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How to Sell Online Without Losing Money

Updated on July 28, 2015

Selling online is one of the few legitimate ways or earning money on the internet (besides freelancing, almost everything else is a scam), but many people do it the wrong way and end up losing money. So here's the right way to do it. Only buy or make a product to sell or resell if all the steps below are fulfilled:

Step One: Choose your products

Your product must be different from other items of the same kind (another model) or something no one else have ever tried (for example, your artwork or crafts, that is unique). If not, there is no reason people will buy specifically from you and worse, there will be a "war on prices" that will eventually down the prices of all the products to a minimum and you will not profit from it.

Step two: Choose your price

There is no reason someone would buy an item that costs more than the average cost of similar or of the same kind items. So, before selling an item, you must to do a research (on online selling sites like EBay and similars) of items of the same kind and materials than the one you intend to sell. If such item is sold offline in shops and markets, you must take it into consideration too. Check if other people are selling it online, to see if it sells well.

Step Three: Be sure of the costs of the product plus mailing it, and be sure to have a profit

Be sure your final price is higher than the original price you paid for the product (plus the shipping fee) or spent to make the product plus their shipping price, the costs you have in a trip to the mail office (gas, bus, etc if any), the packcage price and the site fees for listing and selling (if any). If not, you will not profit from it. (Tip: Prefer sites that do not charge for listing or that charge only once, so you have as many months to have your product sold as you need).

Step Four: Choose your suppliers

The original product must to cost less than the final price, counting the listing and selling fees, the shipping fees, what you spend on a trip to the mail office (if anything) and packaging. If you are making your own product, count the price of the materials you use (plus what you spend on trips or shipping fees to buy them). If you are reselling products, you can buy wholesale directly from China, India and other countries where stuff is cheaper from sites like AliExpress (that offer products wholesale, but in small quantities, suitable for individual sellers). These sites also offer retail produtcs, but they usually take more than one month to arrive, so people will usually prefer to buy from their own countries.

Step Five: Is your product something someone would want to buy?

It may be impossible to know for sure, but there must be at least a real chance someone would want to buy your products. Fashionable and trendy products or low cost products (that you can cover the cost if they don't sell) are the best to start with. As you earn more money you can invest in more expensive products.

Just a tip, but essential: Be sure to deliver your product on time and build a good reputation

Online selling sites have seller reputation rates that consist on buyers feedback. Be sure to sell good quality products for a just price (only sell at high prices if the product is really worth it) and you can increase your sales and profits.


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