Hello...It's Kimberly. I haven't started this just yet...But I am very interested in this concept. I almost paid 1 penny for this book but decided to research in forums on the WWW and found out how people are doing this.
I can't do this just yet because I am staying within my budget and would like to see what I can do to triple my investment. Right now, I am investing $4.95 for an ebook package, $2.00 for my first two listings, and $15.95 for an Ebay store. That's $22.90 and then I will spend about $2.10 for listings.
If you have ever purchased an ebook on Ebay then you are probably curious as to how the 1 cent ebook works. So many people email me to ask me this question so I thought it was worthwile explaining the concept.
If you are looking to buy ebooks for feedback, then you are probably going to buy the cheapest one around without much regard for the ebook content. Trying to buy the same ebook 5 times from the same seller will not help you since you will still only have 1 unique feedback. The easiest way to search for 1 cent ebooks is to select Buy It Now and Lowest Price First in the Ebay Search Tool.
This will bring up a list of 1 cent ebooks. Now if you are interested in reselling ebooks, or reading them then you are going to look for ebooks with resell rights or topics that interest you. As an ebook seller, I often buy 1 cent ebooks if it is a book with resell rights that I don't have. You can buy a 1 cent ebook and then list it for 99 cents and - yes it will sell! Thereafter you will have another product to add to your inventory in your store.
The question is why do sellers do this? Pay 35 cents for a listing plus maybe another 35 cents for a photo - cost 70 cents to sell for 1 cent? For the same reason that they list other items at 70 cents when in their store the same listing would be only 6 cents. The answer is to drive traffic. That little listing is going to get a lot of eyeballs. You might sell 10-20 a day of this little ebook. That means 10-20 new visitors a day to your store. If one of them buys a product in your store then it was an effective marketing campaign.
That is why profit margin is so important. If your store is full of 99 cents ebook then all you will get assuming one buyer is a 99 cent sale. Now granted you have still brought exposure to your store by having 20 purchasers (which could be 100 visitors a day or more) x 7 days = 700 visitors a week or 800 visitors a month. I get these numbers by looking at how many hits my 1 cent ebooks have).
So if you initially spent 70 cents then sell an item for 99 cents (which costs 6 cents to list) you are not going to make any money. After paypal fees and Ebay fees you will be at a loss.
So why do it? Why do some sellers consistently have 1 cent ebooks up? It all goes back to the profit margin. If you have a $100 item in your store that sells then do the math. After Ebay fees you are netting a nice profit - ASSUMING THAT THE ARTICLE YOU SELL DID NOT COST YOU $95.
Profit Margin is the most important concept to a retailer and it should be to any Ebay Store Seller too! Just like any big retailer finely tunes their profit margins every day - as an Ebay Seller so should you!
Just because you list an item that does not sell does not mean that Ebay does not work or that you can't make any money on Ebay. It simply means that you are not selling the right item for the right price.
Any Solid Ebay Seller (Who would not need to read this guide) would know that the key is TO FIND THE RIGHT PRODUCT!!! If you already own a retail store then the right product is easy - making your retail store have an online presence will increase your profit!!! But what if you don't have a store, are a student or a stay at home mom (or dad).
You will need to find cheap products that sell well on Ebay. When I say cheap, I mean that the profit margin is good not that the item is a low dollar price.
If you can go to a bankrupty closeout you can find product very cheaply and buy them in quantity. Say you could buy 100 items at $1 a piece that you could easily sell for $3.99. Assume you could break even on your shipping or even better make another 50 cent on shipping. Now you would have a product that makes you $3.50 per item sold.
What if you could find a product that cost you $6 per item and you could sell it for $19. You would still have a very healthy profit margin.
That item would be a staple in your store. It would be listed in store inventory as well as in a fixed price or online auction and would DRIVE TRAFFIC TO YOUR STORE. But if that is the only item in your store then driving traffic isn't going to help.
THE KEY IS TO FIND 10-20 PRODUCTS that you keep in your store at all times.
Then slowly add more items to your store and use ebooks, 1 cent listing, Keywords, Online Auctions to drive traffic to that store.
BOTTOM LINE, AT THE END OF THE DAY IT IS ALL ABOUT PROFIT MARGIN. I don't touch an item if I cannot sell it for 3 times what I paid. That works for items below $10 but will not work for $1,000 items (like cars).
Decide what you want your store to be about - a theme is usually best. Then stock that store with your products that sell and then use the ebooks to drive traffic to your store. It is really that simple. Most of you time will be spent finding good products in the beginning. Learn how to use Ebay's Advanced Search Tool. See what other Powersellers are selling. Find out their wholesale sources and buy from them. Make sure that you are buying it at a low enough price in sufficient quantity to make a healthy profit. You will need some cash to start out and continue running your ebay store. You will have to pay to design your store (if you want to) make auction templates (also if you want to), pay listing fees, paypal fees and most importantly the biggest expense - buying the product that you plan to sell.
So you will need a start up cost budget, but depending on what you decide to sell it does not need to be that much money. I started my first store on Ebay with a budget of $25.