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Make Money Buying on eBay and Other eBay Business Strategies

Now let’s take a look at 2 ways to make money on eBay by buying:

2 Ways to Make Money BUYING ON eBAY Starting Today!

EZ Money-Maker #5:

“The eBay Arbitrage Strangle”

Strategy: Buying low in one central Internet market (CIM) and selling in another more active market for a premium.

Timing: The best time to use this strategy is when there are price discrepancies between CIM’s. Generally slower markets with fewer bidders are the best places to buy- and more active markets with a larger number of bidders is the best place to sell.

Arbitrage is a technique used in the stock market by large players who search (with powerful computers in real time) for price discrepancies from one market to another. For example if they see dealers in London trading IBM stock at 1/8th pt lower than in New York, even if it’s only for a few seconds, they’ll grab it at the lower price and sell it in New York where they’ll make an 1/8th pt profit.

Usually dealing in very large lots (100’s of thousands or millions of shares) arbitrages are made possible by these kinds of short and infrequent ‘inefficiencies’ in the global marketplace.

I’ve applied a modified version of this stock market method to eBay with excellent results. EBay is a huge marketplace, and even though it’s centrally located (in cyberspace) it is still a relatively ‘inefficient’ marketplace. There are several reasons for this (availability of detailed market information available to the participants being one), but it would take more space than I have here to discuss it, even if I were qualified to do so. I’m only interested in what works and what doesn’t wok- not why it works or doesn’t work. I’ll leave that discussion to someone else.

As I mentioned, it’s better to specialize. Become an expert in ‘Zippo” lighters or rare books or whatever interests you most. Add depth to your knowledge, read more books, study anything related to your field- that way when you see a Zippo lighter with a tail like a fish and the person who listed it obviously missed this very important point in their description, you could end up owning it for very little money.

Then you turn around and sell it on eBay again, for a nice profit because:

• You recognized it’s true value,

• Described it correctly,

• Added better jpg’s and…

• Generally instilled confidence in bidders that you know what you’re selling.

• In other words, you have added value to the item.

That’s what I call the “eBay Arbitrage Strangle”.

Here’s a how I take advantage of eBay’s market on the BUY side of the trade:

• Develop a list of “search terms” that will help you locate items you’re interested in.

For example, when I search for rare books on eBay I always have a list of terms, in a text file on my computer and all I have to do is ‘cut and paste’ those terms into eBay’s search window. When developing your list of terms, use terms that a person who didn’t know a thing about what they have listed would use. In my example above, with the Zippo lighter, search on “Zippo and fish tail”. Be obvious in your search terms.

• When you find an item that you know you can make a profit on, bid early and enter the highest bid you would be willing to pay. Don’t ever go back and enter another bid. That’s a sure way to lose money. If you get it at your price or better, good! If not and the item goes beyond your highest price- forget it and move on. It’s easy to have bids in on 50 to 100 items at one time- if you win 10 or 20 out of 100 you’re doing pretty good.

Let’s take a look at another way to make money buying on eBay:

EZ Money-Maker #6:

“Turning the Tables: Buying on eBay, Selling Local”

Strategy: To buy antiques and collectibles and one-of-a-kind items on eBay.

Timing: The best time to use this is when the CR are below 50% and prices are depressed.

<>I shouldn’t have to tell you there are some amazing bargains to be had on eBay. Some are even incredible –

When I look at some items selling on eBay like this, I’m tempted to say, “What’s the catch?” But, you look at the 677 positive feedbacks the seller has received and the feedback the buyer left for this transaction:

…and you realize this guy has a source for fine jewelry that I may never find. And it’s just a plain and simple great deal. Period.

I went to one of the finest schools for jewelry making in the country: The Munson-Williams-Proctor School of Art, right here in Utica, NY. So I’m familiar with wholesale sources of fine jewelry, diamonds, etc. and the costs of creating a fine piece of jewelry. When I buy diamonds it’s at 50% of Rap Sheet prices. So when I see an item like this, that I know I could sell in my local market for DOUBLE what it went for online, I’ll bid on it.

If I win the auction, I put a little ad in the classified section of the local paper under “Jewelry” and say something like: “2.5ctw designer tennis bracelet in 10k solid gold. Sacrifice. Call 733-XXXX.”

Don’t put the price in the ad!

When someone calls, you explain that it’s been appraised (if it really has – don’t ever lie!!– get a local jeweler to appraise it for a small fee) for $750 or whatever but you’d be willing to ‘sacrifice’ it for $550.

Let them chew you down to $450- it’ll make ‘em feel like they got a deal. (you of course bought it for 50- 75% of that. Not a huge profit margin but these trades can really add to your business bottom line plus develop customers who will come back and say "Can you get this for me too?"

