eBay Millionaires?

business guru

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Aug 18, 2008
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It's always in the news about people becoming eBay Millionaires.

Do you think it is still possible to be one today? With increasing costs, it seems impossible.

For example if I buy something for £25.00 sell it on for £30.00, you are left with -0.10p, after eBays and PayPal fees of £5.10, so no profit at all! :|

Total Ebay Fees: £3.79
PayPal Fees: £1.31
Total Fees: £5.10
 

i234i

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Jul 17, 2007
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agree with the above, MH1

If you buy the above item for £25. there is probably someone else paying £15 and someone paying £5. not everyone on ebay who sell the same products or what look the same will all be on the same markups.

all different, different sellers, different prices. Some better ideas than others!
 
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Dave.F

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Nov 22, 2007
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I know a few ebay sellers that make money from postage (they send their items using their employers postal service/budget (larger corps)) and a few others that sell their employers stationery and some even sell their employers printer toners...:eek:

All profit.

How can you compete with that:|

About 10 or 11 years ago, I used to buy memory cards direct from China and sell on ebay, worked until 3 or 4 other sellers copied me.....now there must be 100's of memory card sellers inc the Chinese factories themselves...:rolleyes:

I think that the honest person, that buys the correct way and sells on ebay could become a millionaire but like most businesses, it will take time and hard work.

The secret to ebay is, to sell items that no one else is selling, easier said then done:eek:

One thing is for sure (or 2), the buyers are there in there millions and it is not rocket science to be able to sell on ebay.

Dave.F
 
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noidea

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Aug 6, 2008
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Don't believe everything, you read in the Sun:p

Dave.F
Looks like an PR stunt. Nice marketing.

If I ever was as retarded as to sell on ebay as an honest seller (i.e. no hidden or over the odds postage costs, no stolen goods, no exaggerated listing or pictures of a different model, no shill-bidding etc.) and become an ebay millionaire, would I pose for pictures with big ebay branding? NOOOOOOOOOOOO!! I would beat the ********* black and blue for the extortionate prices, otherwise I would have made about 25 million... lol :D
 
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noidea

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3trades

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Aug 8, 2008
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this guy? its under Woman :S ...

Thing is these people make ebay, if these wanna be ebay millionaires died out then ebay would die. It is all good for this 3.5m turnover business... but if he stuck such effort in going it alone he would have made something worths ten times that!

probably,

but lets not forget that the marketing has already been created and ebay are facilitating, they should be compensated but how much is a different story.

it ultimately boils down to the survival of the fittest and where you are in the food chain.....from a sellers perspective, if you can secure in demand products cheap enough, i.e directly from the manufacturer, then you stand to do very well because there will be less competing sellers at your level to drown out any of the demand for the product. You also need, like any other business to have some sort of competitive advantage otherwise buyers will be attracted to competing sellers, and there are lots of them.

lets not forget that people who go to ebay, go their because they can expect to find bargains, so they expect to find the cheapest prices while browsing the site..

in my personal opinion, you stand the best chance of making some serious money off ebay if you have an in demand product that you own and control, but then you probably wouldn't sell it on ebay.

it is difficult to achieve but so is achievement in any business, you need to work at it research you markets and approach the right people to make the right deals.
 
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3trades

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Do you think it is still possible to be one today? With increasing costs, it seems impossible.

For example if I buy something for £25.00 sell it on for £30.00, you are left with -0.10p, after eBays and PayPal fees of £5.10, so no profit at all! :|

Total Ebay Fees: £3.79
PayPal Fees: £1.31
Total Fees: £5.10


unless you can get a cheaper rate through a volume purchase to drive the price down enough, to lets say below £20, you are simply not in business.

but if you do manage to get it down to around there, I would image it to be a lot of items to find storage space for, if not then you have an overwhelming supply which you must put on the market over a period of time. They may not all sell first time round, and listing items costs money regardless.
 
