One caveat. Be prepared for buyers to contact you via messages with offers. Don't let it discourage you and don't ignore them. Simply reply, Im sorry but I don't accept offers. That simple!
Simply put, there's a reason Amazon doesn't allow best offers. It fosters a garage sale mentality in buyers who expect to be price makers rather than takers. When they aren't allowed to dictate price this kind of buyer will typicaly turn their nose up at a great price, which they would have gladly accepted if not given the best offer option. This is why I've never allowed buyers to send best offers and only send 5% discount offers. About 85% of my sales are at full price. This tells me that most people are fine with paying a fair price. Don't waste your time with cheapskate buyers who've been corrupted by best offers because they're nothing but problems. If they get you to agree to their price, their next though is that you would have taken less and question whether they should pay.
I totally agree. I learned years ago not to use best offers, you get the bottom feeders and then they will still have a problem when you come to an agreed price anyways.
Since I'm not a niche reseller per se (once my comics are gone, that's it) my plan is trying to get the cover price I paid for. The offers I get for the non-keys (minus the lowballers) are pretty much working in my favor so I'm good. Great video, sire!
This is a great video. Thanks I haven’t watched all of your videos yet so maybe you address it in a different video. But I would love to know if you came up with some sort of formula for what you pay yourself. I’ve been trying to come up with some sort of a budget as to what gets invested back into my store to what gets saved. I have not found a good video on that. I’ve been selling for about six months. At this point I feel like I’m reinvesting pretty much all my profits back into my store which I don’t want to necessarily do. If you have any inside, I’d greatly appreciate it thanks.
@@chriss5544 I actually do have a video that addresses that titled how I get consistent income on ebay. Early on when i was growing my store, I also put a lot of the profit back into inventory but now that I'm not trying to grow the store size, I focus on paying myself first.
My sell through rate is very high and strongly feel that if you are priced fair and have great pictures, you will win the battle with the buyers. I have never allowed offers. Control the buyer and dont let them negotiate.
FYI your total (gross for the year is $62,696.58) your selling costs are $27,963.15 and your net is $31,568.59 thing is that Avg Sales prices includes shipping so really that avg sales price is from your GROSS sales not your net sales so how do you find out what you really netted you have to take your your avg sales price which is $22.78 x 44.6% (your selling costs) and you get about $12 Net per item now if you really want to know your TRUE net you then have to deduct your other selling costs so cost of goods (how much you paid for each item on avg) cost of your shipping supplies and so on and so on (this adds up very quick) from that $12 avg NET from each sale so say your costs for the 2,752 cost you $6 each they your TRUE net what you actually get to pocket and use for whatever you want is really $16,512 big difference from $31,568.59. I have been a full time reselling on multiple platforms since 98' so just trying to make you and others realize how quick costs can add up (specially costs you might not be accounting for)
There are three Key Performance Indicators (KPI) in my business. Everything else is a waste of my time to track. The 3 KPI are, time invested, weekly payout and weekly expenditures. If my payout is 1k this week and I pay myself $500 and use the other $500 for new inventory, supplies and operating costs, then I don't need to have a tracking sheet and track every little detail. If the following week my payout is $600 and I pay myself $500 and use the other $100 for new inventory, supplies and operating costs, its the same profit. If I do this for 52 weeks, my profit is 26k.
