Thursday, June 23, 2011

How to lose heaps of money selling on ebay... thats how it works!

WARNING: Before listing on ebay, and if you are trying to make money then you must take into account the various fees and laws these two entites make you adhere to when you list on the online auction site: ebay.

In order to sell and recieve $10 through paypal you would need:

1. Pay a listing fee (depending on your item), more money for a reserve as they try to get you to list at .99c so that the item will sell and ebay will further profit through sucess fees and paypal fees.

2. Success fees - when/if your item sells ebay takes another greedy % (percentage) of the total amount of the winning bid

3. Paypal fee - Ebay purposely has a payment monopoly so they are in full control of all sales made through this channel. Once ebay has fleeced you for the above fees, paypal gauges any remaining funds/credit you may have made.

4. Lost/Missing items... if for ANY reason the item never makes it to there final desitination the seller is 100% accountable.. dont worry you dont have a say.. paypal will just draw the funds from your nominated account that you have attached to paypal. (very convenient).

Obviously the buyer could claim they never receved and like so many sellers LOSE all the above fees, lose you sold product, and then paypal takes the TOTAL including postage costs from your bank account OR paypal balance.

If you do not supply a tracking number then you straight out have no say.. if you can prove you shipped via EXPENSIVE tracking method then the despute may result in you not losing but bacially you still lose and just get whatever insurance policy was on the shipping from your end.

So assumming you have listed your item well including great images, good description, paid extra for more images, a gallery or feature,

In my next post i will examine how much over the final sale price youd need to make to actually break even in a sale showing all ebays costs as per sighted on there own sight.