How would I go about starting to be a reseller?

[connoisseur.collections]

What fees/costs are involved in being a reseller on ebay? I have a supplier but im unsure of all the costs included and if I have missed anything.

- Ebay fees

- Postage

- Paypal fees

- Parcels

Example in relation to one of the goods I plan to sell.

Supplier provides me with items for $5.00 and I can resell them on ebay for $14.00 and thats being the most competitive and lowest price I make a total if $9.00 profit.

$9.00 -

$1.42 ebay fee

$0.75 paypal fee

$0.15 per parcel

$7.15 flat rate

If I want to track thats an added $2.95. So it costs me $12.42 with signature or $9.47 without signature.

So that puts me at -$00.47 per sale.

I pick up my items from the supplier and drive them to the post myself but thats free since my fulltime job gives me a $240.00 car allowence per week.

And I've never ran a business but how would I go about paying tax on items I sell? Im not sure the steps to run a ebay business.

My salary is $85k if that makes any difference to how much tax I will pay on items I sell.

If there are any sellers out there who wouldnt mind spending about 10 mins sending me a personal mail just giving me a step by step to start up and possibly provide me with some alternative cheaper postage that would be great.

Not sure if im posting in the right forum but any help is appreciated.

[digital*ghost]

It really depends on how you want to run your eBay selling, as the eBay costs will vary depending on whether you try selling casually without a store, or choose one of the store packages, which have a monthly subscription fee, give you a certain amount free per month, and attract lower final value fees than non-store listings. 

All the other (constant) costs you seem to have accounted for, but there are others that are likely to crop up and need to be factored into your business plan - things like stationery costs, printing, replacements and/or refunds for lost/damaged items, packaging costs (like bubble wrap and sticky tape, if not already included in the list), and so on.  There are a lot of day-to-day running costs or expenses that are overlooked when people so their initial calculations. 

The minimum for a <500gm parcel via Australia Post is $6.95 + packaging costs, and bags/satchels can be acquired relatively cheaply if bought in bulk. That's the standard over the counter charge, but can be processed via the Click & Send site (just select own packaging instead of the eBay satchels), and should give you all the necessary documentation for proof of shipping, with SOD and insurance the same add-on price.

The only thing cheaper is large letter rates, so - assuming your items won't fit within those parameters - there's not anything I know of that's cheaper than AP unless you're in a position to negotiate high-volume discounts. 

Others will be able to give better tax advice than me, but I hope some of that helps. 

[extra-keen]

Digital has some great advice!!!

Also DO consider the time it will take you to run an ebay business. Consider very carefully how much time you have to efficiently administer your business - and it does take time. And customers will punish you unmercifully if you don't do it well.

Don't give up your current job too quickly.

Do look at other venues for selling - there are quite a few apart from ebay (although ebay is the best as far as traffic and buyers is concerned).

Good luck, it can be a whole lot of fun too

[heiner2929]

Not quite sure if I'm reading your cost breakdown correctly.....BUT.....you don't pay for postage, the buyer pays

[putney32]

heiner, maybe the seller is going to offer ''free postage'', in which case yew he will be paying the postage

[I've not found ONE POST OFFICE what'll let anyone post for free!!!!}

[putney32]

heiner, maybe the seller is going to offer ''free postage'', in which case yew he will be paying the postage

[I've not found ONE POST OFFICE what'll let anyone post for free!!!!   ]