How to Bid and Resell on eBay Without Money
A number of businesses make their money by buying items at a low price and then selling them for a profit on eBay. Some sellers manage to succeed at this without having to put forth any investment of their own by using a process known as arbitrage. Items are purchased at a low cost on eBay and then sold at a higher price before the initial payment is due; the arbitrators pay for the items out of the money they receive from their own listing and then have the items shipped directly to their buyers.
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Instructions
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Search eBay for popular items that are not selling well due to typos, poor quality pictures or listings that don't adequately describe the item. In your search, use intentional misspellings to find typos that cause listing problems, and use generic terms to find poor descriptions. Add any items you find to your "Watch" list by clicking "Watch This Item."
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Search for similar items listed on eBay and for retail prices for the items. Check the prices that the items on your watch list are selling for, figuring in the cost of shipping to determine how much below their expected value the listed items are currently going for.
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Place bids on the items that are selling for significantly less than their expected value. Make the bids small enough to ensure a profit but large enough to become the winning bids. If an item continues to increase in price after multiple bid attempts, assume that the current winner has placed a high bid and stop bidding on that item.
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Watch your items as the end of the auction approaches. Make additional small bids if you still see a chance to become the winning bidder at the price you want, abandoning any auctions that are unlikely to net you a profit after the resale.
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Re-list any items you win as soon as possible after winning the auction. Set a short expiration time for the auction, making it shorter by a day or more than the time period set by the original seller to receive payment. Use title keywords and search engine optimization in the description to make it easier for potential buyers to find your listing. Download any photos from the original listing, retouching and editing them as needed to make them clearer and easier to view. Contact the original seller, and let him know when to expect your payment.
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Respond to any questions about your listing quickly, to encourage potential bidders to bid on your auction. Contact the winner of the auction as soon as possible after the auction ends, sending him an invoice for the item.
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Pay the original seller as soon as you receive payment from the winner of your auction. Provide the winner's contact information to the original seller so that the package can be shipped quickly without you having to receive it first. Contact the winner of your auction to let him know that his item is on its way as soon as you receive confirmation from the original seller that the package has shipped, providing the winner with a tracking number for the package if one is given to you.
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Leave feedback for both the buyer and the seller. Feedback for the buyer should be left as soon as you receive the payment for the item, and feedback for the seller should be left after you receive positive feedback from the buyer indicating that the item has arrived. If the original seller provided you with a tracking number, you can use it to determine when feedback should be provided as well.
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Keep the portion of the money you received from your listing that remains after you've paid the original seller. This is your profit from the arbitrage.
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Tips & Warnings
Use a second eBay account to re-list items you win if you worry about the reaction of other sellers to you reselling their items. eBay allows additional accounts to be created, as long as you use different email addresses for the two accounts.
If you don't feel comfortable selling items without seeing them first, separate the purchase and sale. Pay for the item and have it shipped to you, and then list it on eBay with your own pictures after you've had a chance to inspect the item. Although you must pay for the item up front using this method, you'll make your money back when the item sells.
Be careful when attempting eBay arbitrage. It's possible to lose money if your timing isn't right on purchases and sales or if the item you sell goes for less than you paid for it.
Always make sure that you have enough money to cover your purchases, in case the buyer of your auction item is slow to pay or your auction item doesn't sell. You are required to pay the seller of any items you win, whether or not your arbitrage technique works.
Never list an item for sale until you've won an auction for it. If you do list an item prematurely and get outbid, cancel the auction as quickly as possible to avoid having to buy a replacement for the winner of your auction.
References
- Photo Credit Jupiterimages/Brand X Pictures/Getty Images
