Any eBay Seller out Here Who Can Help ?

Hi everyone,

My thread is different than the one posted few days ago. Please read through:

but my questions are different and i am really looking forward to see if some ebay sellers out there can actually help me out here.

I'll introduce my self first. I worked as an assistant manager in a supermarket for 4+ years and then became a sales rep for a firm. I made my connections in food industry and general groceries. I am really keen to start an ebay store where i can sell items such as Colgate,dove soaps,oral b toothbrush and many other. An importer is a great friend of mine and running his business successfully from last few years. He got customers throughout Melbourne. He import this stuff from overseas and sometimes buy's it in Australia. I made a deal with him and finalized the price of product and all. Instead of focusing on the supermarkets and little shops which already mostly are our customer i want this to be done over Ebay. I have been doing my research and it seems pretty simple to post and get going. The real problem comes when i try to get in details.

  • How does sellers afford the free shipping when the item cost is high ? (I tried contacting Ebay and asked how this works out. They said Seller goes in loss and sell the product ? I was like it doesnt make sense and they could not say anything. I assumed its mostly because of the drop shipping where seller can buy cheap products and get them delivered without tracking and cost can be covered if lost. But my items are in Australia and i cant use Sachets for them So probably a box or atleast 500g Bag) How can i cover this cost.
  • Lets assume i go with Australia post and start shipping items. It will cost me more than my profit as i want to keep the profits minimal and get my products going.
  • Is it going to worth to sell a single unit of Toothpaste or other items considering the average selling cost will be under $2 each unit?
  • Do i need to do this over the ABN and make Business bank account and Paypal account too ?

I would highly appreciate or even work for free if there are eBay sellers out there in Melbourne who has been working and selling over 100 or 200 orders a day. I just need to learn how things work out. Or else you can guide me the way and list products under yours and i'll do the investment for the products to get going and we can discuss the margin over a coffee. You can ask me further if you are confused with my questions :)

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Comments

  • +2

    There's no way you can send a parcel for less than the cost of a toothpaste or any low value item (unless you have a good deal with a courier company) . You either absorb the cost and lose money, or get the buyer to pay $9 including shipping for a toothpaste that can be bought easily anywhere for half the price.

    Now you know why Harvey Norman and local shops hate eBay and overseas stores.

    • Yeah true. Thats why i am considering to sell it in a bulk only. Might cover the cost of shipping and all. Whatever price it can be bought easily outside i believe i can sell it for half of that but then again the cost of shipping is the killer.

  • +3

    Absolutely not worth selling soap or toothpaste on eBay as the shipping kills it. You’re probably better off setting up a market stall.

    • We already got many big customers who owns supermarkets and plaza discount shops. I wanted to focus more on the internet market side so we can target whole Australia market.

      • Yes.
        But.
        Absolutely not worth selling soap or toothpaste on eBay as the shipping kills it.

        • +2

          I don't think op wants genuine advice, he just wants a genie who can grant wishes and make the impossible happen.

  • +3

    There's a reason why this market doesn't already exist on ebay - Because it is not possible with cost of shipping.

    • thats why theres a better chance for me to get into it and create this market. Theres always a way as what i beleive :)

  • +1

    It's a tough market, just look for the niche. Confidence is paramount and good on you for posting.

    God bless you.

    • +1

      Thank you :)

  • Why oh why must you insist on selling on eBay? Have you considered Amazon (for example)?

    As a eBay seller I want to quit selling once my stock runs out. The days for successful small business startups and mum/dad sellers to make good returns vanished a long time ago.

    As for your potential business (doing my best Shark Tank judge impersonation) what makes it unique compared to the bulk items you can source from Kogan or from existing eBay sellers (I just typed "Bulk Colgate" in eBay search and a whole page of items appeared).

    My advice.
    a) Set up your own business website/checkout. That gives you more control.
    b) Promote your business with exclusive OzBargain coupon/offers
    c) Accept that your business may have to run at a loss for a short period to attract new customers.
    d) Allow people to collect the item in person. It will save your customers money and is a good chance for them to share their experience online.
    e) Sell in bulk. Life is too short to sell one toothbrush at a time. Perhaps a sample pack with all of your items in smaller quantity may work but then you have the added cost of purchasing boxes, tape, labels etc to pack them in.