They’re happy and so are you.

Here’s a small twist to this type of buying on eBay and selling locally: A lot of antiques, memorabilia and collectible items are made in a certain location and find their way to distant places when the people move. Let’s say I’m looking for a book that was written about my hometown on eBay and I found one.

It just so happens it was also printed by a local printer and the author was a famous local personality.

Wow! It’s got a lot going for it, as far as I’m concerned. And chances are, not many eBayer’s will be interested in a book about my home town or even know that it was written by a famous local personality.

In just about every community there are people who love to collect items related to their hometown: Books; advertising items from local companies; furniture, pottery, stained glass made there; etc… and they’ll pay for good quality pieces.

TIP: When you’re searching eBay for items to buy also include keywords with your city name, town name, county name, village name and the names of local manufacturers in your searches!

You’ll be amazed at what you will find.

And generally, since the market will be much smaller online for items related to a specific town or village or county, you can get reasonably good prices and sell them locally to avid collectors for a good profit.

Bonus Strategy

How To Make $30K to $60K A Year Part-Time On eBay Without Ever Buying Or Selling Anything On eBay’s Site!

EZ Money Maker #7: “An Unusual Way to Make Money Using eBay”

Strategy: To supply sellers in your local area with wholesale merchandise and goods they can resale on eBay.

Timing: This strategy can be used year ‘round but you’ll probably find the majority of your sales will come September to May of each year when eBay is most active.

I believe that this ‘additional profit center’ to your eBay business is completely new and original. I have never seen anyone else do it. Now if I could just get some venture capitalist to back me on this one…wow…we are talking BIG business here!

OK, I’ve kept you waiting long enough, and you may not even think it’s such a great idea!

Here goes:

1. Remember that I said local auctions are a good place to selectively buy things to sell on eBay? And that the reason you want to be selective is because there are so many people buying at local auctions to resell on eBay?

2. Next, remember the chapter I talked about buying close-out merchandise? And how you could buy in quantity at prices way below wholesale?

Now, put 1 and 2 together.

Here’s the way I’ve done it:

For example I bought  72 Star War I watches? Well I’ve sold a few on eBay at terrific prices. But I still have about 25 left. OK, I’m basically lazy and I don’t feel like listing or packing or riding down to the post office one at a time to mail them to my customers 

Now, I bought each one for $1.50. The wholesale price from the dealers when they were sold to retail shops new was $4.50. I have a track record of selling them on eBay for prices from $11.00 to $17.00.

What eBay seller wouldn’t want these watches to sell when:

They KNOW that they will make money on them

based on my track record of selling them!

So I put flyers up around town on free bulletin boards, put little ads for $10 in the local ‘shopper’ and hand a little card to everyone I meet at the local auctions houses which says:

“Looking For Proven, Tested and Quality

Merchandise to Re-Sell On eBay?”

I supply eBay sellers with quality merchandise at

below wholesale prices.

Ask for our FREE current offerings, price list and

our eBay track record on each item.

Dealers only. Not open to the public.

NYS Re-Sale Tax ID# required.

Call Dave @ (315) 763-xxxx

If someone calls here’s what I do:

• Ask for their NYS tax ID#.

• Capture their name, address, phone and fax number and put it in a database.

• Then I fax them a few pages of my current items like this:

Description Item # Qty Avail. Our Price Ave eBay Price*

Star War Watches ST1001 25 3.20 ea $11-$17 w/Light Saber Case take all

NIB

--------

TERMS: Cash, bank check, money-order only. No returns.

* eBay sales records available on request.

Here’s how this works and why it works so well for me:

# 1 You’re only dealing with individuals who have a Tax ID#- so you don’t have to collect sales tax and fill out forms, etc.

# 2 You’re supplying a needed service.

# 3 Your inventory will have a faster ‘turnover’ rate than if you list each item individually on eBay.

# 4 You won’t make as much money, but you’ll get money faster.

# 5 You can work out of your basement or garage or living room- you don’t need a storefront or warehouse- yet (check with local codes about working from your home before starting)

# 6 This has the potential to be a really big business- open a warehouse in every city in your state selling to eBay and online sellers! (if you do, make sure to send me my cut of the business!)

Free Auction Manager from Auctiva.com |
                                       

What to Sell on eBay!

Where the Sources Are!

Find Items To Sell On EBay(R) And More!
* SaleHoo: Wholesale Directory & Resources - Top Guide

* Best DropShip Directory - Top Choice for Sources updated daily for Dropshipping, light bulk wholesale, large volume bulk wholesalers , import sources and Market Research



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