I started selling on eBay because I'm a musician and worked at guitar center for years. I've sold hundreds of instruments. Rare books and albums cd's DVD sets and blank recording media. Vintage electronics and musical instruments have a very high ROI RETURN ON INVESTMENT. I sold rare books for hundreds of dollars and record albums for $1800 because I have deep knowledge in a niche market. You have to spend more to make which means if you don't know how test what you buy you lose big-time. Looking at your channel I've learned about vintage tee shirts and video games which I use to walk by thank you for being real in this reselling life-style. Selling used items enables me to live my dream of being a creative artist.
Good break down! This is why it's important to know your real time invested in a product as well as your cost. So many resellers do not look past their gross profit number.
Prof Sales I'm a new seller. The one part of COGS and net profit I didn't take into account is my time. I made sure to check after the sale all costs involved even the price of the tape I use to ship with. I subtract 50 cent from the net profit for shipping supplies (it only cost about 20 cents but you never know some items maybe more). I'm still learning and the cost of shipping was a sharp turn but hopefully I'll learn fast and can find a lower price for sources items and a steady stream of those items. Right now net profit is about 1/3 of total sales. Is that a good number?
Hi naturegirl2110 This is Mike's channel so Ill let him answer you in depth if he wants to do so. In general I would suggest 33% margin is a bit on the low side for clothing but it does depend on many factors as you mentioned. Thanks
Most resellers on you tube claim to make big $ on eBay they show nice homes and cars but if you look at their stores it's like How? Then you might think the spouse is bringing in the 💰. I respect and appreciate your transparency and honesty that's why your channel is 🔥🔥🔥🔥
I always look at some of those sellers' homes like WTF? If one half of the marriage is bringing in 6 figures why the hell are you living in a townhouse? IDK I feel like most of these wanna be celebrity sellers are full of it. After a while the truth always comes into the light. Been watching Mike's stuff since he was back in Chicago really. He's the best.Can't really stand the usual suspects who preach to us like we don't make any money cause we don't do videos or comment in their stupid live sessions. And why do they all have some form of picker in their name lol?
Delonte - like Nicole Slate and Lindey Glenn. lol Most of the people want the attention of TH-cam and are not single. If you were single doing this, good luck! It'd be almost impossible.
Ze Bunker I think Nicole state is genuinely honest about her sales and if you look at her eBay store she sells a good chunk daily. Majority of the you tubers sellers (not all) can't be transparent. Mike,Craigslist hunter,Nicole state, rockstar flipper, I think their honest my opinion tho
How did you find out his store name? I have tried and can't. I like his videos but would love to follow him like you have. If he is not, I sure would like to know that. I know Craigslist Hunter does vids with him, but he has a B&M store in the Chicago area and gets most of his ebay products from contacts and deals he has because of his store. I have wondered about where Chad gets these incredible items that he sells. Global Voodo first class all the way!
Glad you hit on the time factor. Far too many people that are self employed completely forget the value of their time in their equations, which ultimately means that they don't have a business, they have a job. It is only a business if you can replace you with a paid employee and still make money.
Great advice... especially for the new sellers. The best advice I heard was to diversify what we sell. I used to "specialize" in selling clothing. It was about 95% of my business. I now sell just about anything that has a profit. My product knowledge has grown tremendously in the last 2 years... mostly by watching youtubers like yourself. My business is now growing, and is on an upward trend. Not to mention it is a lot more fun to source so many different types of products, and with a higher ROI. Best wishes! -Steven
Im manufacturing my own items. Im selling on ebay and Im doing pretty good. Before I was selling used clothes and I have lots of competition, shirts 9 millon listings on ebay. Its a nightmare. Thanks God I can make my own designs. Its selling very good. regards.
I think a lot of people mark items down cheap when sales hoping it will stimulate sales. It won't ! Trust me I've tried. Better off leaving your items priced exactly where they are at and waiting for the buyers to return. I'm also slowly doing away with best offer because it's to tempting to take those low ball offers just to move product. Also think about this as to why sales are slow for everyone right now.... all the Christmas shopping credit card bills hit at the end of January!
Mike, THANK YOU for your time, keeping it real and food for thought for new resellers, like me. You speak from experience and it's very very helpful. Please always think of the number of people you're helping, not the thumbs down.
I've been selling on eBay since 2008 and I've always sold items for $50 or more. With all the fees, selling materials, and time you take out of your day to do all of these things, you have to try and get a big return or it isn't worth it. If you focus on selling thing at least $25 and higher, you will be fine.
Excellent video! I've said this for year. When I used to sell on Ebay, I had a spreadsheet that I used when I considered buying something. My basic rule of thumb THEN was it needed to be something that sold at $25+ and had a 50% margin if I wanted it to ship free.
I love your videos because there are no lies and it tells it like it is. I know it takes longer than thirty days on a lot of items of clothing to sell. The profit margin on a lot of items is low. But at the end of the day or week I don't have someone else to work with that I can't stand being around or who has hygiene problems. I'm alone and I love it. Please keep making videos cause you tell it like it is.
THank You Mike. I am going to get hate for saying it, but if you follow some of the fellow youtubers advice about selling clothing for almost nothing like Nicole State, you will fail as a reseller. I asked her once about if she took into consideration about supplies, paypal fees, ebay final value fees, insertion fees, store subscription, bubble mailers, tape, on and on. Do you really want your average sale to be 17 dollars with free shipping (that's her model). You get back to me and tell me how much that leaves you. OH and yeah I forgot to say you have to minus YOUR COST TOO NICOLE.
Morgan Hoard love this comment, Morgan. Couldn't agree with you more. There's nothing worse than doing your listing and taking photos and what not while watching some selling videos when suddenly your TH-cam auto play betrays you and you hear that annoying lying voice come booming through the speakers.
Exactly Carol. She shows her numbers, she shows it all. So I am not sure what else one can do to be transparent. Then again, it's probably just good ad revenue to complain about people who are maybe doing just a little better than yourself.
Actually, she supports her family of 4 solely with eBay. Her husband now works alongside her but has been laid off for over a year. But you know, if you watch 5 seconds of her videos you would know that.
Yes, Nicole sells some items and may only profit 5, 10 or 15 dollars. But, she also sells items and makes 30, 40 or 50 dollar profits. She knows what she is doing , and she is making money. She has what any mom wants, to be home with her kids and work for herself.
I truly appreciate not only what your doing but the honesty of this post. I've been selling seriously on eBay for two years now ( part time) and not only changed my business model too something very similar too this but also at a $15 to $20 price point and I'm working less and profiting more on my gross margin. Thanks Mr Center City
I completely agree. I do sell some under-$10 items (mostly because they're things I already have). But I try to focus on $15+ when possible. The only time I find it really worth the effort to list low dollar items (under $5, for example) is when I have multiples of the same thing. That way I can make a single listing with multiple quantity. Otherwise, I'll bunch similar low-dollar items into lots. It also pays to understand when to sell fixed price and when to run action listings. It can make a huge difference on your bottom line.
You're right on the money. I was selling t-shirts for $5, but I realized I wasn't making diddly on those things. So, now I'm targeting items that have a higher sale value. Sell less, but with higher profit margins. Unfortunately in the upper great plains where I live, higher value clothing brands are rare. So, I have to be a little more creative, and sell things that other people don't even look at. Like you said, you have to adapt to what you can get for a profit to make it in this business. Thanks for the video, and keep up the awesome work that you do!!
