Posts Tagged ‘reinvesting’
Reinvesting Your eBay Profits
Wednesday, January 9th, 2008
Okay - you’ve sold your first few items on eBay and you’ve made a small profit. You’d be forgiven for wanting to grab that cash and celebrate your success by spending it on something frivolous.
But instead of enjoying a short term gain, why not reinvest it for long term profit?
My partner and I started off with a $360 order from a wholesaler (paid for from our savings), and within three months we’d bought and sold enough items (reinvesting our profits every time) to be sitting on $3000 worth of stock - all bought and paid for. We’d sold around $6000 worth of stock in that time too.
Such is the power of reinvesting.
It’s important to maintain a balance when you’re beginning to expand your eBay business and to achieve that, you need to be able to look ahead. We started in October, in the run up to the Christmas period, and we soon found ourselves sending out twenty to thirty parcels a day. Starting at that time of year enabled us to build up very quickly, which was unexpected. We had little time to plan or think too much about what we were doing - we were too busy sending out orders!
But then we hit January, and February, and sales went down considerably. Fortunately we had built up a huge reserve of stock, and so now our aim changed from building up items to sell, to selling what we already had. We were still reinvesting our profits, but this time we reinvested them in new listings.
We took the time to sit back and evaluate what we were doing. We looked at our newly opened eBay shop and invested some of our profits in listing our stock in the best way possible. A certain amount of trial and error was involved here in deciding on the best way to get the maximum amount of visitors.
I used my writing skills to create articles to send to the article directories, which linked to our shop. I placed ads, and we created an About Me page which I promoted wherever possible, as well as promoting the shop itself.
If anyone tells you that running an eBay business is easy money, they’re lying. It’s hard work, but it’s also extremely rewarding, and not just in a monetary sense. It’s a steep learning curve, and you will make mistakes - we did - but they are usually mistakes you can learn from.
So when you are thinking about reinvesting your eBay profits, remember it doesn’t just apply to monetary profits. Invest time and experience as well, and you will soon have a business you can be proud of.
Perhaps sooner than you think.
Tags: allison whitehead, E-Commerce and E-Business, ebay, ebay business, Generating More Sales, online auctions, reinvesting, Sales, wholesaler
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