by Daniel J. Gansle

Created on: November 26, 2008

The question of whether you can get rich on eBay really depends on how much time, effort, and capital you're willing to put into your new venture. Sure, it CAN happen, just as anything in life CAN happen. Anything is possible. But if you really want to succeed on eBay, here's what you're looking at.

The Challenges
I started a short-lived eBay online auction business around the year 2002. I sold a couple items I wasn't using anymore, such as a Nikon SLR camera. But for the most part, I bought electronic items from wholesalers, adjusted the price upward to make a profit, and sold them on my eBay auction site.

In effect, I became an online retailer. That's one thing they don't tell you when they say you can get rich off of eBay: you're essentially thrown into the retail business. You have a product to mark up and sell, profits to make, and overhead to pay for including shipping supplies and computer equipment.

You also become a shipper. You pick the goods from your shelf, pack them securely in a box, then ship the product to the customer. This requires the use your car as well, so you must factor in the cost of gasoline.

The challenge, as any online retailer will tell you, is making a profit. Unless you're selling higher-priced goods, it becomes somewhat of a challenge to stay afloat: it's easy for your overhead costs to exceed your profits, putting you in the red instead of the black. The other challenge is dealing with your customers: handling returns, calming them down if the product is defective, etc.

How To Succeed in your eBay Business
The way to succeed in your eBay business is threefold: patience (I'm talking years not weeks), being in the right place at the right time, and selling niche products that people can't ordinarily find in typical retail shops.

Remember, you're a retailer. Success doesn't come overnight; it takes at least a few years to build your customer base. If you can manage to capitalize on an event, such as the outcome of the 2008 Presidential Election selling products related to President Elect Barack Obama, you may have temporary but stunning success. Apparently, November 5, 2008 newspapers which heralded the historic election of America's first African American president were selling for hundreds of dollars each on eBay and other sites!

Lastly, you're looking to sell a unique product at a price people can generally afford. I've heard stories regarding eBayers who have sold niche figurines, collectibles, and memorabilia on eBay with great success; mainly because it's the only place you can find such items. And what's the first thing you do when you can't find something in the store? Search online. It's that simple.

So remember, with the right business plan and strategy, coupled with good ol fashioned hard work and dedication to your new eBay business, you can make it work. But like brick and mortar retail shops, it takes time, and success won't come overnight.

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