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Ebay Profit? What do you do with them?
 

Just curious as to how people run their eBay business. Obviously, you have to make valuable business decisions when selling on ebay and reinvest in your business endeavors. So how do you handle it?

What do you do with the profits you make? Do you use 100% of them to order more product to sell? Do you use some of them to open bank accounts, buy gift cards, etc. Do you spend 100% of your profits on you?

As for me, I am starting to invest 100% of profits I am making to build up inventory of my items for the Christmas holidays. I want to have a lot of items available NOW to sell before the Christmas rush and shipping starts getting slow.

Just thought this would create some good discussion!! =}

Too soon for me to invest profit into anything more than more inventory. When I have excess profit I use that to play poker and blackjack to win even more (well most of the time, sometimes I lose). Than I blow my winnings on useless toys I don't really need, girls and going out.

Actually poker and blackjack are what gave me the initial funds to start my eBay career. But, no matter how good or how much I win at gambling, it will never be consistent.

I'm poking around and researching how to day trade in my spare time. This is for way down the road though.

Reinvesting is VERY IMPORTANT. So is keeping some working capital aside. Once you have enough working capital saved, and have a comfortable level of inventory, THEN you can start taking money out for yourself to spend on whatever.

Of course, some money must also be spent on the means to do business, including the gift cards, bank accounts, phones and what not.

As for expansion, that is something that each individual must decide for themselves. Some may want to grow to 100 employees, while other just want an extra $500 per month. Most of us are somewhere in between.

Keeping working capital has to be the MOST IMPORTANT aspect of running a business. Without it, if you hit a snag, it's all over.

Daytrading is a great way toi lose money. At least it was for me. Short-term trading, on the other hand, can be very profitable.

But who knows, there are some very successful day traders. Maybe you will be one of them. If you decide to do it, learn EVERYTHING YOU CAN! My two problems were that I didn't cut my losses quickly enough, and I sometimes got distracted - a profit can VERY QUICKLY turn into a loss.

how many sellers here actually have outside employees (non-family members)?

not i, this is a one man show! hiring people means potential mistakes leading to accounts being lost and paying people. (thumbs down).

Hi there, I have not login the forum for a long time. The forum is very good! For me, the money I earn in the bay usually go to the saving. I am trying to buy a house next year, so I have been saving money since last year July. Wish me luck :)

I have a business partner. We basically handle everything. When we are busy, we might hire the kids for a few hours here and there. But that's it. At this point in my life, I'm not interested in managing people and running a company.

Good luck! And now is still a GREAT TIME to buy a house. It probably will STILL be a great time next year too.

eBay and PP fees take about 15% of my revenue, and shipping takes about another 10% since I offer free shipping (due to competition). I end up to earn about 10% before tax. I have to sell over half million a year to think about saving the profit, otherwise, the profit just cover my daily life.

Well, If it is not a VERO Item, That is Not too Bad, I know that a Lot of users here wish that they can do that,,,Make sure that you are Using Ebay to its Fullest potential,,,Try Terapeak, You would be surprised at How many more of the Same items you can Really sell on Ebay,,Do not forget Ebay,ca,,other Countries maybe,,,Do Not forget Other Sites Like Buy.com,,Shopping.com,,,Amazon,,and Others,,,Ebay is NOT The Only Game in town,,and It is NO longer the Best Either,,,

Slapped speaks of the truth - diversify and press the market around. You will be surprised to find how many people detest eBay for buying too...and that's good for sellers

whats stakes and type of poker do you play?

Ha and the gambling begins...

Why, want to play? :twisted:

Just kidding haha, mostly 2-3/3-5 No Limit Hold'em, when I'm broke I'll go to the 1-2 tables.

Hahaha, So you play live then. I love poker an play all the time. I have dabbled at my local .5/1 game an have ran like garbage haha.

day trading? is that stocks?

Stocks, Options, Futures, ect,ect,,,,,Really any investment that can be bought and sold in 1 Day, hence the term "Daytrading"

Yes stocks - bit of fast flipping if you don't hold on to the stocks long.

TOO BAD stocks you can really lose too fast.

20% goes to living expenses, 30% goes to inventory/business expenses and 50% is play money :clap:

Oh yes, can't forget about play money. Being young and single I don't have to worry about lots of financial issues yet. I'm saving up for a solo trip to Bangkok and Pattaya, Thailand.

I invest all my profits into my business... More inventory is always a good thing.

hookers and whiskey.... duh :)


I think the point in business is to reinvest in yourself. I always leave a little to the side though....

about 40% covers my living expenses, its not cheap where I live
I like to put back about 40% to get more inventory then the previous month
save 5% and blow the remaining 15%

Just started looking into this myself, gonna try and go around Jan, Feb 2011. Don't forget Phuket.

Phorget about Phuket...phuck it...get down to Koh Phi Phi and embrace Paradise...also head over to Koh Phangang for the legendary Full Moon Party and Koh Tao if u like scuba diving...awesome country and awesome people

For now, after I just got hit with a massive scam I'm reinvesting 100% and leaching food & shelter from my family :-)

scam? dude what happened?

I do not need it for living expenses fortunately, I put it aside for the future in savings, I have some investments , I buy alot of designer stuff for myself, I sponsor children in hardship through charity, I feel I am financially fortunate right now.

LOL still trying to get on my feet, so everything i make atm goes straight back in, if i carry on at this pace, after crimbo i should be financially stable, with plenty of inventory, and then i may be able to play with some of the profits!

I work with a business partner so most our earnings goes to reinvesting when we have so much more money invested then we need then we can take some out we split the profits 50/50 and lately I've been investing most my profit into the stock market. :D

I sold about £1000 worth of subscriptions to a certain site, 2 months later everyones accounts gets cancelled. It turns out I was buying them from a scammer who did a chargeback on all the subscriptions. Eventually refunded everyone.

I also bought £500 worth of rusty jeans I need to bin. The zips and buttons were rusty :-S -_-

But I'm getting back in the game now and better than ever. :clap: