Is selling on Ebay or Amazon actually worth it?

I've been on these channels a while and recently decided to reexamine whether it's actually worthwhile selling through them.

I've found them hard to administrate and the fees means that the profits aren't great.

So I thought at least we would be getting return custom. I worked out the proportion of customers that find us on Amazon or Ebay and then later return to buy from us directly (if you're interested, I wrote up a tutorial on the method I used here)

The result was rubbish - 1.4%. I also looked at whether direct Google searches went up as a result of people seeing us on these channels - they didn't (I also wrote a post about that, which is here).

So i'd like to gauge current opinion. If they are tricky to administrate, expensive, result in little repeat custom and don't send direct customers, should professional sellers bother? Perhaps some of you have had different results to me, or interpret them in a different way.
 
D

Deleted member 74679

Very nice blog posts - makes for interesting reading.

I think I get a fair number of people buying direct from my website as a result of seeing me on Amazon/ebay. I get a number of searches (62 last month) for my brand name as it appears on ebay/amazon (spelt as all one word - 29 letters long!). Anywhere else I'm mentioned on the web, there is a direct link to my website, and if someone has the product (or remembers the product) I would think they would type in the brand name with spaces (19 searches last month).

Having said all that, Amazon still accounts for about 35% of my sales, so they are loyal customers. And I today purchased my entire Christmas present list from Amazon, and while I did go with the cheapest in Amazon (cross referencing in different categories, and across duplicate product listings), I didn't bother checking the cheapest sellers' own websites.

I can make good money on both ebay and Amazon as I sell my own unique product, no competition, thus set my own price. But I can see it could be uneconomical for sellers with competition.
 
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J

Josh_Farmer

Personally speaking, it's worth it for order Volume but not for profit.

We can get a very high turnover of order's for amazon and ebay, but when we take out fee's and postage, the margin's are just not high enough due to the fee's plus the high competition on there.
 
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kulture

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    The quick answer to the question is YES it is worth it. Both Amazon and Ebay make a fortune from their sellers. The sellers themselves can loose big time if you do not watch your costs to the penny. It is all too easy to get caught in the buy now box bidding war. Lowering your price again and again to get that blue box.
     
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    Websitehandyman

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    I think it really depends on what and how you are selling.

    If you are dealing in and out stock items and use a decent uploading service then it can be very very well worth it. On the other hand if your items are one offs and you do it all by hand then perhaps not, esp if they are low price items - paypal can be 10% and ebay can be 20% so not much left for your hard work.

    It might be worth in more if the wasn't a percentage of ebay users who, to be frank, are just plain crazy. These are the one that take two weeks to pay and then leave negative feedback if the item is not on their doorstep next day. All that hassle is got to be worth 20% of the price of any good offered In my opinion.

    One tip I gave a client was to use the ebay network to advertise his ebay listing on another domain. That seems to bring some success as it was another feed into ebay but direct to his listings and the cost of it was offset by the small amount of affiliate income he got from it too.

    If I was doing that today I would also include feeds to facebook and twitter. It's an easy process to setup if you find a good domain name.
     
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    Jayser100

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    On Amazon it is virtually impossible to make worthwhile money if you a). buy product at a trade price and b). are VAT registered.

    Typical example - let's say you buy a product for £20.00 (with no extra postage fee from the wholesaler) and sell it on Amazon for the RRP of £40.00. By the time you've paid your 15% or whatever (varies by category) to Amazon and 20% VAT to the government, plus your postal costs, you make diddly.

    I often wonder how those people selling items on Amazon for £2.00 - £3.00 manage it. Even of they buy the products at source (i.e. from a factory at maybe 30p per unit), what are they making? 50p per item? Imagine how many you need to sell?

    I would guess there are many sellers on Amazon for whom the figures don't stack up - they just haven't done their homework properly.

    As someone else said, Amazon makes sense if you are a manufacturer, you don't have competition and you can set a serious mark-up that covers all tax and commission costs without draining potential profit. For dealers who buy product at trade prices, Amazon is really not worth the bother.

    eBay is still a bit of a black art to me. I only started my eBay shop around two months ago and currently, I have to say, the high monthly fees mean I'm not making a profit. However, i need to learn more about optimising the way I sell before I can make a decent judgement on whether it's going to work.
     
