Burnt-out By Low Margin Profit & Customers - eBay Suspended & PayPal Limited Forums
eBay Suspension & PayPal Limited Forums  
Join Today
Register Subscribe
     

Registration is fast, simple and absolutely free so please, join our community today!


Go Back   Home > Marketplace Discussions > eBay Discussion!

eBay Discussion! EBay Forum. News, Updates, or Anything eBay is Welcome. A kind of lounge if you will.

Reply
 
Thread Tools
  #1  
Old 05-18-2013
Junior Member
 
Join Date: Apr 2013
Posts: 116
Thanks: 1
Thanked 6 Times in 6 Posts
Activity: 0%
Longevity: 50%
iTrader: (0)
Default 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.
Reply With Quote
The Following User Says Thank You to 100HRWEEK For This Useful Post:
danshan (05-19-2013)
The complete step-by-step guide to get back to selling today!

  #2  
Old 05-18-2013
slapped's Avatar
Executive [VIP]
 
Join Date: Mar 2010
Posts: 3,341
Thanks: 389
Thanked 1,397 Times in 866 Posts
Activity: 0%
Longevity: 74%
iTrader: (4)
Default

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
__________________
The 3 Keys to Success are:,,,,Research, Research, and More Research,,,,,
Reply With Quote
The Following 3 Users Say Thank You to slapped For This Useful Post:
jeffweico (05-19-2013), madmuppet303 (05-20-2013), stanislav (05-18-2013)
  #3  
Old 05-18-2013
stanislav's Avatar
Senior Member
 
Join Date: Sep 2008
Posts: 1,138
Thanks: 790
Thanked 188 Times in 136 Posts
Activity: 0%
Longevity: 86%
iTrader: (2)
Default

Well said, both of you.
__________________
"i once met face to face with a shadow being" stanislav
Reply With Quote
  #4  
Old 05-18-2013
SaiJin's Avatar
Super Moderator
 
Join Date: Jul 2008
Posts: 7,549
Thanks: 229
Thanked 1,148 Times in 966 Posts
Activity: 70%
Longevity: 88%
iTrader: (2)
Default

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

Less customers = Less leechers = less headache.
Reply With Quote
  #5  
Old 05-18-2013
Junior Member
Threadstarter  
 
Join Date: Apr 2013
Posts: 116
Thanks: 1
Thanked 6 Times in 6 Posts
Activity: 0%
Longevity: 50%
iTrader: (0)
Default

That's what I've been finding my self doing lately. I just keep deleting ads.
Reply With Quote
  #6  
Old 05-19-2013
slapped's Avatar
Executive [VIP]
 
Join Date: Mar 2010
Posts: 3,341
Thanks: 389
Thanked 1,397 Times in 866 Posts
Activity: 0%
Longevity: 74%
iTrader: (4)
Default

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
__________________
The 3 Keys to Success are:,,,,Research, Research, and More Research,,,,,
Reply With Quote
The Following 2 Users Say Thank You to slapped For This Useful Post:
newjerseymax (05-19-2013), stanislav (05-19-2013)
  #7  
Old 05-19-2013
Senior Member
 
Join Date: Jun 2010
Posts: 2,657
Thanks: 25
Thanked 401 Times in 337 Posts
Activity: 0%
Longevity: 73%
iTrader: (0)
Default

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
Reply With Quote
  #8  
Old 05-19-2013
jeffweico's Avatar
Executive [VIP]
 
Join Date: Mar 2010
Posts: 7,220
Thanks: 895
Thanked 4,058 Times in 2,168 Posts
Activity: 0%
Longevity: 75%
iTrader: (12)
Default

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.
Reply With Quote
  #9  
Old 05-19-2013
Executive [VIP]
 
Join Date: Nov 2012
Posts: 3,090
Thanks: 407
Thanked 661 Times in 489 Posts
Activity: 0%
Longevity: 53%
iTrader: (0)
Default

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.
Reply With Quote
  #10  
Old 05-19-2013
Wes Wes is offline
Subscribed [VIP]
 
Join Date: Nov 2012
Posts: 72
Thanks: 2
Thanked 3 Times in 3 Posts
Activity: 0%
Longevity: 53%
iTrader: (0)
Default

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.
Reply With Quote
  #11  
Old 05-19-2013
newjerseymax's Avatar
Executive [VIP]
 
Join Date: Apr 2010
Posts: 2,848
Thanks: 1,090
Thanked 678 Times in 491 Posts
Activity: 8%
Longevity: 74%
iTrader: (6)
Default

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.
__________________
"Mark 11.24 Whatsoever ye desire, believe that ye have it, and it is yours"
Reply With Quote
The Following User Says Thank You to newjerseymax For This Useful Post:
GreenBean (05-20-2013)
  #12  
Old 05-19-2013
Junior Member
Threadstarter  
 
Join Date: Apr 2013
Posts: 116
Thanks: 1
Thanked 6 Times in 6 Posts
Activity: 0%
Longevity: 50%
iTrader: (0)
Default

