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- Money Types: Carrie, Samantha, Miranda or Charlotte?
- Salary Negotiation Post - Retraction
- How Jenny Earned $15,000 on eBay
- Personal Account: Danielli, Part I
- The Fashionomics of Retail Begging
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- On Becoming a Financial Grown-up
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- Personal Account: Gabrielle's Reflection on Worth
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How Jenny Earned $15,000 on eBay
By Jenny Newcomer Wednesday February 24, 2010Today's guest blogger Jenny Newcomer is a busy mom of 2 and the founder of LobotoME {eco-friendly organizational products} - For more information visit at www.LobotoME.com or Jenny's blog -- lobotomeblog.blogspot.com.
As an entrepreneur and mother of two young kids—and with college tuition of about $100,000 looming down the road—I realized last year that I needed to pay off the remainder of my own student loans, which have lingered like a bunch of forgotten junk in the basement.
Did I say forgotten junk? Right after the holidays in early 2009, a bell went off in my head. As I began the post-holiday cleanup, I realized how much STUFF we owned. Bags, shoes, DVDs, books, iPods, old laptops, old kayaks, skis that didn't fit, bikes that we no longer used, etc.
And I decided to sell it. All of it. And here's how I did it—and made $15,000.
- Gather the goods. Go through your house, basement, attic, garage and make an inventory of items you could sell (smaller items can be gathered into a pile as you go). The majority of the items I sold were clothes, handbags, shoes and sporting goods. Also consider tools, small appliances, craft supplies, kids toys, etc.
- Take pix. Assuming you already have eBay and PayPal accounts (and know how to use a computer), the next step is to take digital pictures of your first 10 items. The better the picture and description, the better the price. Ebay charges if you upload more than one image, but I suggest adding at least one additional picture as buyers like to see different angles and details.
- Keep records. While taking pictures, jot down the size, measurements, materials, and any additional details of the item you are listing. Then, get an accurate estimate on shipping costs online at www.usps.com or www.ups.com. Generally, I ship things via Priority Mail flat rate boxes (as its easy to figure out what to charge). For example, a large handbag fits in a large flat rate box for $12.95.
- Set your price. Anytime I list an item, I search eBay first for successful sales on similar items. This allows me to set a fair opening price (and also get good ideas for describing my item).
- Sell it! Log on to www.ebay.com and click on the Sell an Item tab and list the items, one by one. Once I got into the rhythm, I could post 10 items in an hour. Also, be sure to check your ebay account frequently for messages, bidding questions, etc. Once the bidding has ended and the buyer has paid for the item, promptly ship it.
Here is the key part: Resist the temptation to use the money that you just earned to buy MORE crap! Transfer the money immediately from your PayPal account to your bank account and send a check off to pay off your debt or stash it in savings.
Here, some related links that I found helpful from Ramit Sethi and the folks on 43things.
Jenny Newcomer is a busy mom of 2 and the founder of LobotoME {eco-friendly organizational products}- visit www.LobotoME.com or Jenny's blog -- lobotomeblog.blogspot.com.
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Written by Kenia, February 24, 2010
Wow! I'm impressed! Usually people just opt for a garage sale, but I think ebay is more profitable. It forces you to be smart by setting comparible prices, rather than just, 'Sure, you can have that purse for 3 bucks. Sold.' I usually donate old clothing, and I tend to be the type of person who holds on to and uses material items for a long time since I am very picky on buying things to begin with. But even though I don't have $15,000 worth of stuff I'd like to sell, I think I'm going to give this a try now! I could see how this would be fun too! Thanks for the inspiration!
Written by Gerri, February 24, 2010
Great post! I have a pile of stuff that needs to move on. But I've also had the experience of selling stuff and getting few or no bids, and feeling like a trip to Goodwill would have been a much better bet. Love to hear what you felt sold well...and what wasn't really worth it. (You must have had some big ticket items to get to 15K no?)
Written by Sue Crawford, February 24, 2010
My husband just mentioned this morning that I should try selling my jewelry on ebay. This article was very informative and I think I might try it.