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    JMRidley

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    We made a decision to stop selling through Amazon a few months ago. As others have said, the fees make it really difficult to make a profit. It was also hard work keeping our stock levels and product listings up to date and it was another set of records to deal with. We felt our effort would be better spent on developing our own website and getting customers to that which has definitely been the right strategy for us.
     
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    Josh_Farmer

    I found with amazon, that our low value items (i.e anything under £5-10) we would struggle after postage to make 50p, now to make a decent sum of money off that, you would need to sell in excess of 600+ items a day, just to give some substantial turnover..

    (baring in mind thats baseline)
     
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    eventdomain

    When selling games, average price would be buy Retail @ £40.00, and when done with it, sell it on for £15, and many do this, and I guess this is what Ebay was meant to be about originally.

    Fees can be high, but steer clear of extras like Bold, or Buy Now as this really eats into profits.


    As a business, you'd need to buy in bulk at warehouse/cash carry prices, then sell for a bit less than retail would. I suspect most sellers are big organisations with Ebay shops, that have so much stock they make money easily.

    I know the odd ones are one-man band types that got lucky with a product, but buying single items and hoping to make a killing - I cant see it myself.

    I have traded on Ebay for 2 years, but never made a profit, only did it to get about 25% of my cash back. If you sell goods at £15 each , then you got about £10-15 in monthly fees, post @ £2 per package, so I lost about 1 entire game cost for every 10 I sold, so a loss of £40ish.

    Not too bad I guess..
     
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    The amazon fees wipe you out. I thought Ebay was poor but they only get you when the money is transferred to PayPal (two bites of the cherry).

    You can sell a lot on Amazon and Ebay but profit margins are mad and if Amazon start stocking your product for a laugh then kiss goodbye to any profits at all, they stick it on free shipping and have it on auto price setup so it undercuts who ever else is selling that product.

    Don't risk your mortgage on amazon sales. You can crash spectacularly when it all goes wrong.
     
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    Jayser100

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    It is possible to make money on Amazon, but you need to be bold and make a 'real' investment. I have an item that I bought 3,000 of from a factory in China at 27p per unit (inclusive of shipping and forwarding fees); I sell at 4.99 on Amazon - after fees, taxes and postage we make £2.00 per unit.

    Other items I sell in the £40 - £55 bracket yield an average return of £20.00 per unit but again, these are items I have purchased under my own branding, and directly from the factory. Trust me, Amazon will never get their mitts on these items for their own stock!

    Amazon is only going to work for guys like me and not dealers, really.
     
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    Wow, some really, really interesting viewpoints here - and almost entirely negative. I hope all online sellers who are trying to increase sales by trading through ebay and Amazon read this before they start.

    I for one will be seriously considering whether to continue on Amazon and Ebay in the new year.

    I think I'll write a follow up post to the original with a summary of all the arguments and viewpoints everyone has presented here. Hope it's alright with everyone to use some quotes. Will post a link when finished.
     
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    accounting-help

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    On Amazon it is virtually impossible to make worthwhile money if you a). buy product at a trade price and b). are VAT registered.

    Typical example - let's say you buy a product for £20.00 (with no extra postage fee from the wholesaler) and sell it on Amazon for the RRP of £40.00. By the time you've paid your 15% or whatever (varies by category) to Amazon and 20% VAT to the government, plus your postal costs, you make diddly.

    I often wonder how those people selling items on Amazon for £2.00 - £3.00 manage it. Even of they buy the products at source (i.e. from a factory at maybe 30p per unit), what are they making? 50p per item? Imagine how many you need to sell?

    I would guess there are many sellers on Amazon for whom the figures don't stack up - they just haven't done their homework properly.

    As someone else said, Amazon makes sense if you are a manufacturer, you don't have competition and you can set a serious mark-up that covers all tax and commission costs without draining potential profit. For dealers who buy product at trade prices, Amazon is really not worth the bother.

    eBay is still a bit of a black art to me. I only started my eBay shop around two months ago and currently, I have to say, the high monthly fees mean I'm not making a profit. However, i need to learn more about optimising the way I sell before I can make a decent judgement on whether it's going to work.

