Making Money on Ebay During the Recession: It's a SELLER'S Market, Too!

As we slog through certainly the worst economic conditions that I can remember in my lifetime, the media keeps us constantly updated on just how badly we're faring. Whether you're watching television, listening to the radio, checking out internet stories or (gasp!) actually reading a printed newspaper or magazine, there's no avoiding the fact that unemployment is at record levels, as are home foreclosures and the shuttering of retail businesses. Retail deaths aren't limited to only the mom and pop stores that have struggled over the years to stay in the black; big name stores are filing for bankruptcy and closing down stores - and factories - at record numbers.

Amidst all of this very real doom and gloom, there is a bit of a bright outlook, especially if you're a savvy consumer or an Ebay/online auction seller. There are some incredible deals out there, folks.

To put it bluntly, there's money to be made from the misery of others.

A cautionary tale would be to stay away from bankrupt retailers of products such as electronics, as store warranties will become a thing of the past, as may very well be those of the manufacturer as well.

Look for the quiet, little stores that are closing their doors for good. For instance, in a neighboring town, a very well known and established purveyor of very high end British mens' and womens' clothing and accessories is going out of business. While at the present time, most of their winter stock is at the 50% off range, there were hidden bargains to be found. They also carried Brighton products: purses, earrings, bracelets, necklaces, checkbooks, wristlets, and more. Discontinued items by any designer are considered more valuable and collectible because they are, indeed, discontinued and will no longer be made; they can only now be found on the secondary (i.e., Ebay-like) market. This adds greatly to the value of these discontinued products. Interestingly enough, while this store's regular selection of Brighton items was on sale for 50% off, their discontinued Brighton products were an astounding 80% off. Needless to say, I stocked up on as many items - all of them brand new with manufacturer and store tags still attached - as I could. I listed them for sale on Ebay at 40 to 50% off of their retail price: every single piece that I purchased sold, at a tidy profit.

The moral of this particular story is to take your time and investigate EVERYTHING that the store has for sale. This particular establishment was also selling its mannequins (great for high-volume Ebay sellers or other store owners who need mannequins in their own line of business), as well as what they referred to as 'store decoration'. These decorations were solid wool lamb toys, vintage baseball gloves/catcher's mitts, old non-working cameras, walking sticks, all sorts of fascinating items which the manager was selling for literally pennies on the dollar. I purchased a set of three items for 50 cents each. I sold them as a lot on Ebay for $30.00.

Know what you're buying. If you're not sure what the market is for an item, and it's fairly costly - even at a drop-dead discount price - walk away. Walking away from what might be a real steal is often the hardest thing for an Ebay seller to do, but it's a very valid principle.

As I was driving home from the clothing store, I saw a huge banner across the front of a high-end children's boutique. Yep, the economy and a poor location had done them in as well. I've made two stops there so far, and walked out paying less than $75.00 for my purchases. To date, I've 'recouped' my sales to the tune of $62.00, and still have five items listed for sale, with a fairly high number of buyers 'watching' the listing. I chose only from their 75% off rack. I chose only items that I knew would sell: First Communion outfits, infant christening outfits, newborn and preemie dressy clothing. Everything had not only the store's tag but the manufacturer's tag as well, and everything left the store with me in their original plastic wrap. While the rest of the store is at 50% off, it's only a matter of time before the owners keep moving more items onto their 75% off rack - and they are. I'll be visiting them at least twice a week until everything 'good' is gone.

Know the market for what you buy. Pay cash, if at all possible. Some stores will require it. Make certain that the items are brand new, in pristine condition, current season, and have a known 'market value'.

Oddly enough, people seem to be buying on Ebay now more than ever. I honestly have no idea where the buyers of $650 David Yurman rings, $425 Lagos bracelets, $350 Tahari silk slacks and more are coming from, but they're there - and they're paying for their items. I have yet to have a non-paying bidder since the recession started. I keep my prices fair and my shipping costs reasonable.

Now is perhaps one of the 'better' times to sell on Ebay than in recent memory, if you're willing to invest time, patience and cash into your search for deeply discounted goods. Check online and in your local/community papers for stores that are closing their doors. Check out estate sales as well. There's some 'gold' in them thar hills, if only you're willing to dig for it...