Newbie looking to make £200-£250 per week profit from Ebay.

[renatus]

Hello, well that is the plan anyway. I'm starting a degree in Law next month so i won't have time for a job because i really don't want to fail the degree lol.

I'm not looking to use it as spending money, just to make profits consistently. It sounds stupid but i don't know what the skin and bones of my business is going to be. I just know that i need to get my feedback up asap and start drawing in customers consistently.

I have 3 years to do this. Add up that 200 quid a week and you get 30k in 3 years. Thats not too bad by any stretch of the imagination for a student starting out in the world. That is my goal anyway and i'd really appreciate it if i can listen in to some stories from more experienced members of this field.

 

[Philip Hoyle]

OK, you've said where you want to go. That's the easy bit that anyone can say. The real crux is how you're going to achieve it.

How far have you got with your business plan, i.e. have you decided what you're going to sell, have you sourced your suppliers, have you thought about how you're going to buy the stuff and where you're going to store it? What's your unique selling point that will make people buy from you rather than your competitors?

To make an impact, you're going to have to sell a new/unique product that no-one else is selling, or find an existing high sales product that you can sell "better" - i.e. better customer service, sustainable better price, perhaps packaging a group of items for volume discounts, etc, etc.

You won't make your £200-£250 if you're going to do dropshipping or affiliate marketing, or simply selling things everyone else sells for a few pence less. You'd end up working 100 hours per week earning little as profit percentages would be too low and you'd be working hard just to chase whatever scraps of sales you could find.

Far better to have a relatively high margin product and relatively few sales. If you have time constraints, best to find something to sell at say £250 per item that you can make £50 on - sell just one a day and you've cracked your profit target. Compare that with selling something for £5 that you make 50p on and you'd have to sell a hundred a day, which would leave you no time for your degree!

The hard bit is finding the product - no-one will tell you their ideas because they'll want to sell it themselves. You have to work it out for yourself using your own knowledge and experience. A lot of decent businesses are based upon the person's hobby - that's always a good place to start!

 

[vvaannmmaann]

Have you seen this?
http://reviews.ebay.co.uk/FREE-GUID...0-PER-WEEK-ON-EBAY_W0QQugidZ10000000016934964

 

[activealex]

Hi, take a look at onlinecashpoint .com there are some interesting opportunities.

 

[crystalshaw]

Hi mabye as well as doing ebay you could do other things too? I am working with a cashback card site at the moment which is earning me good money. I can send you a video over - its also free to join! think its alot easier to do than ebay!

 

[renatus]

OK, you've said where you want to go. That's the easy bit that anyone can say. The real crux is how you're going to achieve it.

How far have you got with your business plan, i.e. have you decided what you're going to sell, have you sourced your suppliers, have you thought about how you're going to buy the stuff and where you're going to store it? What's your unique selling point that will make people buy from you rather than your competitors?

To make an impact, you're going to have to sell a new/unique product that no-one else is selling, or find an existing high sales product that you can sell "better" - i.e. better customer service, sustainable better price, perhaps packaging a group of items for volume discounts, etc, etc.

You won't make your £200-£250 if you're going to do dropshipping or affiliate marketing, or simply selling things everyone else sells for a few pence less. You'd end up working 100 hours per week earning little as profit percentages would be too low and you'd be working hard just to chase whatever scraps of sales you could find.

Far better to have a relatively high margin product and relatively few sales. If you have time constraints, best to find something to sell at say £250 per item that you can make £50 on - sell just one a day and you've cracked your profit target. Compare that with selling something for £5 that you make 50p on and you'd have to sell a hundred a day, which would leave you no time for your degree!

The hard bit is finding the product - no-one will tell you their ideas because they'll want to sell it themselves. You have to work it out for yourself using your own knowledge and experience. A lot of decent businesses are based upon the person's hobby - that's always a good place to start!

