eBay Coach Experiment: Selling Coupons

I am intrigued by coupon sellers and how they make a profit, so I am doing an experiment. I've been buying coupons on eBay for years but haven't ever sold any. We get a free Atlanta Journal Constitution newspaper on Thursdays, filled with the same coupon inserts that will be in the following Sunday's paper. I've managed to secure 20 of these free copies a week to do this experiment. So, my inventory costs nothing.

I have always wondered how coupon sellers make money doing this. It is a very labor intensive process, and I can only see a profit if you can get the coupon inserts free. For the purposes of this experiment, I am offering a batch of 20 coupons for $1.50 with free shipping. Coupons worth $2 and more I am putting on auction with a starting price of .99 and free shipping.

Here is how the math works out:



I wonder how these coupon sellers do it after paying for the newspapers. (You can get them free - read my article on "How to Get Unlimited Grocery Coupons FREE.") Some sell thousands of coupons a month. At 50 cents profit an item, you're going to have to sell an awful lot of coupons to make any money. Also, who is doing all the clipping? Do they hire people? Of course, some of the higher valued coupons sell for much more than $1.50. Some good ones to sell are diaper coupons, medicine coupons, pet coupons, cosmetics, hair products, and any type of refill (such as air fresheners).

I'd love to know more about this. From the looks of my experiment, for the time and effort, I think this one will be a thumbs down. I'll keep you posted!

Happy Selling,

What to Sell on eBay - Move Free Glucosamine Supplement

Supplements are another drug store / grocery store item you can sell on eBay. Here is how you do this deal.

Check WalMart, drug stores, or local grocery store for Move Free Glucosamine supplement, 80 count. This product costs between $18 and $20 off the shelf. Between Walgreen's, CVS, Rite Aid, Kroger, Publix and other stores, someone will have this item on sale buy one get one free during any given week. You just have to check your Sunday paper inserts to see where it is the cheapest.

Next, get some coupons.



Right now, there is a $5 off coupon available. You can either get these on eBay for about $2 for a batch of 20 ($100 in savings), or get them here. The coupon does not expire until 3/31/09. (Note, if you get them on eBay, use a different buyer id than your selling id. You don't want your competition to figure out what you are doing or discover how you are getting the item so cheap. Or, just buy from the other site shown and it will be your own little secret.) You can also click here for more ways to get unlimited FREE coupons.

Combining the BOGO sale with the $5 off coupon significantly reduces your price. Here is the math:



If your store offers a Senior Citizen discount day (Kroger's day is Wednesday and Seniors get 10% off their groceries), see if you can find a friend or relative to go with you and use their discount.

This item sells for up to $22 a bottle on eBay. Click here to see completed listings. Based on this scenario, your profit on one bottle of Move Free could be about $17 before fees. Not a bad deal!

Be sure to subscribe to my blog for more great eBay tips like this. No spam, just real information to help you make money on eBay.

Happy Selling!

What to Sell on eBay - J Crew Apparel (Michelle Obama Look)

I started selling gently used thrift store clothing on eBay in 2003, and J Crew has always been a steady seller. J Crew fashions are conservative, sophisticated, classic, and timeless. Now with Michelle Obama in the spotlight and in the White House, more women around the world will want to emulate her look. When you are out at thrift stores searching for items to sell on eBay, check the women's clothing and look for J Crew. Here are some items that have worked for me:


Twinsets. Look for 100% wool, cashmere, or those embellished with "bling." Click here for tips on selling cashmere on eBay - it is one of my all time best sellers.


Skirts. The basic black, knee length "career" skirt is always popular and versatile. Pencil skirts are great. Make sure it is lined - a lining indicates higher quality. Wool and gabardine are the best sellers.



Pea Coats. They are popular this year and are a classic. You can often find gently used coats at thrift stores for $5-$10 and they are good sellers.

