1 cent jewelry! How does he do it?!

Free Member
roni3d1
Posts: 46
Joined: 11 Mar 10
Karma: 
9 Feb 12 05:26:49 pm
I'm not a seller on ebay but I plan to eventually use it as a sales funnel to other online selling venues.

I was checking out the jewelry scene and I saw this:

Link hidden: Login to view

This person is starting his bids at .01. It seems that on average, he/she sells them at an ending price of anywhere between 1.50 and as high as about $14

This just shows me how competitive ebay really is - I've read many of the posts on here stating that fact but this was such an 'in the face' example for me.

I suppose because of the huge quantity of stock he moves he is profitable - taking a hit now and then for some sales that never go much above a penny.

Questions:
1) Those of you into selling jewelry, are you selling on Ebay or mostly other sites?
2) If on Ebay, do you start your bids super low in hopes of a bidding war?
3) Do you have stock or are you dropshipping?
4) On average, how much do you make a month in the jewelry arena (whether online or offline):

a) 0.00 - 50.00
b) 50.00 - 200.00
c) 200.00 - 500.00
d) over 500.00 a month

Roni

Site Admin
richelle_salehoo
Posts: 5226
Joined: 20 Oct 08
Karma: 
10 Feb 12 02:42:37 am
Hi Roni,

That is a bit amazing but like you said this seller must have a a lot of stock (sourced either through wholesale or liquidation) to give her this edge.

I haven't personally sold any jewelry on eBay so I can't exactly answer your questions.

But I recalled Alice's blog about selling jewelry on eBay and thought you might find it a god read -

Link hidden: Login to view

Plus, here's one of our members featured on our SaleHooo Seller Spotlight who also made it big with jewelry -

Link hidden: Login to view

Hope this helps somehow :)


Richelle

Customer Support Manager
SaleHoo Group Limited
Sell more with your own professionally designed and search optimized e-commerce website. Check out Link hidden: Login to view now!
Full Member
fm1234
Posts: 838
Joined: 14 Dec 05
Karma: 
10 Feb 12 05:19:02 am
This is just a case where you have to look more closely at what's going on, to understand it. A search of 9jewelry's Link hidden: Login to view demonstrates that they lose money on pretty much every single order -- as cheaply as fashion jewelry can be sourced, it is impossible that they are ahead on volume (if you sort the listings from the search above by price, you'll note that of the last 200 sales fewer than 10% closed at over $5 -- take away eBay and PayPal fees, plus the cost of shipping and handling, and you're approaching if not at $5 right there without ever taking into consideration what the inventory costs.) So obviously, they are making their money on the back end of the transaction, and are simply using eBay as a cost-effective way to get customers.

This seller's listings are very instructive to prospective eBay sellers -- as I've said in many previous threads, getting hung up on items because you can't figure out how to make 100% profit on every sale is a shortcut to never amounting to much in the market.


Frank


"Failure is not when you fall down. Failure is when you don't get back up."

--J.J. Luna
Free Member
roni3d1
Posts: 46
Joined: 11 Mar 10
Karma: 
10 Feb 12 05:53:30 am
Thanks Richelle,
I will check out those articles.

Frank,
You are right - this is VERY instructive if what you say is indeed what he is doing.

I noticed too that some of his negative feedback was from not shipping the item after it was sold or telling the customer it was out of stock. So I am assuming he's dropshipping.

His jewelry is very pretty and if it really is silver and real stones, it's a shame he has cheapened them AND the labor/artistry that went into making those pieces.

Roni

Full Member
fm1234
Posts: 838
Joined: 14 Dec 05
Karma: 
10 Feb 12 06:13:53 pm
The negative feedback items do tend to suggest that he's either dropshipping, our outsourcing fulfillment -- hard to believe that anyone vested in getting and keeping customers would send the wrong item so many times, send damaged items etc. Good eye -- I had not even noticed that.

Regarding your other point, I'm not sure 9jewelry is cheapening the product -- it's being sold for whatever people will pay for it. That is what I've always done with my own gemstone sales, and something you see very commonly in that niche on eBay. Penny auctions, dollar auctions etc. on items worth substanially more. If you look around, especially in the gemstones subcategory, you'll see it's pretty common. In this seller's case he's just being more aggressive with pricing in order to build the customer base to which he is presumably upselling.


Frank


"Failure is not when you fall down. Failure is when you don't get back up."

--J.J. Luna
Site Admin
fudjj
Posts: 5911
Joined: 27 Jul 07
Karma: 
10 Feb 12 11:00:55 pm
Hong Kong based member, free shipping, I doubt this is a drop shipping operation, but who knows.

Looking at the feedback against Their DSR, I would suggest that they aren't really worried about that level of negs, as their DSR is very high, so their trading capacity within eBay isn't under any threat at all.

Looking at the negs, not a single response to any of them either. Their listings suggest that they are a very caring supplier, very open to communication to ensure complete satisfaction. However, the arrogance that they seem to be treating the unhappy customers who are leaving negs seems to defy all of that, but looking at the numbers, that's not slowing down their sales whatsoever.

How are they doing it for the price?
Well unless it's a sales funnel where they are effectively converting customers into profits on other items, I have no idea.

In regards to the prices, as Frank has said. Realistically, the true value in any product is the best price that the market will sustain at any given time.


Mark (fudjj)

Community Manager
SaleHoo.com

Link hidden: Login to view

Wait! Want Some FREE Supplier Details?

Discover four of the most profitable niches on eBay and get details for the best suppliers for these niches. Enter your details below and we will send them instantly.

Thanks! Please check your email inbox.

Your list of profitable markets and supplier details are on their way to your email inbox.
Be sure to add support@salehoo.com to your safelist to ensure we can deliver the free suppliers details to you.

If you haven't received an email from us in 5 minutes, please check your spam folder or email us at support@salehoo.com.