eBay: a lot of people working really hard and not making much money

[mandy]

Does Anyone Get Rich on eBay?

"There are those who get rich on eBay, but there is also more smoke than fire," says Joe Kennedy, author of "The Small Business Owner's Manual." "There are a lot of people working really hard and not making much money. The kicker is that they don't really realize it."

Although it seems odd that sellers would be unaware of losing money, Kennedy notes that it happens frequently, because of the way the system is set up. Sellers might turn over a healthy amount of inventory, get it shipped quickly, and have the money in their accounts promptly, but the level of detailed bookkeeping necessary can give sellers a skewed view of their operations. They might look like they're headed toward riches on paper, but in reality, it could be the road to the poorhouse instead.

"Some work like dogs, and they figure that because they're working so hard, they're doing really well," Kennedy says. "But the fee structures are complex with credit card services and auction management, and it could be that they're losing just a little bit of money on every deal. It happens far more often than most people think. EBay buyers wonder how people can sell things for so cheap, and the answer is: They can't."

full article: http://www.newsfactor.com/story.xhtml?st...3000002U5U