These styles are good sellers even if they aren't J Crew brand. Here are some more resources for selling gently used (thrift store) clothing on eBay:

Make Money Selling Sweaters on eBay

What to Buy at Thrift Stores to Resell on eBay for Profit

How to Sell Used Clothing on eBay for Profit

Podcasts

Episode 6: What to Sell - All About Women's Clothing
Episode 14: What to Sell - Sweaters

Happy Selling!

Hot Item to Sell on eBay - Dual Action Cleanse

Sam's Club has this item in a special club pack for $34.95. This item is selling for between $50-$60 on eBay USA. Now is the time for health related products as everyone is in the "new year lose weight" mode.

You will find lots of variations on this product if you check completed listings. You want the club pack shown on item #390017388850 - it appears to be the most consistent seller.

No, you won't become a millionaire selling this, but if you can find it at your Sam's and sell it repeatedly, you can make some easy money.

Happy Selling!

Make Money on eBay Selling Items from Kroger

I discovered that Kroger can be a gold mine for finding inventory to resell on eBay. Especially if your Kroger has a large cosmetics and health and beauty section. Mega stores like Kroger are constantly offering newly released consumer items and resetting their shelves. Something has to be removed to make room for all the new stuff. That is where the markdowns come in.

If you browse your Kroger store, you will see big white tags on the shelf below the items that are marked down. The markdowns are usually 50% of the regular price. Kroger does not have a clearance section, items are just marked down in the department they are sold. For example, here are some items that I saw yesterday at my Kroger marked down to half price:

Nexxus Therappe Moisturizing Spray, reg price $17, markdown price $9.99

Neutrogena Spray Sunscreen, SPF 30, reg price $9.99, markdwon price $4.99

Aveeno Spray Sunscreen, SPF 45, reg price $9.49, markdown price $4.99

Sally Hansen Nail Polish, reg price $4.50, markdown price, $2.25

Clairol Perfect 10 Hair Color, reg price $11.99, markdown price $6.25
(Here is one that sold on eBay for $9.99.)




Aveeno Positively Ageless Daily Eye Serum
reg price $17.99, markdown price $8.99
(Here is one that sold on eBay for $13)

Also check the medicine, dental, weight loss, and vitamin aisles.

These markdowns may vary by store. Always do your homework before buying inventory to sell on eBay. Make sure you are comfortable with your investment before buying anything. (Click here for tips on how to price items to sell on eBay.)

Pay attention to coupons, too. You may find coupons for the clearance items that you can stack or layer for deeper discounts. For example, there was recently a $5 off Clairol Perfect 10 hair color coupon, so that made my cost on a $12 box of hair color (marked down to $6.25) only $1.25. I went on eBay, bought about 40 $5 coupons for around $2, bought a bunch of the hair color for $1.25 a box, and then sold the hair color in lots. A few extra steps, yes, but a way to get inventory dirt cheap. Here is a listing (not mine) for 3 boxes of Clairol Perfect 10 that sold for $14.99. Profit in this scenario is around $10 per lot.

Granted, your profit margins will be small on these items. But, if you can sell enough of them, it is worth the effort because you only create the listing once and continue to relist as long as you can find the product. These types of items are also good to sell in lots. Get enough of these types of listings going, and your store is almost on auto-pilot.

Click here to find out about more items from grocery and drug stores that you can sell for profit on eBay. Keep your eyes open at Kroger and see what you can find!

Kohl's Scam Continued

After talking with many of you yesterday about the Kohl's scam, I decided to send this email to the seller. People like this are what gives eBay a bad name. Most of us do a legitimate business selling a legitimate product or service. I hate to see people manipulate eBay and make it something sleazy - it just harms eBay's reputation and in turn, our reputations by being affiliated with eBay.

