Day 9

Several new views and watchers, but no new sales today. My inventory is quite small, but I’m workin’ on it.

I was looking at stores that operate within a niche, specifically used books. That appeals to me, but only because I love books. I notice these eBay stores selling their books for incredibly low prices. $4.17 plus free shipping…$3.87 plus free shipping…etc.

I thought, “HOW are they profiting?”

Well, I looked into it.

They’re running a volume machine. They buy in bulk for pennies, mainly through libraries, college book stores dumping textbooks, from estate sale liquidators, even recycling companies. Often they pay by the pound rather than per book. Sometimes they get donations.

As for shipping, they use USPS media mail, which is already the cheapest shipping option. Then they get commercial pricing. Volume sellers use bulk shipping accounts, postage software, and they negotiate their rates.

Then the main factor is their scale and automation. They have warehouses and workers, allowing them to build through volume – something people running a store from their home aren’t capable of.

So although each sale may only amount to $0.50-2.00, and even come out negative, they’re capable of selling 10,000 books a day. In the same batch of books, they also sell $35 textbooks, $18 books, $80 niche academic books. This profit subsidizes the listings they lose on. Listing the cheap books drives search visibility and improves seller metrics. It’s great for the algorithm. And the inventory they can’t move? Sold to wholesale exporters or recyclers.

To smaller sellers, $4 plus free shipping on a listing looks insane. But these stores are operating within a different system. Think a family selling homemade chocolates vs Hersheys running a factory.

Anyways, that was the rabbit hole I went down today. I’m always considering future possibilities when more options become available to me.

I recall watching a video about a man who started with less money than I did. He grew his eBay store into a multi-million dollar business selling t-shirts.

He makes routine rounds at swap meets and builds strong connections with suppliers. What stood out to me was his authenticity and integrity. I watch resellers in facebook groups struggling in a never-ending complaint loop about people pricing their items at a ridiculous rate. “Why won’t you sell me your valuables for dirt cheap, wahh!” Meanwhile, multi-million dollar business man builds relationships with suppliers who show up for him week after week with a consistent stream of supply. When the interviewer asked how he feels about the prices he pays, he made it clear he eats because those suppliers continue to show up for him. He takes pride in assuring they’re well-fed, too. He doesn’t see it as losing profit. He knows what he’s doing is making loyal connections. As you scale, margin shrinks, but stability strengthens. And that only happens when you establish strong connections. As you build history with suppliers, they reward your relationship with better pricing and priority access to inventory. I’ve said my end goal is moving into wholesale, and I meant it.

With that being said, strategies that work for large sellers often will not work for new ones. Buying low and selling high is the name of the game at this point for me. But having the right mindset is crucial. People remember when you display fairness, honesty, and care. They’ll remember you the next time they have something to sell, or when they don’t want to deal with the hassle and want something gone.

This is an integral part of business: treating suppliers and customers with respect, being someone who can be trusted and relied upon, having gratitude, understanding where people are. I’m not looking to be a billionaire. I’m not looking for ultimate power, or 6 houses and 14 cars. I want comfort and ease. The best way to achieve this is remembering my customers and the people I purchase from are seeking the same relief.

Things won’t be changing any time soon. Everyone needs to get paid. Life isn’t getting easier.

The answer is building connections and loyalty. There’s short-term payoff in buying low and selling high. But connections in business compound. Short-term arbitrage is necessary when starting out as a small seller, but long-term stability comes from building strong relationships. As far as I’m concerned, integrity and empathy are just as important as strategy. Your calculations are incomplete if you don’t care enough about people to understand their position. The people matter as much as the numbers.

Courtney