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    1. easycash is offline

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      #1

      Buying from deal of the day sites

      If you buy items from deal of the day sites, and resell them on eBay for retail price, do you think you could make money. I'm talking about sites like Woot.com and CowBoom.com. I bought a Rubik's TouchCube for $15+$5 S&H but I only got $20 on eBay so I lost $5 because I had to pay for shipping...but maybe I did something wrong or just bad luck...Do you think this type of thing would work?
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      #2
      It all depends on how hot the item is and how cheap you can get it for. Are they selling for more than the retail price on e-bay? I think it takes a lot of homework to make a buck on e-bay. Like for instance when the zhu zhu pets were so hard to find, a friend of mine went and bought a bunch of them at the drug store. She paid retail price but in the end on e-bay they made tripe the price.
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    3. easycash is offline

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      #3
      Well on Cowboom.com I bought a Rubik's TouchCube for $15 + $5 S&H and they were retailing for like $50, so I tried it. I offered free shipping though, so I only got $20....so I lost $5. If I had done a Buy It Now, I probably could have come out ahead.

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      #4

      Quote:

      Originally Posted by easycash View Post
      If you buy items from deal of the day sites, and resell them on eBay for retail price, do you think you could make money?
      This is known as arbitrage (Arbitrage - Wikipedia, the free encyclopedia), it is a speculative form of trade, not very constructive, but it can make money, sometimes even substantial amounts if you can anticipate trends, move merchandise in volume, or if you have the right contacts.

      One form of arbitrage is the selling of grey goods (Grey market - Wikipedia, the free encyclopedia), which is especially common for branded clothing. In the case of branded clothing, arbitrage mainly occurs between countries (rather than between online platforms). Branded merchandise meant for country A is exported to country B where the same merchandise is normally more expensive.

      IMPORTANT: Before you start thinking about buying branded goods from China, think again. All "branded" merchandise from China is only counterfeit. In case your objection is: "But a lot of branded products are manufactured in China", the answer is simply that it is true that many brands manufacture in China, however they have never and will NEVER sell their merchandise directly from China to Western World resellers, just forget it. Branded merchandise owners only use local and trusted wholesalers and distributors to sell their merchandise to shops. Why? Because they want to control their brand, they don't want millions of eBay sellers devaluing their brand name and bringing their prices down, and they want resale partners who can offer end users good after sales support (if needed).

      Back to arbitrage:

      The problem with this strategy is that you are basing your competitive advantage on price (you will need to be constantly looking for the cheapest supply option), instead of building a solid brand focused around value. Value is not the same as cheapest, you could say value is "in the eye of the beholder". What this means is that value is subjective, a percentage of buyers may value the cheapest price as their main buying decision, other buyers may value other factors more, including a guarantee of authenticity, after sales service and advice, a wide range of complementary products, a hassle free buying experience, speedy delivery, and so on.

      Therefore you should ask yourself whether you just want to make a quick buck by constantly looking for the occasional cheapest opportunity, or whether you should be focusing on building a more stable and long lasting business, based around those values that the buyers you are aiming for value most.

    5. Thank you for this post:

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    6. easycash is offline

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      #5
      well I wouldn't want to go to the extreme on either end. I don't want just value that won't make me money, and I don't want to make a ton of profit with angry customers..I want to be somewhere in the middle so I make a decent profit WITH happy customers.

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      #6
      Buying and selling from website to website just doesn't sound like it would work to me. This sounds like a business model that is very trend heavy so you would have to keep a close eye on the trends at all times.

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      #7

      Quote:

      Originally Posted by adamm View Post
      Buying and selling from website to website just doesn't sound like it would work to me. This sounds like a business model that is very trend heavy so you would have to keep a close eye on the trends at all times.
      It can be highly trend dependent, although not necessarily. You are right to say it is very time consuming, anyone getting involved with arbitrage should probably develop automated systems to do so. For example, you could create a software that parses the prices of an item across retail sites, and then offers the item for sale on an online retail marketplace like eBay or Amazon. If the item then sells through your listing, the software would then automatically purchase it from the cheaper source parsed earlier.

      Even such an automated system will require significant time to setup, and would need to be monitored regularly. However it could have some good returns if done right.

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