@@Rocketman-Reseller so what im saying is if say you sell 400 in nov and 400 in dec your going to be around 3550 items sold for the year now divide that by $26k that your alleging you net after your costs you making about $7 per item again not sure what your Inventory costs is for the clothing you sell could be $.25 or could be $5 but again if your actually netting $12 per item from eBay (i.e. what eBay is actually sending to your bank account per item on average) if your inventory cost is $5 per item leaves you with $7 minus packing supplies, Minus Gas to go source, Minus any business equipment you need to replace that might break within the month, not to mention if you have a storage unit , electric, Internet, Cell phone all these add up and are 100% business expense again Many resellers do not account for these expenses yet there are 100% business expenses. just trying to make sure the person that might watch this video that does not know better and makes assumptions that your actually making $22 average per item when that is not the case because ebay is not very transparent in making sure others know that is all GROSS not net. the ONLY net ebay shows is to the far right on the screen and again most that do not know anything about reselling to do not understand that there are other business costs that MUST be deducted from that Stated NET that ebay deposits into sellers accounts. Many YT Resellers are not transparent about that where they lead the viewers to believe that FINAL net that ebay says they sent to a bank account (so in your case like $3500/$4500) is really what that Reseller Made (there true net) which its furthest from that its not there true net because of the OTHER Monthly business expense that must be deducted from what is deposited from eBay or any other platform for that matter then after all those other business expenses are deducted and accounted for what is left over is the TRUE net again that includes but not limited to COGS, Packing Supplies, Gas, Car Repairs (for ware and tear), Internet, Cell Phone, Electric, Storage unit or warehouse rent the list goes on. Good luck in the future but you really need to keep an eye ON MORE then just those 3 Numbers its not a waste of time because only concentrating on those 3 numbers you could be operating in the red or close to it btw FYI eBay is saying as of this video you YTD your grossing $62k and Netting $31k now if you can keep your OTHER Business costs to 20% of that $31k then your doing great! that means your TRUE net would be $24,800 and if your doing this part time that is Awesome extra income! this is why Margins so very important and keeping them as close to $0 as possible allows you to NET more
I don't have any storage units. I go sourcing once per week for about 5 hours including commute time and when I was an employee I had to commute 5 days a week. I spend about 15 hours per week in the business and my wife about 10 hours. My COGs vary on the brand but are low. Once I get my weekly payout, I pay myself first and I only use whats left over on ALL operating costs including new inventory, new poly mailers, new rollo labels, laundry soap, fuel (e.g. everything). My business allows me to get a tax deduction for the business use of my home. A portion of my internet and my cell phone plans are now tax deductible. I live in Florida and have Solar Power. I am retired at just over age 50. I am quite happy. I do get your point and many resellers focus too much on how many items they sold rather than their profit. I don't. Thank you for your contribution to the discussion and your points are valid and will be very helpful to many.
@@Rocketman-Reseller That is truly awesome! thank you for the insight and being so transparent i know i appreciate it and hopefully others will too! and yes you sound like you definitely know how to do it! Most do not. and that is so cool that your wife helps out! its always cool to see a husband and wife doing the reselling thing together its so helpful to have your significant other being a cheerleader! and I'm a huge believer this is such a great thing to do in retirement as additional income! im not there yet but i know when im retired ill still be reselling i have done this so long i do not think ill be able to stop and just retire lol ill probably cut back compared to what i do now but ill still use it as fun money
Thank you. I have about 4k items in my store. Almost all of them are moderate to low sell through rate items in a highly saturated niche. I promote at 4.1% and bump up to 8.1% for older items.
One caveat. Be prepared for buyers to contact you via messages with offers. Don't let it discourage you and don't ignore them. Simply reply, Im sorry but I don't accept offers. That simple!
Simply put, there's a reason Amazon doesn't allow best offers. It fosters a garage sale mentality in buyers who expect to be price makers rather than takers. When they aren't allowed to dictate price this kind of buyer will typicaly turn their nose up at a great price, which they would have gladly accepted if not given the best offer option. This is why I've never allowed buyers to send best offers and only send 5% discount offers. About 85% of my sales are at full price. This tells me that most people are fine with paying a fair price. Don't waste your time with cheapskate buyers who've been corrupted by best offers because they're nothing but problems. If they get you to agree to their price, their next though is that you would have taken less and question whether they should pay.
I totally agree. I learned years ago not to use best offers, you get the bottom feeders and then they will still have a problem when you come to an agreed price anyways.
Since I'm not a niche reseller per se (once my comics are gone, that's it) my plan is trying to get the cover price I paid for. The offers I get for the non-keys (minus the lowballers) are pretty much working in my favor so I'm good. Great video, sire!
This is a great video. Thanks I haven’t watched all of your videos yet so maybe you address it in a different video. But I would love to know if you came up with some sort of formula for what you pay yourself. I’ve been trying to come up with some sort of a budget as to what gets invested back into my store to what gets saved. I have not found a good video on that. I’ve been selling for about six months. At this point I feel like I’m reinvesting pretty much all my profits back into my store which I don’t want to necessarily do. If you have any inside, I’d greatly appreciate it thanks.
@@chriss5544 I actually do have a video that addresses that titled how I get consistent income on ebay. Early on when i was growing my store, I also put a lot of the profit back into inventory but now that I'm not trying to grow the store size, I focus on paying myself first.
My sell through rate is very high and strongly feel that if you are priced fair and have great pictures, you will win the battle with the buyers. I have never allowed offers. Control the buyer and dont let them negotiate.
