In defense of eBay...

You mentioned that you are offering free shipping and that is eating into your profits. I personally think free shipping is overrated. I buy a lot of coins on eBay, and I feel like coins with free shipping sell for about the same proportional prices and with the same frequency as other coins. The key is not to overcharge for shipping. If you even charge a dollar, even if it costs you more than that then at least you'd be making something on it. Where shipping hurts the seller is when it's $4, $5. That's a big turnoff for a buyer.

 

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The individual salary would have to be considered. In some cases it would make more financial sense for one of the parents to stay home than to work. In some cases the individual salary can outweigh the childcare costs by a good percentage. We are expecting our first child and with the little research into local childcare my wife would still take home about 40-50% of her pay.

 

I was a stay at home dad for 18+ years, It sure did help with baby sitting we also had a sit down meal every night with or without MOM to discuss the day they had at school and such. I will tell ya what we raised 2 great kids and that had a lot to do with it, so once the kids got to be in there older teens I opened a web site through Godaddy and sold on eBay and ecrater for about 5 or 6 years until I feel into a deep depression and got burnt out trying to ship everything in one day. then I marked a package fragile Glass Like I always had and a few US mail people decided to play foot ball or something as a joke with my package. I quickly reimbursed the buyer for all damages, And even though I had INS I never used it and shut down everything. I sure do miss the extra money, I was able to buy man toys and tools with the extra, But at that point I took mostly post office money orders and some paypal and it only cost me 10% or less to sell, I do not think I could deal with 15% and make money with all the competition there is out there even though I had a superior product and Name. I was known in about every state and country as the best!!! The funny thing is once I shut down I only rec maybe 2 or 3 emails in the last 3 or 4 years, It seems once I was not there people did not care to contact me they just went to someone else . that was good for me I guess. Then trying to do a 1040 long form and keeping all gas receipts and shipping costs , Parts and pieces and everything was a pain also. I sure do miss the extra money but not the hassle.

 

i currently pay my bills with my ebay sales. i am selling off my collection versus buying and selling. it has definitely helped me through the lean times. good luck with the venture

 

very nice.

 

Self-promotion is only not allowed in the thread, if someone asks you a question like that, you could always Private Message them the information they are seeking

Welcome to CoinTalk!

 

Congratulations on making a continuous profit after the ebay fees. As a question, how do you replenish your inventory?

 

Like I said in the initial post, I go to the coin shops all over VA and NC (within 3-4 hours drive). I also go to the larger shows in Baltimore, Philadelphia, and Orlando. And I buy off of eBay as well when I find a good deal or an unidentified variety.

 

CBD,

There have been a lot of threads about coin pricing and fair market value. Most reasonable people get the a coin dealer with a shop has bills to pay and can't sell wholesale. I'm not sure that if most of us knew the true margin after expenses we would be envious of our local dealer.

As a seller on ebay who does not have a brick & mortar business and associated expenses, what is your take on a fair price for coins on ebay where the typical sellers expenses are different?

 

Great question! Honestly, I would love to be at a point where I can sell only in the buy-it-now format. In fact, that's my goal (I think). But right now I have to auction almost everything off starting at 99 cents just to get it moving and get the cash, reinvest, then sell it all again, reinvest, etc. etc.. My profits go to our monthly bills first, private preschool tuition second, and vacations third. Right now I can't afford to set everything at buy it now prices and just let it sit for 2, 3, 6 months before it sells, so I have to run auctions to keep cash flowing.
As far as fair market value, I've found that high grade problem coins have a very high return value for me on eBay. eBay, which is supposedly a wholesale market, is anything but that on those, and on low-end type coins, and on silver bullion (where you catch a lot of people seeking to invest quickly) and also on extremely rare varieties in my opinion. Plus, eBay has the added factor of COMPETITION, where the need to win overtakes the senses of individual buyers. You simply cannot underestimate that and how much it truly drives the market value of coins.
Where eBay remains a wholesale market is primarily common date high-end raw AND certified coins. An 1834 PCGS AU53 capped bust half will go for $300-$325, whereas in a shop or at a show, you'll see them at $395-$495 firm. Higher prices cancel out 90% of eBayers in my humble opinion. Lots of people will buy a 3-cent nickel in VF, but a lot less will throw in a bid on one graded MS-66.
Those are my thoughts for now...

 

Thanks for the reply. I just started purchasing on ebay and I have noticed people will pay premiums for the "cheap" coins. I have seen premiums paid for a 1921 Morgan in cull or good condition when you could get the coin retail for less. It seems folks don't mind a 10% premium over retail when its $2 - $4.

Good luck with your efforts. Even successful businesses are rarely easy.

 

CMD - I would add that to a newcomer like me, the horror stories of people not getting delivery, or getting delivery of a coin different or lower grade than that bid on is probably an obstacle.

I recently won a bid on a coin in the link below but have not taken delivery. My guess at the coin's condition from the photo is VF with a retail of 100-110. I paid $84.

But I won't really know until I receive delivery, the coin delivered looks like the photo, and someday I sell it. It is easier as a buyer to take the risk on a common date Good condition coin.

http://www.ebay.com/itm/1890-CC-Morgan-Silver-Dollar-Ungraded-Nice-Collectable-Coin-/181059463309?_trksid=p2047675.l2557&ssPageName=STRK%3AMEWNX%3AIT&nma=true&si=hB6O%252B15DVZGE3WnOGbbOphRQP6g%253D&orig_cvip=true&rt=nc

 

Well, three times in the past couple years have I gotten a totally different coin than the one pictured. In one case I got a full refund and the seller just let me keep the coin, in another case the seller gave me a partial refund and an apology, BUT in the third case, the seller was trying to steal money from me. I bought an XF-AU coin and got a VG! eBay decided in my favor but there was an open case and a hassle.

As a seller, I have had just 2 coins never get delivered. One was during Christmastime, and I assume with triple the mail coming in for postal workers, my package was just an unlucky casualty. The other time a $100 capped quarter never made it to the address. It was scanned in Atlanta and then disappeared. I assume a postal service worker pocketed it. The buyer lived in Atlanta, but the package never was delivered. I got screwed out of $100 on that one, which hurt.

 

There's a coin show in Springfield, VA on Feb 2. PM me for the details.

 

Sadly I can't do that one since my wife returns from FL that day. Thanks for the info though!!!

 

Along with the others "Kudos" I wouldn't have the patience to do that full time and with the inconsitancies I just couldn't put up (take it) but more power to you; enjoy your kids while you can they grow so fast, and I bet you find some real treasures in your travels, I just couldn't do it ... Good Luck and keep, up the good work... Also remember EBAY reads all your emails and I guess that's ok as long as you now it, I left them after I found that was true... Live long and prosper... Grampa in VA.