    I'm only talking personal experience having sold a few items on both Amazon and Ebay. Ebay seems bit like the wild west at times and requires quite a bit of monitoring. Some people play the ebay game (last min bid, autobid, scripts, etc) so I think it takes a bit of understanding.

    I don't think you can set delivery charges on Amazon unless you are a merchant which has a stipulation on number of items (revenue) you carry out. Please don't quote me on that. You'll also seem to find individuals/companies who compete to have the lowest listing price for a item which can't be good for margins.

    Once again this is just my view and I haven't used it as for a business so don't have much experience there.
     
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    I think this is very interesting. I've been thinking about selling on Ebay, too. I won't bother with Amazon then...
    I haven't had any experience yet as a seller but from my viewpoint as a buyer I think it depends what you are trying to achieve. My plan is to earn a decent part-time wage - not to become rich or to run a mid-size business. And I think I have found a niche - whether it's worthwhile I will find out during next month. As a buyer I am more interested in listings that look like they come from a private seller (depending what I am looking for). I don't like buying new clothes on ebay for example. I always go for the second-hand stuff as it is more unique (and sometimes cheaper). I generally click the box for UK only - can't be bothered waiting 3 weeks for a parcel to arrive from Hong Kong. Unless I buy stuff that I am too lazy for buying in town (eg technical stuff, tools or hardware in general) I don't bother with ebayers that look in any way commercial. I look for pictures that haven't been taken from a catalogue (white background)...I don't know why..there is just a certain feel to it that I don't like. As an example: I bought some hooks and tie backs for my curtains the other day. They were from a commercial seller but the way the ad was presented it looked kind of homely and non-commercial to me. If a seller has about 1 Million of the same item in stock it makes me feel like it is low quality. I know this is not necessarily the case but it's all in my head and it makes me hold back from those kind of purchases.
    Also, it depends how unique your items are. I for example was thinking about selling refurbished furniture - many already do this on ebay - but what I am about to do with them will make them unique. I also want to sell certain types of clothes on ebay in another european country. I know what the people over there are like and I know they will like this type of stuff especially because it's from England. I am going to get most of it from Charity Shops and looking at completed listings on Ebay I could make about 5£ profit of each item (even though it's second hand). Some I will get from wholesalers. And I am going to take a picture of every item in my home. Competition is not too big but I'll see how it goes.
    If it's rubbish I'll keep you updated :)
    Oh and what about drop shipping? (I am not planning to this) - if you find genuine wholesalers that offer drop shipping it takes away half of your work and could potentially increase your profits. But I have no experience doing this, either...it's just a good guess..not sure if anyone on here has tried it yet? All I know is that at the moment I am working from home in a boring marketing job for someone else and I am desperately trying to get out of it..:)
     
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    Websitehandyman

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    I helped someone do droping using Amazon last year, although I didn't actually know at the time I did think it might be a pointless exercise for them. They had already tried ebay and found that not to their liking.

    I'm currently using ebay to clear some items after not using it for 4 years. After the first items finished (only do 99p ten day) I soon remembered why I stopped using it.

    Imagine having a shop on the high st where customers can come in and take things off the shelf but then not pay for them for a week or week. Imagine then the same customers having made you wait for your money then stand outside your shop with a big sign saying "very slow to deliver", "not as described" or worse.

    Also the ration of items in the post suddenly go up 500%. And god for bid you make a mistake !!

    After all that you look at the cash that come in and think, well that a few bob I didn't have before and it was only stuff I had laying around. Then bang ! incomes the bill from Ebay :mad:

    But what really narks me about ebay is all this money going out of the country, they don't even use UK vat.
     
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    Margins are very low on amazon & eBay. I have gone over and over the possibility of using eBay as the main sales channel but there's just too much messing around. Turbo lister, i thought was confusing without spending hours learning how it works.

