I wonder how someone selling something under $5 makes any money?

[musicyouneed]

I sold a CD today for $12 Canadian, free shipping and I was working out how much it cost/fees. etc.  

Postage was $3.10

Envelope was .50  (I got them cheaper but when you factor in cost of shipping to me, that is what it cost)

New Jewel Case was .50

Ebay Fee was $1.20

Paypal Fee was .65

That is a total of $5.95.  

That is also not taking into consideration a portion cost of a store.   

So I only clear $6.05, that is not including the cost of the item.  Considering all the work, photographing, resizing photos, researching writing up listing, all for $6.05.    Now I sell what I know and like.  I have been into music now for 55 years, so I love it.  If I didn't love it I sure wouldn't do it for $6.05.   

Then I see Canadian sellers with items $1.95, 2.50, how do they make any money?   Why bother for such little stuff?

[i.am.vivian]

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@musicyouneed wrote:

Then I see Canadian sellers with items $1.95, 2.50, how do they make any money?   Why bother for such little stuff?

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Do they sell with a case?  If they just ship it in a paper sleeve and in a paper envelope they can put a "P" stamp on it and anything after that is their profit.  Not much, but their choice. 

EBay isn't a great place to try to earn a real income.  Selling as an income supplement is all that is likely for MOST people, like having a hobby (music) that happens to generate a bit of money. 

If you try to get paid by the hour for your labors it will be very disappointing.  Its better to think of it as having the time, having to do something with it, and creating listings, printing labels (or not), and packing items in that time earns more cash than watching tv.

[musicyouneed]

I'm not talking only about CD's but all sorts of things. Mostly $1 store stuff.

[i.am.vivian]

True, but not all that seller's stuff is like that.  The Gillette blades, for instance, have a shipping fee.  Some of the items are dollar store, so they will ship in a cheap (dollar store) envelope for cheap postage.  The seller doesn't make much profit, but whose going to pay $12 for those pencil refills?  Maybe they started that as a way to increase seller feedback. 

[thestuffofchris]

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@i.am.vivian wrote:

If you try to get paid by the hour for your labors it will be very disappointing.  Its better to think of it as having the time, having to do something with it, and creating listings, printing labels (or not), and packing items in that time earns more cash than watching tv.

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That's how I try to look at eBay, considering I'm one of those people that uses eBay as a virtual garage sale. All I've ever sold over the years is items from my personal collections. I don't worry about paying myself for my time because I don't do this for a profit. In fact, I've made about the same amount on this account (which is almost 2 years old) as someone gets paid in a month on minimum wage.

I do this because I genuinely enjoy the process of creating listings, taking pictures, researching prices, packaging items, etc., and so if I can make a few bucks off each item and then use that money to buy myself (or someone else) something that is actually useful, I'm happy.

[pjcdn2005]

The lower cost items are probably only worthwhile if a seller has multiples of each item which this seller does,  

[recped]

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@musicyouneed wrote:

I sold a CD today for $12 Canadian, free shipping and I was working out how much it cost/fees. etc.  

Postage was $3.10

Envelope was .50  (I got them cheaper but when you factor in cost of shipping to me, that is what it cost)

New Jewel Case was .50

Ebay Fee was $1.20

Paypal Fee was .65

That is a total of $5.95.  

 

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Me

Postage $2.95

Envelope $0.15

Jewel Case.....Are you kidding!!!!!!

eBay Fee  $0.86

PayPal Fee $0.65

Total: $4.61

[musicyouneed]

You wrote:  Just wondering

Postage $2.95   (I pay 15 cents tax on my shipping, you don't.  My total postage is 3.15)

Envelope $0.15  (what kind and size of envelopes do you use, bubble lined?, how do you get them so cheap?)

Jewel Case.....Are you kidding!!!!!!  (No I am not, buyers like a clean not marked up jewel case.)

eBay Fee  $0.86

PayPal Fee $0.65

Total: $4.61

[recped]

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@musicyouneed wrote:

You wrote:  Just wondering

Postage $2.95   (I pay 15 cents tax on my shipping, you don't.  My total postage is 3.15)

Envelope $0.15  (what kind and size of envelopes do you use, bubble lined?, how do you get them so cheap?)

Jewel Case.....Are you kidding!!!!!!  (No I am not, buyers like a clean not marked up jewel case.)

eBay Fee  $0.86

PayPal Fee $0.65

Total: $4.61

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#0 Bubble (kraft) by the case, maybe a bit more expensive in BC and my 15 cent cost was 12 - 18 months ago.

I'll replace a broken or badly cracked case but I'm not by default putting new cases on cheap discs. Of course I rarely have anything with a beat up case. With cd's I don't bother with anything that isn't sealed or near mint and that applies to inserts, if the cases are in rough shape then the inserts probably show handling and the discs could probably use a "repair". When I do need a case I usually just steal one from  the pile of "this will never in a million years ever sell even for pennies" (it's a big pile!).

[ypdc_dennis]

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@musicyouneed wrote:

I sold a CD today for $12 Canadian, free shipping and I was working out how much it cost/fees. etc.  

Postage was $3.10

Envelope was .50  (I got them cheaper but when you factor in cost of shipping to me, that is what it cost)

New Jewel Case was .50

Ebay Fee was $1.20

Paypal Fee was .65

That is a total of $5.95.  

 

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For me:

Postage -- about $2.50 (tax included) since I use discounted stamps.

Last case of Size 0 bubble kraft was about 31 cents (but if I get more today the price has jumped to 39 cents)

Cases - I replace cracked/damaged parts as required -- I've got a box of spare parts from recycled computer cds, so the sunk cost is zero.

eBay fee would be $1.20 minus 20% or $0.96 -- if I had a store it would be even lower

So for your $12 example, my cost would be 2.50 + 0.31 + 0 + 0.96 + 0.65 = 4.42 leaving $7.58

-..-

Reasons:

* Lots of folks sell cheap stuff to keep the cash flow moving

* There economies of scale when you sell a lot.

* Selling cheap stuff to keep your eBay numbers up, so one bad sale doesn't screw your seller metrics too much.

-..-

[jt-libra]

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@musicyouneed wrote:

I sold a CD today for $12 Canadian, free shipping and I was working out how much it cost/fees. etc.  

Postage was $3.10

Envelope was .50  (I got them cheaper but when you factor in cost of shipping to me, that is what it cost)

New Jewel Case was .50

Ebay Fee was $1.20

Paypal Fee was .65

That is a total of $5.95.  

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My expenses are the same as yours.  Most of my DVD's are new and sealed, but if they aren't, I always put them in a new case.  The inserts and disc are always in mint condition or I don't sell them.  My CD's are a mix of new & sealed, and rarely played.  I always include a new case (and I don't use the slim jewel case, but the thicker ones that house CD's that you buy at retail).  So far, all happy buyers!

I would rather forego 50 cents a sale and have buyers very pleased with their purchase.