I’ve committed to posting a monthly recap of my reselling on eBay. Things have been a little busy but I can always make time to give tips and pointers for those just starting out. 🙂
For the folks just getting rolling, reselling is simply buying high-priced goods at deep discounts to resell at a profit. In the process of buying your product you naturally spend large sums on various credit cards.
Large “manufactured” spend can serve multiple purposes, the most notable being minimum spend requirements for credit card bonuses. Having to spend $4,000 in 90 days can be daunting for many, but when you can buy expensive items to liquidate at a small profit, minimum spends become a non-issue.
What’s the point?
I post these reselling recaps for a few reasons, one being a motivator for travelers who feel they’ve hit a plateau. If you’re like me, you have probably signed up for many credit cards leaving your options depleted for new bonuses.
By incorporating reselling into your mile-earning efforts, your ability to rack up miles without needing to open new credit cards increases dramatically.
If you can average $5,000 of purchased resell product per month, that means BIG free travel on top of your everyday spending and new card bonuses.
In the month of June I moved 35 items on eBay. That is pretty typical though last month I did over 50 items. Since I sell primarily high-dollar merchandise, the points earning potential is great. The average price per sold item was $234, multiplied by 35 items, means my total sold amount was $8,190. (gross sales)
I wish I could give all my best-kept-secrets for finding cheap deals, but then they wouldn’t be secrets. My quick advice to starters is to look for popular electronics that can be sold with very little risk. That means buying new merchandise that is defect-free, can be returned if they don’t sell, and has a warranty should your buyer have an issue within 60 days.
One item I do well with is prepaid iPhones. For some unknown reason, people pay up to 100% more on eBay than the same phone can be purchased for direct from the carrier.
Because the iPhones are sealed and are purchased from an authorized retailer, you can return them, or worst case get the phone repaired from Apple since you were the first-hand buyer. Limiting your liability of getting stuck with DOA electronics is very important.
Now, I wouldn’t expect you to manage and sell inventory without the opportunity to make a cash profit. Points and miles are a very sweet byproduct, but cash profit is the driver for me.
In June, I made a net profit of $963 after all was said and done. eBay and PayPal take an average of 9% combined for most of my transactions. That means I was able manage an 11.7% return even after paying eBay/PayPal over $700 in fees!
Another way to look at it is the total profit per item, over $25 on average. My highest earning item was $77 with the lowest being $4, you have to take the good with the bad. Fortunately, I did not lose money on any item since I only sell using Buy-It-Now requiring instant payment from the buyer.
From the points/miles aspect, my total spent to acquire June’s merchandise was around $6,500. If you had a minimum spend of $4,000 to complete, you’d be finished in just one month! In addition to the minimum spend, I’d earn at least 6,500 miles. With a card that earns 1.5x or 2x points, that would be over 10,000 points earned in one month buying merchandise.
The key to maximizing your reselling is to snag points anywhere you can. The easiest way to earn additional points or cash is through shopping portals. For cashback, I like to use the portal TopCashBack. This month alone in one portal, I’ve earned over $130 just for purchasing merchandise to resell in the future. Don’t miss out on free points and cash.
Keep in mind, shopping portal cashback or points is all IN ADDITION to your net profit from eBay and points earned from your credit card. Talk about a nice trio!
Cashback from shopping portals earned in June: $173
Credit card points/miles earned in June: 9,455
Net Profit from eBay earned in June: $963
The kicker is that I had $4,000 to spend on my new Delta Platinum credit card which earned me a 70,000 mile sign-up bonus. That means I will “earn” over 84,000 miles/points and over $1,000 in cash by dabbling on eBay.
On average I allocate 20 minutes of my time per item. Many times it is a lot less since I resell the same items in bulk which saves listing time. This estimate gives me a rough idea of the results from my time spent. By selling 35 items and allocating 20 minutes per item, for listing and shipping, I spent around 11 hours.
Finding the deals online or in store (using BrickSeek) takes time too but I thoroughly enjoy that, so we can estimate a total of 20 hours spent in June. To make over $1,000 cash in 20 hours without ever speaking to your customers, that is a decent return. Did I mention USPS offers free pickup of your sold items so you never have to leave the house? Talk about working from home!
I would love to hear from you in the comments if you are already reselling on eBay or Amazon!