by Allen Teal

Created on: February 12, 2007   Last Updated: February 24, 2007

So, you want to make money at the world's largest garage sale. Like anything else, to make money at Ebay, you have to be willing to work it like at least a part-time job or a really serious hobby. If you're going to make enough to dent your budget, plan on at least a 6-10 hour per week committment.

How do you spend those hours? Well, after you've decided the type of items you want to sell, at first you have to locate a steady source for obtaining them at a reduced price. Like all merchandizing, you have to buy low and sell high. Make sure you are knowledgeable about your items or you will lose your shirt, buttons and all!

Next, find out how much it will cost you to package and ship this item in the US. If you ship outside of the US, note in your Ebay ad that shipping beyond the lower 48 will cost more. Don't forget it costs money to drive to the Post Office or a drop point if you have to do that.

If you get a chance to buy 100 of something for next to nothing, make sure that the cost isn't still too high. Cheap is expensive if it won't sell. The seller may know something that you don't.

Never plan to make a large amount if you buy the item at a bargain on Ebay for resale on Ebay. Remember, no one was willing to pay more than you when you bought it, and you had to pay shipping above your purchase price. Don't overlook an obvious bargain that can occasionally be had on Ebay. Just don't look to them to furnish your products. You might make 20@ but not much more if your lucky.

Look through the ads selling similar items on Ebay. Watch them for a few days and see which formats seem to attract the larger bidders. Sometimes the extras like special borders and things are worthwhile if your product sells for more than a few dollars. On low ticket items, they rarely increase the price more than the fees it takes to have them.

Start slowly. Buy just a few items to sell, unless you're cleaning out your garage and closets and have priceless antiques. This will give you time to learn without making costly mistakes. As you're confidence grows, keep increasing your business at a steady pace that is affordable to you.

Remember, you're in this for the long haul. You should be expecting to build income not to get rich overnight. Unless you're about to fall into bankruptcy, you have time to let your business grow naturally. Any growth above 25% per month after the first two or three months is probably too fast. The bigger you get, the less this percent will probably be.

Go for the Paypal business account. The ability to receive the credit cards is good, and you won't have to upgrade later if too much money and too many transactions start pouring through your account. Hey, you do intend to succeed, don't you? If you don't, stop reading now and go watch TV. It will be more productive.

After you are comfortable with this product or small group of related products, consider expanding your line or opening an online store. These options become more interesting after you are regularly moving 30-100 items per month. Try to stay with items that sell above $10. If they sell above $25, it's better. It gives you wiggle room with your profit margin. Above $25, I would set a reserve. Below $25,I would set a starting price at or near cost or even up to the value I would like to receive. Another thing to remember is that if your item is worth the price, a lower opening bid will attract more bidders and result in a higher final price from the robust bidding.

One last point for the newbie. As much as 50% of the selling price can show up in the last hour of bidding. So, don't panic. I have had items triple or more in the bid amounts during the last 5-10 minutes. This is true even for those that sell above $100.

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