£40k to invest - thinking of an ebay business?

[W4NTED]

I've just run in to a lump sum of £40k which I am thinking of investing in an online business. To start off I am thinking along the lines of ebay and wanted to know of idea's of things that I could deal in? This will be a part time thing as I am a full time IT consultant but I want to try and make money out of money rather than let this it in the bank.

I have thought of the following:

1) Mobile phones (have a good turnaround on ebay)
2) Games (Nintendo, PS2/3, Xbox etc)
3) Games Consoles
4) Ladies shoes (promise its not a fetish )

Any suppliers of these items on here? Wanted an idea of the profit margins?

Thanks lads

[Messer]

Be careful with mobile phones on ebay as about 80% of them are scams, or scammers who buy them.

I have sold a lot of mobile phones on there in the past, and had all sorts of people trying to scam me and same the other way around..

[damci]

Where are you thinking of buying these items, UK or abroad? Most of the UK suppliers require you to be a fully fledged business with references and won’t deal with part-time ebay traders. If buying from outside the EU, don’t forget you will have import VAT and duty payable on the items which will cut into your profit margin quiet a lot.

You would be best off trying to hack into a niche market, selling sex toys or paper clips, or even selling simple stuff like towels or duvet covers would probably be more profitable than the items you have listed.

[PhilLL]

I wish I would 'run into' a 40k lump sum!!!!

Agree with the post above; the profit magins on popular items like you've suggested will be very low, IMO you would get a much better ROI with a niche or emerging market.

[shadowninja]

ebay... full of epirates and ecut-throats!

[JustinP1]

There is money to be made, just like in the non-online world.

I have sold a number of ebay items for a modest profit.

There are a number of auctions which are genuine, but poorly worded, advertised and no real photos of the item with the auction ending in the middle of the day or night.

The same item from a trusted seller, photographed and marketed well, ending at 8PM will probably get more money.

I bought and sold pro-audio and high end hi-fi gear at a reasonable profit. However, I was able to use my knowledge of the items to make the system work, and also spent a lot of time watching particular sets of items to see which ones were being sold undervalue.

[W4NTED]

Thanks for the productive answers so far guys keep em flowing!

Ideally I want to buy from a UK based seller and not go down the import route. Company is not a problem as I have been using my own Ltd company (for IT consulting) for the last 4 years.

I agree there are major timewasters and scammers on ebay BUT I have used ebay long enough to know how to filter them out! Yes you will get the odd last second 0 rated bidder but its all part and parcel of running a business I suppose. It's like having a newsagents shop but having to still deal with the school kids everyday

Like the idea about towels/bedsheets and even sex toys etc - know any suppliers?

I need people i could buy off in the UK and make a business out of it. I'll soon be getting married and will have my partner to help me out too

So what can you guys offer me - I dont see the risk for the seller when I can pay up front!?

[JustinP1]

W4NTED said:

Thanks for the productive answers so far guys keep em flowing!

Ideally I want to buy from a UK based seller and not go down the import route. Company is not a problem as I have been using my own Ltd company (for IT consulting) for the last 4 years.

I agree there are major timewasters and scammers on ebay BUT I have used ebay long enough to know how to filter them out! Yes you will get the odd last second 0 rated bidder but its all part and parcel of running a business I suppose. It's like having a newsagents shop but having to still deal with the school kids everyday

Like the idea about towels/bedsheets and even sex toys etc - know any suppliers?

I need people i could buy off in the UK and make a business out of it. I'll soon be getting married and will have my partner to help me out too

So what can you guys offer me - I dont see the risk for the seller when I can pay up front!?

What do you want to buy?

I have broken electronic items, rabbits, some gravel on my driveway, and some empty boxes.

If you use Buy It Now I will include delivery to any UK address. (Not Highlands or Channel Islands).

[W4NTED]

Oh boy did I know that was coming

At the moment I am looking for ideas mate....

I know what I want to be doing but I am looking in to what I want to be selling...it all depends on profit margains..if your broken toys give me 50% i'll take em mate

[DucatiGary]

might also be worth looking into the new ebay rules for sellers coming into force this summer.

after reading that i got the impression the ebay bubble is about to burst.

[Fittster]

Are you looking to do this part of full time?

[damci]

DucatiGary said:

might also be worth looking into the new ebay rules for sellers coming into force this summer.

after reading that i got the impression the ebay bubble is about to burst.

What rules or those? Do you have a linky

[W4NTED]

Fittster said:

Are you looking to do this part of full time?

Part to start of with but may turn in to full if it goes well....

[DucatiGary]

damci said:

DucatiGary said:

might also be worth looking into the new ebay rules for sellers coming into force this summer.

after reading that i got the impression the ebay bubble is about to burst.

What rules or those? Do you have a linky

http://www.theregister.co.uk/2008/02/06/ebay_bans_neg_feedback/

read past the headline neg feedback bit, its the compulsary rules that will burst the bubble, so to speak.

[Eric Mc]

[quote=W4NTED] Company is not a problem as I have been using my own Ltd company (for IT consulting) for the last 4 years.

quote]

Make sure you fully understand the tax implications of running two entirely different trades through the same limited company.

Also, make sure that your company's Memorandum and Articles of Association allows you to carry out this second trade.

[Webber3]

W4NTED said:

2) Games (Nintendo, PS2/3, Xbox etc)
3) Games Consoles

The margins on hardware are very slim, best to concentrate on software. The margins on software are much healthier.

[catmartin]

Concert tickets sell like wildfire. You'd need to be very on the ball as regards getting on mailing lists etc to guarantee first place in the queue. Would you think of setting up a normal business with ebay prices,but cheaper delivery?

[paul0843]

to find products visit exhibitions were wholesalers/manufacturers display.i am sure if you google excell/earls court/nec etc you will be able to see forthcoming exhibitions....or if you feel more adventurous head east...china,honk kong,vietnam...keep an open mind and wait for a eureca moment...good luck..ps.if i had a spare 40k now it would be a deposit for a 997 gt3rs

[sa_20v]

Why would you need 40k to setup an eBay business? There are a lot easier ways to make money online (with only a small outlay) than deal with customers, or even staff for that matter.

[escargot]

sa_20v said:

Why would you need 40k to setup an eBay business? There are a lot easier ways to make money online (with only a small outlay) than deal with customers, or even staff for that matter.

Like what?