I think for most people serious about progressing their business thrift stores are starting point. It's a good place to get your feet wet. From there you can progress into buying bulk wholesale products, or liquidated products, or even creating and importing a product, or products from China.
Those people selling clothings for $8 shipped should be applying for a job instead. There are practically doing it for free. They won't make it in this reselling game. No hate, just the truth..
It's easy! All I did was call my local Scottrade office and say "hey can you help me set up an account Idk what I'm doing" and he said "sure!" and 30 minutes later I had my account all set up. :)
You just start with a company you know, but then you wanna research other companies that have a lot of growth potential, i.e., who's coming out with the coolest stuff in the future? That's basically all you have to do. :) I talked about that in one of my vlogs but I had to take it down and haven't reuploaded it yet, but I will next week!
This is SO spot on. I have been selling on eBay and Amazon seriously for only a couple of months now and I am becoming increasingly frustrated with how people are pricing items. I see BRAND NEW items that sell for $49 on Amazon being sold for $29 on eBay. How are these people making any money? Ugggh..
Thank you for the breakdown. After selling men's shirt for the last 4 years solid, I can bust through a thrift store and pick out the gems and see quality or some item that "pops" and do some quick research and figure out if it can sell. It took a some time to get to that point and to learn to walk away from the sub $12 shirts. Just like the other day when you showed the examples of other sellers dark and crummy photos, we take very good, well lit, sharp, in focus pictures of our shirts. Our listing are easy to read, mobile friendly (cell phone, tablets, IPads) and not bogged down with twenty paragraphs about policies. Clean, simple and return the item, no questions asked. I feel people pay a little more for my shirts cause they can see a quality item. We love to thrift/source and love that we are very good at doing this. I love that your one of the reselling you tuber that shows me information I can use and make money from. Your not trying to sell me a $2000.00 dollar program to get started in "private" label. Thank you for taking the time out of your day to do these videos!
The reason sales are slow: EB has been having a lot of glitches this year. Downdetector.com reports all site outtages. Another reason, as you stated- everybody is selling online and there are thousands of "swap" "offerup" type sites where people are sending their items to sell. I rarely see yard sales like I used to, and figure that people are putting stuff up at Craigs, EB, etc. etc. I find that Ralph Lauren and even Brooks Bros. is devalued. Too much out there. For me, it goes in cycles....one month Jos.A. Bank sells, then it doesn't sell. One month Pink sells, then it doesn't sell. You're right about DVDs and Games -- more profit, esp. if it's a rare or odd DVD.
Mike, you absolutely nailed it with diversification. I have been doing this off and on since eBay was Auction Web and that has been far and away the best way to keep your head above water. I paused the video at 15:38 and gave you a high five. Ya feel me, cuz?
I am brand new into this business, I actually just signed up on ebay and today will be my first post on it, but i have been watching few if your videos and has help me a lot. Thank you!! :)
I think you are spot on. I've been selling since 2008 and I feel like the last 3 years I have had to be a lot smarter. You can still make a living but you have to watch your costs, don't over buy, get your stuff listed, and shoot for a $20+ profit after fees and shipping. Because, what's your time worth?
Your math is incorrect, because you are 'charging' the entire trip, as well as all of the time to prep to one singular item. Logically, it is a waste of time to source for one singular item. No one does that. So, to get a real estimate of the break even/profit line for the item, you not only have to break down the eBay & PayPal fees, but also break down the time spent and divide it by your # of items. For instance, today I listed 5 things so far. It took me and hour to source, take super photos, list, and get them ready to ship. It takes me 2 minutes to ship when all is ready to go ahead of time. Divide 1 hour (60 minutes) by 5 items you end up with 12 minutes per item + the 2 minutes to ship = 14 minutes per item. Times my pay per hour = $25 (what I THINK my times is worth, my goal) divided by sixty minutes = 5.83 is the break even point on an item, generally. So, get better at listing to create more profit, as well as selling a mixture of low price items to generate interest, and higher ticket items to keep you buoyant and profitable. People are only going to come back for good service and if they feel as if they got a good deal. I don't know. Just my thoughts on the whole selling thing. :) Thanks for the video!
This video helped me to understand that one of the reasons I don't keep good track of where my money is going is because if I did I wouldn't be as profitable. Wow what a strange thought. But you are right about figuring out your time and expenses to understand the bigger picture. Bottom line is low profit items will put you out of business just as easily as lack of diversification. Right now my store is all clothing because winter is here and I can always buy at a thrift but once garage sale season comes its back to selling everything and anything.
The best thing on ebay is you have to sell something Unique with no competion. Im from Mexico and I have problems writing the listings on ebay but with my own designs I can meke the listing pretty easy. Im manufacturing my desings in the USA. My Clothes are Made in The USA.
Like most new reseller, they tends to focus on what they know and to be in that bubble because they feel safe/secure/comfortable. In other words, they don’t explore other areas for the profits. I was like that when I started to resell. I only focus on clothing b/c it was widely available and it was cheap (bins), but what I failed to realized that the clothing wasn’t good. Meaning that it was too saturated and I wasn’t able to sell the items consistently every day. This is where I realized that there was another avenue to make profit (with less labor intensive), thanks to Crazy Picker Life. I began to focus on vintage electronic items and so far it is good. What I’m trying to say is that, explore other areas like Mr. Globalvoodoo said, because the opportunity are out there and in the end ,it is upto you to take an advantage or not
I came across your channel searching for this topic...and love the content.. I will be honest I am one who has been watching some of those other ebay clothing "youtuber peeps...and I have gotten some great info on brands.. I won't sell things as cheap as those youtubers do... I can't see my time doing all that work to not make clear profit of nothing... Your video really made me think.. I do amazon and do ok and that's on me not putting in enough time. I did get side tracked a bit.. And have way to much inventory. Thanks for great info and a much needed " Wake up call" I sure needed this... look forward to watching many more.
99 cents shipped (on AUCTION!) seems to be the new business model, even for experienced sellers. They keep saying auctions are dying, but I'm just amazed...
I never had a tremendous success with even DESIGNER clothing items... whether new or used. It's very hit or miss. Used video games, however, move like hotcakes; within 1 week to 8 weeks - TOPS. I dropshipped some sneakers a few times, that went well. I figured sneaker sizes could become an issue, so I started removing the listings. Less drama for my mama.
Great point about seeking out higher priced items. They are out there. It just required more digging. Good discussion about cost of selling a clothing item on eBay for a $15 clothing item. Also need to consider that you will probably have about a 3% return rate on items sold. It's a tough business. A fun hobby, but a tough business.
I think craigslist hunter pointed this out as well. I don't see anything wrong selling 7-10 dollar items, as long as they're worth doing. If they're either bulky,slow moving, complicated to list and to sell in general, then they're a no go. Now, if they're easy to list and sell, then that's another story. There's a difference between buying 100 items of one fast moving item than 100 slow/complicated items.
Thanks Mike. Really good advice, especially considering the postage always goes UP never down which doesn't help the bottom line either....and gas to go out and source, that's a big one too!
You have a good point but I think the break down would only apply if every item you sold you only sold for $8.00, Not everything you sell will be a low amount... For example I have 1500 items in my store and 200 of them I have starting at a low auction...I sell items everywhere from 4.99 to 199.99 and I pay little to nothing for everything! I think everyone situation is different
when i first started selling stuff online i use to find things at thrift stores all the time, but now since all these people get on you tube and tell you what to buy and sell i hardly find things anymore. So you know what that means it means people are ruining the reselling business cause they get on here and tell you what to buy now everyone is doing it and they are buying everything and ruining it. Thank you as usual people ruin things like always.
