How do model shops make money on ebay

[ClydeBuilt]

Prospective newbie traders might have a tendency to see what they want to see in profit margins etc.

What looks like a great deal from China could looke like a dream come true for someone with some free dosh, in their mind theres zero overheads when working from home a-la mum & dads place. 'Friends; could help out with orders and it all looks like it could subsidise a small group of mates costs.

Meanwhile back on Earth.....
Postage, wrong items, ,lost items, non-payment and generally not taking things seriously enough can easily lay a bear trap for the blinkered.

BN

[Welshy40]

Yes I agree ebay is so cheap.

Actually shops in the UK are closing weekly due to being unable to sell much due to big competition. In America its a billion dollar industry but over here in the UK its tiny in comparison. Owning a model shop here is very hard to do as the rents high, electricity, gas, water council tax and believe it or not a lot of these shops cant afford to pay themselves a wage so dont expect things for nothing as there is always an over head that these shops need to pay. I may be sponsered but am happy to support certain shops when I can as without them we wont have this hobby.

[daz75]

Good for you welshy good to see people who support shops

There used to be 4 or 5 shops round south manchester now there are none

[Peakey]

Originally Posted by milesallen

Shops needs to make money so I reckon on 30-40% margin on most stuff some more, some less if they aren't getting this level then they need to negotiate better - easier said than done? - ever tried? clothes retailers work on anything between 100% - 200%. Yep, so when theres a sale on they are still making a good margin.

I can vouch for a t shirt printer who only sells on line and operates from a unit and makes a killing. He pays about 40p for a t shirt tops and sells them on for £12+ each. Granted he's spent 40k on the unit and recently added 3 new printers at 33k each but the profits well out way the costs.