Thank you.
PS - I enjoy Daily Worth.
Thank you.
PS - I enjoy Daily Worth.
Written by Candi Walz, February 24, 2010
I am very interested in knowing more. Were all of the items from your house, or did you purchase things at garage/yard sales to sell?
Written by MP Dunleavey, February 24, 2010
Jenny should be logging on soon, but in the meanwhile, as she explained it, these were all items from her home! She didn't go garage sale-ing--she just sold off her own surplus.
Written by Drake, February 24, 2010
That's an impressive sum of money. When I lived out in a very small town in Western Kansas, jobs were few, so I set up an eBay business. It was the most fun I've ever had. The Post Office was just a block away, so I could walk packages over there. Loved it. Thanks for bringing back fond memories.
Written by TJ, February 24, 2010
We are possibly moving internationally, so I'm doing a similar thing using both ebay and Craig's List, but for electronics, I found it's easier to go through Gazelle.com. They gave me a great price on my old iBook and they even recycled some of my REALLY old cell phones (think Zach Morris phone) for free and got them out of my house.
Written by JS, February 24, 2010
I have had similiar success... check out my items for sale at the above link.
Written by FashionWithoutGuilt.com, February 24, 2010
Jenny this is a great article. I was just on the phone today talking to my boyfriend about selling stuff on ebay. This really gives me the confirmation that I needed to know that it is not that intimidating as I thought. So I am going to really try this out and see if I make any money from selling something.
Great Article.
Great Article.
Written by Florence, February 24, 2010
Very inspiring article indeed. But $15,000 worth of surplus stuff! Wow. I need to setup an account on ebay & sell all my baby stuff. I've been putting it off because it's actually work to do that. I have a store on Etsy.com where I sell my hand painted glass so I know that it's work to take good pictures, gather data on the items, write good descriptions and post online.
Written by Barbara Day, February 24, 2010
Jenny, thanks for sharing this story -- I have an Etsy shop, but reading this post still generated an "aha!" moment, since I have a house full of neat old stuff that sits in drawers and boxes. Every year I have a yard sale, but it never seems like all that work pays off. Now am seeing how maybe Ebay could. Thanks again!
Written by LobotoME, February 24, 2010
Thanks everyone for your comments! Glad this article inspired you to get rid of stuff and earn some extra $ in the process.
Just to clarify - I didn't "buy" stuff to sell. I had enough of my own junk at home without bringing anymore home if you know what I mean. Having said that, I do know people who are very successful at "finding" great stuff at yard sales, thrift stores, etc. and then re-selling it on ebay (antiques, vintage toys, etc.)
I did have a few bigger/more expensive items - baby joggers, designer handbags, etc. But I would say that 95% of the items I sold were sold for less than $100/item. Like I mentioned, I don't deal with less valuable items & clothes - those just get donated to the thrift store or womens shelter.
I would totally just suggest that you list 10 things to start...a collection of baby clothes, some sweaters or handbags you have lying around, a set of vintage tea cups, whatever...see how it goes. Things that didn't sell after one or two tries got donated. Things that have a designer label or were purchased at a well-known store (eg. Anthropologie or Lululemon) for sure sold much better and bidding went higher than other items. Some things that I wasn't sure would sell did and vice versa, others that I thought were great, didn't.
The part of this story that didn't get put into this post (because it is a entirely different post) is the fact that getting rid of this stuff (either through selling it or via donation) was very freeing...and it made me re-thing my purchases. I was like, ugh, I just got rid of 4 handbags DON'T BUY ANOTHER ONE JENNY! STOP! I also felt that our closets and our home was less cluttered...I really worked on keeping the things that we used and loved and got rid of the rest.
I've got some more posts about this topic on my blog too, so you can check that out for more info.
ps - I'm at a conference with limited internet access but I'll keep checking back in when I can to answer more questions.
