How to Use Pennies to Create eBay Profit$ by Ed Dickinson - HTML preview

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How to Use Pennies

To Profit

On eBay

By: Ed Dickinson

info@HomeWorkersList.com

1

Table of Contents

Introduction

Page 3

How They Work

Page 5

Turning Profits on eBay

Page 8

My Examples of eBay Profit

Page 11

List of Penny Websites

Page 15

Tips

Page 17

Disadvantages and Cautions

Page 19

Conclusion

Page 20

Feedback

Page 20

2

Introduction

I have written this book to show you one way how many people are making good profits on eBay and how you can too. This book will not describe any get-rich-quick schemes or any overnight fly-by scams. You will not get rich using this way, but over time, you can make some good profits on eBay. What this book will show is a way in which I and many people are using pennies to make profits on eBay. Yes, I did say pennies, but more specifically, penny auctions.

This book will describe in detail how to use penny auction sites to buy items and then turn around and resell them on eBay and other websites. People have been buying and selling items for years. Now the Internet just gives everyone new ways to make extra money by buying and selling.

There are dozens of penny auctions sites currently out there on the Internet. New ones are popping up every week. I personally use only a couple websites currently. However, I am constantly looking into other sites that may be worth joining. The website that I enjoy using and will speak mostly about is QuiBids.

I will go over how QuiBids and other penny websites work. I will not go over how eBay works as there are already hundreds of books and ebooks written about eBay. I will show you some examples on what I’ve purchased on penny sites and turned around and sold them on eBay for nice profits. Then I will give you some of my tips when using penny 3

auctions. Lastly, I will give you some cautions regarding penny auctions sites. Unless you really learn how to use penny auction websites, you can lose big time!

Yes, I said you can lose big time. Many people are losing big money using websites like QuiBids and other penny auctions. However, don’t be discouraged as there are hundreds to thousands of people who are buying nice items on these websites. Most of the people losing money on these websites just don’t understand the process on how to profit from these websites. The people winning items on these sites are then turning in their won auctions into eBay profits! That is exactly what you can do too. So let’s get started!

4

How They Work

Penny auctions work quite differently than eBay does in many ways. First, there are no sellers on these websites. The owners of these websites are the only ones that list items.

They have deals with companies all over the world and they list those items on their websites in auctions. Unlike eBay where only the winner must pay, you must pay to bid or play in these penny auctions.

Penny auction sites charge for bids. Once you purchase bids, you can start to bid on auctions. Ebay on the other hand, you do not get charged when bidding on an auction. By buying bids on penny sites, you are already spending money with no guarantees of winning an item. This is why many people lose hard earned cash when joining these websites. The penny auction sites that I’ve seen charge anywhere from $.40 to $1.00 per bid.

Here is what QuiBids displays on their website on how it works: Each bid costs just $0.60 and available in Bid Packs. These bids are pre-paid and placed in your Bids Account. Each time you place a bid, your Bids Account is deducted one bid. Once a bid is placed the auction price will go up in increments of 1 or 2 cents. A maximum of 20 seconds is added to the timer every time someone bids. This gives enough time for someone else to make the decision to bid if they're interested. This is similar to the “Going once...Going twice...SOLD!” approach of traditional auctions.

If you are the top bidder when the timer reaches zero, you win! You will then pay the ending auction price as well as the cost of shipping. If you do not win, you lose your bids that have been placed; however, we offer a Buy it Now feature on all auctions. When you use our “Buy it Now” feature, we subtract the cash value of the bids you’ve placed (excluding voucher bids) from the value price of the item, and you only have to pay the difference.

Let's say you spend 30 bids trying to win a $30 valued product, but you don't win. Your 30 bids are worth $18 (30 x $0.60), so if you choose to use the "Buy It Now', you will pay $12 plus shipping for the product. *Please note that this offer applies to real bids only, and that voucher bids to do not apply to the Buy It Now option.

