Most people think selling on classified sites is the equivalent of an online garage sale – great for a spring clean to get rid of unused items whilst earning a little extra cash, and that’s about it.
The surprising truth is there is serious money to be made on classified sites like Gumtree, if you know what you are doing.
I have been selling on classified sites for a profit for a few years now. Last year I took the plunge and quit my courier driver career. Now I sell on classified sites as my main source of income – earning much more than I ever did as a courier, whilst working less than 20 hours a week.
Here are 5 powerful lessons to help you sell on classified sites for maximum profits.
1. Know the true selling value of items.
As teachers always say – do your homework! Knowing the full retail value of an item, along with the average second hand price-range the item will sell for is most crucial to success in classified selling. The reason that most people sell things too high or too low is because they have absolutely no idea of how much the item they are trying to sell is worth, especially in a market like Gumtree – filled with second hand goods and bargain hunters.
When you know the true selling value of an item, you have a far better chance of spotting under priced goods which you can snap up and resell for huge profits.
2. Target goods for cheap or free which you can renovate easily.
Capitalise on other people’s laziness. A very effective technique is to search for items listed extremely cheap or even free, with an easily fixable flaw. Renovate the items quickly and easily and resell them for a more realistic price. Once you start searching, you will be amazed at how many quality items with a minor flaw people can’t be bothered to fix and will practically give them away.
3. Build up your float and manage it wisely.
You can’t snap up a bargain fast if you have to wait until next weeks pay.
This is why you should build up a float of buying and selling money and make sure you use it wisely – don’t be tempted to dip into it every time you are short a few dollars. Having the cash ready and waiting and being the first to contact a seller has scored me so many bargains from sellers who list their goods really cheap because they are leaving for overseas immediately or desperately need the cash.
4. Play the haggling game.
Classified buying and selling is a bit of a game – the thrill of the bargain hunt. The thrill of finding a bargain is a key reason why people frequent these sites. So when selling, I say give them what they want. The trick is to figure out the real selling price of an item and add 10-20% on top. List your items as ‘negotiable’ and let buyers haggle you down the 10-20% to the real selling price. You get the price you want, they get a bargain – everyone wins!
5. Don’t take it personally.
The most energy draining part of classified selling is dealing with the timewasters. Unlike Ebay where the auction format determines most of the communication between buyer and seller, Gumtree is filled with tyre-kickers and cheap people who like to throw you lowball offers. Ignore them. Don’t let these people steal your energy.
The trick is not to take it personally. Because it’s not personal. Most people don’t wake up looking to be a nuisance (yes, you will come across the odd nut-job exception). These people just have different definitions of what time wasting or a reasonable offer is. A serious buyer is easy to spot – they will actually show up and at least have a look at what you are selling.
Ben Riddles is a self-employed Copywriter and classified seller who quit his job as a courier driver to pursue his ‘laptop lifestyle’ dream. He writes a regular email advice newsletter about selling on classified sites. For the latest tips, tricks and techniques, sign up at classifiedsellingadvice.com.