FYI your total (gross for the year is $62,696.58) your selling costs are $27,963.15 and your net is $31,568.59 thing is that Avg Sales prices includes shipping so really that avg sales price is from your GROSS sales not your net sales so how do you find out what you really netted you have to take your your avg sales price which is $22.78 x 44.6% (your selling costs) and you get about $12 Net per item now if you really want to know your TRUE net you then have to deduct your other selling costs so cost of goods (how much you paid for each item on avg) cost of your shipping supplies and so on and so on (this adds up very quick) from that $12 avg NET from each sale so say your costs for the 2,752 cost you $6 each they your TRUE net what you actually get to pocket and use for whatever you want is really $16,512 big difference from $31,568.59. I have been a full time reselling on multiple platforms since 98' so just trying to make you and others realize how quick costs can add up (specially costs you might not be accounting for)
There are three Key Performance Indicators (KPI) in my business. Everything else is a waste of my time to track. The 3 KPI are, time invested, weekly payout and weekly expenditures. If my payout is 1k this week and I pay myself $500 and use the other $500 for new inventory, supplies and operating costs, then I don't need to have a tracking sheet and track every little detail. If the following week my payout is $600 and I pay myself $500 and use the other $100 for new inventory, supplies and operating costs, its the same profit. If I do this for 52 weeks, my profit is 26k.
@@Rocketman-Reseller so what im saying is if say you sell 400 in nov and 400 in dec your going to be around 3550 items sold for the year now divide that by $26k that your alleging you net after your costs you making about $7 per item again not sure what your Inventory costs is for the clothing you sell could be $.25 or could be $5 but again if your actually netting $12 per item from eBay (i.e. what eBay is actually sending to your bank account per item on average) if your inventory cost is $5 per item leaves you with $7 minus packing supplies, Minus Gas to go source, Minus any business equipment you need to replace that might break within the month, not to mention if you have a storage unit , electric, Internet, Cell phone all these add up and are 100% business expense again Many resellers do not account for these expenses yet there are 100% business expenses. just trying to make sure the person that might watch this video that does not know better and makes assumptions that your actually making $22 average per item when that is not the case because ebay is not very transparent in making sure others know that is all GROSS not net.
the ONLY net ebay shows is to the far right on the screen and again most that do not know anything about reselling to do not understand that there are other business costs that MUST be deducted from that Stated NET that ebay deposits into sellers accounts. Many YT Resellers are not transparent about that where they lead the viewers to believe that FINAL net that ebay says they sent to a bank account (so in your case like $3500/$4500) is really what that Reseller Made (there true net) which its furthest from that its not there true net because of the OTHER Monthly business expense that must be deducted from what is deposited from eBay or any other platform for that matter then after all those other business expenses are deducted and accounted for what is left over is the TRUE net again that includes but not limited to COGS, Packing Supplies, Gas, Car Repairs (for ware and tear), Internet, Cell Phone, Electric, Storage unit or warehouse rent the list goes on.
Good luck in the future but you really need to keep an eye ON MORE then just those 3 Numbers its not a waste of time because only concentrating on those 3 numbers you could be operating in the red or close to it
btw FYI eBay is saying as of this video you YTD your grossing $62k and Netting $31k now if you can keep your OTHER Business costs to 20% of that $31k then your doing great! that means your TRUE net would be $24,800 and if your doing this part time that is Awesome extra income! this is why Margins so very important and keeping them as close to $0 as possible allows you to NET more
I don't have any storage units. I go sourcing once per week for about 5 hours including commute time and when I was an employee I had to commute 5 days a week. I spend about 15 hours per week in the business and my wife about 10 hours. My COGs vary on the brand but are low. Once I get my weekly payout, I pay myself first and I only use whats left over on ALL operating costs including new inventory, new poly mailers, new rollo labels, laundry soap, fuel (e.g. everything). My business allows me to get a tax deduction for the business use of my home. A portion of my internet and my cell phone plans are now tax deductible. I live in Florida and have Solar Power. I am retired at just over age 50. I am quite happy. I do get your point and many resellers focus too much on how many items they sold rather than their profit. I don't. Thank you for your contribution to the discussion and your points are valid and will be very helpful to many.
@@Rocketman-Reseller That is truly awesome! thank you for the insight and being so transparent i know i appreciate it and hopefully others will too! and yes you sound like you definitely know how to do it! Most do not. and that is so cool that your wife helps out! its always cool to see a husband and wife doing the reselling thing together its so helpful to have your significant other being a cheerleader! and I'm a huge believer this is such a great thing to do in retirement as additional income! im not there yet but i know when im retired ill still be reselling i have done this so long i do not think ill be able to stop and just retire lol ill probably cut back compared to what i do now but ill still use it as fun money
Great video. Just subscribed. How many items are in your store and do you promote at all? Thanks
Thank you. I have about 4k items in my store. Almost all of them are moderate to low sell through rate items in a highly saturated niche. I promote at 4.1% and bump up to 8.1% for older items.
I don’t have the option of a 10% coupon but I’ll try this!