I decided to test out kid’s socks to see if I would get the same successful result. I chose to purchase 6 pairs of boy’s Nike performance socks size 6/7 (13c-3y) from Marshall’s, an off priced retailer for $5.29 including tax. They were crazy fun colors, so I had no idea if they were going to sell, plus they were not Dri Fit, I did not know if that made a difference with kid’s socks. Other sellers on ebay were selling them anywhere from $14.95-$16.95 including free shipping. I decided to list my socks for $14.95 including free shipping for 30 days. They sold for $14.95 in 9 days and had 20 page views.
$5.29 item cost including tax
$2.60 USPS first class shipping fee, no scale
$1.50 ebay fee (10% of the total sale)
$.45 paypal fee (3% of the total fee)
$.08 poly mailer
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TIP: I really like kid’s socks because they weigh and cost less than men’s socks and they have a retail value that is similar. However they do take a little longer to sell.
TIP: When choosing an item to purchase a good rule of thumb is to ask yourself can you sell the item for 3 times more than what you are buying it for, especially if your item is under $10. If the item cost is over $10 I still want to mark it up at least 3 times, but if it is a quick seller you can get away with marking it up 2 times and you will still make money, just not as much.
Example: You buy something for $5, you cannot sell it for $10, once you add up the shipping/selling fees and the cost of your item there is no profit left, so in this case you have to mark up your item at least 3 times, buy it for $5 and sell it for $15. If you buy something for $5 and sell it for $15 after your item and all fees are paid you should make around $5, 100% return on your money.
You can make some money by doubling the price of your item, but I only think it is worth it if you know it is going to sell quickly.
Example: If you paid $10 and sold it for $20, by the time you pay all fees you should be left with around $5, a $5 profit can add up throughout the week if you are selling a lot, but you have more money invested to make that $5, you are only getting a 50% return on your money.
If I invest $10 in a product I would like to see a 100% return, I want to make $10. That is why the goal is to always mark up your item 3 times. If you buy it for $10 you should sell it for $30 or try to.
The total cost of my item including all fees was $9.92; I sold my item for $14.95 so I made $5.03, that is an orange Julius at the mall and 2 egg toys out of the toy machines in front of the play area.