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.
Reply With Quote
  #13  
Old 05-19-2013
newjerseymax's Avatar
Executive [VIP]
 
Join Date: Apr 2010
Posts: 2,848
Thanks: 1,090
Thanked 678 Times in 491 Posts
Activity: 8%
Longevity: 74%
iTrader: (6)
Default

Spread your sales and this will no longer be an issue...
__________________
"Mark 11.24 Whatsoever ye desire, believe that ye have it, and it is yours"
Reply With Quote
  #14  
Old 05-19-2013
jeffweico's Avatar
Executive [VIP]
 
Join Date: Mar 2010
Posts: 7,220
Thanks: 895
Thanked 4,058 Times in 2,168 Posts
Activity: 0%
Longevity: 75%
iTrader: (12)
Default

Quote:
Originally Posted by Wes View Post
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.
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.
Reply With Quote
The Following 3 Users Say Thank You to jeffweico For This Useful Post:
bronwyn (09-04-2014), FizzyFish (05-22-2013), Sandy D (05-19-2013)
  #15  
Old 05-19-2013
Banned
 
Join Date: Apr 2009
Posts: 8,611
Thanks: 1,580
Thanked 2,025 Times in 1,355 Posts
Activity: 0%
Longevity: 82%
iTrader: (47)
Default

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.
Reply With Quote
  #16  
Old 05-19-2013
Banned
 
Join Date: Apr 2009
Posts: 8,611
Thanks: 1,580
Thanked 2,025 Times in 1,355 Posts
Activity: 0%
Longevity: 82%
iTrader: (47)
Default

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.

Last edited by Sandy D; 05-19-2013 at 05:26 PM.
Reply With Quote
  #17  
Old 05-19-2013
Senior Member
 
Join Date: Aug 2011
Posts: 531
Thanks: 34
Thanked 90 Times in 69 Posts
Activity: 0%
Longevity: 63%
iTrader: (0)
Default

Quote:
Originally Posted by jeffweico View Post
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.
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.
Reply With Quote
  #18  
Old 05-19-2013
jeffweico's Avatar
Executive [VIP]
 
Join Date: Mar 2010
Posts: 7,220
Thanks: 895
Thanked 4,058 Times in 2,168 Posts
Activity: 0%
Longevity: 75%
iTrader: (12)
Default

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.
Reply With Quote
  #19  
Old 05-19-2013
Senior Member
 
Join Date: Aug 2011
Posts: 531
Thanks: 34
Thanked 90 Times in 69 Posts
Activity: 0%
Longevity: 63%
iTrader: (0)
Default

you can't just swam them? you list 1 i'll list 20 ?
Reply With Quote
  #20  
Old 05-19-2013
slapped's Avatar
Executive [VIP]
 
Join Date: Mar 2010
Posts: 3,341
Thanks: 389
Thanked 1,397 Times in 866 Posts
Activity: 0%
Longevity: 74%
iTrader: (4)
Default

Quote:
Originally Posted by golden_monkey View Post
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,
__________________
The 3 Keys to Success are:,,,,Research, Research, and More Research,,,,,
Reply With Quote
The Following 2 Users Say Thank You to slapped For This Useful Post:
jeffweico (05-19-2013), Sandy D (05-20-2013)
  #21  
Old 05-20-2013
AllAboutStealth's Avatar
Senior Member
 
Join Date: Jun 2012
Posts: 305
Thanks: 47
Thanked 22 Times in 17 Posts
Activity: 0%
Longevity: 57%
iTrader: (0)
Default

Any business that is not exhausting that makes good money, then you simply got lucky.
__________________
SUCCESS
Some people dream of it while others
wake up and work hard at it.
Reply With Quote
  #22  
Old 05-20-2013
Banned
 
Join Date: Apr 2009
Posts: 8,611
Thanks: 1,580
Thanked 2,025 Times in 1,355 Posts
Activity: 0%
Longevity: 82%
iTrader: (47)
Default

Quote:
Originally Posted by slapped View Post
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,
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.
Reply With Quote
Reply



Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
profit margins arshavin eBay Discussion! 30 05-29-2012 06:26 PM
Profit Per Item teenageebayer UK eBay & Paypal 10 07-07-2011 01:37 PM
What is your profit margin ? winstons Subscriber Discussions 27 11-17-2010 05:22 AM
Good selling items with good margin noel123ie eBay Discussion! 5 07-09-2008 01:10 AM
what is your monthly net profit? dddoch eBay Suspensions 0 06-21-2007 10:19 PM


Aspkin Group

All times are GMT -5. The time now is 12:09 PM.


Stop the guessing games and learn how you can quickly and easily get back on eBay today!
Read the best selling step-by-step eBay Suspension guide eBay Stealth!
Amazon Suspension? Read Amazon Ghost to get back on Amazon!
vBulletin® Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
Ad Management by RedTyger
no new posts