99 cent Ebay sales, for what?

I raised this question in another thread but have decided to open a new thread for discussion and wider responses.

When I’m on eBay cruising wheat cents, these people are selling their semi key wheats for 99 cents. Sure their condition isn’t great but what do these people doing 99 cent transactions stand to gain? Is it really only 99 cents? Not to mention shipping costs. I consider there are individuals with thousands of that same penny and the same amount of suckers out there to buy em, but I just don’t understand how selling your little penny for 99 cent or less is worth it unless you’re making MULTIPLE sales per day. I don't understand how they are even breaking even on these transactions. I’m confused.

Someone bless (or nuke) me with your coin trading economic insight.

 

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Possible reasons:

1. Build feedback...for newer sellers this could be a way to sell a lot of items and build up their feedback (even if it costs the seller some money)

2. Seller doesn’t understand how eBay works...some people actually don’t realize that they have to pay eBay, PayPal, and shipping fees

3. Someone is letting their kids learn business/the ways of eBay using something inexpensive (this reason might be a stretch)

 

Most 99 cent sellers are just shipping in a normal envelope. They should be making a small amount on each one as they likely get most of their inventory roll searching. Most people would say it isn't worth the time or effort but I guess some people enjoy it

 

I've always wondered this same thing, I'm into trading cards As Well and from time to time I see people trying to sell 99 cent card with free shipping and have wondered the same. They send them in envelopes, but they still couldn't be making even a dime off it with shipping and fees. I'd believe this is the reason, but i don't know, people do weird stuff.

 

True they would make a little and some do as you say.

For those interested:
.99 cent sale....
.10 to eBay (no store 10%)
.03 to PayPal (2.9%)
.30 PayPal transaction fee
.49 stamp
= $0.07 profit
(and that does not include the price of the envelope...also the stamp could be cheaper as one can buy stamps in bulk for under face value on eBay or even at some coin stores)

 

However, if the seller is from China and selling a large quantity of items, they can be profitable even on 99 cent items.

https://thydzik.com/how-do-chinesehong-kong-sellers-make-money-on-ebay-with-99c-free-shipping-items/

 

They could have stocked up on forever stamps in the past as well

 

However sliced, someone is not valuing their time very highly.

 

My same thought.. a few cents an order doesn't seem to be a very well use of time management. But as an above poster said if the seller is a large foreign based operation they're probably making some nice change off their hundreds and thousands of $1 orders they receive. Idk though, isn't shipping overseas more costly at that point as well? Lots of variables I suppose.

 

It should be, but somehow chinese sellers are able to ship for basically nothing. It may be being subsidized by their government but they're definitely paying a lot less to send something here than we would to send something there

 

Enough people must purchase more than one item at a time to make it worthwhile in the long run.

 

Thanks for the knowledge. Something else for me to ponder and research a little more into now.

 

I cannot say for certain, but I suspect a lot charge shipping and make money on that. They don't expect to sell single coins but if they have enough of them for sale then people may buy, say, 10 coins. That's $9.90 which, less Ebay and Paypal, gives over $8 clear. Bulk coins can be got for less than $0.10 each.

 

interesting all around. Thanks for sharing a thought!