I read that Wuthering Heights books one summer for a summer the library summer reading programs. We could get little stickers and rewards for reading. The Bronte sisters wrote some sad books.
Yes! I agree. I am picky with my items. I'll pay a little more for a piece that will sell for $30+. My average sell is $29 and I sell clothing 90% of the time.
Thanks for the video Mike. I know what your saying, I've experienced it first hand. I started with the $8 to $10 clothes, then I started adding some jeans in. Selling them for $25 to $30. Much nicer profit. Just trying to grow as I learn, & you have been a big help. I have even picked up some great information in the comments of your videos. Great video.👍👍👍🤠
Awesome video. Thx! Pretty much for most people it comes down to selling items for no lower than $20. If selling clothes (shirts etc) you're best lotting them up.
This is my first time listening to your channel very good information cause I went through some of the same things you were saying couple of months ago and realized that I needed to change my business model so thank you and I will be following you
If someone wants a item they will pay asking price so long as it's within reason. Most people I've dealt with making "best offers" are other resellers looking to source without getting off their ass to go do it.
Vault 1702, I am an e-bay seller and always invite an offer. Potential buyers understand that they and I can be lenient within reason. It is the nature of this business, in my opinion. I have not been too disappointed as of yet. I set reasonable price and welcome reasonable offer. Most of the time it ends up in an agreement.
I've been changing the past few weeks to buy wedding, prom, formal dresses, not so much jeans or shirts, more dresses...WHY? I am a former bridal seamstress and I KNOW what the gals want there...and I know how a gown should look to sell...Good break down btw not too many people figure out everything in costs...I laugh at some of the "sold" videos I see...realizing they aren't making much....I sell on Craiglist & FB too...got too!
Now here is someone doing it right, she has a real in depth knowledge of a specific sub-market with a potential for high margin and high dollar items. You will do very well.
Clothing can move slowly because of the market saturation. I lean toward slightly high end items or simply well made good quality good condition stuff.
thanks for all that info. food for thought there. i often have buyers complaining about the postage costs and have to explain that it covers more than the postage.
appreciate this video... the past few days I've been subscribing to a lot of channels of people showing how they are making thousands... even 10k+/month doing this... I have been scammed with network marketing (i know this is not that but...) and I have come to the realization that there is NO "get rich quick" ANYTHING... and the key to success is "hard work over time". You nailed it with this video. I have been number crunching using ebay's "calculator" they provide for members interested in opening a STORE... wow... unless you are listing LOADS of items... wow... it's a tough game. Not to mention, they will only let new users list 50 items to start with. I can clearly see this business is a long. hard road. Is it for me? hmmm... not entirely convinced it's worth my time just yet... still researching!
Hello Mike, Another informative and to the point video ! In the beginning of this video you showed a view of your spread sheet may I ask which software you use for this purpose ? Please keep up your great videos !
Great video! I only resell books but this video inspired me to start tracking my time for all of my reselling activities as I want to see not just the financial cost but the TIME cost of everything I do....Thanks so much!
Thanks for posting this video man. There are sellers on Ebay and Amazon that are basically working for free and really hurting the business. I don't sell used clothing I do brand new and I see some seller basically making .50 cents and they think thats profit. I don't get it.
I'm "new" to the game (been doing this for a little over year p/t). Don't get me wrong, I'm hustling. Like many people, I've listened to many other resellers and was beguiled by the "gross profit" number. I was captivated by the statements "I made over 100K selling on eBay in 1 yr". I've learned that reselling is no "get rich quick" scheme. It's work--hard work. Sure, you can make 100K a year, but even if you're banking 25% of that, I'll work less waiting tables and make more money. I listen to other resellers on YT and wonder what I'm doing wrong. Well... I'm not modeling them because I want to make money!! You say you've been doing this 15+ years and make a living doing it. I respect that. I appreciate the breakdown b/c it brings up the key point of sustainability. Can those resellers sustain their business with the model of selling bulk at low prices? I believe that only time will tell. That model may be a set-up for extreme burnout. Many of them don't have the notches that you have and those that do, are changing their model to ensure sustainability (like selling clothes now). History has always shown that slow and steady wins the race. Great points you make. Thanks Mike!
Excellent video. Are some resellers scaling back on Amazon and moving back to ebay? They see an opportunity to sell clothing on ebay but they keep the mindset of Amazon's razor thin profits hoping to make it up with volume. Also when I am doing comps on the app I always seem to find a few great items that sold for a dollar or two along with the rest of some $20 items. These are usually from auctions.
Very good - I feel bad for all these folks investing there last $2000 in pallets and cases thinking they are going to turn $10,000 like the majority of pickers are promoting.
The video you made about Ebay rationing page views dovetails with this perfectly. I think the only way around the imposed limit is to have a store full of rare items. Mix in some hot turners we all find occasionally at Thrifts and it will work. Key is to have like 75% of your store stocked with items few offer. Doesn't even matter what it is but there better be few comps. As any experienced seller knows just randomly stocking your store (garage sale style or with common like items as well) you will sell around .5-1% per day. New stores will do more (ebay promotes you) , old ones about those pct's. I suspect Ebay does this to generate consistent revenue from insertion fees. It is a very predictable metric. They bait you, you invest, they rake in their cut. I think it is also why new listings tend to sell better than others....makes sense to give the bird a seed right out the gate. Once the thing has had say 30 views no more seed for you. The have to be doing this and more. For doubters, Ebay has already admitting they have limits so go search that topic.
I always charge for priority shipping I don't have to buy any items except for the tape sometimes and I print postage at my university and never wash any of the clothes
One thing that I seldom see discussed is the fact that an on-line seller is AT RISK of being shut down at any time for infractions of the rules, bad feedback or errors. I don't know how you put a price tag on that. Your investment of time, energy and money shot to hell in an instant.
Aren't you worried that the person that bought your item will see how much you paid for it and complain or leave negative feedback? Also...what do you find sells better on eBay women's or men's clothing and what type of clothes? Great videos by the way! I don't sell clothes on eBay. I sell mostly Disney pins but I am seriously thinking of getting into the used clothing niche. How are those people that list at .99 w/free shipping making any money? Are they just hoping that you will buy a lot and they can ship it together? What are your thoughts?
I'm trying to get started selling online and really enjoyed your video which was very informative. I already have an inventory tracker but have now added a TAT column. Thanks for the tips. I like the way you package your items. Where do you get the bags?
Really enjoyed the video. I thought I was the only one thinking about all the factors that go into selling just one item. It's hard work but fun. Just sold a hat today and I didn't have a poly bag for it but I started thinking darn now I have to spend money on that too. Lol
okay... but if that Polo by Ralph Lauren shirt is listed all day by noobs at $5 shipped, $8 shipped, etc.. then how do you sell it in one day at $15 shipped? I'm certainly not saying your wrong, you're not, but by all means if the market is saturated by low-ball noob sellers, then shouldn't your shirt have sat for a few weeks before selling? Or are people not buying the $8 shirts and buying the $15 shirts instead because they just like burning an extra $7 for no good reason? I mean I get the "at $15 you make $9 profit" and "at $8 you make $1 profit" so I got to sell nine $8 items vs you selling one $15 item.....but if you sell the $15 in one day, I assume the noobs are selling quicker at $8. If all $15 shirts sold in one day then yeah, but I assume that's an outlier. Good photos, titles, descriptions, etc only goes so far. At some point it comes down to how many $8 shirts does he sell to make $1 vs how many $15 shirts sell to make $9.... If it's more than 9:1 than one way makes more money, if it's less than the other way does. What your time is worth only matters if you want to work less hours or if you've maximized what you can make in the time you have. If you working 80 hours a week listing clothes and it becomes a grind, remember a crappy job with yourself as a boss is still better than crappy job with someone else as the boss.