5

They Buy It Now option is one reason why I like QuiBids and a couple other penny auctions over some of the others. QuiBids allows you to purchase the item that you’ve bid on at any time. I’ve bid unsuccessfully many times on QuiBids which resulted in me buying the item that I was bidding on. By buying the item, I did not lose my money. I just bought an item that I was interested in. Can everyone win on QuiBids? According to QuiBids, everyone can:

Yes! If you don't win the auction, you will never have to go away empty handed. Any time after you've placed your first bid in an auction, you can choose to buy the product for a discount using Buy It Now. This will help limit your losses so you don’t have to leave with nothing. You'll never have to pay more than the Value Price for any products on QuiBids. Not everyone, however, will win the auction at a large bargain.

Using the Buy It Now feature is a big reason I use certain penny auction sites and why I don’t use others. However, there are a couple disadvantages to the penny auction websites with the Buy It Now features. These disadvantages are:

1. Auctions sometimes end in higher prices – With the buy it now feature being available, many auctions tend to draw many bidders. These people who bid often will bid extra times knowing that they can buy it if they don’t win the auction. The ending result can be higher ending prices for the auctions. However, on penny sites without the Buy It Now feature, the ending price on auctions can be lower than the websites with the feature.

2. Vouchers do not go towards Buy It Now – Every penny auction website have voucher auctions. These vouchers give you extra bids. Winners of voucher auctions often pay a lot less than if they bought the bids for full price. These 6

vouchers are good to use to bid on auctions. However, if you do not win the auctions, you’ve lost all those bids and can not use them to buy the item once it ends.

Voucher auctions can be good to bid on and win. However, if you waste many money bids to win a voucher, you may have to end up buying those vouchers. This will give you more bids, but those bids can’t be used towards buying an item if you don’t win on the auction that you bid on. Thus, vouchers are a big reason why many people do not like penny auction website and why many people lose good hard earned cash using penny auction sites.

Once you’ve gotten the hang of penny auction sites, you’ll start bidding and winning items. Once those items start showing up at your door step, it is time to start making some money by putting them up on eBay.

7

Making eBay Profit$

After you start winning items on penny auctions, you will want to put them on eBay and start making some profits. Hopefully you’ve learned how to win items on penny auctions without spending too many of you money bids. If you have, you’re ready to start listing them on eBay.

However, just what items will sell on eBay for profits? This is where you’ll have to do your homework and research. Before bidding on any penny auctions, I’d scan the website to see what items are out there. Check out what the website lists the retail value of the items up for auction. Also check out the shipping costs to see what you’ll pay for shipping as you’ll often have to pay more at the United States Post Office, UPS, Fed Ex, or whatever shipping service that you use. The penny auction websites are businesses and they will usually have lower shipping costs than an individual costs.

Besides shipping costs, you have other fees associated with listing items on eBay.

There may be listing fees that you may have to pay when you list them on eBay. I usually start my auctions at $.99 so I don’t have to pay a listing fee. Once your item sells on eBay, you will be charged a final value fee (see eBay for their exact fees). Most sellers and buyers on eBay use Paypal to complete the auction transactions. Paypal will change a fee for using their services. So when buying items on penny auction sites for purposes of reselling on 8

eBay, keep in mind that you will have final value fees, Paypal fees, and shipping costs. All these costs will eat into your overall profit of reselling that item that you won on Ebay.

So what items should you try winning on penny auction website to resell on eBay?

Choosing items to bid on is extremely important. There are no profits to be made by winning items on penny auctions that people do not want. So what exactly resells for profit on eBay?

Here are some examples:

1. Gift Cards – Every penny auction site that I’ve seen offers some sort of gift cards.

These are perfect items to resell on eBay. If you are bidding on a penny auction website that has Buy It Now options, gift cards are very safe auctions to bid on.

Even if you lose an auction or bid using money bids until the auction no longer is a value for you, you can buy the gift card. Then you can go use that gift card at store or restaurant which you just won. The only thing you lose with gift cards is the shipping / handling costs. Many sites change a $1.99 or $2.99 shipping/handling charge for gift cards. That is the same price if you were to buy a gift card at a Walgreens or grocery store. So you usually will not lose much money with gift card auctions.

