How To Make Money On Ebay By Buying
How To Make Money On Ebay By Buying
Most people think you got to sell on ebay in order to make
money. However, there are other ways to make money on ebay other
than selling. One secret way is buying. What do I mean? Read on.
That secret method is called ebay arbitrage.
The term arbitrage has been around for a long time. It is a
technique used in the stock market by large players who search
(with powerful computers in real time) for price discrepancies
from one market to another. For example if they see dealers in
London trading IBM stock at 1/8th pt lower than in New York,
even if it's only for a few seconds, they'll grab it at the
lower price and sell it in New York where they'll make an 1/8th
pt profit.
So how does that apply to Ebay?
The strategy is buying low in one central Internet market and
selling in another more active market for a premium.
Ebay is a huge marketplace, and even though it's centrally
located (in cyberspace) it is still a relatively 'inefficient'
marketplace. There are several reasons for this : availability
of detailed market information available to the participants
being one, but the more common reason being the seller doesn't
know a thing about the item he or she is selling
Here's where you can benefit. If you have intimate knowledge of
a particular market, you probably already have a rough idea of
how much an item listed on ebay is worth.
For example, I'm a IT professional who deals with computers all
day long therefore it is easy for me to spot bargains relating
to desktops, laptops, computer software etc.
Now, there can be many spins on this. I could simply buy the
item and resell on ebay for a profit or I could buy the item and
sell it locally either in my neighborhood.
Also, I could always do it the reverse way. Buying locally and
then selling it on ebay or other auction sites.
By now, you probably realize in order for you to do ebay
arbitrage, you need to have expert knowledge on the particular
market you are interested in selling.
So do your homework, check out the discussion boards, ask your
friends or consult shop owners which sells the items you want to
sell. If you want to make more money on ebay, you have to do
some research, there's no easy way out.