Dear Seller,

I am very disappointed and disturbed by this transaction. First of all, you didn't send coupons, but download links that I had to print. eBay policy states that all coupons sold through eBay must be physically delivered to the buyer, and may not be delivered by electronic means for home printing. No where in your listing did it state that I had to waste my ink and paper to print something. Third, the coupons clearly say 1 per household. Your listing was not only deceptive, but you are clearly violating eBay policy selling these Kohl's so called coupons.

She replied with, "There was nothing "deceptive" about this auction. This is not a "scam or fraud." If this was a scam do you really think I would have had 100% positive feedback."

So I replied with,

1) Your listing is deceptive. You are selling something that ANYONE can get for free on the internet. You are opening numerous free email accounts, signing up for printable coupons numerous times that are only meant to be used by one person one time, and then selling them for profit to unsuspecting buyers who think they are receiving a promotional coupon obtained in an honest way. Furthermore, according to the listing, the buyer will receive COUPONS, not download links. Digital items, including links such as the Kohl's coupons, may only be sold through eBay Classified Ads, and the seller must be legally authorized to sell the item. You can read eBay's policy on selling digital items by clicking here.

2) Your listings for Kohl's coupons violates eBay's coupon policy which states, "All coupons sold through eBay must be physically delivered to the buyer, and may not be delivered by electronic means for home printing." You can read this for yourself by clicking here. Perhaps in your 36 days of being an eBay seller, you haven't taken the time to read what is permitted and what is not. The first rule of eBay selling: Just because another seller is doing it does not mean it is permitted.

3) I buy grocery coupons on eBay all the time. This is the first time I have encountered something so underhanded and deceptive. This is not about a buyer reading a listing; this is about a seller offering full disclosure to her buyers. You are deceiving buyers by offering something that you obtained under false pretenses.

4) If what you are doing is "right," eBay legal, and you are comfortable doing it because other sellers are, I'm sure you won't mind that I have forwarded this information to both Kohl's and eBay.

Guess what? She doesn't have 100% feedback anymore.

Kohl's Coupon Scam on eBay

The other day, I was shopping for coupons on eBay and ran across a listing for Kohl's Department Store coupons. The listing was for 15 coupons each for $5. I noticed that many sellers do this, offering the coupons in batches of 10-20 at a time. Completed listings show over 3,300 listings for Kohl's $5 coupons.

I bought the coupons for $2.75 thinking they were actual store coupons that were going to be mailed to me. The coupons don't expire until 1/31/09 and 1 coupon can be used for each $5 or more purchase. My daughter's birthday is in January, so I am always looking for after Christmas deals to buy her birthday gifts.

The coupons were send as download links. I received a list of links that took me to a page to print each coupon. Then I began to wonder, how is this seller getting these coupon codes and passing them on?

After asking around, I learned how it works. If you go to this link at Kohl's.com, you can enter your email address and receive a $5 coupon from Kohl's. The coupon is emailed to you within a week. But you can only get one coupon per email address. I took a look at the coupons I received. Each one had a slightly different email address on it, like this:

maryA123@hotmail.com
maryB123@hotmail.com
maryC123@hotmail.com

and so on. So, these sellers are going out on the internet and opening a whole bunch of free email accounts, signing up for the coupon, batching the downloads, and selling them on eBay.

I'm not sure how I feel about this. eBay sellers have found a way to manipulate the system and stockpile these coupons. Coupon sellers do this all the time by purchasing multiple Sunday papers, clipping the coupons, and selling them, so is this the same? I think this technique is more of a scam than a legitimate way to sell coupons.

I can't say that this is a great way to make money. Using the seller in my example, the person had to go open 15 free email accounts, and sign up for a $5 coupon 15 times. That in itself took at least an hour. Her profit after eBay and Paypal fees is probably only $2. I can think of plenty of other things I can do for an hour that makes more than $2. Click here for a list of ideas.

I'm sure this "business model" (and I use that term loosely) is used all the time for other coupons. What do you think? Does this border on fraud, or a legitimate way to earn money on eBay? Please leave a comment below.