Tuesday, November 24, 2009

Is Making Money On eBay Dead? eBay Bans Digital Products

By Jason James

Since eBay banned the sale of digital products in their auctions, many marketers have abandoned eBay as a source of income. Changes of terms and conditions, and ever increasing fee charges, have had a similar effect too. However, those willing to stick with eBay are finding that it is still quite possible to make money on eBay.

Smart sellers found that while the direct sale of digital products was no longer possible, there is a way to work around it. To get around this problem, they simply transfer one or more digital products on to a CD and DVD and mail it to customers. In addition to having gotten around the ban on digital products, sellers were able to capitalize on the fact that physical products have a greater perceived value than digital products.

Taking this approach need not be a lot of hassle either, as you can use a fulfillment company to package, label and ship every CD and DVD that you sell. These companies will basically package your CD or DVD up with a cover that you provide, and they'll ship it out to your customers for a flat fee. For each disc that you sell, you could easily make a few dollars in profit.

If you want to get creative, you could add bonuses or upsells onto the disc that your customers are getting. Adding unannounced bonuses will create value and make your customer happy. You could try sending them to a website where they could buy additional products from you. Better yet, you could send them to a squeeze page where, upon completing an opt-in form, they would enter your email list.

Another way of making money on eBay is to enter the dropshipping business. It works like affiliate marketing in that rather than selling products that you physically stock, you instead sell products that belong to someone else. It can be tricky to find a reliable dropshipping company, but once you do, the selling process is easy. You simply list one of the dropshipper's products on eBay and, when it sells, submit an order to the dropshipper for that product, providing them with the customers details as you do so.

You can virtually sell anything through a dropshipping company on eBay. From the latest high end gadgets, to fitness equipment, to cell phone accessories, you will be sure to find a number of products that the market is desperate to buy. Since you are paid a cut of each sale, selling larger items would give you a larger profit margin. However, smaller items are more in demand, so you will probably sell more of them.

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