Thats a very good point that i've experienced in the past with some of the stuff bought for me that i sold on at way higher prices. The thing is, i have to have enough diversification in what i'm selling to keep this a sustainable business. I knew a guy who was selling his own ebooks that he wrote at 10 quid profits margins and within a month some other guy had cracked on to this and started selling them at a way lower price, i've just taken it as a given that you can't beat the market, the market will always chase you down in this kind of business. But hey, he made the money he wanted in the timeframe in which he was selling.

This is what will make or break my venture really, the product. Bear in mind, i've had one case where i learnt full well that the product is of utmost importance when i thought i could sell old style shirts i bought wholesale for rrp prices, wasn't going to work, i was lucky i even managed to sell them at all.

But yeah, i have decided to spot the trends asap on the markets which do allow for diversification and good margins as well as enough consistent consumers to help meet my targets.

 

[zookx]

Good luck, Seems harder and harder for sellers to make a decent proffit on eBay, at least thats my personal experience.

 

[fourblankwalls]

We sell art, photos onto canvas and that sort of thing. There are a lot of people doing that on ebay. I don't do it as ebay has changed the rules on fees etc but a lot of companies make a lot of money selling. You have to be very very organized.

 

[renatus]

Just a quick query, assuming i make the 200 per week profit how do i deal with the tax issue? I'm new to this, so i'm assuming taxes are paid through ebay anyway, or do i have to actually go to the council and talk to them about it?

 

[thekitchendesigner]

I'd say its very hard nowadays to make even small amounts on ebay as its kind of had its day. I used to sell flip down TV's a couple of years back and for a few months did really well, until people started selling them at around £5 profit just to get a sale - it ruined it for many, including me. I think this is all too common now.

Theres also too many rules that ebay have introduced and be prepared for lots of customer questions, returns, and also be prepared to tackle paypal as i'm sure they'll throw a spanner in the works for no apparent reason!

I'd take the advice of an accountant with regards to tax etc, i'm sure someone here will post soon too!

Good luck if you do try it though. Have you thought about doing something on the uni campus instead? Maybe finding a niche or something that students need that isnt catered for?

 

[kontracta_com]

Taxes aren't paid through eBay renatus - you will pay fees to them for selling your items but they won't be responsible for your tax. It's HMRC rather than the local council that you will pay your taxes to.

In setting up an eBay business you are doing exactly that - setting up a business that just happens to be on eBay. Therefore you'll have to keep books, pay Income Tax, pay NI, potentially pay VAT (although that's only compulsory when you get to £70k - so you'd be doing OK by then!), source your wares, market your wares and then do all the posting. It would be advisable to get yourself an accountant too to ensure that you meet deadlines and avoid penalties.

To get an idea of what you have in store then it's best to start with the HMRC and BusinessLink websites; although both organisations can be criticised to, ahem, an extent, the initial on-line guidance is quite user friendly and helpful:

http://www.hmrc.gov.uk/startingup/index.htm

I'm quite obviously going to come across as an old g1t now but please give the whole idea a great deal of thought before you enter into anything. A couple of my clients have eBay businesses and they do work all hours. They also need a lot of storage space too - which I know you don't get in a halls of residence room. I also did a law degree myself and although I was allergic to the library for the first year or three, it does require quite a bit of attention (great degree to do by the way - EU Law aside!). The first few weeks of your degree are quite strange too more as you get used to the surroundings and fending for yourself bit so pouring your time into eBay and starting up a business may potentially just be a step too far for some.

However if you're not one of those 'some', you've done your reading and you are entering into the venture with your eyes open then fantastic, I hope it all goes well.

 

[renatus]

Taxes aren't paid through eBay renatus - you will pay fees to them for selling your items but they won't be responsible for your tax. It's HMRC rather than the local council that you will pay your taxes to.
In setting up an eBay business you are doing exactly that - setting up a business that just happens to be on eBay. Therefore you'll have to keep books, pay Income Tax, pay NI, potentially pay VAT (although that's only compulsory when you get to £70k - so you'd be doing OK by then!), source your wares, market your wares and then do all the posting. It would be advisable to get yourself an accountant too to ensure that you meet deadlines and avoid penalties.
To get an idea of what you have in store then it's best to start with the HMRC and BusinessLink websites; although both organisations can be criticised to, ahem, an extent, the initial on-line guidance is quite user friendly and helpful:

I'm quite obviously going to come across as an old g1t now but please give the whole idea a great deal of thought before you enter into anything. A couple of my clients have eBay businesses and they do work all hours. They also need a lot of storage space too - which I know you don't get in a halls of residence room. I also did a law degree myself and although I was allergic to the library for the first year or three, it does require quite a bit of attention (great degree to do by the way - EU Law aside!). The first few weeks of your degree are quite strange too more as you get used to the surroundings and fending for yourself bit so pouring your time into eBay and starting up a business may potentially just be a step too far for some.
However if you're not one of those 'some', you've done your reading and you are entering into the venture with your eyes open then fantastic, I hope it all goes well.

First and foremost, thank you for making me aware of these logistics.
I am only looking to make £200 a week from the venture at the start so do you think this is going to need a lot of time to set up and maintain?
Obviously, i know there is potential for growth with the idea i have of looking around everywhere for cut price newish electronics i can
sell on for a profit but i don't know how much of the profit i make will be given to HMRC. (i believe this field is the best out of the lot for various reasons, e.g. with clothing, music, dvd's you get counterfeiting and therefore lower pricing, with furniture the posting and storage was hard to maintain as i found and the pricing more skewed)
Lets say i do make £200 net profit, what % of that will need to go towards HMRC or wherever to keep my dealings within Law and the regulations?

 

[Justin_B]

My uncle makes a good living buying stuff in car boot sales at the weekend and selling on eBay. He's been doing this for years and knows exactly what is collectable and what isn't. He has lists of collectors of certain items and e-mails then when he lists. Some of the bidding wars I've seen for things like vintage postcards or Dinky toys have been crazy.

 

I often stand behind (usually) 2 or 3 'regulars' at the post office who would appear to be Ebayers and regularly have 40 or so parcels to post. Next time I'm there I will try to have a nosey and find out what they are selling for you

 

[ypftrading]

I have ran my own ebay store since 2006 and its always been a pretty steady income, nothing major, you have the odd good sale that is unexpected etc, profit wise I always make about £1000 - £2000 per month, although its hard work. As some said on a previous post you have to compete with people who are happy making pennies just to get a sale, sometimes you have to draw a line, for example for most of the year I was selling a product at £28 the product cost me £11.00 so not a bad mark up, then suddenly a few sellers started selling the same product for less so you had to lower your price to compete. I had reduced my price to £18.50 which isn't very good when you consider ebay and paypal charges (about 13%) etc etc. Then I found last week someone had under cut me again to £17.00 so therefore I have pulled the listing. It's just not worth the hassle of driving to suppliers purchasing a pallet of stock, spending fuel etc etc storage to make practically nothing.

Having said that ebay does keep me ticking over and without it I'd have problems, as Im a market trader weather is always a big problem for me, I stand 4 markets a week and for the last 3 weeks the markets have been dead due to weather and the fact the kids are off school.

As for looking for products I always use Wholesalers and try to buy in bulk to get better prices, I also look round for clearance stock as this will always bump up profits however you need space to store the stock.

Finally if anyone knows of any suppliers of clearance stocks etc please let me know.

Patrick

 

[kontracta_com]

Tax-wise, you pay your Income Tax and National Insurance over to HMRC.

Depending on when you set up, the following thresholds may be out of date so do re-check. These rates for 2010-11 may help as a guide though.

You pay two classes of NI - one (class 2) at £2.40 per week (although there is a small earnings exemption if your earnings are under £5,075 per year) and then class 4 which is 8% of your profits over £5,715. The latter is paid as part of your self assessment return payments.

For Income Tax you will need to fill out a self assessment return. You pay the tax over once or twice per year - depending on your liability. All of your assessable personal income is taken into account. The first £6,475 will not be taxed as it is your personal allowance. The next £34,400 is taxed at 20%. There are higher rates after this amount but given that you do not expect to get to this level, I'll leave it there.