Rob Holecko You're right about the boss thing. I do know you have different buyers for the same product. You've Mrs cheapo will buy anything for the lowest price they can find. Ms in the middle wants a deal but wants quality to match the price (me). Big spender thinks if an item is too cheap then it's no good or something is wrong with it. Again this is the exact same product at 3 different price points. Each price point represents each type of customer. An item is only worth what someone will pay for it. The big question for noobs like me is checking sold listings to find the middle ground in pricing. I definitely don't want Mr cheapo who is more likely to ask questions and have buyers remorse.
Rob Holecko the reason his shirt sold for $15 and the only reason is because of the size and the color!! That is it. It was a 2xl. Maybe one other factor and that's he's not a noob so his listing was probably twice as good meaning better pictures and descriptions
I've sold items for a lot more money. I've sold items really high and found people who were willing to pay. You never know why someone wants to pay $10 for an item and the same item can sell from another seller for $30. It all depends if that person really needs it and they don't mind paying extra. Like the other commenter said, size and color can be a huge factor. Also I don't sell clothes. It's a waste of time. Unless it is brand new and its a high end name brand.
high end items such as handbags, shoes, outerwear etc. Also electronics like phones, camera, and so on. I usually sell things that I buy and don't use or items that were given to me as gifts. If I don't use something for more then 6 months then it needs to be sold. I buy quality items on sale and use them for as long as I want and I make sure to take good care of them, so when I sell it I make back close to how much I paid for it. If an item cost $100 and I got it on sale for $60, if I use it for a year or two and I keep it in good shape, I can sell it for maybe $50. If the retail price is $100 they are getting the item for half off even if it was used, because my used items look close to brand new. I never pay retail for anything I buy. I also look for deals and use as much coupons as I can.
Totally agree with your analysis. After years of retail --I know that there are buyers out there who are happy to pay a higher price for an item simply because they think that paying "more" means they got something better. "Mr cheapo" hands down is the one who will ask tons of questions...but I do have some bargain hunters who have bought many things over the years and perhaps it made up for all of the wasted time responding to the mundane questions :)
Good points on the time commitment associated and cost breakdown with processing clothing. With that being said, how come you still continue to mess with any items under $15.00? I can understand doing this for Amazon FBA, since the time commitment is drastically reduced, but with eBay it just doesn't make sense. Unless you're dealing with quality pieces that will sell for $30.00+, selling clothing on eBay is a huge time suck that are inevitably going to have a higher return rate as well.
I could be wrong, but I get the impression he's going to be changing his business model soon and maybe start sourcing wholesale or doing PL, and is clearing out the storage lot and thrift store junk.
I agree, seems much better to spend a little more money upfront to get a bigger dollar profit, rather than worrying only about profit margin. I would rather spend $10 on a good pair of jeans I can sell for $40 rather then spend $1 on a pair I get $8 for since it takes the same amount of work to sell it, and the same cost to ship it.
Ugh, I was just thinking about this today and BAM, here you are with this video. Didn't make me happy. I just started a week ago on ebay and a mountain of used clothing etc. to list. Some I've already put up for $5 + shipping, BIN. Now I see that was dumb. Researching takes me the longest, I have most of this from a unit, like 100's!! Panic attack and zero knowledge!
Miss Monika Take a deep breath you'll be fine. concentrate on listing your better items. Even stuff around your house you no longer need. As a new seller you have limits so list quality items and don't oversell Thier descriptions. You need positive feedback as a seller to get momentum. Watching experienced sellers like Mike will help you jumpstart your new business. Good luck.
I would like to know where it is that you buy your bags at, I noticed them in the video and I really like them. Where do you buy them from and how much do they cost, thanks for your video I found it very interesting keep up the great work.
ebay is really screwing with sellers! Now the top rated sellers will only get a 10% final value discount! What's the point of becoming top rated which is stressful with all of the rules?!
I love your videos and following your tips and tricks, but in the few months I have been doing Ebay I don't see how some sellers can consistently sell clothes more than the market. Either you have built a lot of followers through your store or Ebay has bumped your items under the Best match listings. Otherwise, it only makes sense that the cheaper clothes are sold first.
How organized, Mike how do you do that excell. I dont know much about computers but I have an idea what is excell is :) I would love to know how do you do that, if that is possible ?
I don't get it either, I am glad you brought up the cost of your time--people selling things for .99 are valuing their time at zero apparently--well that isn't me, I keep my "sold" per unit average at around $40 (some weeks it is higher)--I do carry some lower dollar items on etsy because fees are less expensive, but I buy most of my stock at auction and I honestly can't give things away. I can't even begin to deal with auctions since the results seem so disappointing (only the rare and unusual item should be put on auction IMHO.) This is a subject that drives me crazy to be honest, and people who give away stuff put downward pressure on the market--one of the reasons that, other than men's shoes, I stay away from doing clothing at this point.
I started selling on eBay because I'm a musician and worked at guitar center for years. I've sold hundreds of instruments. Rare books and albums cd's DVD sets and blank recording media. Vintage electronics and musical instruments have a very high ROI RETURN ON INVESTMENT. I sold rare books for hundreds of dollars and record albums for $1800 because I have deep knowledge in a niche market. You have to spend more to make which means if you don't know how test what you buy you lose big-time. Looking at your channel I've learned about vintage tee shirts and video games which I use to walk by thank you for being real in this reselling life-style. Selling used items enables me to live my dream of being a creative artist.
Good break down! This is why it's important to know your real time invested in a product as well as your cost. So many resellers do not look past their gross profit number.
Prof Sales You said it takes you 15 minutes ... or is this geared towards the ones who dont know what to look for ?
Richard Mohn I'm not sure what you are referring to. Do you mean to list and such?
Prof Sales I'm a new seller. The one part of COGS and net profit I didn't take into account is my time. I made sure to check after the sale all costs involved even the price of the tape I use to ship with. I subtract 50 cent from the net profit for shipping supplies (it only cost about 20 cents but you never know some items maybe more). I'm still learning and the cost of shipping was a sharp turn but hopefully I'll learn fast and can find a lower price for sources items and a steady stream of those items. Right now net profit is about 1/3 of total sales. Is that a good number?
Hi naturegirl2110 This is Mike's channel so Ill let him answer you in depth if he wants to do so. In general I would suggest 33% margin is a bit on the low side for clothing but it does depend on many factors as you mentioned. Thanks
Professor Sales, are you related to Soupy Sales?
Most resellers on you tube claim to make big $ on eBay they show nice homes and cars but if you look at their stores it's like How? Then you might think the spouse is bringing in the 💰. I respect and appreciate your transparency and honesty that's why your channel is 🔥🔥🔥🔥
This Is Accurate!
