How Does Ebay Work - more tips on how to use Ebay as a productive and profitable part of your creative retirement plan.
  
How does Ebay Work? In many strange and mysterious ways - that's why it's important to study and learn rather than just jumping in and learn as you go. - One of the first things to learn when you looking for resale bargains, is to know your bidding limit. If you bid too high for a resale you lose money - a tough lesson learned by those who didn't take the time to study and learn the ways of EBay.
Over time I have added the average Ebay price of a number of English China collectibles in my “Auction Notebook” – this allows me to set my bidding limit on Ebay or local auctions in order to earn a reasonable profit. - Note:
If you’re a registered Ebayer always use the “completed listings only” in the search page to see what similar items have sold for in the past.
Work out the average price by adding up all the final sale amounts of the similar items and divide the total by the number of items you took a final sale price from.
Subtract from your "average" figure the amount you think would be a reasonable profit and you're left with your top bidding price for Ebay or a local auction.
- Only you can decide how much profit is acceptable. In a non-scientific survey, I conducted at a recent senior citizen Ebay meeting it seemed something around 33% is acceptable, however, the point here is to find your top bid. When you have that all-important figure, you have set a limit that will save and make you money.
- Too many people are what I call “hoper pickers”. They bid too high for a resale and then give up Ebay because they can't make any money. As noted previously, Ebay is not easy. You have to learn, study and stick to the limits you set for yourself.
Here's a twist - buy a bargain on Ebay and resell it at a local auction for a substantial profit. Last summer, at a regional auction offering a collection of Royal Doulton figurines, I was amazed at the high prices they sold for – almost double what you could buy them for on Ebay. Obviously, local collectors or retailers, unfamiliar with Ebay or still in the group of fifty plus who fear computers and the internet. This happens on a regular basis. A Shelly cup and saucer, an exact duplicate of a set I bought and resold on Ebay a month before, went for more than DOUBLE the price I received on Ebay. This Ebay-to-local auction tactic is another potential Ebay income earner, but you have to do your homework. Remember to factor in all the costs - item price, shipping and handling, auctioneers commission, local taxes etc. It’s been said that Ebay is just one mammoth garage sale and that’s true. Browsing Ebay is like cruising weekend garage sales – you never know when you’ll come across a real bargain that will bring home a tidy profit when you resell it on Ebay or local auction. It just takes time, patience and study.I’ve found it’s best to concentrate on items you'll enjoy learning more about.In the past, my wife and I had little interest in the history of English china and sterling silver. But that soon changed during the beginning weeks of our Ebay adventure. While looking for items to sell on Ebay at a local auction, a unique design on a cup and saucer set appealed to us. Just after we were announced as the winning bidders, a woman congratulated us on getting a real bargain.
Even though we didn’t have a clue at the time, we lucked out – the cup and saucer set was a Shelly dating back to the early 1900’s. From that point on we studied the history of English, European, Asian and American potteries and silversmiths and today we have a fair bit of knowledge on what to look for and how much to pay. Find your niche and study – it can mean the difference between profit and loss. Another example of the importance of doing your homework. There is a recorded case history of an American senior citizen who is making a very nice income on Ebay by reselling children’s bedding and rugs, all hot Ebay items. She purchased them at a Pottery Barn Outlet. She studies what sells for what on Ebay then goes shopping.When searching Ebay for bargains, I keep my eye open for auction listings with little discription information, a real Ebay buyer turnoff, plus misspellings, and poorly produced photos.Here’s a tip given to me by a fellow Ebayer I was competing against at an estate sale. (For the most part, you will find although competitive, Ebayers very friendly and helpful.)Occasionally use “old” as your search term. Do not check the title and description – just “old” in the search box. Sometimes you will find an item listed by newbie’s who give no historical information on the item and this, combined with other mistakes, has minimized bidding. Once you find something you’re interested in, do your homework – what have similar items sold for on Ebay? If you’re a registered Ebayer always use the “Completed listings only” to get the "average" selling price. My last “OLD”search listed 161,367 items using “All Categories” and 9,727 items in my niche – “Pottery and Glass”.
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