Multiple streams of revenue. How do you do it? Why do you do it? We’ll learn the reasons to do it. Stay tuned.
From Philadelphia, the home of the Liberty Bell, Financial Freedom Radio starts now. Here’s your host, Raymond Jewell.
Thank you everyone for coming to Financial Freedom Radio. Thank you for downloading, watching, and we’re blessed that you’re here. We would really like for you to share it with friends and subscribe, like, whatever you do. Morning, Steve.
Good morning, Ray. When you get tongue-tied, you can’t just throw it to me like that.
Sorry. Thank you for subscribing and we’re blessed that you’re here, we build our business by referrals, and so we like to have you send many referrals to us, if you may.
You’re a little flustered because of the weather down there, arent you Ray?
We’re in a hurricane storm and a tornado watch.
You’re in Florida, you expect that behavior.
Not in November. No, no-no-no. Usually, this is a warm time. Not warm, but usually the temperatures are moderate, it’s comfortable, no humidity. Not this year. 2020 can’t leave too soon.
We just need to fast forward to 2021 now.
Anyway, we’re going to continue today with our multiple streams of revenue show. We’re going to talk about how it’s done. It just so happens that our resident engineer is really good person as far as building multiple streams of revenue. He does it through Amazon and eBay. If you didn’t watch the last show, you should go back and watch it because we talked about why, where, and now we’re going to get into how. Last time we talked about how to get software to determine whether or not you’ve got a profitable item. You can get them from Amazon, you can buy them online, there are all sorts of places to do it. It will tell you if you’re looking at a product if it’s profitable or not. You just scan the barcode with your phone of a book or whatever product you’re trying to sell. It will research and it’ll tell you how much Amazon’s going to take for it and show you the profit you’re going to make. You can actually find out really easy how to do it, how to get good profitable items and then you bring them home. You box them up and I’m hoping that I’m giving you a good synopsis of what Steve told us last week. Box it up and send it to Amazon. I don’t know about eBay. We’re going to get him to talk a little bit about eBay today and to go into some products that he’s actually selling and give you a glimpse. He’s not holding anything back here, folks. He’s going to let you see it all. He’s letting it all hang out. Is that the right term?
No. You’re going to get yelled at for that one.
Let’s talk about eBay and then we’ll go back to Amazon a little bit. What is the difference between selling on eBay and selling on Amazon, Steve?
The basic idea is the same on both platforms. You have a product that you want to sell, you have it and you want to sell it to someone. The main difference is customer perception. Amazon has not always allowed 3rd parties to sell on their platform. That’s a really recent thing. I’ve been with eBay since 1998. You can judge with me if you want to, you can argue the point, from my point of view, eBay is considered a lower quality platform because it doesn’t have the Amazon brand behind it. You can find a lot more “collectibles and junk” on eBay. People don’t realize that when they buy something from Amazon, they may not necessarily be buying it from Amazon. Amazon is simply the distribution channel to get the product from point a to point b. With eBay, everyone knows that they’re buying from an independent 3rd party seller of a particular item. That’s one of the main differences.
The other is Amazon, especially for new sellers, Amazon is very restrictive in what they will let you sell on their platform until you gain a good reputation with them, until they learn to trust you as we’ve talked about before. They’re very picky. They won’t let you sell specific items. For example: if you try to start an Amazon account, we’re filming this in November 2020, if you try and start an Amazon account today with the express intent of selling toys or q4 for Christmas. It’s not going to happen. Amazon has very strict requirements over what they will allow people to sell in q4. If you want to sell Christmas items, toys, and things like that, you can start an account, but you won’t be able to do it this year. You’ll have to wait until next year because you need to build a reputation, trust between you and Amazon. With eBay, that’s not the case. THey’ll let you sell whatever you want on day one. You can get dinged for it if you’re fraudulent or you do something inappropriate, but there have been many times where I’ve gone to a store to do retail arbitrage looking for something to buy and I can’t sell it on Amazon, but I can sell it on eBay. Because of those different things, pretty much anyone can sell on eBay and restricted people can sell on Amazon. The prices are typically lower on eBay than they are on Amazon because people trust the Amazon brand more than they trust the eBay brand. eBay will let you sell more things than Amazon will let people sell. Those are the real main differences, but they’re both really viable platforms for selling whatever kinds of things that you’re interested in selling.
