fbpx

The following video transcript is generated automatically by a computer algorithm that learns and gets better on a daily basis. Please accept our apologies if some content below doesn’t make sense:

[00:00:00] Hi, I’m James. And this video, I’m going to break down a great money-MAKER I’ve discovered selling on eBay as a side hustle. I’m going to give you tips and tricks on how to start a sneaker reselling business for beginners. That’s buying and selling shoes and sneakers on eBay. I’m going to tell you exactly how it works. Step by step, how to start some of the risks involved, how you can scale it bigger and bigger. I’m going to take you through a spreadsheet I put together, showing you in detail how you can end up easily making two and a half to five thousand extra dollars of income in the next 12 months. Stay tuned until the end of the video. And I’ll tell you how you can grab a copy of that spreadsheet and plug in your own numbers. We’re releasing a series of videos on the best side income business ideas site. Hustle’s You Can Start for extra money alongside your regular life. We offer a Step-By-Step business model and a full cash flow spreadsheet in Google Sheets to break down exactly what you need to get started. If you don’t want to miss another side, hustle in the next video in the series. Hit the subscribe button below and hit the notification bell, too. We’re only a small channel, which means that YouTube won’t automatically tell you about any of our new videos unless you click that bell. So was this money-MAKER. I’ve been teasing you with? Sneaker pimps. So this side hustle is taking advantage of the discount offers in certain stores versus how much these sneakers are going for on eBay. And the idea is, is you’re making arbitrage on the difference in price between the discount store and what it’s going for on eBay. Quick hat tip here to Chris Johnson. I came across this idea from a tweet that he put out. It’s a great tweet. It’s got a lot detail in there. I’ve put a link in the description of this video to to take you to that tweet so you can go and watch his video. And so kudos to him for this. So how does this hustle work? So what you will be doing is you want to go to stores that have name brand discount racks. So if you want to go to the Nike store or if you want to go to other stores which have like name brand sneakers or name brand bags where a portion of the racks have discount versions or discounted items on them, once you there. You want to get out your phone and you want to go into eBay and you want to look up and see what the prices are of the items that are on the discount rack for sale on eBay. Often you’ll find that they will still be full price on eBay or what their typical prices, which means there’s a gap. That means you’re gonna be able to buy them for cheaper than they’re currently being sold on eBay. So if you buy them, you can then Lyssa money buy, sell them on eBay, pocket the difference. If it doesn’t sell on eBay. No worries. Just make sure that you come back and you return those products to the store within 14 days or however long the returns period is. So you’re not gonna be losing money there. What kind of start up costs are you looking at? Well, you want to really have enough to buy two to three key items. So it depends what it is that you’re going for. But if it sneakers, let’s say they’re on discount at about fifty dollars. So you want roughly three lots of that. Hundred fifty dollars. You can easily start with that. And you can make some good money off of that. What kind of margins can you look out for this? Well, let’s take an example. Let’s say a pair of sneakers, a retailing for ninety dollars on eBay, but there’s seventy dollars in store discount. So there’s a 20 dollar difference in margin between the two. Now as a percentage, twenty dollars as a percentage of seventy dollars is twenty eight point five percent margin. So that’s the kind of margins you can make, nearly a third. So if you’ve got a 150 dollar suspend, then twenty eight point five percent times a hundred fifty dollars, then you’re roughly making forty three dollars margin each time round, each time that you do this. What kind of time investment are you looking at? Well, at the long end, let’s say it’s going to take a two hour shopping trip. So you’re going to travel to the store. You’re going to look around the store. You’re going to buy stuff. You’re going to return stuff that you haven’t sold. And then you get to go home. You could do that in two hours. If you live closer, obscene, it’ll be quicker than that. Then roughly an hour listening, selling on eBay, you can go onto eBay, find the find the items already for sale and pre populate your eBay listing as any actual details you need to do in there. And then once the thing’s been sold, if you’ve got multiple items, then let’s say you spend about two hours packaging them up, printing the labels, sticking the labels on, taking it to the post office, sending away. So for each round trip, let’s say five hours. Obviously, the more things you buy, these numbers stay the same. Even when you’re buying and posting more items. So, you know, we’re looking at a five hour time investment per week, maybe something like that. What are the risks associated with this? Well, what happens if you don’t sell an item? So you bought an item, but it doesn’t sell. Doesn’t matter. Return it. Keep keep track of when you bought certain items. And then if it’s not selling and you’re running out of time when your next shopping trip. Take it back. Get your money back. Spend your money on another new discounted item. If the person you sell to on eBay has returned the item to you. You can released it to sell it again or again. You can return it to the store. No worries. Customer fraud. Now, obviously, fraud happens on eBay. It’s the nature of the beast. The only thing you can really do about it is report it. They’re always going and getting your money back. And you can’t do that. But in terms of like planning out how much money you’re gonna make or what you’re going to do, I would suggest that you just factor it into your margins and just treat that as a cost of doing business. So I’ve got a worked example for you here. I’ve done a cashflow spreadsheet so we can go through some specific numbers. Let’s take a look at that. So here on the front sheet and this is where we’re