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Burnt-out By Low Margin Profit & Customers
 

Hello,

Recently, I'm finding myself extremely burnt out by eBay. Profit margins are extremely low. On top of that, the headache from customers, ebay and negative feedback has really taken a toll on me. This month, sales has been great so far, however after doing the calculations, the profit margins aren't so great for the hours I'm putting into it. I currently sell around 1000 items a month give or take 100-200 at an average net profit of $3 out the door. Given the instability of eBay, I have switched my selling from my own physical inventory to drop shipment. The profit has slid to around $2 area, but I'm still selling consistently which I appreciate.

The problem I'm facing is all these naggers on eBay who are trying to take advantage of the system and are being allowed to do so with eBay. It's really taken a big toll on me. Anyone else in the same area. I'm thinking of stopping what I sell, and finding a more profit oriented product, but as result losing the consistent sale and just waiting for when it's worth selling the product.

EVERYONE is in the same boat, I sell almost 3 TIMES what I sold 2 Short years ago and I make LESS Money, Ebay has created a system where MANY Lowlife buyers use to take advantage of Sellers,,,it is all part of the game,,you just need to decide if you want to play or not

Well said, both of you.

Sell less like me and you'll get less customers.

Less customers = Less leechers = less headache.

That's what I've been finding my self doing lately. I just keep deleting ads.

Just to add, since January the Postal service adopted new rules, which includes No More "Acceptance" Scans so now all you do is simply drop off the Packages, as opposed to getting them scanned when you drop them off, allowing them show up on the Track-n-Confirm Website, Now you are at the mercy of the Automated scanning system at the sorting centers to scan them,,,

Because of this MANY Packages get delivered without ever getting scanned, this has opened the "Floodgates" for scammers, Now if a purchase never gets scanned, MANY Buyers Claim "Item Not Recieved" even if they get the item, and there is NOTHING that you can do about it,,I have gotten a LOT of these cases this year

I agree with slapped on this one. Even customer returns are not getting scanned as delivered. Which the customer was honest enough to return it at their cost so i would dare but usps is getting really sloppy and its getting really annoying fast.

Looking to go elsewhere but nothing compares speed vs cost wise

The marketplace is changing. I agree with Slapped - I have had similar results on eBay. Unfortunately, we are competing with college students who are happy if they can earn some beer money off eBay.... or at least that is what it feels like. I'm just happy that I have built up my website and have regular customers.

It has been changing since about 2008. It stopped being like a big garage sale and started being eBay on Steroids. Once they took away the ability of sellers to leave negatives for buyers and raised the FVFs from like 4-5% to 10%+. eBay lost is Nostalgia for most people back then. But hate it or love it, it is still the best option for selling most goods on the internet for the small seller.

Ebay is like a flea market. The Chinese have killed us. Sort of biting the hand that feeds. They used to make you buy in bulk. Now they go direct to the consumer with one item. The knockoffs that you can profit on you cant list. Vero will suspend you. A new item, youyou have a short window. You use to be able to sell a new item for months and make a decent profit. Even with all the fees, it was hard to make it. Your comments are so true. You cant lower profit margin and increase volume to make it work. China has ruined us in many ways. They shouldnt be allowed to do this. Let them sell on ebay china. They own us. Now they have screwed us and themselves in the process.

Looking at my historical figures I found the Summer months for my product is at its low. Almost not worth selling. However I found that also my costs to suppliers are at minimum in summer months. Especially May. I am stocking up now at lower prices for the season and basically maintaining and gaining ebay trust on various accounts. Thus, when season comes around I will (hopefully) benefit from the planning.

Good luck and try to look at your long term plan and goals.

I'm glad I'm not the only one. It's been very frustrating. I used to love eBay and be logged in 24/7. Now I barely want to log in. I also hate having inventory on hand. Given eBay can close down any account, having heavy inventory on hand can be devastating when you can no longer sell them.

Spread your sales and this will no longer be an issue... :juggle:

Open your mind. Think outside the box. Not EVERYTHING is made in China, nor do Chinese sellers carry every item made in China. Find something else to sell. Easier said than done, I know, but if you put in the time and do your research, you WILL most likely find something. Do this a few times and you have a nice little business going.

Some people shop local flea markets and store sales for items to sell. Others import from not only China, but India and other countries as well. Some just have a few niche products that work well for them.

You are never going to be the low-price leader selling Ipads and Ipods.

I have never made as much money as I am today selling on ebay.

Things are changing and yes we get a lot more crappy buyers every day but the profits are higher for my niche then ever before.

Because many buyers of my type of products who buy to re sell stopped selling and retired because of their age and not many new younger ones come into it with any knowledge.

I also purchase new items such as closeouts, shelf pulls etc and also attend trade shows for other items I sell.

Whatever you are selling get out of that area and look for a different product and sources.

I buy tons of stuff on ebay to re sell on ebay all the time.

I also buy massive amounts at local antique auctions, online auctions, yard sales etc so the items are out there to be had.

Question---

Apologies if I am incorrect.

Did you not post in an earlier thread that you only use dropshipping now?

If so, there is little to no profit in dropshipping but a ton of competition.

You have to find a niche with less competition than dropshipping items.

then run over them, this is part time for them... its full time for you, make them feel the pain to the point where they quit.

How? By losing money on every sale? Not worth it. Even if you knock one out, there are three more that will pop up.

However, it is obviously still worthwhile for me to sell on eBay. If it were not, I wouldn't be doing it.

you can't just swam them? you list 1 i'll list 20 ?

Where did you learn that Strategy?,,,From the Captain Kangaroo School of Business?