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Dave.F

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Nov 22, 2007
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Bexleyheath, Kent.
The problem with selling memory cards on ebay is:

1. other sellers, sell copies branded as say Sony etc....
2. If you buy a mass order of say 1,000pcs the price per unit is dropping before you sell the stock, so other sellers that buy 1,000pcs a week later get them cheaper, so sell cheap then you.
3. The Chinese factories sell direct and make their profit from the postage charges that ebay do not charge the seller for:eek:

Dave.F
 
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thekitchendesigner

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Dec 5, 2005
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Does the fact that he turns over £3.5m make him a millionaire, or is it said like that more to increase publicity??

Its a shame paypal are so arrogant and hard to deal with, as it certainly puts me off using ebay. I used to sell flip down tv's on there are sold about £20k's worth in 7 months, until some dodgy idiots started buying literally out of the back door of the factory, and selling them for stupid money. Shame really.
 
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O

Online Trader

Nothing is forever on eBay

We were the first seller to offer Pink Laptop Cases which we imported directly from China, we were the only seller for approximately 18 months and in that time sold in excess of 2,500 cases at £24.99 + £5.99 P&P.

Do a search now for pink laptop cases and you will see how many sellers there are and how cheap the idiots are selling them for ;)
 
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serendipitybusiness

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Jun 27, 2008
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It was possible before ebay got greedy and their customer service got worse. Now I doubt it, the established sellers quite often sell at a loss on ebay to drive sales to their shop away from ebay. This is common practice, advertising. If you are competing with this and fakes it is very difficult to get to that point.

Especially as other sellers will often report yours listings as fakes to try and get you banned (with ebay it can take upto 2 weeks to get your position reinstated) or copy your listings and con bidders. Once you fight this battle, have an account in good standing, get to powerseller status, phone support etc, it runs a little smoother. Youf eel confident and start positioning your company for expansion then overnight ebay change the rules, you can no longer sell this product, there is no longer a category for ths product, they are no longer showing your product on alternaive searches, on international sites, you are now only allowed to take paypal, your items are in the wrong category so you have to change them all, royal mail have upped the prices etc. It is such a shaky ground to establish a business, the goal posts are always changed and they can pull the rug from under you any minute. It gets harder and harder every month to retain the profit margin you bought stock on in the first place so you are reluctant to buy large quantites as the game could change tomorrow.

Ebay are making it pretty impossible for people to become millionaries now as sellers can no longer rely on a future or strategise for expansion effectively. Their practices will eventually be their downfall, it is happening already. There is just not the right competitor out there with the right objectives, money and market control to take them on currently.

I intend to change this for the digital market offering a supportive and fair environment for people to create a business, I am open to working with a cooperation to do this for physical products if anyone has the skills or money and desire to take on the challenge. It won't be easy, there won't be a quick return, but there is a need and a demand for this kind of set up and it is currently not being fulfilled with a truely win win attitude.
 
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3trades

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It was possible before ebay got greedy and their customer service got worse. Now I doubt it, the established sellers quite often sell at a loss on ebay to drive sales to their shop away from ebay. This is common practice, advertising. If you are competing with this and fakes it is very difficult to get to that point.

Especially as other sellers will often report yours listings as fakes to try and get you banned (with ebay it can take upto 2 weeks to get your position reinstated) or copy your listings and con bidders. Once you fight this battle, have an account in good standing, get to powerseller status, phone support etc, it runs a little smoother. Youf eel confident and start positioning your company for expansion then overnight ebay change the rules, you can no longer sell this product, there is no longer a category for ths product, they are no longer showing your product on alternaive searches, on international sites, you are now only allowed to take paypal, your items are in the wrong category so you have to change them all, royal mail have upped the prices etc. It is such a shaky ground to establish a business, the goal posts are always changed and they can pull the rug from under you any minute. It gets harder and harder every month to retain the profit margin you bought stock on in the first place so you are reluctant to buy large quantites as the game could change tomorrow.

Ebay are making it pretty impossible for people to become millionaries now as sellers can no longer rely on a future or strategise for expansion effectively. Their practices will eventually be their downfall, it is happening already. There is just not the right competitor out there with the right objectives, money and market control to take them on currently.