Just to clarify - I didn't "buy" stuff to sell. I had enough of my own junk at home without bringing anymore home if you know what I mean. Having said that, I do know people who are very successful at "finding" great stuff at yard sales, thrift stores, etc. and then re-selling it on ebay (antiques, vintage toys, etc.)
I did have a few bigger/more expensive items - baby joggers, designer handbags, etc. But I would say that 95% of the items I sold were sold for less than $100/item. Like I mentioned, I don't deal with less valuable items & clothes - those just get donated to the thrift store or womens shelter.
I would totally just suggest that you list 10 things to start...a collection of baby clothes, some sweaters or handbags you have lying around, a set of vintage tea cups, whatever...see how it goes. Things that didn't sell after one or two tries got donated. Things that have a designer label or were purchased at a well-known store (eg. Anthropologie or Lululemon) for sure sold much better and bidding went higher than other items. Some things that I wasn't sure would sell did and vice versa, others that I thought were great, didn't.
The part of this story that didn't get put into this post (because it is a entirely different post) is the fact that getting rid of this stuff (either through selling it or via donation) was very freeing...and it made me re-thing my purchases. I was like, ugh, I just got rid of 4 handbags DON'T BUY ANOTHER ONE JENNY! STOP! I also felt that our closets and our home was less cluttered...I really worked on keeping the things that we used and loved and got rid of the rest.
I've got some more posts about this topic on my blog too, so you can check that out for more info.
ps - I'm at a conference with limited internet access but I'll keep checking back in when I can to answer more questions.
Written by deborah, February 24, 2010
I sell stuff on ebay all the time - i go through my closet every season and sell gently worn or items i bought but never wore. Make sure you note if there are spots or snags in the item so the buyer knows up front. I live in the midwest and we are behind on the east & west coast trends, so a lot of time some of the most sought-after pieces get discounted heavily at retail stores that I can resell for a small profit. Fees can be a drag, but ebay has worked the best for me!
Written by cat, February 24, 2010
Jenny - I'm curious how you claim that on your taxes? It is a type of income, yes? And at that amount, it surpasses the hobby classification...just wondering as you've inspired me to simplify (I could easily get rid of half our stuff with the $15K motivation) - Great job girl! And please advise on the tax claim thing :) I know I personally don't look good in orange :)
Written by LobotoME, February 24, 2010
Hi Cat - I do have to claim it on my taxes and our accountant deals with that - sorry I don't have any more specifics on that...
Written by MP Dunleavey, February 25, 2010
About the tax issue: I looked it up and found this excellent article on the topic. http://www.msnbc.msn.com/id/11658852/
It helps you to think through whether you're selling stuff is a hobby or a business, and how to calculate gains vs. expenses. Good question, cat, thanks!
It helps you to think through whether you're selling stuff is a hobby or a business, and how to calculate gains vs. expenses. Good question, cat, thanks!
Written by Petunia, February 25, 2010
If you are selling personal items which you have purchased at a loss (less than what you paid), then there is no income to report. If you sell at a gain (more than what you paid), then you have reportable income. Selling your personal possessions is not considered to be a business. Buying things for the sole purpose of re-selling certainly could be considered a business.
I have never sold anything on eBay, but I have noticed in my city there is a business which will take your items on consignment and sell them on eBay. I have never looked into it, and do not know if their fees are reasonable or prohibitive. It may be a good alternative for someone who does not want to do the work themselves, but who does want to clear out some stuff and recover some cash in the process.
I have never sold anything on eBay, but I have noticed in my city there is a business which will take your items on consignment and sell them on eBay. I have never looked into it, and do not know if their fees are reasonable or prohibitive. It may be a good alternative for someone who does not want to do the work themselves, but who does want to clear out some stuff and recover some cash in the process.
Written by Janey, March 02, 2010
Wow. I do this as well but really don't think I'd be able to pull in as much or was there just a lot of junk that you sold off?? I'm selling my home so I've decided to ebay everything and with the new ebay rules, the better. I've started selling enough to know that the flat rate boxes are a waste of money. Regular shipping is cheaper but you really have to know what you're shipping.
