display stand $500) and I am concerned they are to epensive for eBay.
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