2. Popular Electronics – Most electronics on penny auctions can be pricey if you try winning laptops, IPods, IPhones, High Depth TVs, etc… However, if you do happen to win one of these auctions, you definitely will profit by reselling those items on eBay. I personally, tend to stay away from many of these items as the 9

auctions can be very time consuming and expensive to win at times. However, I tend to bid on accessories for popular items and resell those items. Whether you try bidding and winning the accessories or the actual electronics, these items can be very profitable items to resell on eBay.

These are only a couple items that can be very profitable when reselling on eBay. In theory, any item that is won on a penny auction could be turned into profits on eBay. However, that is indeed not the case. I’ve won many items for literally $.02, $.03, etc… that I could not resell. I paid the $.02 plus the $3.99 shipping / handling and tried relisting them on eBay.

The items that I’ve won listed on the website with retail value of $16.99, $24.00, etc… So I thought with a retail value of $20 that I could list them on eBay starting at $.99 and they would sell. Well I was wrong.

Many items that get listed on these penny auction sites turn out to be clearance items.

Companies have given the items to these penny auction companies to sell through the auctions. There’s a reason why they didn’t sell on eBay or by the company originally –

there’s little interest in them!

So when picking items to bid on in penny auctions use caution and do your homework.

Make sure there is interest in the items that you plan on reselling. That is why I love to buy and resell gift cards. Gift cards will always resell and hopefully you won them for pennies so that you can resell them for close to their actual value.

10

Example Items that I’ve Resold on eBay

1. $10 Lowe’s Gift Card + 5 Bids – This was my first auction won on QuiBids. I won a voucher bid prior to this auction and ended up buying a Target gift card. The Lowe’s Gift card was the first item that I resold for profit on ebay. This card was an e-gift card.

Closing Price

$.02

Real Bids (1)

$.60

Shipping

$1.99

Total QuiBids Cost

$2.66

Ebay Final Auction Price

$9.05

Ebay Final Value Fee

-$.81

Paypal Fee

-$.56

Total Ebay Sale

$7.56

PROFIT = $5.02 / 284% gain

11

2. $25 Outback Steakhouse Gift Card + 10 Bids Closing Price

$.25

Real Bids (4)

$2.40

Shipping

$1.99

Total QuiBids Cost

$4.46

Ebay Final Auction Price

$21.56

Ebay Final Value Fee

-$1.94

Paypal Fee

-$.94

Shipping Cost

-$.44

Total Ebay Sale

$18.24

PROFIT = $13.78 / 409% gain

3. Leatherman Freestyle CX Multitool

Closing Price

$.13

Real Bids (4)

$2.40

Shipping

$7.99

Total QBids Cost

$10.52

12

Ebay Final Auction Price

$43.00

Ebay Final Value Fee

-$3.87

Paypal Fee

-$1.55

Shipping Cost

-$2.87

Total Ebay Sale

$34.71

PROFIT = $24.19 / 330% gain

4. George Forman 80-Square-Inch Grill

Closing Price

$.55

Voucher Bids (12)

$0

Shipping

$7.99

Total QuiBids Cost

$8.54

Ebay Final Value Fee

$36.99

My Charge for Shipping

$7.99

Ebay Listing Fee for 10 Days

-$.40

Ebay Final Value Fee

-$1.60

USPS Shipping + Delivery Confirmation

-12.04

Total Ebay Sale

$30.94

13

PROFIT = $22.04 / 362%

5. Belkin Compact Surge Protector

Closing Price

$.07

Voucher Bids (3)

$0

Shipping

$7.99

Total QuiBids Cost

$8.06

Ebay Final Auction Price

$11.50

My Charge for Shipping

$6.99

Ebay Final Value Fee

-$1.04

Paypal Fee

-$.84

USPS shipping + delivery confirmation

-$8.98

Total Ebay Sale

$7.63

PROFIT = -$.43

I listed this last auction to show you that winning an item for a few pennies does not always mean profit on eBay. I bought a nice item for only $.07, but I did not make any money with that item. I actually lost money in the end. You must be careful on 14

choosing the items that you bid on when bidding on penny auctions. However, there are profits to be made on eBay if you learn how to use penny auctions successfully.