I intend to change this for the digital market offering a supportive and fair environment for people to create a business, I am open to working with a cooperation to do this for physical products if anyone has the skills or money and desire to take on the challenge. It won't be easy, there won't be a quick return, but there is a need and a demand for this kind of set up and it is currently not being fulfilled with a truely win win attitude.

good luck with that if you go ahead, and i agree with everything you mention, establishing a business on ebay is not easy and if you do find a niche where you can make a few pounds the market will change either by ebays/paypals doing or other external influences. like I said the more control you have over the products you are selling the easier it will be to use this as your selling platform.

I have spent countless hours researching markets, price spreads between supplier and selling prices, and the completed listings to gauge the demand and average selling prices for particular items, from suppliers where i wold have to purchase in bulk, drop shipping and even the far east, and i was not satisfied with the findings, ultimately it was not worth my effort and the risk of a few sales not completing because this would wipe out any profit you could expect to make also, paypal have upped their fraud preventions but there is always the risk of a dodgy deal.

I also came across ebid, who seem to be the main running competitor behind ebay, they are practically free, there are lots of sellers and listings on the site, but noone really buys anything from their, i listed a many items through ebid, but just didn't get any sales.

until a point comes when the buyers feel safe using something other than ebay nothing will change as seller i think are ready to move over to a competitor if the fees are more competitive, it is a two way street, there needs to be both buyer and seller on an auction site to make it a success,

in my opinion ebid is their closest rival, but still a long way for them to go yet.
 
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serendipitybusiness

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Jun 27, 2008
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I don't agree with that no idea there are reputable power sellers on there you just need to have a look at feedback to spot a rogue trader. I had a look at ebid and decided against it. It isn't free to sell as a professional seller as I would have done on ebay and there was no way I was going to pay £150 just to be able to operate on their site, especially as nobody seemed to be selling anything. Nor is it made easy to transfer over listings. I also don't think the layout of ebid is particularly user friendly either which won't help conversion rates.
 
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noidea

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I don't agree with that no idea there are reputable power sellers on there you just need to have a look at feedback to spot a rogue trader. I had a look at ebid and decided against it. It isn't free to sell as a professional seller as I would have done on ebay and there was no way I was going to pay £150 just to be able to operate on their site, especially as nobody seemed to be selling anything. Nor is it made easy to transfer over listings. I also don't think the layout of ebid is particularly user friendly either which won't help conversion rates.
ebid is small for a reason.

I don't care what anyone says, I am sticking by my word. There is not one single power seller who conducts business at a high professional standard. You understand it if you are buying from an individual but a business there needs to be a standard...

To sum up let me quote from powerseller FAQ...

However, if you breach the Shill Bidding policy or if you reach your limit of policy breaches (see Question 9) within a 60-day period, you will lose your PowerSeller status. To regain your PowerSeller status, you must comply with eBay listing and marketplace policies over the next 60 days, and maintain compliance.

If a seller (not saying all powersellers does this of course but not many get caught) shill bid (that is either personally bid on own items under a different account or co-ordinate someone else to) that is fraud, yet ebay publicly displays this as acceptable on their so-called safe and secure service but they will take away your status for 2 months if you are caught as a deterrant - like that is going to bother anyone...

So ebay allows this and wont remove accounts for being dodgy but see bizzare ways of penalising people. I just found out you only need to sell £750 value turnover a month or 100 items to achieve that status - thought you needed thousands?
 
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serendipitybusiness

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I stick to my point that you can't tar all powersellers with the same brush. I know powersellers, they are reputable, they don't shill bid and the items are exactly as described. However, they work extremely hard for the profits they receive. Again you only need to look at the feedback to cut out the bad sellers. Hence, why the system is so powerful.

What you will also find on some products I have seen it a lot with mobile phones where competitors have put in stupid bids at the end (on different accounts of course) and then don't buy however, it drives the real buyers to their listings. So it certainly isn't black and white. They can also bid to leave negative feedback on their competitors listings.
 