modelling all. So essentially we’re saying. Right. Let’s take, for example, a ninety dollars pair of sneakers. That’s what it’s going for on eBay. And the store is selling it for 70 dollars. So that gives you a margin of twenty eight point six percent, let’s say, for argument’s sake. You’ve got. Three hundred dollars, you can spend every shopping trip. Which means that every shopping, shopping trip you can afford to buy for lots of items for seventy dollars for your 300 dollars, which means you’re spending a total of two hundred eighty dollars roughly if you sell all of those at full price. Then you’re going to be bringing in three hundred sixty dollars. That gives you a gross profit of eighty dollars. That’s the cash you make selling versus buying before any fees happen. Now we’ll see if you’re selling on eBay. There are certain fees associated with that. The eBay PayPal fees are about 11 percent. So here are the eBay fees. Also, there might be some fees associated with postage and packing. My suggestion here is you just pass that cost onto the customer. The people and eBay are going to be used to paying for that kind of stuff. So that can just be completely flat zero. So once you take the fees out of your gross profit, you’re left with a net profit. So with this one shopping trip, you’re going to be making forty dollars and 40 cents. So if we’re going to model this out over the course of a year, like you wouldn’t be doing this over and over again. There are some other things that we need to take into account. So how often does an item fail to sell? Let’s just guess at this and say one in 10 items fails to sell, which means you’re going to need to return it. So you bought it. But you get your money back. Let’s say customer fraud happens one in 40 times. I mean, that’s plausible. I could see that happening. Couple of other things. Let’s say that you go on two shopping trips a week and you do that for weeks in a month. Obviously certain weeks in the year. You’re not going to be doing this before Christmas or a holiday period, something like that. And one final thing we’re going to say, okay. The maximum number things you can buy in a particular trip is 10 because, you know, if you go to a store, they’re only going to sell you so many. You’re only going be able to carry so many. So let’s just put as a sensible limit. So if we look at the cash flow over the course of a year. So in month one, you’re going to be able to take a total of eight trips twice a week for four weeks. Each time you’ve got a three hundred dollar budget for buying things. So over the course that month, you can buy 32 items on this particular spreadsheet. I’ve got the items lost to fraud and items returned randomise. So this this will cheque out numbers in the same ratio or proportions as we put in the modelling tab earlier on. So one in 10 times it needs returning, one in 40 times roughly. It’s going to be lost to fraud. So here, for example, there are two items that need returning that didn’t sell. So in total, you’ve sold 30 items. So over the course, the month your total spend will be two thousand two hundred forty dollars. That’s the same three hundred dollars recycled over and over again. And your total income is going to be two thousand eight hundred forty dollars, which leaves you a gross profit of six hundred dollars. You rebuy. Fees are going to be two hundred ninety seven dollars. Three hundred dollars near as dammit. Which leaves you with a net profit of three hundred dollars. So that’s three hundred dollars on top of your initial three hundred dollars. If you do this every month, as you can see going through month by month, you know the items that can be lost of fraud. The items are going to be returned. You can see that over the course of the year you’re gonna be making three hundred dollars, two hundred and eighty dollars, 250 dollars and so on. And the total amount of money you’re making is going to be going up and up until you reach the end. I’ll start lay my head by the end of the year. You know, in this case where we’ve made two thousand seven hundred dollars now. How’s that look as a graph? Here’s the graph. You start out with four hundred dollars. You finish the year with two thousand some of the dollars. Not bad for a little bit of effort on your part. Now, one way to make more money. So that model just assumes that you have the same three hundred dollars and you’re just going to spend. And that’s the same three hundred dollars over and over again. In any of the money that comes in, you’re going to stick in a savings account where you’re going to spend it on fun activities or whatever it is it might be. But one way to make some more money is by compounding your cash flow. So we’ve got a model here of compounding the cash flow. And what that means is that for the first month, again, exactly the same, you got three hundred dollars. You go through. You end up with 200 extra dollars. But what you do is you take all of that money. So five hundred dollars in this case and you roll it into the next months and next month you’ve got more money to spend to buying extra items. So whereas in the previous month you bought 32 items. And this month you can buy 56, which means your net profit jump. So in this case, it’s 400 dollars over two hundred dollars in the previous month. You roll that together next month. You got nine hundred seventy dollars to spend on things. Now, here we hit the item limit that we set. We said we’re going shopping eight times. We can buy 10 things at a time. So here we are. We’re stuck on this 80 limit now. We can see adjust that in the model. But that’s what we’ve gone for. But you can see now when you compound like this, that the amount of money you’re making every month is actually greater. So four hundred ninety dollars. We’ve got five hundred dollars. Six hundred and seventy dollars. You know, we’ll go through an in total by the end of the year. Once you compounded all of that, we’re talking about a total income now, five thousand eight hundred seventy four dollars. So almost double what it is if you just recycle the same 300 dollars over and over again. Now, was that a lie as a graph? There we go. We start the month. Start the year. Sorry. With three hundred dollars. And we end the year with nearly six thousand dollars. So that’s a pretty good turnout for a reasonable amount of effort. [00:11:33][693.0]