    Both of these channels are extremely saturated, and therefore unless your product is unique, you are the sole distributor or the manufacturer, you have little chance of making money. I know a guy who employs ten people on the back of an eBay / amazon business, but he started 10-15 years ago when these tools came into play and the majority of the world had dial up internet & a Pentium 2 processor in their front room. Sadly, were all a little late.
     
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    Snowgoat

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    One business we run specialises in out-of-print oriental art reference material - mainly books. We took a punt on Amazon, and the results were seriously impressive, mainly from customers in China.

    We hate the commission, the non-contact with customers, the pathetic reimbursement for postage/delivery, the robotic communications with Amazon, but, these are new punters we wouldn't have found by any other medium.
     
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    G

    Giggleberries

    Whilst eBay might not be the perfect choice for every retailer, I believe that you should always add choice and not take choice away from you marketing strategies. eBay results in high cost of sales, but it can be useful for shifting old stock etc
     
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    Here is my summary of this thread after about 20 posts:

    http://www.saynototheoffice.com/ebay-amazon-waste-of-tim/

    Something that seems to constantly come up is this concept that these channels are not very profitable, but they are good for volume.

    If you don't really care about not making much money on each transaction, then surely they would have to bring you other benefits (unless you're just trying to get 'bigger' in order to lower your costs or something like that).

    Personally, I have found that Amazon/Ebay customers are not 'return' buyers - they don't come back and buy from us again. So even though it feels nice to have another 20 orders a day, or whatever, if you make pittance out of them, what's the point in attracting all these new customers?
     
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    I started a game with my other half at the start of October which I entitled 'boom or bust'. We started with £20 each to buy used goods from various sources and sell on eBay for a profit. An item is not allowed to be in our possession for more than 7 days and we have certain other rules attached.

    Between us, we've turned the initial £40 into circa £2600 with all costs paid for along the way.

    The point I am trying to make is that eBay can be lucrative for certain used items, usually listed for collection. I like to make between 3 and 4 times what I paid for an item, but the average is just under 3x.
     
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    jakef78

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    Hi just a quick response, I have been following this thread since the start, and though I would pitch in. In the last 2 weeks I have sold 2 xbox 360 games for £35 each, Paypal has taken roughly £4, and Ebay the *******s, have charged nearly 8 pounds on top of the listing fee. So in total i've lost around 15%.

    I personally love ebay but I would only use it for a quick / easy sale, also consider Play.com, I dont know much about their fees but they are a huge site.
     
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    Onlinetrade

    I have been selling on ebay for over 6 years and found the fees has gone up more and more, even no insection fees but the final fees and paypal charges still alot.

    Thats why always have to find a new way to source something cheaper
     
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    lovingthesurf

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    Ebay and Amazon are both businesses which aim to make money out of people selling stuff .
    If you selling stuff on 50% gross profit ( buy for £5 plus vat and sell for £10 ) , then the break down is very tight to maintain a profit .
    However I have looked at this quite closely with our own business model and if you can achieve a few of the following the you can get a profit from selling on the platforms .
    1 - Ebay - achieve top seller status ( you will save up to 30% on selling fees)
    2 - Try and push more sales outside the scope of VAT ( outside EU or zero rated goods )
    3 - Important to push more sales to your website from flyers etc ..inside parcels from platform sales . Your site can afford to be 5% cheaper than Amaz or Ebay and still be more profitable .

    Some people / businesses obviously make a lot of money from Amaz and Ebay , but carefull attention is needed to the all important bottom line ( net profit ) as this can be easily wiped out by a number of careless factors.
    I have learnt from experience .
     
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    WHUK

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    EBay and Amazon are two of the best websites where you can sell your products. Moreover if you are listed on these websites, it will enhance the importance of your products. The registration procedure might be little tedious however marketing and selling your products on eBay or Amazon ensures return on investment.
     
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    anna_idsltd

    Imagine having a shop on the high st where customers can come in and take things off the shelf but then not pay for them for a week or week. Imagine then the same customers having made you wait for your money then stand outside your shop with a big sign saying "very slow to deliver", "not as described" or worse.

