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Online Auctions - Do Your Sums Before you begin

Online auctions might appear when you're getting started to be an ideal possiblity to make some extra profit these stricken financial times. Sine eBay was launched in 1995 a lot of the "gurus" have highlighted eBay as an ideal moneymaking opportunity. A few years before this was true which is possible that more eBay millionaires are created than from any business opportunity. However, times and the industry have changed and moved on in recent times and it is now far harder to succeed as an eBay seller than it once was.

The case of Tony adamowicz an eBay power retailer is typical. He started selling about the online auction site around 5 rice. His method of operation was to obtain job lots of smaller electrical items, toys and other suitable items and offer them as individual products on eBay. At the time it was a sound and successful enterprize model. The trouble that he found was that on a couple of occasions he was given seven day suspension orders by eBay for marketing items the manufactures had prohibited being sold on any online sell sites. Tony found this in particular annoying as he found dozens of competitors selling the same items on eBay without restriction.

Eventually he decided to begin concentrating on selling "as beneficial as new" paper again books on eBay. He found a service provider who could offer pallets of iPhoneat a very favourable rate which in turn meant he was only paying a few pence per book. This gave him the chance to sell the ebooks for considerable gross income

Tony eventually had in excess of 1400 titles listed about eBay and was making sales in the region 300 to 400 book monthly. At first glance it would seem to indicate he was being successful but his accounts showed another picture. Although his sales ended up high so were his / her expenses, eBay listing, final valuation fees and Paypal charges significantly eat into his profit margins. He eventually calculated why these charges plus the cost of the books was getting a huge 75% of his / her income. In real terms for everyone his work and hard work he was only making around £150 every thirty days..