I had a very busy May when it came to my reselling. eBay is my preferred outlet for meeting large minimum spend requirements.
As with most travel credit card sign-up bonuses, you are required to spend a hefty amount of cash within 90~ days. Sadly, this becomes one of the biggest deterrents for people looking to earn free travel. The “average” person does not have enough organic expenses to allow for $10,000 to be spent in 90 days on plastic. I spent $10,000~ in less than three weeks, but don’t worry, I made it all back AND MORE!
Buying low and selling high has been around since the dawn of time. The difference in the age of internet is the ability to easily and remotely purchase merchandise with credit cards.
Having signed up for multiple credit cards in April, I had well over $10,000 in ‘minimum spend’ to complete. For most, that would be biting-off a lot of spending requirements. On a blend of cell phones, headphones, camera equipment, and even fishing reels, I spent $9,201 to purchase my merchandise.
The other huge benefit of reselling is paying your selling expenses with a credit card. Last month I accrued $918 in selling fees which were charged on a credit card counting towards my minimum spend.
Don’t forget, most online retailers will reward you with points or cash through a shopping portal like eBates. I made $137 in cashback and 4,200 extra miles just by purchasing my product to resell. That does not include the 1x points I made from the credit cards EVEN while working on a minimum spend. Spending $10,000~ on merchandise/fees means 10,000~ points from the credit cards on top of the sign-up bonuses.
A few pointers
As you may notice in the graph, sales slow down significantly towards the end of the month. I will allow you to draw your own conclusions as to why that happens every month. (and it does happen every month)
My best advice for saving time when reselling on eBay is to buy in bulk. The most time consuming part of reselling is researching and listing the items. Currently, I am averaging 3.5 items per listing. Being that I sold 54 items last month, I only created 15 listings. When you buy multiples of the same item you simply increase the quantity and publish your “bulk” listing.
People I talk to are in disbelief when I tell them I purchase all of my inventory from online retailers and then resell on eBay for a PROFIT. Sadly, I can’t share all of my secrets on product sourcing (otherwise these reselling recaps would be a lot less lucrative), but I can tell you that it is very doable. My pointer to everyone is to buy small electronics and gadgets that are easy and cheap to ship.
Breakdown of my reselling in the month of May:
Total sales: $11,458
Total gross profit after selling fees: $10,540
Total cost of merchandise: $9,201
Total net profit: $1,339
As you can see, my net profit on 54 sold items in May came out to $1,339. That is an average profit of $24.79 per item. My lowest net profit was $3 on a single item, the highest was $72. With a total merchandise cost of $9,201 and a profit of $1,339, that is a 14.55% return.
Some people ask if I lose money on eBay, the answer is no. I only list my items as Buy-It-Now and I make sure not to purchase items unless they have a 30+ day return policy. I did buy four identical phones from Newegg that would not sell, I sent them back and received a full refund. This is the first time having to send items back that wouldn’t sell in 2017. (they even paid for return shipping so there was no loss)
If you remember that the main reason I sell on eBay is to help meet my minimum spend, that profit is a nice bonus. (plus the shopping portal bonuses which take about 30-90 days to pay out). Once you realize that you can spend $5,000-$10,000 a month purchasing merchandise, suddenly credit card bonuses don’t seem so difficult to obtain. If you’d like me to send you over the spreadsheet I use to track my inventory, fees, and profit, shoot me an email.