    I agree with what you are saying here. We have an ebay shop and though we list items in the shop format (i.e.10p per listing per month), the profit margins are quickly brought down by costs for final value fee, Paypal fees, packaging and postage costs, not to mention the fuel used to take the PO and the admin costs, oh, and don't forget the monthly fee.

    We had a problem with the DSR (Detailed Seller Rating) wherein the buyer gives 1-5 stars for 1, Items as described, 2, Communication, 3, Dispatch time and 4, Post and Packaging charges.

    Our problem was 4, the P&P charges. We literally charged the Royal Mail cost of postage and that's it. But, our stars were declining. When you reach a certain level below average, you start getting warnings to say improve that area or your account will be restricted. Our solution was to add a little on to the purchase price and offer free P&P which brought our star rating back up but - at a cost. However, we didn't add on the actual postage cost, we were still losing out on packaging costs and our Final Value fee and Paypal fee rose because of the increase in initial cost.

    Asking the opinion of ebay users, the general answers were that they didn't realise the impact the star rating had on sellers. Some said that they simply clicked any star rating just to complete the feedback process and were not strictly the real opinion of the 1-5 stars. Why on earth did they have to introduce the DSR in the first place is questionable. The wisest thing to have done would have been to increase the space for feedback comments if the customer was dissatisfied and chances are that they would still have left a positive or at worst, neutral FB.

    The other factor with ebay is that sellers are not able to leave adverse feedback for buyers, only positive or none at all. Again, unfair to the seller as the buyer could be the worst in the world and the most you can do is make a comment to that effect but then it looks bad on you to people reading the comment.

    I had an issue about a year ago with a seller who didn't list his item correctly and when the item arrived I emailed him to say so. He refused a refund for return so I ended up with an item that was useless to me and I left negative FB. As he couldn't leave neg for me, he bought an item from me (a brand new in bag teeshirt) and then left me negative FB saying it was used and dirty. I should have cancelled the sale but not having done that before, I didn't understand the process and thought he would still be able to leave neg FB so I sent the item.

    I argued the fact with ebay saying that he had bought the item to maliciously defame me but the best I got was the comment removed, the neg FB remained and has only just cleared after 12 months.

    One other thing is that if the buyer is not happy, you are expected to cover the cost of return postage and replacement and sending out another item if that's what they want. They also still have the opportunity to leave negative FB and low DSR's if they choose even though all turned out well in the end with their item purchase.

    So, on the whole, ebay is the buyer's best friend and what of the seller. 'Pft to them, they are just sellers and we get their money' says ebay.

    Anyway, I started up another shop with a different company and product to run alongside the first shop to try and make some money somehow. Our first listings were restricted to either 300 items or £308.67 (?) per month, which was to include a combination of sold and listed items for that month. You can request an increase by clicking a link that takes you to their phone number. You call them and they tell you that they will review it in a month's time. What's the point of calling them then?

    Back to websitehandyman's comment though, you might as well just employ someone to stand outside your shop and do the dirty work of defaming and robbing your shop because you make just about zilch from it.
     
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    Jayser100

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    "...Moreover if you are listed on these websites, it will enhance the importance of your products."

    WHUK I can't agree entirely with that. if you manufacture your own products and have ambitions to sell to trade, eBay is frowned upon by retailers, and selling directly there is a risk - if you're discounting, and your trade customers find out, you will be in bother. I know several manufacturers / wholesalers who work hard to keep their products off eBay in order to maintain their integrity. They also refuse to sell to eBay traders who they know will just discount the products and ruin their bricks and mortar trade business as a result.

    At the end of the day it really depends what your ambitions are for a product or product range. If you buy products with the sole purpose of selling as many as you can directly to the end user for profit, then yes, eBay and Amazon are a must as part of a portfolio of internet selling options. If you see yourself selling out to trade, then be careful.

    eBay and Amazon are not a waste of time if they suit your products, your ambitions and the figures stack up.
     
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    HTMLHugo

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    Jan 7, 2010
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    Ebay i must admit were coming off, we actually started coming off before christas as we realised we were getting much more volume through amazon.

    As for prices we charge more on amazon for 99% of things then Ebay.Make money on their shipping costs and generally do much better.

