Wholesale & eBay Forum Importing & Customs How to profit on eBay after paying taxes and fees

How to profit on eBay after paying taxes and fees


cdsemmegas
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  • Joined: 02 Jun 12
  • Karma:
7 Jun 12 04:15:02 pm
hello

I'm a little confused how to make profit and paying taxes. If i don't pay taxes it is possible to make some profit, but with the taxes is impossible.

Imagine that i buy a Iphone for 500USD. With a VAT of 23%, is this the value i pay in my country, the iphone have a price of 615USD. If i sell in ebay for 650USD with A fee of 7% in ebay and 3% in paypal the item have a price of 680USD.

IT IS DIFFICULT MAKE ANY PROFIT AND WITH THIS PRICE IS DIFFICULT TO SELL THE IPHONE.

i HOPE SOMEONE WITH MORE EXPERIENCE CAN HELP ME.

thanks


fudjj
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7 Jun 12 09:23:46 pm
There is a very basic equation that you have to meet to have a chance of being successful in retail, and it boils down to being able to find the product at a price, that when all costs are factored in, will still deliver you a margin worth the effort.

What you have highlighted here is the fact that the equation isn't adding up, and therefore you now have to work out why. First off you need to look at your purchase price, how competitive is it against other suppliers. Of course the best way to get the best supply price for any item, is to purchase in high volume.

The more you buy, the cheaper the cost per unit will be for you (within reason of course)

That's where I would suggest starting, after that you are just open to natural market factors, and there are a lot of them on a site such as an eBay. One for example, if you have a competitor buying at your price, but selling at a extremely small margin, then you may find that it's not worth your effort and outlay of cash to try and compete.

Now I have ignored the fact that you are talking about iPhones deliberately, as the above advice goes for any product, but that's one of the hardest markets on earth to get into.

If you do the research, find that you ad still unable to compete at a level you want to, then you need to start opening up and researching other product avenues to find a market that is still available at a level where you feel comfortable competing.


Mark (fudjj)

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irene_salehoo
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  • Joined: 21 Mar 10
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8 Jun 12 12:51:30 am
Hi cdsemmegas,

Yes, it is quite frustrating actually especially if you are looking at a product the wholesale source of which is also at eBay selling to the public!

The sellers who make money on eBay spend a lot of time doing market research, experimenting with differnet products, and looking out for special deals from suppliers. They often use liquidators to get items for pennies on the dollar.

If you do wish to stick with the electronics industry, then here is what we suggest:

* Use liquidation suppliers to get bulk lots at prices well below wholesale.
* OR: Purchase from wholesalers in very large quantities (and when we say very large, we mean a spend of $200,000 or more) - this is how the big eBay powersellers do it.
* Sell via your own website

Hope this helps.


Irene

cdsemmegas
Full Member
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8 Jun 12 10:52:07 am
thanks


importexportcoach
Free Member
  • Posts: 34
  • Joined: 08 Sep 12
  • Karma:
13 Sep 12 04:55:26 am
hello

I'm a little confused how to make profit and paying taxes. If i don't pay taxes it is possible to make some profit, but with the taxes is impossible.

Imagine that i buy a Iphone for 500USD. With a VAT of 23%, is this the value i pay in my country, the iphone have a price of 615USD. If i sell in ebay for 650USD with A fee of 7% in ebay and 3% in paypal the item have a price of 680USD.

IT IS DIFFICULT MAKE ANY PROFIT AND WITH THIS PRICE IS DIFFICULT TO SELL THE IPHONE.

i HOPE SOMEONE WITH MORE EXPERIENCE CAN HELP ME.

thanks



Hi,


eBay the margins have dropped massively over the last few years with more and more competition, profit can still be made especially if you are turning over volume for example Kogan tvs and electronics.

You can still use eBay to raise brand awareness for your products and sell them at cost as you may get 30-50 bidding on it and one person may win it but another 49 people feel at a loss for not winning and in many cases (I know this for a fact) will go direct to your website and buy it there for retails.

Just a quick easy strategy there....



Alex C Ryan
Managing Director
Import Export Exposed
startimportingnow.com.au


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fudjj
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13 Sep 12 08:28:27 pm
I would never consider not using eBay's traffic, however I view eBay more and more as a sales funnel these days, little more. If you're going to be in an online retail business for the long term, you need to develop a stand alone site to give you the flexibility you'll need to ultimately succeed


Mark (fudjj)

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