Sunday, January 23, 2005

Take Advantage Of Ebay's Fee Increases

I've seen a lot of crying and complaining lately about the increase in eBay fees.  eBay sellers are closing their stores, pulling their auctions, and either building their own stores or going to competing auction sites - all of these things are GOOD NEWS for you.  As your competition goes away, you can increase your prices and make even more money than before.  If your eBay operation has margins so slim that you cannot afford to absorb the increase in fees, you shouldn't be in that business anyway. 

The key here is to sell products and services with profit margins that are at least 100%, and preferably 300% or more.  If you're buying items for $20 and selling them for $25 then eBay is not the best place for your business.  You want to be selling items for $99 that cost you $5 to make (like "How To" DVDs and reports).  Look for holes left in the marketplace by competitors leaving eBay, then step in and fill those gaps with some new products and services. 


6:46:34 PM  #