I always look at some of those sellers' homes like WTF? If one half of the marriage is bringing in 6 figures why the hell are you living in a townhouse? IDK I feel like most of these wanna be celebrity sellers are full of it. After a while the truth always comes into the light. Been watching Mike's stuff since he was back in Chicago really. He's the best.Can't really stand the usual suspects who preach to us like we don't make any money cause we don't do videos or comment in their stupid live sessions. And why do they all have some form of picker in their name lol?
Delonte - like Nicole Slate and Lindey Glenn. lol
Most of the people want the attention of TH-cam and are not single. If you were single doing this, good luck! It'd be almost impossible.
Ze Bunker I think Nicole state is genuinely honest about her sales and if you look at her eBay store she sells a good chunk daily. Majority of the you tubers sellers (not all) can't be transparent. Mike,Craigslist hunter,Nicole state, rockstar flipper, I think their honest my opinion tho
How did you find out his store name? I have tried and can't. I like his videos but would love to follow him like you have. If he is not, I sure would like to know that. I know Craigslist Hunter does vids with him, but he has a B&M store in the Chicago area and gets most of his ebay products from contacts and deals he has because of his store. I have wondered about where Chad gets these incredible items that he sells. Global Voodo first class all the way!
THANK YOU
Glad you hit on the time factor. Far too many people that are self employed completely forget the value of their time in their equations, which ultimately means that they don't have a business, they have a job. It is only a business if you can replace you with a paid employee and still make money.
Great advice... especially for the new sellers. The best advice I heard was to diversify what we sell. I used to "specialize" in selling clothing. It was about 95% of my business. I now sell just about anything that has a profit. My product knowledge has grown tremendously in the last 2 years... mostly by watching youtubers like yourself. My business is now growing, and is on an upward trend. Not to mention it is a lot more fun to source so many different types of products, and with a higher ROI. Best wishes! -Steven
Im manufacturing my own items. Im selling on ebay and Im doing pretty good.
Before I was selling used clothes and I have lots of competition, shirts 9 millon listings on ebay. Its a nightmare.
Thanks God I can make my own designs. Its selling very good.
regards.
I think a lot of people mark items down cheap when sales hoping it will stimulate sales. It won't ! Trust me I've tried. Better off leaving your items priced exactly where they are at and waiting for the buyers to return. I'm also slowly doing away with best offer because it's to tempting to take those low ball offers just to move product.
Also think about this as to why sales are slow for everyone right now.... all the Christmas shopping credit card bills hit at the end of January!
Mike, THANK YOU for your time, keeping it real and food for thought for new resellers, like me. You speak from experience and it's very very helpful. Please always think of the number of people you're helping, not the thumbs down.
Probably one of the more practical channels on TH-cam when it comes to reselling. Appreciate it dude
I've been selling on eBay since 2008 and I've always sold items for $50 or more. With all the fees, selling materials, and time you take out of your day to do all of these things, you have to try and get a big return or it isn't worth it. If you focus on selling thing at least $25 and higher, you will be fine.
Excellent video! I've said this for year. When I used to sell on Ebay, I had a spreadsheet that I used when I considered buying something. My basic rule of thumb THEN was it needed to be something that sold at $25+ and had a 50% margin if I wanted it to ship free.
I love your videos because there are no lies and it tells it like it is. I know it takes longer than thirty days on a lot of items of clothing to sell. The profit margin on a lot of items is low. But at the end of the day or week I don't have someone else to work with that I can't stand being around or who has hygiene problems. I'm alone and I love it. Please keep making videos cause you tell it like it is.
THank You Mike. I am going to get hate for saying it, but if you follow some of the fellow youtubers advice about selling clothing for almost nothing like Nicole State, you will fail as a reseller. I asked her once about if she took into consideration about supplies, paypal fees, ebay final value fees, insertion fees, store subscription, bubble mailers, tape, on and on. Do you really want your average sale to be 17 dollars with free shipping (that's her model). You get back to me and tell me how much that leaves you. OH and yeah I forgot to say you have to minus YOUR COST TOO NICOLE.
Morgan Hoard love this comment, Morgan. Couldn't agree with you more. There's nothing worse than doing your listing and taking photos and what not while watching some selling videos when suddenly your TH-cam auto play betrays you and you hear that annoying lying voice come booming through the speakers.
Exactly Carol. She shows her numbers, she shows it all. So I am not sure what else one can do to be transparent. Then again, it's probably just good ad revenue to complain about people who are maybe doing just a little better than yourself.
She's also not single, not having to bring in all the income into the house to keep things afloat alone. Its the new house-wife's kinda hobby.
Actually, she supports her family of 4 solely with eBay. Her husband now works alongside her but has been laid off for over a year. But you know, if you watch 5 seconds of her videos you would know that.
Yes, Nicole sells some items and may only profit 5, 10 or 15 dollars. But, she also sells items and makes 30, 40 or 50 dollar profits. She knows what she is doing , and she is making money. She has what any mom wants, to be home with her kids and work for herself.
I truly appreciate not only what your doing but the honesty of this post. I've been selling seriously on eBay for two years now ( part time) and not only changed my business model too something very similar too this but also at a $15 to $20 price point and I'm working less and profiting more on my gross margin.
Thanks
Mr Center City
Just wanted to thank you for ALL the info. I'm a stay at home mom that recently started selling on eBay. I really have been enjoying all your vlogs :)
Thank You I'm glad the info helps.
Great advice Mike. Appreciating the straight no bs process. 'Keep on listing' is all I hear around the house.
I completely agree. I do sell some under-$10 items (mostly because they're things I already have). But I try to focus on $15+ when possible. The only time I find it really worth the effort to list low dollar items (under $5, for example) is when I have multiples of the same thing. That way I can make a single listing with multiple quantity. Otherwise, I'll bunch similar low-dollar items into lots.
It also pays to understand when to sell fixed price and when to run action listings. It can make a huge difference on your bottom line.
You are well loved in our reselling community for a very good reason, Thanks for keeping it real....I agree with all you spoke of.....
Just thought I'd come back to tell you because you inspired me to sell on craigslist, and I am selling gowns for $30-40 like crazy right now...
You're right on the money. I was selling t-shirts for $5, but I realized I wasn't making diddly on those things. So, now I'm targeting items that have a higher sale value. Sell less, but with higher profit margins. Unfortunately in the upper great plains where I live, higher value clothing brands are rare. So, I have to be a little more creative, and sell things that other people don't even look at. Like you said, you have to adapt to what you can get for a profit to make it in this business. Thanks for the video, and keep up the awesome work that you do!!
I think for most people serious about progressing their business thrift stores are starting point. It's a good place to get your feet wet. From there you can progress into buying bulk wholesale products, or liquidated products, or even creating and importing a product, or products from China.
Those people selling clothings for $8 shipped should be applying for a job instead. There are practically doing it for free. They won't make it in this reselling game. No hate, just the truth..
That's why I trade stocks, you make way more money and spend way less time.
how does one get into that?
It's easy! All I did was call my local Scottrade office and say "hey can you help me set up an account Idk what I'm doing" and he said "sure!" and 30 minutes later I had my account all set up. :)
But how do you know what to invest in or not, lol...
You just start with a company you know, but then you wanna research other companies that have a lot of growth potential, i.e., who's coming out with the coolest stuff in the future? That's basically all you have to do. :) I talked about that in one of my vlogs but I had to take it down and haven't reuploaded it yet, but I will next week!