    There isnt much competition for what we do thankfully but we do sometimes depending on what we sell match silly prices and get rid of some items even at a loss.

    simply put we work out the profit on boxes of items we sell some items will be more popular and we make twice as much others not popular and we lose 20% but on a per box price we always make money.

    We work by always having new stock items and turnover of new items and amazon works out brilliant for us.

    Ebay is a waste of time i dont understand why but we could have the same product as some people, cheaper and from the UK, others will have a dearer price, 2 week delivery time and still make many more sales then us no doubt due to ebays random policy of promoting certain sellers etc.
     
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    Is selling on Ebay or Amazon actually worth it?

    Answer: 100% Yes*

    Is it easy?

    Answer: Certainly not

    *if you know what you are doing.

    We sell on Amazon and like to think we are modestly successful. I am not a huge fan of eBay for many, many reasons e.g. they keep changing policies, search algorithms, seems to favour outlet sellers (eBuyer, Tesco et. al.), still subject to counterfeit items, etc. etc.

    Amazon does have some of these issues but is much better policed than eBay. Also Amazon don't overhaul their marketplace every two minutes so you have continuity. Amazon is also a much more level playing field than eBay in our view and perceived by many as being much more professional (not perfect but nobody is).

    The most important thing that Amazon gives us is "control". I strongly recommend that if anybody who wishes to make a go of it on Amazon like Jayser100, create your own branding. I will say this again - create your own branding. Our margins vary enormously between just 10% (high volume sales) up to 250% (lower volume).

    Last year we received a certificate in January from Amazon as we were in the top performing sellers during Christmas season 2010 (measured in turnover not customer metrics). Yesterday we just had our busiest day (Mega Monday) with over 340 orders which I know for some people may be a drop in the ocean but for us we are delighted. Over the past year however our sales have doubled. How? The power of finding a niche, sourcing (or creating) a product to fill it, creating a very good description, images etc, and getting good customer reviews = sales.

    We don't have time unfortunately to explain how to do this in any detail, but a good starting point for product sourcing is China. There are other ways to make money on Amazon e.g. product flipping and this can be a good way to start out if you have very limited funds. For a serious business however, branding and creating your own products is the way forward. It is scalable and if done properly can be very lucrative.

    I haven't even mentioned expanding the business to overseas marketplaces e.g. amazon.de, amazon.fr etc. so the possibilities are truly endless with the right products and the desire to succeed. Most people give up to easily or go for the obvious e.g. obvious products like computer games, software, books, music etc. Try and think of something less obvious e.g. an emerging trend - get on it and establish yourself.

    I will shut up now as a) I am shattered dealing with our Christmas sales (and emails - don't get me started), b) it is getting late and c) I will start waffling.

    Don't give up, just try a different way, work relentlessly and think out of the box!

    Steve :)
     
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    Chris34

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    Feb 3, 2009
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    Fully agree with Absolutnut. I trade on Ebay and I find that the ones that complain and say that it's impossible to make money can't see the wood from the trees. I come across these people and tell them where they are going wrong but they don't change, they just keep doing what they were doing and just carry on complaining. It's ok to make mistakes but to carry on making these mistakes and blaming everyone and everything else is unforgivable.

    If your going to trade on Ebay then you have to get your figures right, right from the start. You also have to have a clear plan, your profit what you want to make per product, your price range you want to sell at, you need to price in your expected return rate. It's no good picking a product that you are not going to make money on and then wonder how your competitors are making money. You have to search long and hard for the correct products and the advantage you have with Ebay is that you can see what is selling.

    I would advise setting a clear plan, actually type one up with the amount of money you want to earn per week, the amount of sales you are looking to achieve and the amount of profit per sale you expect and the amount of orders you know you can despatch per day and the size of product you want to sell. Then armed with this information go and find products that fit in with the plan, doesn't matter what, could be a pile of **** but if it sells and the customer wants it (not you) and it fits in with the plan then it's worth selling that product.

    I've found that the successful Ebayers don't have time to winge about it, however the unsuccessful ones winge about it all day. I suppose it's easier to blame the sales platform than it is to blame themselves.