[00:11:36] So going back to a presentation, how can you scale this? [00:11:41][5.0]

[00:11:41] So I’ve already shown you that, you know, you can make two thousand three thousand four thousand five thousand dollars just purely based on just yourself. [00:11:49][8.5]

[00:11:50] You going shopping? You’re doing everything. What is it that you can do to scale this amount of money or scale this operation? So here are a few ideas. There are plenty of others, but these are just some some that occurred to me. You can outsource the listing of your eBay items so you can find someone, a friend, someone in the local area, maybe a stay at home mother, something like that, someone who’s got some knowledge of eBay and just throw them some money to list the items on eBay so you can concentrate on finding and buying better items, things like that. You can outsource your postage and packing again. Find someone who is able to work from home who’d be willing to do that. Again, it means that there’s less time that you have to do that. You can throw them a bit of money. In this case. You can just factor that cost into a postage and packing so your customers pay for that. [00:12:36][46.1]

[00:12:37] Easy peasy. [00:12:37][0.2]

[00:12:40] What else? You can do more buying trips. In that previous model, we we modelled going twice a week, three times a week, four times a week. Another thing you can do if the thing that’s holding you back is actually whether the stuff is selling on eBay or not. What you can do to try to make things move quicker is you price items to move. So rather than pricing it at the top, possible price undercut some of your competition on there still leaves the margin in there for you so you can still make money. But price, it’s a move. So it sells quicker because if you sell that stuff, get it out, get the money back, then you go out and buy more stuff again. You can keep recycling that inventory over and over again. And finally, source better deals. Find better places. Are there places where you can buy these items were even cheaper than the discount racks. Wholesalers, people like that. Are there higher margin opportunities you can look into? Okay, we’ve been talking about sneakers, but what about sort of high priced handbags or purses? You know, can you find things if you got some more money to invest in eventually? Can you find things where there are better margins in the margin between what they’re selling for and eBay? [00:13:42][61.9]

[00:13:43] The difference is even greater than it is with sneakers and things like that. [00:13:47][3.6]

[00:13:49] So how can you get a copy of that spreadsheet? So in that spreadsheet, you’re able to put in your own numbers. You can put in the amount of money that you’ve got available to invest and you can see how much money you could possibly make. If you want to copy that spreadsheet, do two things. [00:14:03][14.2]

[00:14:03] Number one, hit, subscribe to our channel number to go visit that link. And that that link will be instructions about what you need to do for the next stage. [00:14:13][9.9]

[00:14:16] All the details, links to Cetra are in the description in case you missed anything. If anything is unclear, you got any questions, drop them in the comments below. We read and answer as many as we can. If you’ve got a different side house he wants to cover, let us know in the comments, too. We want to make loads of these videos. Remember to grab that spreadsheet and make some money with it. See in the next video. [00:14:16][0.0]

[842.3]

Share This