I have done this method for several years now. I operate under 3 separate eBay accounts as they are tied to different niches and an eBay store. I have done some things over the last couple years to really increase my margins and with the upcoming changes in the next few months on eBay, it is a great market to get into. I have increased my margins by more than 20% in the last year alone on one account. The key is to communicate well with your customers and to have everything laid out clearly in your auctions. Timing is also key as certain items (especially high dollar) sell better at particular times of the year. Also, pay close attention to your market.
Bottom line is, take action! If you handle no product, make just $5 profit, and sell 4 items a day, that is $20 a day! Now scale it. Find higher margins on items. You'll easily make more money per day than an Adsense MNS so give it a try. If something goes bad with a transaction, item, return, take good care of your customer. I offer 7 day returns on all my auctions (will be increasing this to 14 days next month). I don't mind the occasional return because I can deal with my original purchasing source after I receive the item back. I never lose money and I gain solid reputation through my feedback.
To really increase your profit margin, do your homework. For a long time, I made a killing by purchasing ladies purses and handbags on eBay US and selling them on eBay UK and Australia. Some bags were being purchased for $150 USD here and then selling for close to $400 USD in Australia! Many sellers simply refuse to ship items internationally. (This method became rather saturated as the market has become flooded with these goods.) All 3 of my eBay accounts are top-rated power seller accounts which gives me a 20% reduction on seller fees and listing fees are low because for just $40 per month, you can list as an eBay store so you can sell more items per month (beyond the 150 items/$5000 limits). In addition to this, my seller status gives me shipping discounts through the USPS where I print my own shipping labels. Handling time is increased for all of my auctions (as stated in my listings) and I inspect my items prior to shipping out in the event of an error.
In addition to these methods to increase profits, I have started ordering direct from overseas manufacturers for products related in my niche. I make money through eBay and Amazon by selling through stores and cross-promotion through my niche websites. Think outside the box a little, do your research, and take action. The customer is king, so take care of every person that you deal with. They will come back for more! I send e-mails to previous customers when I receive new products that they may be interested in and many purchase the same day!
