Thinking of starting an Ebay Business.

**Shehroz** · 11-13-2009 02:57 PM

Hey guys I'm new to this forum and I just turned 18 about a month ago. I recently got hired at a part time job, but the job pays minimum wage and isn't even enough to get by in college. I was talking to one of my old friends who said he started a perfume/ cologne business on ebay and doing very well. I have done some research and found Doba as a drop shipper. They help you start up a ebay business as well. My only worry is that competition on ebay is intense, and I don't want to be shot down before I even begin. I'm planning on saving around $5,000 and starting it up. Anyone care to chime in on if this is a good strategy or am I digging myself a deep hole? Thanks again.

**mikey0717** · 11-17-2009 01:22 AM

if your starting an ebay business using a drop-shipper you need to realize a lot of work is involved because your only going to make minimal profit on each item so your going to have to make multiple sales which requires multiple shipments. If your trying to make a few bucks then I would suggest selling old stuff of your own, going to yard sales, going to estate/bankruptcy auctions, or make your products in order to get maximum profit returns for some fast cash. If your planning on making this a part time career then perhaps building a relationship with a drop-shipping agency might be the way to go because the merchandise is reliable and you can buy as much as you want. Remember though work is work there's no magic bullet, if you want to make money this way you need to move a lot of merchandise which requires a lot of effort.

Good Luck, Mike

**MikeTrike** · 11-17-2009 10:29 PM

Let me lay out my experience with eBay (and PayPal for that matter)

First lets start with the fees, then the fees and fees and fees and fees and fees and fees and fees and fees and fees and fees and fees and fees and fees and fees and fees and fees and fees.

Did I mention fees? Profit margin is so small due to product saturation and fees. You need as little overhead as possible and everything needs to be streamlined beyond streamlined.

Just my two cents

**Alexishost** · 11-18-2009 01:03 AM

And Think Big.

The most important in any business is to not focus on fear, but focus on how you can succeed brilliantly do the business you choose.

**antriver** · 11-19-2009 11:03 AM

Remember that eBay take 10% of the sale price and PayPal (the same company!) take another 3%. This will leave you with a very small profit margin.

**ndawson293** · 12-06-2009 07:35 PM

I know this is a little late but the thing about the eBay business you propose is simplicity. It's incredibly easy to take and order and pass it on to your dropshipper and dependant on volume, you may make some reasonable money. But I wouldn't use a dropshipper for very long, nothing wrong with them personally but use the profit you have made to invest in some stock yourself. Obviously it's more risk but it's going to have much higher profit margins. PM me and I'll point you in the right direction.

**pats4801** · 12-06-2009 08:51 PM

Originally Posted by ndawson293

I know this is a little late but the thing about the eBay business you propose is simplicity. It's incredibly easy to take and order and pass it on to your dropshipper and dependant on volume, you may make some reasonable money. But I wouldn't use a dropshipper for very long, nothing wrong with them personally but use the profit you have made to invest in some stock yourself. Obviously it's more risk but it's going to have much higher profit margins. PM me and I'll point you in the right direction.

Do you know any good dropshippers?

**contractor00** · 12-10-2009 01:01 AM

I thought this site would offer more professional advice. The op stated he had $5000 start up. Why than would he use any dropshippers? Why would he buy junk at a garage sale? Even estate sales are like fighting for zhu zhu pets at toys r us. None of these ideas will work unless you are willing to fight hustle and lose all your hair due to the stress of it all.
If you have the funds as you have said you first need to apply to become a reseller with your state. Than dba llc ein etc...
Open all your bank accounts. Than find reputable distributors of the product you would like to sell. This is easier said than done but the hunt will pay off in the long run.

**ndawson293** · 12-10-2009 05:56 PM

Originally Posted by contractor00

I thought this site would offer more professional advice. The op stated he had $5000 start up. Why than would he use any dropshippers? Why would he buy junk at a garage sale? Even estate sales are like fighting for zhu zhu pets at toys r us. None of these ideas will work unless you are willing to fight hustle and lose all your hair due to the stress of it all.
If you have the funds as you have said you first need to apply to become a reseller with your state. Than dba llc ein etc...
Open all your bank accounts. Than find reputable distributors of the product you would like to sell. This is easier said than done but the hunt will pay off in the long run.

So you're saying blow the $5k without first gaining experience, if he doesn't gain enough experience on eBay, his listings won't be as effective, his feedback will be untrustworthy. All resulting in lower profits, maybe even losses. As many others have suggested, saving some is important. And I'm pretty sure he said he would save up $5k to get started. If he went the route I suggested, wouldn't that also aid him in building the $5000 starting funds he first suggested? I don't want to start an argument here, I'm simply pointing out that there's more than one way to go and not all involve spending a large sum of money.

**jennyyu** · 12-18-2009 09:13 PM

An important factor to succeed in eBay business is to find a good dropshipper, who can offer you cheaper items than other suppliers. Thus, you will gain a big profit margin.

**steveestewart** · 12-18-2009 09:59 PM

From eBay store experience: Mike Trice said it well with "fees"! There are a lot of seller fees and then Paypal fees. Which if you're selling a lot, adds up. Plus, if you're selling small orders and have to ship each item, its a lot of hassle and you would actually make more at your job then you would boxing 50 orders up and taking them to the post office to mail off (Figuring you make a few bucks off each one). The best thing I did was find people to stock your item as well as sell them on eBay. That way you eliminate fees and you have mass orders. The more you do that, the more money you'll make and the easier making that money becomes.

**brownbob06** · 12-23-2009 10:00 PM

^^^^Am I missing something, or istn't that what a dropshipper is? Customers order items from you, you forward the item to the dropshipper, then the dropshipper ships the item directly to your customer, no shipping boxes or anything like that on your part...Maybe I'm mistaken though...

**jclife** · 12-30-2009 03:15 AM

Originally Posted by Shehroz

Hey guys I'm new to this forum and I just turned 18 about a month ago. I recently got hired at a part time job, but the job pays minimum wage and isn't even enough to get by in college. I was talking to one of my old friends who said he started a perfume/ cologne business on ebay and doing very well. I have done some research and found Doba as a drop shipper. They help you start up a ebay business as well. My only worry is that competition on ebay is intense, and I don't want to be shot down before I even begin. I'm planning on saving around $5,000 and starting it up. Anyone care to chime in on if this is a good strategy or am I digging myself a deep hole? Thanks again.

Hi Shehroz, this is right around my alley. I started selling on eBay at the age of 15 (I'm now 24), and I have had huge success throughout the years. The key to it all, like what some of the other replies have stated, is experience. In the beginning, I was only trying to get rid of my old stash of things that I thought were worth money at the time. After a while, the business side of me just began to take over as I tried many "schemes" to make more and more profit each time. I say schemes which has a negative connotation, but they were very beneficial to my learning experience. I ended up spending day and night at the computer and before you know it, I was making a lot of money finding bargains, arbing items, connecting with suppliers, etc. I was 18. This is really just the tip of the iceberg, but if you really are dedicated, you can start small on eBay and make it big. Take your time, don't quit your job and learn. Hope this helps a little