There are only So Many Pieces of a Particular item that the market can absorb alowing you to make a profit within a particular time frame,,it is that simple


So if you normally list 1 an Hour and Get $20.00, allowing you to make a Profit, if you list 20 an Hour BELIEVE me you will NOT get $20.00 each, and you will NOT make a profit,

Any business that is not exhausting that makes good money, then you simply got lucky.

I agree.

If you list 20 they have the means to list 100.

That strategy wont work.

With all the sellers being allowed to list multiples over and over and never getting removed a small steather cannot compete with those big boys who can list 1000s of items and make pennies on the dollar.

I do a mix of items so I never get stuck with one area of selling. A variety of items, categories, prices etc keeps the cash flow moving and profits climbing.

Put your eggs in one basket ( Electronics comes to mind ) and it wont be long you will have lost your butt and out of business.

LOL

Looked at a product for re sale on a wholesale website last week. Price was awesome, kinda heavy item but would go into a flat rate bag easy.

Found the cheapest price seller. He is making after fees 2.50 at the most.
Looked over, I see 275 sold. Looked at his store, 700 available. Called the dealer and asked if I buy in bulk what is your best price. Slip of the mouth told me we have a man who sells on ebay who recently bought 1000 of the same item and does this over and over again. I asked then what is the price for 1000 then. Price I could compete with him was given but for 2.50 profit and 275 sold it would not be worth it.

Now if it was small and could be slipped into a small bag then it would be an easy 500.00 a month profit, but it is large and bulky and not worth it.

OP is dropshipping, most of us know that if you are dropshipping products the middle man is making the money and you are not. Some dropshippers can still make some money but they have to be golden with marketing skills etc.

Not only do you have to compete with all the other people dropshipping the same product but if it is being drop shipped then others have it who are buying pallets or containers as well.

Market is flooded and profits are no good.

Some people just want to sit and not touch anything to make money, those days are mostly gone. Not that easy anymore.

BUSTED!!!!!!!!!!

http://4.bp.blogspot.com/-KRqUwyeouz...inKangaroo.jpg

well if all you sell is blue dice and you stare at the wall everyday thinking how you can sell more blue dice........there is no help for you.

I sell USB Cables. Here is what I used to do.

1. Order 5000 Cables - Cost .90c each
2. Sell 5000 Cables - Sell at $5
3. After eBay, Paypal, Shipping, Supplies, keep $2

My Risk Before DropShipping:

1. Account closure, and sitting on inventory
2. Bad Feedback
3. A55hole buyers that want to return items.
4. Scammers buying my product, returning someone else's cable.

Now what I do.

1. I have 0 Inventory
2. I have my price still at the old prices. Probably the highest on eBay currently
3. Order from cheapest stealth account guy who is trying to build up account and making a loss on each sell.
4. Ship to each customer. Copy paste address to the stealth guy's "shipping" section.
5. I have Buyer's protection case working for me
6. Less risk

@100HRWEEK

If you operate that way, then why are you not enjoying yourself?

This is a game. It is a money making game.

Just an observation but you appear to be burning yourself out.

Maybe consider taking a break.

:ranger:

When I was doing my own inventory, I was making $2 cable. Now that I'm using dropshipping per say, as you can imagine, the profit is lower at $1/cable. In order for me to make 5000/month, I have to sell 5000 cables, and I have to repeat this process 5000 times. As you can imagin, it's a lot of work. On top of that, there is customers to deal with and etc... I just think the cellphone accessories business is too saturated. It's great to make some feedback or make quick cash if you are desperate or don't mind putting in heavy hours for a small cash return. However, after doing it for couple of months, you get super burnt out.

If i were making only $1-$2 per sale i would rather straight up shoot myself in the head!

You need a new product friend.

Lol, I mean it's not so bad as far as end of the month given it adds up. However, it's a lot of work to make 5000 dollars.

LMAO

1.00 per item and it would take a ton of items to even buy a hamburger at McDonalds with those profits.

Very true jeffweico - regular customers are key and directing traffic

5000 cables @ .20
 

If you are buying 5000 cables, they should be around .20 ea.. A little more profit for you on that item... I know I can buy 100 around .65 so 5000 you might even get them for a dime!!

yea dood... new product, I can see how you are getting the china squeeze.

but i mean if it sells it sells, i just don't see how doing cable listings can suck up so much of your time.. yes you have to do 5000 but are they all auction? BIN?

you can do tactics to out smart the chinese sellers though.. cause you know every time someone orders something from them it takes a day and a week to get to them... play on their weakness, chinese sellers have crap CS... crap shipping speeds...etc

play it, you do have an advantage.. =}

When you need the anti-acid medication for that ulcer, rethink this method.

You need to be able to enjoy your work just a little.

Take care of yourself.

:peace:

why i order from the value menu, the chicken spicy burger yum yum

How many hours a month are you putting into your extra $5000?

Good question. I mean I perfectly understand getting worn out on eBay with customers and what not. But $5k a month is nothing to be down about.

If you think you are working to hard. You can always RAISE THE PRICE. That should slow things down.

The cables take 95% of my time, they are my primary income on eBay. 16-18hrs a day.

It is a lot of work - maybe take some time to research other lines BUT (which you dont seem to be...) if you are happy with that time and effort, than go for it. But there are a lot of other product lines to be researched...best of luck

i say poke at other stuff but don't look a gift horse... its its making you $$ be glad...

you gota g/f or wife to pawn the work off on?

Well I have decided to part ways with cables. It's a lot of work for small return in profit. Also one a55hole buyer's remorse return can easily eat into many order's profits since the profits are so tiny.