I have been an eBay seller for a few years and sell about $120,000 worth of inventory per month. If you think you’re ready to start your own eBay business online, or even just to sell some stuff on the side in order to make some extra cash, you might not know where to begin. For starters, what will you be selling and how will you get those products cheaply? From personal experience, I can tell you that there are a few very simple things to look for in a market that will guarantee profit. Here are just a few of the things you should look for:

1. Absolutely never overbuy any one product! A lot of people talk about buying in wholesale and how well it works but do not be fooled by these exaggerations! Wholesale doesn’t work! When buying a product from a wholesaler, you are required to buy a huge amount of inventory from the start. If you don’t intend on buying very large amounts, they will not even talk to you. This causes you to take a loss on a product you shouldn’t have even bought in the first place. Instead, I make sure to only buy the hottest selling products at the best possible price. This allows me to raise my profit margin, keeps all of my customers satisfied, and eliminates the risk of ever not selling my inventory.

2. Always make sure that you get your inventory for as cheap as possible. The less you spend on a product, the more you make per sale. You should not have a problem buying your inventory for as low as half of what you will eventually sell it for. Spending too much on your inventory is a fast and easy way to lose any chance you had of making a profit.

3. Regardless of what it is you sell, only buy products that have a high re-sale value. If you intend to make a lot of money, you will not succeed by selling little trinkets at $10 each because your profit margin will be absolutely tiny. Instead, you need to focus on items that can sell for at least $100-$300. This way, each sale produces a much greater net profit for you.

4. Focus on selling items that are small in size. There is absolutely no need to waste time and money with moving heavy objects. Because of eBay’s new “free shipping or your items won’t be seen” characteristic, you will be in a tough spot if you can’t afford to offer free shipping for everything you sell. Free shipping on something small is a smart way to get ahead of the competition while free shipping on something huge will always be a loss.

I have dedicated myself to selling used electronics on eBay which I have found is the most profitable market ever.

1. Electronics have extremely high demand and are always in production.

2. As technology improves, more highly sought-after gadgets are released. People want what is newer and better and they are willing to pay a lot of money for it.

3. Gadgets like phones or PDAs are small and easy to manage.

4. The re-sale value of electronic gadgets is very high compared to anything else this small in size. If you get them cheap, used electronics are a great way to make money as a main source of income or just for extra cash on the side.

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