Today I’m going to break down the steps I took to make $83.65 profit from just one sale on ebay and it only took 5 min.
The first step is to understand what is arbitrage, specifically price arbitrage. Stores like Walmart, Target and even gas stations like 7-eleven use price arbitrage to make a profit. They simply buy a product at a lower price (the wholesale price) and then resell it at a higher price (the retail price). The difference between the wholesale and the retail is the profit. Of course most of these retail stores have a lot of overhead expenses like employees, buildings and utilities. With ebay, we don’t have near the overhead expenses like Walmart for example, but we’ll talk about that later.
Once you understand price arbitrage we can start to apply this to what we are doing on ebay. When we sell products on ebay we are selling them at a retail price. This is a higher price than our wholesale cost from the supplier. In essence we are doing exactly what Walmart is doing, only on ebay. So what products do we sell and where do we get them for a lower price?
That brings us to the next step, sourcing our products. Although you can source your product just about anywhere, I personally source my product from online. I currently have a list of about 10 online websites that I use to source my product, one of them being Amazon.com. What I do is look for products that are priced low enough on Amazon.com that I can resell them on ebay for a higher amount and make a decent profit. Sounds simple right? Well it is, once you learn how to do it properly.
Now you might be wondering, don’t I have to buy inventory first? The answer might suprise you, NO! I use a selling method called dropshipping. All it means is I dont take physical possesion of any inventory. I simply wait for someone to buy a product and then process an order from my supplier and ship it directly to the buyer. This eliminates the need to invest money in inventory and also the need to have a warehouse or storage facility.Once you find a product its just a matter of doing some simple math and research to determine what you should sell it for on ebay. After that you just create an ebay listing for your product and wait for someone to buy it.
There are a lot more details than what I’ve covered here but lets continue to the basic math of how I earned $83.65 on a single ebay sale.
The product was a weather station that sends a wireless signal to a digital receiver inside your home to let you know the weather conditions outside.
Here were the numbers:
State sales tax…….$7.42
As you can see there are a lot of numbers involved here but its very simple once you learn how it all works.
So whenever I got the notification this item sold I knew that I had just made about $80-$85 dollars and it was only going to take me about 5 min of my time to do the work. You might be wondering why only 5 min. Well this is how long it usually takes me to process the order online.
Now I have to admit, it does require about 20-30 minutes of upfront time to do product research and to actually list the product on ebay. But once the product is listed, all the hard work is done. Plus every time you make a sale, you simply relist the product with one click of the mouse and your back in business.
If your interested in learning more about how I’ve taken this ebay arbitrage idea and built it to a successfull online business I highly recommend you invest into the same training that I did. Without the training I got from DS Domination I would have never been able to make the thousands of dollars per month I’m currently making, part-time.
Do yourself a favor and invest in the PRO training over at DS Domination…you’ll be glad you did. In my first 30 days, I made well over $400 profit just by following the copy and paste formula they teach you to do.
Untill next time….
PS. I will provide private one-on-one coaching to anyone who decides to start their own ebay drop shipping business as long as you join my DSD team by clicking this link.