That's why I LOVE MEDIA. So easy to process, and you can easily do volume. Good video.
This is SO spot on. I have been selling on eBay and Amazon seriously for only a couple of months now and I am becoming increasingly frustrated with how people are pricing items. I see BRAND NEW items that sell for $49 on Amazon being sold for $29 on eBay. How are these people making any money? Ugggh..
Thank you for the breakdown. After selling men's shirt for the last 4 years solid, I can bust through a thrift store and pick out the gems and see quality or some item that "pops" and do some quick research and figure out if it can sell. It took a some time to get to that point and to learn to walk away from the sub $12 shirts. Just like the other day when you showed the examples of other sellers dark and crummy photos, we take very good, well lit, sharp, in focus pictures of our shirts. Our listing are easy to read, mobile friendly (cell phone, tablets, IPads) and not bogged down with twenty paragraphs about policies. Clean, simple and return the item, no questions asked. I feel people pay a little more for my shirts cause they can see a quality item. We love to thrift/source and love that we are very good at doing this. I love that your one of the reselling you tuber that shows me information I can use and make money from. Your not trying to sell me a $2000.00 dollar program to get started in "private" label. Thank you for taking the time out of your day to do these videos!
The reason sales are slow: EB has been having a lot of glitches this year. Downdetector.com reports all site outtages. Another reason, as you stated- everybody is selling online and there are thousands of "swap" "offerup" type sites where people are sending their items to sell. I rarely see yard sales like I used to, and figure that people are putting stuff up at Craigs, EB, etc. etc.
I find that Ralph Lauren and even Brooks Bros. is devalued. Too much out there. For me, it goes in cycles....one month Jos.A. Bank sells, then it doesn't sell. One month Pink sells, then it doesn't sell.
You're right about DVDs and Games -- more profit, esp. if it's a rare or odd DVD.
Mike, you absolutely nailed it with diversification. I have been doing this off and on since eBay was Auction Web and that has been far and away the best way to keep your head above water. I paused the video at 15:38 and gave you a high five. Ya feel me, cuz?
I sell cloths, vantage electronic, camera, games, tools, book, etc...Your vlog made a lot of sense thank for you honesty.
I am brand new into this business, I actually just signed up on ebay and today will be my first post on it, but i have been watching few if your videos and has help me a lot. Thank you!! :)
Direct and to the point. No fluff or smoke up our ass. Much appreciated!
I think you are spot on. I've been selling since 2008 and I feel like the last 3 years I have had to be a lot smarter. You can still make a living but you have to watch your costs, don't over buy, get your stuff listed, and shoot for a $20+ profit after fees and shipping. Because, what's your time worth?
Everything i sell is from dumpster dives, mostly customer returns. if it doesnt sell it goes in the trash were it came from. zero overhead.
JAS0N888 how long have you been selling for?
Your math is incorrect, because you are 'charging' the entire trip, as well as all of the time to prep to one singular item. Logically, it is a waste of time to source for one singular item. No one does that. So, to get a real estimate of the break even/profit line for the item, you not only have to break down the eBay & PayPal fees, but also break down the time spent and divide it by your # of items. For instance, today I listed 5 things so far. It took me and hour to source, take super photos, list, and get them ready to ship. It takes me 2 minutes to ship when all is ready to go ahead of time. Divide 1 hour (60 minutes) by 5 items you end up with 12 minutes per item + the 2 minutes to ship = 14 minutes per item. Times my pay per hour = $25 (what I THINK my times is worth, my goal) divided by sixty minutes = 5.83 is the break even point on an item, generally. So, get better at listing to create more profit, as well as selling a mixture of low price items to generate interest, and higher ticket items to keep you buoyant and profitable. People are only going to come back for good service and if they feel as if they got a good deal. I don't know. Just my thoughts on the whole selling thing. :) Thanks for the video!
Thank you for your honesty. I have sold on eBay in the past and everything you say is right on. I've subscribed to your channel.
This video helped me to understand that one of the reasons I don't keep good track of where my money is going is because if I did I wouldn't be as profitable. Wow what a strange thought. But you are right about figuring out your time and expenses to understand the bigger picture. Bottom line is low profit items will put you out of business just as easily as lack of diversification. Right now my store is all clothing because winter is here and I can always buy at a thrift but once garage sale season comes its back to selling everything and anything.
he makes a great point about the actual sourcing and handling time to sell even one item
The best thing on ebay is you have to sell something Unique with no competion.
Im from Mexico and I have problems writing the listings on ebay but with my own designs I can meke the listing pretty easy. Im manufacturing my desings in the USA.
My Clothes are Made in The USA.
THANK YOU FOR SHARING YOUR KNOWLEDGE AND DROPPING THE SCIENCE! OR NUMBERS IN THIS RESPECT !
Like most new reseller, they tends to focus on what they
know and to be in that bubble because they feel safe/secure/comfortable. In
other words, they don’t explore other areas for the profits. I was like that
when I started to resell. I only focus on clothing b/c it was widely available
and it was cheap (bins), but what I failed to realized that the clothing wasn’t
good. Meaning that it was too saturated and I wasn’t able to sell the items consistently
every day.
This is where I realized that there was another avenue to
make profit (with less labor intensive), thanks to Crazy Picker Life. I began
to focus on vintage electronic items and so far it is good.
What I’m trying to say is that, explore other areas like Mr. Globalvoodoo said, because the opportunity
are out there and in the end ,it is upto you to take an advantage or not
I came across your channel searching for this topic...and love the content.. I will be honest I am one who has been watching some of those other ebay clothing "youtuber peeps...and I have gotten some great info on brands.. I won't sell things as cheap as those youtubers do... I can't see my time doing all that work to not make clear profit of nothing... Your video really made me think.. I do amazon and do ok and that's on me not putting in enough time. I did get side tracked a bit.. And have way to much inventory. Thanks for great info and a much needed " Wake up call" I sure needed this... look forward to watching many more.
99 cents shipped (on AUCTION!) seems to be the new business model, even for experienced sellers. They keep saying auctions are dying, but I'm just amazed...
Very smart and informative. Thanks. It's very easy to forget the hidden costs and your time is a "cost."
I never had a tremendous success with even DESIGNER clothing items... whether new or used. It's very hit or miss. Used video games, however, move like hotcakes; within 1 week to 8 weeks - TOPS. I dropshipped some sneakers a few times, that went well. I figured sneaker sizes could become an issue, so I started removing the listings. Less drama for my mama.
Great point about seeking out higher priced items. They are out there. It just required more digging. Good discussion about cost of selling a clothing item on eBay for a $15 clothing item. Also need to consider that you will probably have about a 3% return rate on items sold. It's a tough business. A fun hobby, but a tough business.
I think craigslist hunter pointed this out as well. I don't see anything wrong selling 7-10 dollar items, as long as they're worth doing. If they're either bulky,slow moving, complicated to list and to sell in general, then they're a no go. Now, if they're easy to list and sell, then that's another story. There's a difference between buying 100 items of one fast moving item than 100 slow/complicated items.
Thanks Mike. Really good advice, especially considering the postage always goes UP never down which doesn't help the bottom line either....and gas to go out and source, that's a big one too!