All of this has been simplified somewhat so it's best to refer to the HMRC website as you go along and also give some thought to getting some qualified help or advice with your accounts and tax - it saves hassles further down the line. For example the profits from your self employment considered for self assessment are your taxable profits which are usually different to your accounting profits.

 

[papverpoppies]

Thats a very good point that i've experienced in the past with some of the stuff bought for me that i sold on at way higher prices. The thing is, i have to have enough diversification in what i'm selling to keep this a sustainable business. I knew a guy who was selling his own ebooks that he wrote at 10 quid profits margins and within a month some other guy had cracked on to this and started selling them at a way lower price, i've just taken it as a given that you can't beat the market, the market will always chase you down in this kind of business. But hey, he made the money he wanted in the timeframe in which he was selling.

This is what will make or break my venture really, the product. Bear in mind, i've had one case where i learnt full well that the product is of utmost importance when i thought i could sell old style shirts i bought wholesale for rrp prices, wasn't going to work, i was lucky i even managed to sell them at all.

But yeah, i have decided to spot the trends asap on the markets which do allow for diversification and good margins as well as enough consistent consumers to help meet my targets.

To be able to spot the trends you will really have to be 'tuned in, and on the ball' will you have the time with your law degree.

Also, spotting trends is not that easy, not the one that will make you money, and not turn out to be duffers.

You will really have to be upto your mark in respect of getting the goods out to your buyers as well, so it is not just about finding what the customer wants, it is also about keeping them happy - a lot to contend with as well as your other commitments.

Like any work, Ebay is not an easy option to make some money, because once you have built uo your customer base, you will have to work very hard in order to keep it, as there will be plenty of sellers snapping at your heels.

Good Luck with it all, plus the degree.

Poppy xx

 

[Deleted member 61074]

Just a quick query, assuming i make the 200 per week profit how do i deal with the tax issue? I'm new to this, so i'm assuming taxes are paid through ebay anyway, or do i have to actually go to the council and talk to them about it?

Ebay do not take taxes - i'm assuming you are talking about income tax.

Talk to Inland Revenue about tax - not your local council!

 

[BusinessRookie]

I've looked into this for extra income and the best resource I've found is the eBay Business centre http://pages.ebay.co.uk/businesscentre/

It is possible to do market research and find out exactly what has sold on ebay over the last year and to find out all sorts of things. eBay recommend
https://www.terapeak.com/ for this

I've thought about importing from China via alibaba and want to learn more about the importing process before I test the water.

Good luck with eBaying!

 

[J-Wholesale]

Even for £200 a week you'll be dealing with an eBay business every day - shipping packages in the morning and answering enquiries in the evening. That could very easily have a negative impact on your studies. I'd suggest doing something else for your £200 a week:

• Find your niche and try hitting a car boot sale on a Sunday morning. With the right product you could achieve £200 a week.
• Affiliate marketing. The bulk of the work could be in the early stages, bring in income months and years later for little extra work.
• Get a weekend job. By far the easiest and least stressful solution.

None of these would eat into your Mon-Fri week, when you should be concentrating on school. Your eBay idea most certainly will

 

[benjamin_c]

If you find the right product range you could get £200 a week no problem, you could get double that if you wanted or even more, , as others have said it can be a lot of work, but most students have a part time job anyway so they have some of their time taken by that, if you consider this as your part time job thne it shouldn't really impact on your degree at all, as for tax, just register as self employed and fill in self assesment, dont bother with Vat unless you're selling to business, if you need to buy a laptop or anything for uni you could class this as a business expense and off set it against taxable income If you aim to earn a gross fiigure of 10k a year then you're average tax and NI will be about £1200 a year so you will end up with most of it, and along side your student loan of about 6k and your grant will be upto about 3000 a year if you are eligable, so you will be looking at a net income of around £17000 to £18000, which for a student is pretty good i say go for it, i'm at uni my self and doing a similar thing, its hard work at times but it pays off, its better then having huge credit card bills and overdrafts ect... It will look great on your CV too if you choose to go into employment after graduation. Good luck with everything, i'm sure it will work out for you