Does Anyone Get Rich On Ebay?

I guess that’s based on what “rich” means. Ebay really hasn’t been around long enough to create “old money” fortunes. There’s enough money in SELLING “Get Rich On Ebay” information though that major market talk radio stations are running spots for a dropshipping program through direct response (no website mentioned, just a toll free number).

So I’m wondering does “get rich” mean

A.  Provide enough profit for extra spending money?
B.  Replace income and benefits from a current day job?

C. “B” plus allow one to add employees who help create a business?

Here’s an interesting viewpoint from Elizabeth Millard 

Although they are relatively few in number, Titanium PowerSellers do exist, and several started their businesses with modest means.

A prime example is David Wirtenberg, a 28-year-old entrepreneur who runs Outrageous Auctions, which has its own retail arm but also sells enough merchandise on eBay to garner the Titanium tag. Wirtenberg got involved in online auctions in 2003, while unemployed. His father-in-law suggested selling jewelry on eBay, and after only three months, Wirtenberg had lined up a supplier, hit the Titanium level, and began hiring employees.

Such success, seemingly overnight, wasn’t without effort or the need for a cash infusion to get started, Wirtenberg says: “To ramp up, you need money, that’s just the way it is.” Although Wirtenberg shares no details on how he acquired his start-up funds, he does say that once inventory is in place, it’s all about buckling down and working hard. He also acknowledges that it doesn’t hurt to be selling expensive rings instead of 99-cent CDs.

Further demonstrating that PowerSellers seem to sprout from humble beginnings, another Titanium member, Mike Shelton, was working at a golf pro shop when he started selling on eBay to help his employer liquidate some extra inventory.

Before long, Shelton had taken on a partner and started a company, Designer Athletic, that sells retailer overstocks. Although the company has several employees to handle sales, Shelton still creates hundreds of auctions every day, and even fills some of the orders himself. In 2004, less than a year after the company was founded, it had revenues of $5 million.

Another Titanium PowerSeller, John Stack, started selling on eBay as he got ready to close his family’s restaurant-equipment business in 1999. After putting 50 coffeemakers on the site, and getting far more money for them than he thought he would, Stack became an “eBayer,” and began listing more and more items. He reached $10 million in revenues within five years.

“There are those who get rich on eBay, but there is also more smoke than fire,” he says. “What I’ve found is that if you’re a buyer, you can get incredible deals, but the flip side of that is the sellers have to sacrifice to offer them. There are a lot of people working really hard and not making much money. The kicker is that they don’t really realize it.”

Although it seems odd that sellers would be unaware of losing money, Kennedy notes that it happens frequently, because of the way the system is set up. Sellers might turn over a healthy amount of inventory, get it shipped quickly, and have the money in their accounts promptly, but the level of detailed bookkeeping necessary can give sellers a skewed view of their operations. They might look like they’re headed toward riches on paper, but in reality, it could be the road to the poorhouse instead.

“Some work like dogs, and they figure that because they’re working so hard, they’re doing really well,” Kennedy says. “But the fee structures are complex with credit card services and auction management, and it could be that they’re losing just a little bit of money on every deal. It happens far more often than most people think. EBay buyers wonder how people can sell things for so cheap, and the answer is: They can’t.”

To pocket a nice amount of revenue, a PowerSeller has to have access to good products at good prices. While that seems obvious, it’s certainly not easy, says Kennedy.

Related Links… Ebay Article Directory