You have a good point but I think the break down would only apply if every item you sold you only sold for $8.00, Not everything you sell will be a low amount... For example I have 1500 items in my store and 200 of them I have starting at a low auction...I sell items everywhere from 4.99 to 199.99 and I pay little to nothing for everything! I think everyone situation is different
when i first started selling stuff online i use to find things at thrift stores all the time, but now since all these people get on you tube and tell you what to buy and sell i hardly find things anymore. So you know what that means it means people are ruining the reselling business cause they get on here and tell you what to buy now everyone is doing it and they are buying everything and ruining it. Thank you as usual people ruin things like always.
I read that Wuthering Heights books one summer for a summer the library summer reading programs. We could get little stickers and rewards for reading. The Bronte sisters wrote some sad books.
Yes! I agree. I am picky with my items. I'll pay a little more for a piece that will sell for $30+. My average sell is $29 and I sell clothing 90% of the time.
Thanks for the video Mike. I know what your saying, I've experienced it first hand. I started with the $8 to $10 clothes, then I started adding some jeans in. Selling them for $25 to $30. Much nicer profit. Just trying to grow as I learn, & you have been a big help. I have even picked up some great information in the comments of your videos. Great video.👍👍👍🤠
Awesome video. Thx! Pretty much for most people it comes down to selling items for no lower than $20. If selling clothes (shirts etc) you're best lotting them up.
This is my first time listening to your channel very good information cause I went through some of the same things you were saying couple of months ago and realized that I needed to change my business model so thank you and I will be following you
If someone wants a item they will pay asking price so long as it's within reason. Most people I've dealt with making "best offers" are other resellers looking to source without getting off their ass to go do it.
Vault 1702, I am an e-bay seller and always invite an offer. Potential buyers understand that they and I can be lenient within reason. It is the nature of this business, in my opinion. I have not been too disappointed as of yet. I set reasonable price and welcome reasonable offer. Most of the time it ends up in an agreement.
I've been changing the past few weeks to buy wedding, prom, formal dresses, not so much jeans or shirts, more dresses...WHY? I am a former bridal seamstress and I KNOW what the gals want there...and I know how a gown should look to sell...Good break down btw not too many people figure out everything in costs...I laugh at some of the "sold" videos I see...realizing they aren't making much....I sell on Craiglist & FB too...got too!
Now here is someone doing it right, she has a real in depth knowledge of a specific sub-market with a potential for high margin and high dollar items. You will do very well.
Clothing can move slowly because of the market saturation. I lean toward slightly high end items or simply well made good quality good condition stuff.
thanks for all that info. food for thought there. i often have buyers complaining about the postage costs and have to explain that it covers more than the postage.
To my surprise vintage is unbelievably profitable. Hint early 90's, Bright colors, Bugle Boy, Girbaud etc. Find it.. I want all to prosper
Mike, I want to say thanks on the tip you did the other day regarding the white background . I started that and I noticed more views and watcher's
appreciate this video... the past few days I've been subscribing to a lot of channels of people showing how they are making thousands... even 10k+/month doing this... I have been scammed with network marketing (i know this is not that but...) and I have come to the realization that there is NO "get rich quick" ANYTHING... and the key to success is "hard work over time". You nailed it with this video. I have been number crunching using ebay's "calculator" they provide for members interested in opening a STORE... wow... unless you are listing LOADS of items... wow... it's a tough game. Not to mention, they will only let new users list 50 items to start with. I can clearly see this business is a long. hard road. Is it for me? hmmm... not entirely convinced it's worth my time just yet... still researching!
Hello Mike, Another informative and to the point video ! In the beginning of this video you showed a view of your spread sheet may I ask which software you use for this purpose ? Please keep up your great videos !
You are a wealth of information! Outstanding information. Thank you for being straight up!
It is better to donate than lose a bunch of money like that on shipping.
Great video! I only resell books but this video inspired me to start tracking my time for all of my reselling activities as I want to see not just the financial cost but the TIME cost of everything I do....Thanks so much!
Thanks for posting this video man. There are sellers on Ebay and Amazon that are basically working for free and really hurting the business. I don't sell used clothing I do brand new and I see some seller basically making .50 cents and they think thats profit. I don't get it.
Thanks for your great info. I have been selling for over 10 yrs and you are completely correct.
I'm "new" to the game (been doing this for a little over year p/t). Don't get me wrong, I'm hustling. Like many people, I've listened to many other resellers and was beguiled by the "gross profit" number. I was captivated by the statements "I made over 100K selling on eBay in 1 yr". I've learned that reselling is no "get rich quick" scheme. It's work--hard work. Sure, you can make 100K a year, but even if you're banking 25% of that, I'll work less waiting tables and make more money. I listen to other resellers on YT and wonder what I'm doing wrong. Well... I'm not modeling them because I want to make money!! You say you've been doing this 15+ years and make a living doing it. I respect that. I appreciate the breakdown b/c it brings up the key point of sustainability. Can those resellers sustain their business with the model of selling bulk at low prices? I believe that only time will tell. That model may be a set-up for extreme burnout. Many of them don't have the notches that you have and those that do, are changing their model to ensure sustainability (like selling clothes now). History has always shown that slow and steady wins the race. Great points you make. Thanks Mike!
Excellent video. Are some resellers scaling back on Amazon and moving back to ebay? They see an opportunity to sell clothing on ebay but they keep the mindset of Amazon's razor thin profits hoping to make it up with volume. Also when I am doing comps on the app I always seem to find a few great items that sold for a dollar or two along with the rest of some $20 items. These are usually from auctions.
Very good - I feel bad for all these folks investing there last $2000 in pallets and cases thinking they are going to turn $10,000 like the majority of pickers are promoting.
Also why not just charge calculatored shipping for
8$ items ?
Thanks for the info and being straight forward with us, now i want to go back over my last months activities and see where I rate.
The video you made about Ebay rationing page views dovetails with this perfectly. I think the only way around the imposed limit is to have a store full of rare items. Mix in some hot turners we all find occasionally at Thrifts and it will work. Key is to have like 75% of your store stocked with items few offer. Doesn't even matter what it is but there better be few comps.
As any experienced seller knows just randomly stocking your store (garage sale style or with common like items as well) you will sell around .5-1% per day. New stores will do more (ebay promotes you) , old ones about those pct's. I suspect Ebay does this to generate consistent revenue from insertion fees. It is a very predictable metric. They bait you, you invest, they rake in their cut. I think it is also why new listings tend to sell better than others....makes sense to give the bird a seed right out the gate. Once the thing has had say 30 views no more seed for you. The have to be doing this and more.
For doubters, Ebay has already admitting they have limits so go search that topic.
I always charge for priority shipping I don't have to buy any items except for the tape sometimes and I print postage at my university and never wash any of the clothes
One thing that I seldom see discussed is the fact that an on-line seller is AT RISK of being shut down at any time for infractions of the rules, bad feedback or errors. I don't know how you put a price tag on that. Your investment of time, energy and money shot to hell in an instant.
Aren't you worried that the person that bought your item will see how much you paid for it and complain or leave negative feedback? Also...what do you find sells better on eBay women's or men's clothing and what type of clothes? Great videos by the way! I don't sell clothes on eBay. I sell mostly Disney pins but I am seriously thinking of getting into the used clothing niche. How are those people that list at .99 w/free shipping making any money? Are they just hoping that you will buy a lot and they can ship it together? What are your thoughts?
Where do you find the plastic sleeves you use for each item before shipping. Great idea.
I don't know what thrift store sells stuff for 99 cents. they charge like a regular store in my area LA,CA.
Very good in depth analysis ....hidden costs many do not think of..