Written by Colleen, March 10, 2010
Ebay is NOT more profitable. Not even close.
I was an ebay power seller for YEARS before I smartened up. You are legally allowed to have 2 garage sales at your home in a year where I live. I grossed $756 at one and $1169 at another. If you count the cans of soda, bags of chips, and snacks that my kids sold during the sale we made well over $2000 between the two. Add to that the cost of the motorcycle and flatbed trailer my husband sold on the side ($3000 & $1000 respectively) and you have $6000. All this for about one day of work slapping stickers on stuff and sorting and two two days setting up the tables and then relaxing while people came and handed me money.
All this was tax free money - I don't have to report it to the IRS. Yes I checked. As long as I do no more than 2 a year it is free money. No listing fees, no final value fees, no mailing costs, no non payment hassles, no trips to the post office, no paypal fees.
Oh and everything you sell on eBay is considered self employment so you have to facter in the 20 to 25 percent self employment taxes you are supposed to pay on it.
And the time?
With ebay you have to take several detailed pictures of everything, crop the pictures, post the pictures, make the listing with an appealing description, answer email questions about the items. Then when you sell you package, run to the post office - what a pain.
I didnt have to pay fees to list items that never sold. They just went back in a box in the garage for the next sale.
eBay is way too much work and aggrivation for the average person and because of all the fees involved it is RARELY worth the time and effort in the end.
A couple garage sales are a way better bet.
I was an ebay power seller for YEARS before I smartened up. You are legally allowed to have 2 garage sales at your home in a year where I live. I grossed $756 at one and $1169 at another. If you count the cans of soda, bags of chips, and snacks that my kids sold during the sale we made well over $2000 between the two. Add to that the cost of the motorcycle and flatbed trailer my husband sold on the side ($3000 & $1000 respectively) and you have $6000. All this for about one day of work slapping stickers on stuff and sorting and two two days setting up the tables and then relaxing while people came and handed me money.
All this was tax free money - I don't have to report it to the IRS. Yes I checked. As long as I do no more than 2 a year it is free money. No listing fees, no final value fees, no mailing costs, no non payment hassles, no trips to the post office, no paypal fees.
Oh and everything you sell on eBay is considered self employment so you have to facter in the 20 to 25 percent self employment taxes you are supposed to pay on it.
And the time?
With ebay you have to take several detailed pictures of everything, crop the pictures, post the pictures, make the listing with an appealing description, answer email questions about the items. Then when you sell you package, run to the post office - what a pain.
I didnt have to pay fees to list items that never sold. They just went back in a box in the garage for the next sale.
eBay is way too much work and aggrivation for the average person and because of all the fees involved it is RARELY worth the time and effort in the end.
A couple garage sales are a way better bet.
Written by Colleen, March 10, 2010
Oh and dont forget - when you declutter your home you are not "making" $15k. You are selling stuff you probably paid five to 10 times as much for at a discount. It would be a way better money making strategy to just NOT buy the stuff to begin with or make sure you buy through the second hand market to begin with to minimize your financial loss when you do resell the items.
Written by Debi, March 10, 2010
I think you have a point, Colleen. I'm on Etsy to sell jewelry and it's very involving. I love it but don't think it's worth the time and fees to sell my second hand stuff on Ebay.
Instead of a yard sale (which I'm prohibited from doing)I'm packing a van full for the outdoor flea market come Spring! For one day and a 10.00 fee, I can sell out by lunch time and go home with 400-800 dollars.
After this year, I won't have to sell again, as I have changed my shopping and buying habits. I don't do either, so very little is making it's way into my home!
Instead of a yard sale (which I'm prohibited from doing)I'm packing a van full for the outdoor flea market come Spring! For one day and a 10.00 fee, I can sell out by lunch time and go home with 400-800 dollars.
After this year, I won't have to sell again, as I have changed my shopping and buying habits. I don't do either, so very little is making it's way into my home!
Written by watson, March 30, 2010
very good post, its really going to help lots of newbie who are struggling to make money on ebay.