    • Excellent advice. Thank you. Although i considered opening my own website and do this but it will take so much extra to gather the traffic on it and then as yourself said Kogan or COTD like websites wont let it happen as they already have a huge name in the market. I can definitely offer better pricing from them on the products but shipping at the end of the day is the only things thats keeping me back.

      • I can definitely offer better pricing from them on the products but shipping at the end of the day is the only things thats keeping me back.

        Maybe they could have offered the same price too, but because of the very same reasons as you ie. Shipping, they can't?

    • Plus what are the advantages of Amazon over Ebay, and why would you switch your business to them instead of Ebay ? I know they can store a product and have their own customer rep team working for you but doesnt it cost heaps of money ?

  • +1

    I have sent you a PM.

  • There’s no market for selling toothpaste. How much are you getting it for? Probably not much lower than prices people can get directly at Coles and Woolworths.

    There is a market for selling very cheap imported goods that people might need quickly. For example, think about something like USB-C cables. You can get them for cheap overseas but it takes a while to arrive. A someone breaks their cable and they need a new one. They can pay something ridiculous like $20 for one from a shop or you can sell one for $10 which cost you $3 and a bit in shipping.

    There might be a market for more high value items too. For example, i recently bought a OnePlus 6. Even with express shipping, it still takes about a week to arrive from HK. I would have been willing to pay a little to have it arrive earlier, e.g. in 2 days which is possible in AU.

    • I'd actually like to do this. But not on eBay. Anyway, where do you find reliable USB C cables cheaply? Or iPhone cables, which is what people really want. I'd like to sell anything but anything I can think of is already sold on eBay for less than I'd pay myself to sell it for. And what kind of person would I be if I knowingly sold cheap cables that won't last very long, I'd be adding to the instant garbage problem.

    • What if i tell you that i`m getting it under half of the price you usually get in Coles or Woolies. Thats is the reason which motivated me that there are maybe 2000 suppliers already selling usb cables and electronic stuff. Not many into what products i have. And even tho if they do they are just doing it in a bulk. I can definitely consider making deals to make my product go.

      • What if i tell you that i`m getting it under half of the price you usually get in Coles or Woolies

        Are your going to sell your stuff at cost price? Have you factored in the profit margins, your salary, storage cost, electricity etc?

        • Obviously considering all these costs. I can still beat Coles and Woolies prices with good profit margin.

  • +2

    If item is low value best to sell them more than one. For example you may one to sell 4 toothpaste in one 500g shipping as same cost.

    Shipping rate for Auspost start of $7 if send a lot. Try to find those people sellers on eBay that sell prepaid satchel see if you can match the price. There is also eBay Auspost prepaid satchel but don't know know the cost of shipping.

    Need to register for freeABN even you sole trade to separate personal thing with businrss. If your sales turnover say you sataet now, till next year June 2019 is going to be more than $75,000 you also need to register for GST and collect GST on all your domestic sales. Best for a business to have it's own account such as PayPal, bank account, etc.

    Good luck.

    • Thank you very much :)

  • +4

    Do not try and compete in the mass market against the likes of the supermarkets, they will have a CODB advantage every time.
    Try to find a low priced niche product that you can import from Asia and that can be posted at the letter rate. Offer a same day postage service.
    That is exactly what we do and our business is growing every month, to the extent it is now almost (a very well paying) full time job.

    • Exactly that is the type of products i have. Are you an ebay seller ? Can i PM you and ask more details ? I can offer same day postage and keep this as a full time job. Just need a bit of guidance for the start :)

      • Toothpaste and soap is not niche lol

  • +3

    Ill introduce my self first. I worked as an assistant manager in a supermarket for 4+ years and then became a sales rep for a firm

    Oh my god, just ask the eBay question.

    • Lol.

    • Oh my god, just answer the eBay question then ? ;)

  • +1

    Sell stuff that can fit in an envelope.

    • Haha im afraid i dont have many items that can fit into one :(

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