Don’t you use eBay as a fallback position for a lot of stuff you’re selling?
Because I’ve been doing this for so long, when I get an item, I do a lot of analysis of where the best platform is to sell it. When I get something, I’ll scan it and I’ll see how much profit will I make on Amazon. Amazon has a rule of thumb I said last week. It takes about ⅓ of the sale price for profit. So if I buy something for $10 and it sells for $30, I can expect to get $20 back on a rule of thumb average. eBay is less because you have to handle the shipping. eBay takes out about 10-13% on the sale, but then you have to factor in shipping. So on a $30 item, I’ll only lose $3, but then I have to pay another amount for shipping. So it winds up netting to being pretty close to the same thing. Again it comes back to the perceived value of the platform. If I scan something and Amazon says it sells for $30, I may scan the exact same thing on eBay and it only sells for $17-18. Then I have to do the math. eBay is going to take this much fees and this much shipping. So I’m going to make this money and Amazon’s going to take this much and I’m going to make this. So I do analysis. There are times that you are restricted from selling certain things on Amazon and I’ll still buy it if it’s profitable on eBay. I’ll say okay I can’t sell this on Amazon, can I sell it on eBay, and is it worth selling on eBay and make the decision whether or not to move forward.
For those of you wondering what arbitrage is, it’s buying a product at a really low price and selling it at a higher price. It could be anything and we’ve gone over the who. We’ve got Steve giving us guidance as the one who’s doing this. We’re going to talk about what a little bit. What he is selling. Now I understand that people can sell anything. It’s whatever your passion is. He has a certain niche that he follows and he has that passion that gets him to get up every morning and go and do it.
Ray, I just want to chime in on one thing. This is something that really chews at me. I want to get this out there because I hear this so many times. We’re going off-topic, but this is very important to me. I want to say this. I get a lot of feedback. Ray’s going to have me show you some things in a few minutes of different physical items. I was very particular about the items I picked. One of the feedback I get a lot is calling me a scalper. A lot of people perceive that we go through a store. I really get this a lot, Ray. I know you think it’s funny, but it’s the truth. A lot of people say you’re just buying this stuff to inflate the market. Really I’m not. Here’s what I do. I buy things that are on clearance. What does clearance mean? Clearance means the store was unable to sell it. So I am providing a service to the store buying their merchandise that they were not able to sell and I’m turning around and selling it to an audience they didn’t have access to. There are people where the nearest Walmart is 2 hours away or they don’t have access to a Target. They want something that’s considered a target exclusive or a Walmart exclusive and they just don’t have access to it. I make a very strong point in that I do not deliberately go out and buy things at retail value and buy all that I can to deliberately inflate the price. That’s a common misconception and something I want people to understand. Do not go out and buy all the particular items at a store with the intent of selling it online and jacking up the price. I’m providing a service to the retailer. In fact, I’ve gone into a Walmart before and they have literally brought me out carts full of stuff from their backroom that they couldn’t sell. They don’t know what to do with it. They’re waiting to dispose of it, literally throw it in the trash.
So I go through all of this stuff that they bring out. I’ve bought 100s of dollars from them before. They were going to throw it away and write it off. When people say your retail arbitrage is nothing, but scalping. It can be scalping if it’s done unethically. There’s an ethics and there’s a service that you’re providing to people. I just wanted to throw that out there to help people understand the difference.
