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How Do Ebay Sellers Make Money On $1 Coins?

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Brandmeister's Avatar
United States
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 Posted 01/02/2024  11:23 pm Show Profile   Check Brandmeister's eBay Listings Bookmark this topic Add Brandmeister to your friends list Get a Link to this Message Number of Subscribers
I keep running across these little sellers who seem to specialize in mid-grade common coins, selling them for $1. I see that many of them have dozens of sales per month. How do these micro-sales make any money? My understanding was that ebay charges $.30 per transaction plus a percentage. Then you have to pay for shipping. Even with ebay envelopes that's $1. It seems getting paid also incurs fees.

I do understand that it can be smart to have some filler listings so that people can take advantage of combined shipping on more expensive coins. Are people running these accounts purely for fun? Or is there some kind of science to these little shops that escapes me?
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datadragon's Avatar
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 Posted 01/02/2024  11:34 pm  Show Profile   Check datadragon's eBay Listings Bookmark this reply Add datadragon to your friends list Get a Link to this Reply
As a ebay seller sometimes, these coins may be used for generating traffic to their ebay stores actually. A few others use $1 auctions instead where they generally wont get up to normal pricing as when listed as a buy it now fixed price, but once in a long while can have a bid war on something. I used to use the item scroller to show other items I have in the descriptions of every listing for cross sale opportunities so people may also buy other things while they are at the sellers 'store' and combine shipping.

Yes you would have to check the lowest rates for ebay envelope plus the ebay seller fees for that category (and any discount for being top rated seller etc). I think it was like 63 cents for 1 oz so perhaps they make a tiny profit as well for the item. https://www.ebay.com/help/selling/s...lope?id=5308 Alternatively some coin shops may be somehow advertising direct (a card with a website) included with the item perhaps. You would have to buy one of those items to see.

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NumisRob's Avatar
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 Posted 01/02/2024  11:47 pm  Show Profile   Check NumisRob's eBay Listings Bookmark this reply Add NumisRob to your friends list Get a Link to this Reply
It's also possible to buy older commemorative postage stamps for considerably below face value, which means that you pay far less for the postage and the purchaser gets nice colorful stamps on their package. 1st class UK stamps purchased in 2000 for 26p have a postage value today of £1.25. The recent swap-out scheme for old definitive sramps with just the Queen's portrait (which were demonetised in July 2023) has left many British stamp dealers with large stocks of the new QR coded stamps, which they are selling for below face value.
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HondoB's Avatar
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 Posted 01/02/2024  11:55 pm  Show Profile   Bookmark this reply Add HondoB to your friends list Get a Link to this Reply

Quote:
Alternatively some coin shops may be somehow advertising direct (a card with a website) included with the item perhaps. You would have to buy one of those items to see.

I've bought items from several dealers (not the $1 ones) who included a card with their web site on it. Prices there were much less for the same items there that they also had listed on ebay.
But you can't make money selling $1 items on ebay, or anywhere else. Too much time for too little return.
Inordinately fascinated by bits of metal with strange markings and figures
Edited by HondoB
01/02/2024 11:56 pm
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datadragon's Avatar
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 Posted 01/03/2024  12:15 am  Show Profile   Check datadragon's eBay Listings Bookmark this reply Add datadragon to your friends list Get a Link to this Reply

Quote:
I've bought items from several dealers (not the $1 ones) who included a card with their web site on it. Prices there were much less for the same items there that they also had listed on eBay


There is a cost for listing on ebay so prices are always going to be lower on their website, however getting traffic to that website is the issue so using ebay to drive new buyers is not a bad strategy if that is what they are after. Also in some cases there can be listing fees so dealers don't usually want to put up everything that may not sell right away but might be able to on their own site or start to market to their customers who bought.


Quote:
But you can't make money selling $1 items on ebay, or anywhere else. Too much time for too little return


Generally yes I agree. You can however use the low cost items to drive traffic where you have higher profit items in your store. Retail stores do that also with the sales, you certainly can't make money selling only sale items at or below cost.

Edited by datadragon
01/03/2024 12:17 am
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Brandmeister's Avatar
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 Posted 01/03/2024  12:49 am  Show Profile   Check Brandmeister's eBay Listings Bookmark this reply Add Brandmeister to your friends list Get a Link to this Reply
I have definitely bundled because I could combine shipping, and even planned the purchase spree to optimize that. I just bought some silver coins, and then a dozen proof nickels at $1 each (plus .50 shipping per coin, which I think was just gravy). That definitely makes sense to me.

I could buy the argument about sellers just basically building a client book for their website, or even just padding their positive sales numbers.

There is a question in my mind about who buys an ordinary circulated 1949 nickel or junky 1942 Wheat cent for $1 plus some shared shipping. Because I have a jar of 1940-1959 nickels from CRH, and liquidating those at a modest profit would fund more CRH expeditions. I suppose a few nicer (and higher margin) coins could be acquired as well, to sweeten the mix.
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shantiom's Avatar
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 Posted 01/03/2024  02:08 am  Show Profile   Bookmark this reply Add shantiom to your friends list Get a Link to this Reply
also pay attention to their shipping costs, they should be low, if high, they are making money on "handling"
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Australia
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 Posted 01/18/2024  10:55 pm  Show Profile   Check ClusterCoin's eBay Listings Bookmark this reply Add ClusterCoin to your friends list Get a Link to this Reply
I sell on ebay and have on occasion sold coins and banknotes very cheaply with 'free' postage.

I'm counting on people buying multiple coins and banknotes. It's basically a waste of time shipping a $3 sale, but I'm counting on people buying multiple lots. I also use old Australian stamps from the 1970s and 80s. Whole sheets of them can sometimes be purchased at estate auctions for half price or less. Feels a bit wrong destroying mint condition 40 year old stamp sheets just to save on postage, but few people collect stamps these days and no one wants them even at face value.

I have moved up a little and now my minimum coin or banknote sale is $5 with postage included. I'm happy to spend a bit of spare time packaging up a few letters per day, but certainly wouldn't want to do it as a full time job.

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Australia
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 Posted 01/19/2024  02:01 am  Show Profile   Check ClusterCoin's eBay Listings Bookmark this reply Add ClusterCoin to your friends list Get a Link to this Reply
The other thing sellers of many really cheap items may be trying to do is harvesting as much positive feedback as possible.

This is a double edged sword however, as the seller could lose their 100% rating over a $2 sale. Also it makes the seller look a little dubious if all their sales are a flood of ultra cheap items.
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