I sent this to my hubby to watch in morning. Very good info.... Thanks for doing this video
I'm trying to get started selling online and really enjoyed your video which was very informative. I already have an inventory tracker but have now added a TAT column. Thanks for the tips. I like the way you package your items. Where do you get the bags?
Really enjoyed the video. I thought I was the only one thinking about all the factors that go into selling just one item. It's hard work but fun. Just sold a hat today and I didn't have a poly bag for it but I started thinking darn now I have to spend money on that too. Lol
okay... but if that Polo by Ralph Lauren shirt is listed all day by noobs at $5 shipped, $8 shipped, etc.. then how do you sell it in one day at $15 shipped? I'm certainly not saying your wrong, you're not, but by all means if the market is saturated by low-ball noob sellers, then shouldn't your shirt have sat for a few weeks before selling? Or are people not buying the $8 shirts and buying the $15 shirts instead because they just like burning an extra $7 for no good reason?
I mean I get the "at $15 you make $9 profit" and "at $8 you make $1 profit" so I got to sell nine $8 items vs you selling one $15 item.....but if you sell the $15 in one day, I assume the noobs are selling quicker at $8. If all $15 shirts sold in one day then yeah, but I assume that's an outlier. Good photos, titles, descriptions, etc only goes so far.
At some point it comes down to how many $8 shirts does he sell to make $1 vs how many $15 shirts sell to make $9.... If it's more than 9:1 than one way makes more money, if it's less than the other way does. What your time is worth only matters if you want to work less hours or if you've maximized what you can make in the time you have. If you working 80 hours a week listing clothes and it becomes a grind, remember a crappy job with yourself as a boss is still better than crappy job with someone else as the boss.
Rob Holecko You're right about the boss thing. I do know you have different buyers for the same product. You've Mrs cheapo will buy anything for the lowest price they can find. Ms in the middle wants a deal but wants quality to match the price (me). Big spender thinks if an item is too cheap then it's no good or something is wrong with it. Again this is the exact same product at 3 different price points. Each price point represents each type of customer. An item is only worth what someone will pay for it. The big question for noobs like me is checking sold listings to find the middle ground in pricing. I definitely don't want Mr cheapo who is more likely to ask questions and have buyers remorse.
Rob Holecko the reason his shirt sold for $15 and the only reason is because of the size and the color!! That is it. It was a 2xl. Maybe one other factor and that's he's not a noob so his listing was probably twice as good meaning better pictures and descriptions
I've sold items for a lot more money. I've sold items really high and found people who were willing to pay. You never know why someone wants to pay $10 for an item and the same item can sell from another seller for $30. It all depends if that person really needs it and they don't mind paying extra. Like the other commenter said, size and color can be a huge factor. Also I don't sell clothes. It's a waste of time. Unless it is brand new and its a high end name brand.
high end items such as handbags, shoes, outerwear etc. Also electronics like phones, camera, and so on. I usually sell things that I buy and don't use or items that were given to me as gifts. If I don't use something for more then 6 months then it needs to be sold. I buy quality items on sale and use them for as long as I want and I make sure to take good care of them, so when I sell it I make back close to how much I paid for it. If an item cost $100 and I got it on sale for $60, if I use it for a year or two and I keep it in good shape, I can sell it for maybe $50. If the retail price is $100 they are getting the item for half off even if it was used, because my used items look close to brand new. I never pay retail for anything I buy. I also look for deals and use as much coupons as I can.
Totally agree with your analysis. After years of retail --I know that there are buyers out there who are happy to pay a higher price for an item simply because they think that paying "more" means they got something better. "Mr cheapo" hands down is the one who will ask tons of questions...but I do have some bargain hunters who have bought many things over the years and perhaps it made up for all of the wasted time responding to the mundane questions :)
Good points on the time commitment associated and cost breakdown with processing clothing. With that being said, how come you still continue to mess with any items under $15.00? I can understand doing this for Amazon FBA, since the time commitment is drastically reduced, but with eBay it just doesn't make sense. Unless you're dealing with quality pieces that will sell for $30.00+, selling clothing on eBay is a huge time suck that are inevitably going to have a higher return rate as well.
I could be wrong, but I get the impression he's going to be changing his business model soon and maybe start sourcing wholesale or doing PL, and is clearing out the storage lot and thrift store junk.
I'd love to hear more about what the "game changer" would mean...what would you have done differently in building your business model?
By far the best vid of advice for resellers!
I agree, seems much better to spend a little more money upfront to get a bigger dollar profit, rather than worrying only about profit margin. I would rather spend $10 on a good pair of jeans I can sell for $40 rather then spend $1 on a pair I get $8 for since it takes the same amount of work to sell it, and the same cost to ship it.
I've just subscribed to your series and happily so! To the point excellent advice! I look forward to many more!
You said you resurfaced the gamecube disc. Do you only pay $1 to get that done? Do you do the resurfacing yourself?
Ugh, I was just thinking about this today and BAM, here you are with this video. Didn't make me happy. I just started a week ago on ebay and a mountain of used clothing etc. to list. Some I've already put up for $5 + shipping, BIN. Now I see that was dumb. Researching takes me the longest, I have most of this from a unit, like 100's!! Panic attack and zero knowledge!
Miss Monika Take a deep breath you'll be fine. concentrate on listing your better items. Even stuff around your house you no longer need. As a new seller you have limits so list quality items and don't oversell Thier descriptions. You need positive feedback as a seller to get momentum. Watching experienced sellers like Mike will help you jumpstart your new business. Good luck.
Very very grateful to you. Thank you for sharing your experience with us. You have a new subscriber here.
I would like to know where it is that you buy your bags at, I noticed them in the video and I really like them. Where do you buy them from and how much do they cost, thanks for your video I found it very interesting keep up the great work.
ebay is really screwing with sellers! Now the top rated sellers will only get a 10% final value discount! What's the point of becoming top rated which is stressful with all of the rules?!
Which Amazon are you using to sell the Withering Heights volume?
Thanks, Dick at Autumns Books
i hit em in the low middle price range. make the listing look as close to a retail store ad.
no background noise.
my dad was a dumpster diver. pickin is in my blood. thanks for the info mucho gracias
I love your videos and following your tips and tricks, but in the few months I have been doing Ebay I don't see how some sellers can consistently sell clothes more than the market. Either you have built a lot of followers through your store or Ebay has bumped your items under the Best match listings. Otherwise, it only makes sense that the cheaper clothes are sold first.
Thanks for the analysis and honesty! This helps a lot.
Thank you for being informative and to the point. Refreshing for a new seller like myself.
How organized, Mike how do you do that excell. I dont know much about computers but I have an idea what is excell is :) I would love to know how do you do that, if that is possible ?
Excellent video, excellent info! AND a Columbo reference, and Ernie & Bert tee..... Might just be your best one yet :) thanks Mike!
I don't get it either, I am glad you brought up the cost of your time--people selling things for .99 are valuing their time at zero apparently--well that isn't me, I keep my "sold" per unit average at around $40 (some weeks it is higher)--I do carry some lower dollar items on etsy because fees are less expensive, but I buy most of my stock at auction and I honestly can't give things away. I can't even begin to deal with auctions since the results seem so disappointing (only the rare and unusual item should be put on auction IMHO.) This is a subject that drives me crazy to be honest, and people who give away stuff put downward pressure on the market--one of the reasons that, other than men's shoes, I stay away from doing clothing at this point.