Let’s talk about that for a second. You’re not inflating the price, you’re getting full market price or a little bit less than market price. So what you’re still offering is a product for a reasonable price and scalping is when you buy tickets or something like at a ball game and there’s no more left and you charge the outrageous price to get in. That’s scalping.
There is a perception. I’ll give you an example. I buy the very hot item in the video game market right is the Nintendo Switch. Now, the Nintendo Switch is not as hard to find as it was a few months ago, but it’s still hard to find. What I do is I will buy a Nintendo Switch. They have different flavors. Let’s say I buy one Nintendo Switch and I sit here and I offer them up for trade and I’m saying to people I have this Nintendo Switch. If you have older video games, Nintendo games or Playstation games, stuff that’s older from the early 90s and early 2000s and you want to trade that to me, because Gamestop won’t take it, for this Nintendo Switch (something of value). You have a closet full of junk that is collecting dust that you’re not using, that I believe there’s a market for. If you want to trade it to me, I will trade you this Nintendo Switch. The Nintendo Switch costs $300 in the store. People say I’ll give you $300 worth of my old stuff. I’m like, no you’re going to give me $600 worth of old stuff. You’re going to charge me double? I’m not charging you anything. If I spend $300 of my money and I go out and I buy a $300 item and you give me your items that I now have to weigh, pack, ship, and hope they sell. At the end of all that, I’m going to get $300 back. That’s wasted money. That’s wasted time. So if I’m going to take this and sit on it and hold it and wait for it. You have stuff that you can’t get $300 for the stuff that you’ve got. So a lot of people call me scalping because I’m trying to take advantage of people. I’m not taking advantage of anyone. I can’t tell you how many people I’ve done this deal with. My point is, what I do is not scalp. People should not be afraid to do what I do because you’re providing a service to the retailer, to your customer. If I go out and buy 100 of the rarest toy in the world and I sell them at double what you would pay if you could find them, that’s scalping and that’s not what retail arbitrage. That’s not what I advocate.
We went down a really far rabbit trail.
It was important to me to get that out there.
Let’s look at some of the products that you’re selling. Let’s give people an insight. Do you have some that you can show us? Steve, tell us what you bought them for, if you don’t mind, and what you plan on selling them for. What profit is there?
It’s hard to do. I’ll give you an example. For those of you who haven’t heard of an Atari 2600, this was the first game system I ever grew up with. It was back in 1977. These are the old Atari cartridges. The old Atari came with this wonderful thing called Combat. This is what it’s shipped with. I bought this as part of a collection. I had 174 video games. He sold them to me and I paid $75 for the entire lot. What is 174 for $75? I don’t know. To me, it was a fair price. Most times, these games only sell for 50 cents apiece. This particular one sells for about $20. In this case, I bought this for 50 cents, for argument’s sake, and I’ll sell it for $20. That’s how much it’ll sell for. I wouldn’t sell this on Amazon because people are going to eBay because it’s considered more of a collector’s piece. I’d sell this on eBay for $20 and they’d take $2 out in fees. It’ll cost me about $4 to ship this. You’re looking about $6 off of $20. So that’s $14. On a 50 cent investment, I’ll make $14. That’s one example.
This is a Jurassic Park. It’s called Jurassic World, you can tell by the little label on there. That’s a particular brand of dinosaur. I got this at a thrift store for $4. I paid $4 for this. This is another eBay piece. This should sell for about $30, Christmas time. I figure $30 minus $3, this one’s a bit heavier, so it’ll probably cost me about $8 to ship. As a rule of thumb, I do this: anything more than a pound, I charge shipping for. Anything less than a pound, I give free shipping. People like free shipping, so they perceive additional value when there’s free shipping. Number one, it’s very long. This would take a real weird box. Plus it’s going to be over a pound. This one, I’ll probably charge shipping on top of. If I’m selling it for $30, I’ll probably make $27. $4 into $27. That’s what that one would be.