Penny Auction Websites

The following is a list of penny auction websites:

QuiBids

 Bid Rivals

 Bid Sauce

 Wavee

 Swoopo

 Beezid

 Bid Cactus

 Bid Here

 Ziinga

 Plundr

 Bid Rodeo

 Jeaper

 Flutteroo

 Zip Bids

15

 Nail Bidder

 Arrow Outlet

 Oohilove

 Boz Bids

 Bid Uh

 Foopile

 Price Shuffle

 Bidz

 Buy Low Auctions

 Happy Day Bids

 LuxeWin

 Quickdraw Bids

 xBids

 Bidmacs

 PLUS MANY OTHERS

To find out more auctions sites, just do a search on Google for Penny Auction sites and plenty of results will come up. I recommended searching many websites and forums before joining any auction website and definitely before placing any bids.

16

Tips about Penny Auctions

Here are some tips to use before joining any penny auction site and before placing your first bid:

1. Read the site’s Help and FAQ sections – Before signing up with any site, learn all the rules and fees associated with the site. You’ll want to learn about how much their bids costs and their limits on the number of auctions that can be won. You’ll want to see if they offer Buy It Now option or not. I tend to stay away from the ones who do not offer that feature.

2. Search the Internet for Reviews – Before signing up, I like to see what people are saying in regards to the website. What experiences have people had with the different penny auctions. Try looking on You Tube for people who have posted videos regarding the website. These may give you some tips on how to use the site better and how to win more auctions

3. Never be the First Bidder – Most people would recommend that you are not the first bidder as many people can be watching the same auction. You don’t want to waste a bid and come to find out 10 other people are watching the item. I’ve won auctions where I was the first and only bidder, but that is becoming harder and harder to be the only bidder. As these sites gain more users, being the one and only bidder will almost become non existant.

17

4. Stay away from auctions with double digit bidders – If an auction has more than 10 bidders in the past 5 minutes, I tend to stay away from those auctions. Those auctions usually will go on for quite some time before someone actually wins.

You’ll often use too many bids to win that item

5. Bid with the intent to Buy – When you are using your money bids, bid on auctions that you would buy if you had to. I tend to bid on gift cards with my money bids so in case I lose that auction, I can always buy the item. Then I can go to the store or restaurant and use that gift card. With voucher bids, I am flexible and bid on anything

6. Stay away from the “Big Boys” – What I mean by this is to stay away from the auctions of items with retail values of hundreds or thousands of dollars. The higher price auctions tend to have many bidders. Those auctions tend to go on for hours.

There are better ways to make use of my time than to try and win a big ticket item on one of these sites. However, if you do win one, you can guarantee that you’ll profit on eBay by reselling that item.

18

DISADVANTAGES and CAUTIONS with Penny

Auctions

1. Time Consuming – Penny auctions can be time consuming. There is no telling when a auction will be complete. With every bid, the counter resets. So that auction can be over in 20 seconds or it can last for hours.

2. Addictive – These web sites can become addictive. Many people compare auction websites to gambling. If you are not careful using these websites, you can lose lots of money.

3. The only true winner is the website – Most people do not win the auctions.

The true winner on almost every item is the website owners. Think about it, if a $10 gift card sells for $1.00, that is 100 bids on that item. If every bidder used money bids, that $10 gift card cost $60.00! (That is using QuiBids as an example of $.60 per bid)

19

CONCLUSION

Penny auctions are not for everyone. They should be used with caution. If used successfully, penny auctions can be a way to purchase nice items that can be resold on eBay for profit. Before signing up with any penny auction site and before placing any bid, do your research. Penny auctions can be fun and the profits you make on eBay can be even more fun.

I wish every one the very best and if you do decide to try penny auctions – good luck!

FEEDBACK

I’d like to find out about your experiences with penny auctions and eBay. I’d like to hear about your luck with auctions. If you have any suggestions that should be added to this ebook, please email me. Or if you know other penny auctions that should be listed, please email me.

Thanks and Good Luck!

Ed Dickinson

info@HomeWorkersList.com

http://www.HomeWorkersList.com

http://www.quibids.com/?refer=2203461

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