Looking For Extra Money? - Selling on eBay Part 2 - Is it Worth the Money?

Investors every where will tell you that you need money to make money. So you have to ask yourself, how much money am I willing to invest, in order to make money selling on eBay?

Is it worth the money?

Similar to the time issue, you need to be aware of the costs involved in selling on eBay:

A. Listing fees- eBay charges a basic fee for listing, plus more for any extras

B. Final Value Fee - eBay also charges a small percentage of what your item sells for after the auction closes.

C. Paypal - by far the easiest way to receive money, there is often a charge to the seller from paypal

D. Packaging Costs- If you have to buy boxes or packing materials you should subtract that from your profit to get a true feel for the costs

E. Shipping costs- Yes, the buyer pays for this but you still have to get it there, and many buyers may decide that it costs more to ship something than the item is worth.

F. Insurance costs- The buyer usually pays for this, too, but if something goes wrong during shipping, they will look to you to solve the problem. Many times this may require you to refund the money which equals a loss of item, plus a loss in listing fee.

EBay sends out a monthly invoice that is charged to a credit card (maybe they can do bank direct, too). You have to register this information up front, which may be why they require you to be of a certain age. It is possible that you won't have to put out any money up front, because your sale may cover the costs, but be aware, in case they don't.

EBay has also added a selling bonus. The first five items listed every month are free. you only pay a final value fee if your item sells. This definitely reduces the risk of losing money if your item does not sell.


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