How do I profit from Ebay? That is the million dollar
question!
Here it goes...
THE THEORY:
“What
can be worth very little to one person, can be very valuable to another.”
THE GOAL: Buy the items from people that have very little value
for them, resell the items to people who value them highly.
Your probably saying to yourself, “This is obvious”! Yes, the
theory is obvious. However, how this theory can be converted into profits
is not so obvious right?!! The question now is: How do you find these
valuable items from people who do not value them? Thats what the rest of
this book talks about.
The SmartAuctionSystem explained:
The SmartAuctionSystem is comprised of three steps:
Discover niche
products that have high profit margins and low levels of competition on
EBay.
Use DailyPowerSearch.com to find your inventory and
suppliers.
Develop long term relationships with worthy suppliers.
he SmartAuctionSystem is a platform. The possibilities that can
evolve from the system are limitless. You may decide to specialize in car
parts, computer parts or medical equipment. It doesn't really matter.
They are all lucrative niches.
DailyPowerSearch.com is a
propriety tool that will supply with critical information in a convenient
manner.
More importantly DailyPowerSearch.com will help you
develop key relationships with suppliers. You only need to develop a good
relationship with one supplier to be successful on Ebay. You may find 10
suppliers. You may develop one niche or 10 niches. This is the beauty of
the SmartAuctionSystem. The system gives you the opportunity to as
successful as you want to be!
The ultimate goal of the
SmartAuctionSystem is to develop long term relationships with worthy
supplier. This is the key for “long term” success on EBay.
(note:
According to EBay policy, when finding a supplier on EBay. All
transactions with this supplier must be conducted through EBay. Please
keep updated on EBays policies from time to time.)
What is a Niche Product?
The following
explanation may be slightly overwhelming to read at this point of the
book. However, have a read, and hopefully by the end of this book, you
will fully understand it.
If I dropped off an Internet Kiosk in
front of your house, what would you do with it? You would probably call
the police!! You would feel burdened with the huge piece of metal
blocking your driveway. You would have no idea that this kiosk sold for
$15,000 when it was brand new. You probably would not realize that it is
currently selling on Ebay for $1500. This is a niche product. Only people
related to the industry can appreciate its value and use. This is an
example of an item that can be bought and sold on Ebay for HUGE profits.
This item is worth very little to one person, yet very valuable to
another. (In Appendix A - you will find an example of how I bought 4
Internet Kiosks for a total of $120 and resold them for $1500 three
months later) How does a person sell 4 machines that originally retailed
for $60,000 for $120? The seller had very little value for these
machines.
The Niche Theory Sample:
Let me explain this theory
with another transaction that I was fortunate to benefit from. I just
bought and resold the item, but I will add a fictional twsit to try and
understand how great deals can be found. A person inherits an estate
sale. One of the items he finds in the pile is a Shrink Wrap Machine.
(this is a machine used to package CD's and other goods). He turns it on
and it works. However, he has no use for it, nor does he know who would.
Therefore, he decides to sell it on Ebay. The seller does not know the
real value, so he just lists the machine for a $50 minimum hoping the
price will get bid higher. For some particular reason, the amount of
buyers and activity of people searching for a Shrink Wrap Machine is not
very high during this particular 7 day auction. Along comes a speculator
who runs into this auction. The buyer thinks its a good deal, but does a
Google search “Shrink Wrap Machine” to verify its value. The buyer
notices that this particular brand and model is worth over $2500 and it
is listed for $50. The wise speculator place a maximum bid of $100. He
buys it for $100 and has it shipped for another $100; therefore he paid a
total of $200 for the $2500 Shrink Wrap Machine. Knowing the item is
worth $2500 brand new, he thinks a buyer would easily pay $850 dollars
for the item and $100 for shipping. This would leave the investor with a
$750 profit. He posts the Shrink Wrap Machine on Ebay for $850. He does a
“BUY IT NOW” auction with “Til it sells” for duration” (Til it sells is a
listing format that allows you to leave the item on Ebay until it sells).
He adds the option “Make an Offer” so that if the product does not sell
for the price he estimated people would pay, he could see what people
would be willing to pay for the item.
Twenty days later, a person
starting a lucrative export business needs a Shrink Wrap Machine to
package products. He looks in a catalog and decides that $2500 for a
Shrink Wrap Machine is very expensive. He needs to buy this machine, but
decides to first look on Ebay before spending $2500. He searches Ebay and
sees the machine he needs for only $850! Wow, what a deal; he can save
$1650. He immediately purchases the item and sends you the funds via
Paypal. You already have the item pre-packed from when you received it.
You take off the old shipping label, place your shipping label on the
box, and ship the Shrink Wrap Machine to the buyer. You just made $750
and the buyer saved $1650. This is a great day for both the buyer and
seller!
“What can be worth very little to one person, can be very
valuable to another.”
Once, I completed this successful
transaction, my next question to the seller was:
“Hello, it was
great doing business with you. I am looking to buy more inventory for my
business. If you any more shrink wrap machines in stock or any other
products of interest, let me know and perhaps we can do more business
together.
Thanks, Jason.”
