The Cons of Online Aution Sites Like Ebay

Ebay has over 120 million registered users and it can be a great place to make extra money by selling what you now longer need or even starting a business. My wife and I used to have 7 employees doing eBay full time and we were making a net of about $8,000 per week. But what about the buyers? They shop sites like eBay hoping to find lower prices on items that they are looking at buying any way. A pair of pants that sells at American Eagle for $40 and here it is on eBay for only $30. Is this a deal or what? But wait, after you pay the $12 shipping you are actually spending more.

Sites like eBay are like a drug. People keep bidding on items going higher and higher in price because they will do anything to win. People get in a frenzy and by the time they have won the item they have paid a lot more then they could have gotten that same item for at a local store. Once in awhile this would not be that bad but what about the people that keep on repeating this? The cannot provide the basic necessities for their kids because most of their money is being spent on these online auction sites like Ebay. Yahoo has auction, amazon auctions, Ubid the list just goes on and on.

People need to truly look only for deals. Maybe by looking for items with free shipping. I sold video games that by the time somebody one the item and you add shipping they were still paying less than they would have paid at the local game store. Bargains can be found you just have to look for them. Also look at the sellers user rating and read what past customers have to say about them.

Another area which can be very disastrous is all the scams that are on these online auction sites. I know one gentleman who was selling a car on Ebay. Some Nigerian won the auction and sent the seller a check for the amount of the auction plus a lot of money extra. The Nigerian said the rest was to pay for shipping and if the seller could please wire the balance back by Western Union. The check was counterfeit and by the time the bank realized this it was too late. The seller had already wired several thousand to the buyer via Western Union. He had deposited the check in his account and the bank gave him the funds right away. Now this man is in jail, owes the bank the money for the check, and his car was seized by the FBI because it was used in the act of a crime. This was this mans first time in jail and I think he ended up spending a month there.

eBay would offer no help because they claim it is a liability issue. There are so many buyers and sellers out there and they all are potential victims. You would think that sites like Ebay, amazon,Yahoo, and the others would issue a warning to their buyers and sellers but they don’t. My wife and I once got paid for some computers with stolen checks. We did everything that a responsible merchant would do like calling the bank they were drawn from and doing everything that we knew to do. I had to spend almost a month in jail for this and jail is no place I wish to have to go back to. We lost 3 years of our lives because of this plus we lost out business. This is happening to millions of people worldwide.

It should be a law that if you have a site like eBay that you need to protect your buyers and sellers but unfortunately it is not. There are no second chances with an online auction site like Ebay. With sites like eBay you need to be careful if you are just a buyer.

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Basic Things You Should Do Before You Start Selling With Auctions

People sometimes get pretty excited when they make a few sales on eBay. Getting extra money from items that have been lying around the house is a great to pay for birthday presents, a new TV, or even pay for a vacation.

But what if you want to take things to the next level in your financial life? What if you hate your job and you want to get out of it so badly that you just want to walk out some days and never come back? You think about it but then the financial reality hits like a ton of bricks and you grind your teeth and go back to what you were doing.

Selling online is a great way to transition from working for someone else to working full-time for yourself because each auction you have listed is like having your own salesmen out there working for you while you do other things (by the way, this is one of the key to getting rich). Set up multiple auctions and you’ll have your own team out there working for you and be making money while your working, sleeping, or walking your dog.

It all sounds good but there is a catch….there are a few things that you will need to do before you make your bundle of cash and tell your boss to shove it. These are easy and will only take a few minutes of your time, but they are critical for the long-term success of your new business.

The first is to get a business license. This is very simple process where you’re going to come up with a name that you will use to do business as (or what is commonly referred to as DBA). I won’t get into he different types of business structures, but the easiest one to get set up in is the sole proprietor although you may want to change this later on.

Do an online search for your state’s department of revenue and go to their website. More than likely you should be able to download a Master Business Application from there (they may call it something else but it should be something similar in name to this). If you are unsure about anything on the form, the site should have their phone number listed there and just give them a call. They want to help you get set up because more business means more tax revenue for them.

You may also need to have your department of revenue check to see if the name you have chosen is available for your DBA. If someone else already has it then you will need to think of something else.

Once you have your business license you will also need a reseller’s certificate or license. Sometimes your tax ID will be sufficient but legitimate wholesalers will generally require you to have this simply because if they are ever audited they will need to be able to show the auditor why they didn’t charge sales tax on items that they have sent to people like you and me. The reseller certificate will do this. Basically what it means is that the wholesaler is no longer responsible for collecting sales tax on those particular items they have shipped to you.

To get a reseller certificate you will need to have your business license first. In many cases you may be able to download this form from the department of revenue website. Print it out and fill in the required information on it and then fax this to your wholesaler. You will then be able to start buying at prices that will make you more completive than other people that don’t get their products from legitimate wholesalers.

The last thing you will need to do is to set up an accounting system to keep track of all of your expenses (product, shipping and auction costs) and your of course your profits. This can be a simple spreadsheet or you can use something like QuickBooks. Whatever you choose, make sure you use it from the beginning. You’re life will be much, much easier.

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Make Bigger Auction Profits By Selling In Niches

I research eBay almost everyday and I run across an amazing variety of things that I would have never thought to sell myself. The things that I see being sold are pretty unique but what really blows my mind is how much some of these people are pulling in a month.

So what do I mean by a niche? Well, it’s very simple. A broad category would be plants, which are always a popular item. But let’s go a little deeper than selling just any kind of plants that are general in nature. We’ll use the anthurium jenmanii as an example.

In this case this a fairly rare plant and can make you a lot more money than someone else that is selling another variety of the anthurium. Now in this particular case I found one of these this types of plants sold for $3,150. If you type in the word anthurium into eBay then you’ll see a wide variety of specifies with the anthurium but you notice that these aren’t selling for as much but that they are still a very popular item.

If you haven’t already done so, you really have to ask yourself – “Would I rather make a little money or would I rather make a lot of money?” The answer is obvious especially since it takes just as much effort to sell a low priced item s it does a high priced item.

You don’t need to get into the plant business to make a lot of money because there are a many, many areas where you can use this type of strategy. The purpose of giving you this example is to get your mind working in a way to see what most other people don’t. When you start to dig deeper and specialize in something then you will in general (but not always) make more money. Research is the key.

The other positive about specialization is that when you do offer things that are in a highly focused area you will become known as an expert get more repeat business than you ever thought possible. How cool would it be for people just to automatically come to you to buy something without really having to compete for their business again?

The research tool should be part of your indispensable tool arsenal and will really show you some eye-popping numbers of people that are quietly making fortunes on eBay.

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