How to Make Money Selling Online

The economy is on a downhill slide. Unemployment is up, gas prices are up, prices for food and other necessities are rising, and paychecks are not stretching as far as they used to. If you are looking to supplement your income, selling online can be a great way to do this. Many people are looking to online shopping venues and secondhand stores to help stretch their budgets and still get the things they want.

Venue

First, pick a selling venue. Everyone automatically thinks of eBay, but there are some other great sites with good traffic and lower fees. Bonanza and eCrater are two of these. iOffer has low fees, but is overrun with fake designer goods and other junk that gives it a bad reputation, so you probably want to steer clear of that site.

Research Prices

Decide what you want to sell, and then research prices on completed auctions or fixed-price listings. If you can't make a profit, then find other products with a higher profit margin. For example, if you buy a pair of shoes for $50, but they are only selling on eBay for around $40, you aren't going to make any money that way, obviously. Choose products that you can buy cheaply, that are of good quality, and sell for a nice markup online.

Factor in Fees

Before listing your item, factor in seller's fees. For eBay, you can find fee calculators on the web, or you can just plan on about 15% of your profit going to fees. Bonanza charges from $0.50 to $5.00, depending on the sale price, and eCrater is free. Also add in any fees charged by Paypal or Google Checkout if you intend to use them - both charge 3% plus $0.30. And if you offer free shipping to your customers, add the shipping cost to the your asking price so you don't come up short.

Customer Service

Like any business, be it a brick-and-mortar company or online business, customer service is what keeps your customers happy, keeps your feedback good and keeps people coming back to you for more products. Ship quickly, communicate with your buyers and fix any legitimate problems that they have. In addition, always insure any package that you send out to cover yourself in case of loss or damage.

You can make a living selling online, you just have to do your homework and make sure you don't come up short. And, as always, if you have questions about this article or any other financial topic, seek the counsel of a licensed, responsible financial advisor. Good luck!

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