Reasons why they sell so Cheap on eBay

There are around 10 reasons I can think of as to why a seller will charge 1 cent for an ebay item with free worldwide postage on ebay. I will describe these over the next few days.

The first is these sellers sell lots of other higher value items. Ebay gets paid for every item thats sold (a percentage of the sale price). Lets say one of these power sellers has ebay fees of $1000 per month.

But ebay gives incentives to the seller to try and give good service to their customers, they gave up to 40% reduction in fees if sellers get good DSR* scores.

* Everytime a buyer leaves feedback for a seller, they also give the seller a rating for (1) Communication (2) Shipping Time (3) Item as described and (4) Shipping Costs. These ratings are called DSR - Detailed Seller Ratings.

Ebay looks at these DSR scores to see if a seller qualifies for the 40% discount, so if I seller pays $1,000 in fees per month, they have the opportunity to get refunded $400.

So the seller may decide to sell 3 items per day for $0.01 + free postage. The total monthly cost/loss to the seller could be around $1.50 x 30 days x 3 per day = $135.

But in return these customer will then leave excellent feedback as they are very happy to buy something so cheap, and the seller is happy as they get the 40% discount from ebay.

In reply to the people on linkreferral who claimed my idea is taking advantage of lower paid workers in Asia. This isn't true, the ebay seller isnt manufacturing the goods and pays full price for them. He/she takes a loss on these, but then he/she gets this back with the ebay discount.

And in reply to the comment about the goods in Asia being of lower quality, are you aware if you buy items like this on ebay from USA sellers, 99% of their stock is sourced from Asia.

So I'm just explaining a method of buying the stock cheaper than the USA powersellers, obviously if they buy from a factory in Asia, they dont pay $0.01 per item.

Theres lots of other interesting reasons for these low $0.01 prices, I'll explain some more tomorrow.

How to buy $0.01 items on eBay

The link at the top of this page (yellow box) shows items from the Camera and Photography category, it includes memory cards, Card readers, battery chargers, camera cases and other items. Please see for yourself. These can be bought for 1p, with no shipping charge, its basically free but the minimum charge has to be 1p.

It's very easy to make money buying and then reselling items on eBay, I've been doing this for the 14 months and its been a great source of income. Many sellers sell low value items for 1p or 1 cent, with free postage. There are many reasons why they sell items at a loss, I will explain these in tomorrows post. But the main thing is people like us get an opportunity to buy items from Hong Kong or China for 1p and then re-sell them on eBay in our own country. Most normal ebay buyer dont even know these 1p items exist as they dont know how to use the ebay advanced searches.

The link at the bottom of the page (blue box) shows a range items available for just 1p from the Consumer Electronics category, it includes item like iPod earphones, iPod Nano Silicon Cases, Earphone Connectors, iPhone Screen Protectors and many others.

Check back again tomorrow for an explanation of why it makes sense for items to be sold at these prices.