It’s been four months now since I launched my eBay store where I sell technology gadgets and digital goods. This is the second update on my experience selling on eBay (read my first update here 30 days after launching here).
The three months after my first update had gone relatively well, especially because it was Christmas season and that always brings sales up, both on-line and off-line for almost any niche.
This is how my home storage are looking like these days!
Actually October wasn’t so great. I increased the number of transactions I completed from 8 on the previous month to 18, but I took a loss on 6 of them to end up making a profit of 108,86€ on sales of 2246,77€ divided as follows:
November was the best month, with 18 items sold and no loses on any of them! Profit breaks as follows on sales of 1206,49€:
Followed very closely by December with 15 items sold an only one loss. Profit breaks as follows on sales of 1610,17€:
Selling digital goods is much better than physical items
Selling on eBay it’s been good so far, but what has become clear to me is that the real opportunity is on selling digital goods as they can be sold over and over again using the same listing information and they can be easily sent to the customer by e-mail.
Another great thing about digital goods is that when you buy them with unlimited reseller rights the cost of buying each program is almost negligible if you divide it by the tens of times you are going to be selling it. So one thing you can do to maximize your profit is sell the item not only to the user who wins the auction but also to the one who got bitten and ended right behind him, and the one behind that one too and so on, until you think the price is too low. Take for instance you sold a digital item for 20€ that means there is at least one other interested customer who bid 19€, and probably a third one below him who bid 15€. Something like this:
- Bidder 1 – 20€
- Bidder 2 – 19€
- Bidder 3 – 15€
- Bidder 4 – 9€
- Bidder 5 – 4€
If you let the auction end and sell the item to Bidder 1 as you would normarly do with a physical item you will be making 20€.
Now lets say you think any offer above 10€ is a good offer. By offering to sell a copy of the software to those other two users who’s bid was above 10€ you will actually be making 20€+19€+15€=54€ on that one auction alone instead of just 20€. Not bad right?
I will keep selling both technology gadgets and digital goods because I like to get my hands on new technology, be able to try it out, then sell it and so on. But like already anticipated before starting this experiment selling physical goods on eBay is not easy and it will hardly become a source of passive income. Digital goods on the other hand go much better with my definition of passive income. So if generating passive income is your goal here you should definitely go for the digital goods!