I’m going for older stuff. I’m going for stuff that people just don’t find anymore. Some people who listen to this may not have any idea what this is. It’s a brand new box of 3 ½ inch floppy disks. This I got at a Goodwill for 99 cents. This one I can sell on Amazon, believe it or not, and there is a market for this on Amazon. So, if I sell this on Amazon, it can sell for about $14-15 for the box. I paid 99 cents. Let’s say hypothetically you take off ⅓. That’s $5. So that would be a $10 profit on a 99 cent purchase. There’s that.
I’ve got one more. This is the hardback of one of the Harry Potter books. There were 7 books in the series, if you don’t count the last one. The original series had 7 books. This book by itself doesn’t sell for a lot. If you get the entire set of all 7 books, that goes for about $60. There’s going to have to be shipping on that. If you put that in a box, it’s going to be more than a pound, so I’d charge shipping on that. I could ship the entire set of these for probably about $5. Each book I paid $1 for. Whenever I go out, if I find a book, it doesn’t matter what book it is, I buy it. I just build upsets. I’ve got 2 or 3 partial sets sitting over there right now. When I get a complete set of 7, I bundle it up and I sell it as a set. So $7 turns into $60 on eBay. If I’m going to sell it as a lot, you’d have to sell it on eBay. That’s how much I’d spend versus the profit margin.
I’ve got one more that just happened a couple of days ago. I got this at a yard sale. This is a Sony Handycam DCR-DVD810. It still has all the accuterments. Anytime you can find a Sony camcorder camera, whatever it may be, if it’s less than $10, typically buy it. I got this for $5 at a yard sale and that will probably sell between $50-60 with shipping being not free, but extra on top of it. That’s how I do it. There are certain things I’ve learned over time. I know certain brands. I had no idea about this Atari game. This was a blind find. I had no idea. Snoopy and the Red Baron was such a hot game for a hot amount of money. When I see things like Harry Potter, Sony Electronics, certain video games titles that when you see them you just know they’re money, Nintendo Gamecube, Cartridge based games, Nintendo 64, Super Nintendo, typically as a rule-of-thumb, they’re worth money. I don’t need to check them.
I also got this. I forgot about this. McDonald’s toy. Again, Jurassic World. I don’t know what it is. Some kind of dinosaur egg. This cost me nothing and sells for about $12 on eBay. It’s just about looking at something and saying that’s kind of neat. If you say that’s kind of neat, chances are there’s a market for it. If you find it interesting, chances are somebody else finds it interesting. So you simply scan it. With the egg, I literally just loaded up the eBay app on my phone and I searched for Jurassic Park. It’s a tyrannosaurus rex toy. It was McDonald’s. 2020. I searched all that on eBay and it came up with all the listings. When I look it up, I don’t look for what’s currently listed. That’s what everyone is trying to sell. I look for what has already sold. You can configure it to show me sold listings. If I see one sold listing from 6 months ago, I don’t pay attention to it because it doesn’t sell fast. If I see 5, 6, or 7 that are sold every day for the past 3 or 4 weeks, then I’ve got something to work with. I look at the average price. With Amazon, it tells you what it sells for so you know what your profit’s going to be. With eBay, you have to do some funny math. Here’s one for 15, 20, 25. It’s going to be somewhere in the $20 range. I can eyeball what it’s going to be.
Hey everybody, it’s Steve. I want to apologize. Apparently, Ray is not out of the woods when it comes to bad weather. He lost power at some point when I was still talking. It looked like he was really intently listening, but it turns out his video froze up. I got a text from him saying he lost power. Don’t know if it’s coming back, but anyway. I hope you got some value out of what I shared with you today. I’m sure he’ll want to pick it up and go back and review this video. I’m sure he’ll have more questions. We’ll probably do another episode of this. I don’t know. We’ll be back with you again next week. Hopefully, Ray will have his power back and it’ll be good. Talk to you guys next week. Have a good week. God bless.
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