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noidea

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I stick to my point that you can't tar all powersellers with the same brush. I know powersellers, they are reputable, they don't shill bid and the items are exactly as described. However, they work extremely hard for the profits they receive. Again you only need to look at the feedback to cut out the bad sellers. Hence, why the system is so powerful.

What you will also find on some products I have seen it a lot with mobile phones where competitors have put in stupid bids at the end (on different accounts of course) and then don't buy however, it drives the real buyers to their listings. So it certainly isn't black and white. They can also bid to leave negative feedback on their competitors listings.
Name me 10 powersellers.... that you know (including their username) and I will give you my opinion on them...

Paragraph 1: All powersellers are reputable.
Paragraph 2: A lot of competitors use different accounts to overbid on items to draw interest to their cheaper product.

Pretty much a contradiction...
 
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O

Online Trader

I don't care what anyone says, I am sticking by my word. There is not one single power seller who conducts business at a high professional standard. You understand it if you are buying from an individual but a business there needs to be a standard...

Absolute rubbish
 
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noidea

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I don't care what anyone says, I am sticking by my word. There is not one single power seller who conducts business at a high professional standard. You understand it if you are buying from an individual but a business there needs to be a standard...

Absolute rubbish
So as an online trader you think there should not be a standard with online businesses?

Maybe that is a good thing in your case then...
 
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serendipitybusiness

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It is true. I didn't say they were all rogue and didn't have good standards... I am saying none have HIGH "professional" standards... but online ebay businesses don't really matter do they? ^o) ...

Ebay is the sole revenue generator for many businesses so I would say they matter to those people and the families they are supporting.
 
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ca_jamesscott

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Jul 26, 2008
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Actually - the Sun story is a true one. This seller is one of our clients and is very successful on not just eBay, but other online channels.

James.
ChannelAdvisor UK

Sorry - scrub my last post - got confused with another large eBay memory card seller... that will teach me for not double-checking before posting... :)

Sorry folks!
 
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It is quite possible to make good profits on Ebay. I currently have an ebay business turning over at minimum 6-10k a month for some months. This next few months up to around jan nxt year i expect to turnover prob around £75k. And to be honest im just getting started.

Im also looking at other channels now.

Im not the only one either. I know other sellers that make much more than me. So there is money to be made if you know how.
 
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noidea

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It is quite possible to make good profits on Ebay. I currently have an ebay business turning over at minimum 6-10k a month for some months. This next few months up to around jan nxt year i expect to turnover prob around £75k. And to be honest im just getting started.

Im also looking at other channels now.

Im not the only one either. I know other sellers that make much more than me. So there is money to be made if you know how.
Great to hear the success, £75,000 is great!

Looking for other channels suggests a dip in confidence about the ebay service?

However, as this topic states about millionaires.... £75k is just 7.5% of £1,000,000 then again this is just turnover... not profit... so could be 0.75% of a millionaire - let say 4% year... still some way to go!

So even though £75k t/o isn't to be sniffed at before you have lost your "beginner" status... you have already started to lose faith in the system and explore other avenues, which is great, but goes to prove you don't think ebay is a viable sole long term option...

Your entrepreneurial skills say you wont get far if you just stuck with ebay, after a while you will notice not much increase in turnover etc. so your only aim would be increasing profit margin etc. - you will stay using ebay, however, you will exploit other avenues...
 
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business guru

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It is quite possible to make good profits on Ebay. I currently have an ebay business turning over at minimum 6-10k a month for some months. This next few months up to around jan nxt year i expect to turnover prob around £75k. And to be honest im just getting started.

Im also looking at other channels now.

Im not the only one either. I know other sellers that make much more than me. So there is money to be made if you know how.

What do you sell? :eek:
 
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I didn't say they were all rogue and didn't have good standards... I am saying none have HIGH "professional" standards...

Depends on what you mean by high professional standards, many powersellers run very large businesses off ebay as well, so I see no reason why they would apply a double standard to their clients.

A lot of power sellers sell exclusively through BIN, so no bids required to buy, so shill bids are not relevant to these sellers.

In my dealings over the web, many ebayers put so called professional companies to shame.
 
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