How do you make a profit????!

  • Thread starter Thread starter DSMPowah!
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DSMPowah!

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So, I just recently got into a natural herbal supplement supplier deal, and started selling on eBay. The cost for me is $17.50 per box, and I sell for $20.50. There is very low competition, but the final value fees are KILLING ME!

They take out a final value on shipping too! What the fuck? Thieves! So it's 11% on how much the items cost, and shipping + .50 cents for Buy it Now. What do I do????

I can't turn a profit like this. I can't even inflate the shipping, and wouldn't want to. Is there a secret? Or just avoid eBay all together. I mean damn.

Just for logistics.

I sold on eBay for $20.50 a box + 6.95 shipping per box. I allow people to combine shipping. The final value fees came out to like $6, and that's not even including the 2ish% from Paypal....I'm losing money.
 
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You need to raise your price. I'm not sure what other answer could be beneficial to you. :(
 
TheIllestBrew said:
If there's low competition, then why not just raise your price?
Click to expand...

marusia said:
You need to raise your price. I'm not sure what other answer could be beneficial to you. :(
Click to expand...

Well, I was considering that, but there are two possible issues....

#1, The company sets the price, and it's forbidden for us to raise or lower the prices. I'm sure they won't find out, but it's their rule for sure.

#2, There are three other people selling it, and they are selling for the same price I'm selling currently.

I will raise the price, but I still won't turn a profit unless I go holy shit high.
 
so you have no competition.... so why are your prices not higher...


or add to shipping...
 
Virus1 said:
so you have no competition.... so why are your prices not higher...


or add to shipping...
Click to expand...

eBay is now charging a final value fee on shipping charges too, apparently to curb people adding cost to shipping and avoiding the final value fees. I have like 3 people competing, but like I said, when people search for the product, they'll see the lower prices, and just choose them.
 
This is why the eBay PayPal empire is destined to fall. No one wants to pay all these fees. Stupid. Honestly seems like you are screwed.
 
Others have alluded to it... but if you want to take advantage of the huge eBay buyer base you have to pay the price, and it's a big one...

But it sounds like your issue is not so much with eBay fees as much as it is getting a poor supplier with bad wholesale pricing.

eBay and PayPal fees are going to be tops 15% and if your margin isn't even that from your supplier you need to source elsewhere.
 
You need to find a new product to sell. Or some other outlet. Those margins are shit. Low comp yet you lose on each sale? If you have a low comp product you should be making a killing, like 50% after expenses.

How is your comp making money? They must be buying it for way less than you. I would look into where they are buying the product. Try to get a better buy. If not, look for a new product.
 
Open an ebay store. .05 per fixed listing with buy it now. I have never heard of a company saying your couldn't raise the price. I would find a new supplier if you can't make a profit.
 
Have you consider your competitors are using ebay as a lead gen and you can do the same. Get them and close them with higher value products.
 
I'm no eBay expert... but why not sell something else? This product is clearly not going to be profitable.
 
bigdippin said:
Open an ebay store. .05 per fixed listing with buy it now. I have never heard of a company saying your couldn't raise the price. I would find a new supplier if you can't make a profit.
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There are a lot of companies who don't want the MSRP adjusted either way. A lot of companies don't want to be sold on ebay either.

I'd try different products too.
 
Well, here's the thing. I'm selling online for my sister, and she really wants to keep with it, because it can be profitable offline.

However, the real reason to sell is because the company gives us incentive bonuses and point bonuses each month. Each item has a PV or point value. Etc...
 
Any chance you can look the other direction and get your supplier to work with you on price?

Email:

"Hi Supplier,

I've been selling your widgets for X months now and am very pleased with how well it makes bananas grow bigger and faster on small banana farms. In that I am sending you volume that would make Donald Trump wet his pants, is there a chance that you can provide better pricing as if you do I should be able sell even more and to a larger base.

Please do let me know as I am slowly being considered the Banana go to guy and would like to continue to represent your project"

Very truly yours,

Banana guy
 
I think if you're determined to keep selling that product on eBay (or your sister is), then you MUST find alternative ways to monetize the buyers you're getting.

Think of it like all those people who bought reseller hosting accounts and basically gave away free turnkey sites via eBay in order to turn their site buyers into easy leads and customers for their reseller hosting biz.

In this case, you've got buying customers in a niche, you've got their info to follow up with, just figure out what else you can offer to them outside of eBay now to pull more money from their pockets into your bank account.

Once you figure out what else you can offer them, make up some great promo materials and stuff them into the packages when you ship the products. Also follow up with customers by email, postal mail, phone (if you get it), and keep pitching to them over and over.

If you put a system in place with this, eventually you can look at the lack of profits from the initial eBay sales (or even a slight loss on those initial sales) as the lead generation cost of doing business. The key is to get the customer's info and convert them with a solid backend of future sales with higher profit margins.

Good luck!
 
Hey there DSMPowah,
I can't offer you any advice on this subject but I can tell you that I am very knowledgeable in supplements (vitamins, minerals, herbs) and healthfood and if I can help you out in any way let me know :)
I know google is here for most of our answers but its nice to be able to go to an actual person for a little more insight on the product and it's quality vs other manufacturers or what have you.

Good luck with your ebay journey, the health business is really booming.
 
you should try to do research and make sure the demand is good for your product. you can use terapeak for that, this is very good tools. with this tools you can see how much your competitor selling price.

for that data you decide how much your final price. and if the demand is good, you may make many listing to boost your selling.

wish it help.
 
Give it a try with the price raising who know maybe you will still get sales from there, if that won't work maybe it is not worth and you should try and look for other sites with less fees, or try and open your own shop site.
 
well you should have thought about this before initially making sales, if you cant profit x amount + 9% and live happy with the profit, than its not worth your time. you always have an economical shipping option where they pay less and wait longer but you can definitely still profit
 
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