    Chris.
     
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    I

    InstantStartBusiness

    eBay is without doubt the BEST selling platform there is, closely followed by Amazon. I hear people complaining over fees all of the time, but lets put it into perspective; For them fees, you are selling on a world recognised buying and selling platform, with millions of potential customers just waiting to view and buy your products.

    Now, compare this to a B&M: Potential of high rents and overheads, advertising costs, staff, etc.

    eCommerce: Setting up your platform, design, PPC, SEO.

    The lists are endless, and far outweigh the costs and practicalities of an eBay or Amazon store. In fact, i would go as far as saying the fees are a SNIP compared to my two comparisons. The truth is, that a lot of people fail, or fail to make any decent sort of money from the likes of eBay because they fail at one of the most fundamental and basic of steps there is: Research. For me, it is all about the products. People just fail to realise that by importing 1000 iPhone cases from China is not going to enable them to quit their day job, they are one of thousands of people selling these products, not to mention competing against the Chinese themselves.

    Sometimes, you just gotta think outside the box. For anyone interested, the link in my sig will give them that thinking outside of the box on a plate.

    But in answer to the OPs question: YES IT IS WORTH IT.
     
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    It's interesting that the last couple of comments in favour of Ebay and Amazon have all come along together. They might seem contradictory to what has already been said, but I don't think they are, I just think they are answering a different question.

    When I asked the original question, I was thinking about established businesses who already have a product and probably their own website, catalogue, shop etc. I was more wondering whether Amazon/Ebay are worth it as additional sales channels. The general opinion seems to be that they aren't.

    The last couple of comments seem more to do with starting an Ebay/Amazon 'business', i.e., going out and sourcing a product with the right characteristics for those channels (uniqueness, high margins etc) and designing your workflow specifically around them. In which case there's no doubt that when done right, they can be immensely profitable.

    I just think we should understand each other's perspective - the last couple of comments suggest (e.g. @Chris34 "I trade on Ebay and I find that the ones that complain and say that it's impossible to make money can't see the wood from the trees.") that those who have written off Ebay/Amazon have somehow not properly understood them - the way their interfaces work, the way the sales flow works, the margins required etc.

    I don't think that's necessarily the case. The comments here show that if you build a business from the ground up with Ebay/Amazon in mind, they can be very powerful channels and if you master them, you can be very successful. On the other hand, using them as an additional sales channel to an established e-commerce or mail order business can be a frustrating and unprofitable exercise.
     
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    Chris34

    Free Member
    Feb 3, 2009
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    It's interesting that the last couple of comments in favour of Ebay and Amazon have all come along together. They might seem contradictory to what has already been said, but I don't think they are, I just think they are answering a different question.

    When I asked the original question, I was thinking about established businesses who already have a product and probably their own website, catalogue, shop etc. I was more wondering whether Amazon/Ebay are worth it as additional sales channels. The general opinion seems to be that they aren't.

    The last couple of comments seem more to do with starting an Ebay/Amazon 'business', i.e., going out and sourcing a product with the right characteristics for those channels (uniqueness, high margins etc) and designing your workflow specifically around them. In which case there's no doubt that when done right, they can be immensely profitable.

    I just think we should understand each other's perspective - the last couple of comments suggest (e.g. @Chris34 "I trade on Ebay and I find that the ones that complain and say that it's impossible to make money can't see the wood from the trees.") that those who have written off Ebay/Amazon have somehow not properly understood them - the way their interfaces work, the way the sales flow works, the margins required etc.

    I don't think that's necessarily the case. The comments here show that if you build a business from the ground up with Ebay/Amazon in mind, they can be very powerful channels and if you master them, you can be very successful. On the other hand, using them as an additional sales channel to an established e-commerce or mail order business can be a frustrating and unprofitable exercise.

    I quite agree with your comments. Ebay is a powerful tool when used correctly. An established website or shop owner will find the market tough but as far as selling your own brand on there I don't see a problem with it unless you sell your brand to resellers.

    Anyway can't go into more detail, gotta get me orders out, another cracking night on Ebay last night :cool:



    Chris.
     
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