Can you really start a profitable eBay business with less than £50? Yes, you can and in today’s blog post I’ll guide you through the exact system you need to know to make this happen.
Quite often I get emails from people who want to start selling on eBay but they’re out of cash. Literally. People who have lost their jobs or students who are simply students! I almost always recommend that they to start with the Used Goods concept as that’s the only business model on eBay where you can turn a decent profit WITHOUT investing huge amounts of money buying wholesale stock.
We’ll get into more detail on how this concept works in a minute, but for now let’s just get clear on what you’ll need to run this system:
1) an eBay account
2) a PayPal account (if you haven’t done it already, you need to upgrade to a Premier account to be able to receive money, accept credit cards and sell on eBay. This upgrade is easy and free.
3) £50 (you can start with less, but £50-£100 is ideal)
4) 1-2 hours a day to spend on this project
Basically that’s all you need to make this work!
If you’re totally new to eBay and your eBay account has no feedback, I recommend you get some feedback before you start selling anything. The easiest way to get this done is by buying some cheap stuff on eBay in the first place. I’m talking about £0.99 items with free shipping. Just make 5-10 purchases and get your first 5-10 feedbacks.
You can purchase some presents, household goods OR even stuff you’ll need for the business. For example, paper, shipping labels, envelopes or jiffy bags – all in small quantities just to get you going. I’d say 5 feedbacks is the minimum to start selling but if you can stretch it to 10, that will be perfect.
Before We Begin
Once you have 5-10 feedbacks, you’re ready to start selling! You’ll have to upgrade your eBay account to a Seller’s account (free) if you haven’t done so already. eBay will simply ask to verify your identity, ask how you’ll pay your eBay fees and what payment methods you’ll accept. This process will take just a few minutes.
When you’re done, it’s time to start listing your first items! But before you do, there’s one more task you need to take care of – you have to learn how to create listings that sell! Don’t be afraid of how this sounds, there’s no magic involved here. I have actually put together a quick guide to this topic which you’ll find here – Anatomy of a Perfect eBay Listing.
Listing creation skills will be crucial to your success with this system, so don’t skip this step! Learn how to create good looking listings: it won’t take you more than an hour or so. Once you create your first listing, then you can simply duplicate this listing for all the other items you’ll sell.
Ok, so once you have mastered the art of creating listings that sell, you can actually start selling! To get some practice, start with unwanted items you can find in your house. Stuff like:
Anything that is gathering dust on your shelves will be perfect for this task! The main idea here is to get you some experience before you move onto selling money items.
PLEASE NOTE! If you’re already selling on eBay or have done it before, there’s no need to execute this step. You can start off directly with money making items.
After getting some practice selling your own unwanted items you can proceed with the money making items and this system. So, how does it work?
The idea behind the Used Goods concept is very simple – you buy undervalued used items on eBay and sell them back on eBay for a healthy profit. First, you have to understand what an undervalued item is.
eBay is a massive marketplace where millions of people buy and sell on a daily basis. A large number of the sellers are professionals (like you and me), but most of them are actually “normal people” who use eBay to get rid of their old stuff, unwanted games or a movie they only watched once. They will be the people and listings we’ll target in this eBay business concept.
To make this more visual, let’s take a real life example and go through the steps you need to take to make this system work. Let’s imagine you have £50 you can invest in this business. For that money, these are the kind of items you’re looking for:
Other similar items
In a word – you’re looking for used items that can be purchased for less than £50. If you’re good at or have knowledge about a specific goods category, choose that! It’s always easier to work with items you know a lot about, and it will make the buying/selling experience much easier. But even if you don’t have an expert status in any of these categories, you can still make this work with simple goods such as video games, movies or toys.
For our example, let’s pick video games – one of the most suitable goods categories for this system. First of all, this market is massive. Secondly, new games/versions come out on a regular basis and many people just put their used games up for sale on eBay.
What you do is simply check Amazon or any other large online video game shop and pick one popular game to start your research. It can be any console and any game, not just the latest releases.
I picked FIFA 15 for PS4 for this example.
Now, my task is to determine the TRUE market value for this used game. This can be done in two ways:
1) Using Terapeak (the easier and quicker of the two)
2) Using eBay’s advanced search function
If you have a Terapeak subscription (7 day FREE Trial available) this process will take just few minutes. What you do is simply login to your Terapeak account and do a search for the game you’re interested in, in this example: FIFA 15 for PS4.
In Terapeak, make sure you have:
- Enabled the USED filter (so that results are displayed only for used games)
- Narrowed down results to the most suitable category (in this case Video Games & Consoles > Games)