The raw numbers on 'flipping' a book

[cmixer]

Sold (2) items on ebay.
One sold for $86.85, and one for $25.00 (both offered with free shipping).

From PAYPAL, i received $84.03, and $23.97

eBAY fees were $11.18

Shipping was $3.09 (comics by media mail) + $1.15 (a card in padded envelope). I recycled shipping supplies.

So the numbers are:
Sold for $111.85
Received (After costs): $92.58

If i had bought 25% below market/selling price, hoping to 'flip';
Thus paying $83.88, but had to pick up typical shipping costs ($10 for books) ... i would have actually LOST money flipping.

Just a reminder for those looking to buy low, sell high.

[aja3217]

And Comics don't count as Media Mail as they contain advertising. I found that out the hard way when I had some returned to me. So it would be a bit more for First Class. 95% of the time (maybe higher) they'll get through, but if caught in a random inspection they'll be shipped back to the seller. 8 oz is about a low a weight as I can get 1 comic in a envelope with cardboard - which is around $3.50 I think.

[Spider-Fan]

Well... I think the buy low sell high mantra is more about actual appreciation, not getting a good deal and immediately trying to turn a profit.

That said, flipping is a skill that takes a lot of research time and diligence. You really have to know the market and be constantly looking for deals. It's MUCH easier to buy a card/book at a show and flip it on eBay than it is to buy something on ebay and then flip it on ebay. Ebay is the real winner in that scenario.

I've done my share of opportunistic flips, but I don't make a habit of it. I'm happy with my day job :)

[Cyber Warrior]

Always accommodate and adjust accordingly for eBay seller fees, PayPal fees and shipping/handling fees. There's eBay fee calculators if you do a Google search, comes in handy. This is why items on eBay are priced so high, it sucks but eBay has the largest market. I just sold something for $500 and had close to $70 in eBay/PayPal fees.. so my item was priced ~$70 above retail... but then you get those offers from people trying to buy something at cost probably not realizing you would lose money.

[kaboom]

I had a book I was selling online that I had bought at a convention, had signed and graded and shipped back to me. A buyer made one of those offers, you got this for $20 plus grading fees so I will give you $80 which is twice your money. I responded, NO. I informed him that things like travel to the convention, hotel and parking costs, admission to the show, time to get it signed, postage to have the book shipped out, postage back from grading, and seller fees all go into the cost of a fairly priced CBCS slabbed 9.8 book. He responded he would not be paying for my trip. I responded, I knew as he wasn't going to be buying my book for the low ball offer.

[Spider-Fan]

As a buyer/collector, I love finding great deals for my PC. I just recently won a HQ 9.8SS signed by Jimmy and Amanda for $39 shipped. Great for me, sucks for them. I had 6 books signed Jimmy and Amanda at NYCC - $20 witnessed signing fee and $28 CGC grading fee per book... Maybe the seller paid less or nothing for the sigs, but he isn't making money on this deal.

On the other hand, as a sometimes seller I see both sides. I always want my sales to fully cover my costs. Unfortunately, sometimes you have to suck it up and take a loss if you want to sell your item. Sometimes market value just doesnt cover what you put into the item. The alternative is not selling the item, which is a bigger loss.

I almost always sub books in duplicate to improve the chances of getting a 9.8 for my PC. The plan is to sell the extras to cover at least some of my costs. If they come back 9.8, usually the return on that book is in the green. A 9.6 will usually leave me even. A 9.4, which means I really missed something, is easily a loss most of the time. But getting $20 or $30 back is better than taking a full $50 or $60 loss.

[Branesergen]

It takes money to make money. I'll elaborate more in a minute.

1st - Looks like the 1st was an auction? If it was, a BIN will improve your profits. If you can get $86.85 at auction there is no reason you cant get $90 as a BIN. Netting you a couple extra bux.
2nd - Charge shipping. Most people overlook shipping costs when buying, others think oh its only $3 more and still a good deal, and others pass it up. 2 out of 3 to cover your costs. Again netting a couple extra bux.
3rd - Your shipping costs. $3.06 for media mail??? Was this one book? Or several? Either way $3 would cover most of it. If its one book - $2.60 should be your max costs if printing from paypal for 1st class, keeping delays down and possible postage due to your buyer. If its costing you more than $2.60 (Up to 8oz) then you need to lighten your box. A regular recycled mailer can be used and cut off any overlap in cardboard. The difference from 8oz to 9oz is 70 cents, the cost of a new mailer such is what I use. The profit increase here is 40 cents ($2.60 paid - $3.00 received) and covers the FVF for shipping costs and saves from the delays and postage dues.
4th - Buy multiple from same person at 1 time. Thusly decreasing your shipping costs and getting bulk discounts. This is where it takes money to make money comes in. If you by 1 book for $5 plus $3 shipping vs 10 books at $4.50 plus $7 shipping it makes your book cost $5.20 vs $8. Or even $5.70 vs $8 if you pay full price.

Every little bit adds up. If you make 1 extra dollar per sale and make 50 sales a month, that's $50 to buy even more books to sell which means you've gone to 75 sales a month for $75 extra dollars to 100 sales a month etc etc. Also gives you a little cushion for losses.

[Spider-Fan]

A bagged and boarded comic wieghs in over 3 oz. I've never had an Adequately protected comic weigh in at 8oz or less. Whether it's a comic mailer or two sheets of sturdy cardboard in an envelope.

[Stat Monsters]

As a direct to consumer marketer, when we put our P&L's together and also test consumer behavior on what's acceptable or not, although "Free Shipping" as well as any upgrades to "Express Delivery" or "Expedited Shipment" are appreciated, the general public is conditioned to accept paying for shipping.

With that, if you are engaging in a low margin business, where shipping is part of your overhead and one that you don't also get bulk discounts on and it eats into your ability to be profitable... don't offer "Free Shipping"

I know many naysayers would tout, in this "Amazon Prime" millennial generation there's that self-entitled assumption that shipping should always be free. It's an attractive lure.

Truth be told, the general public isn't that savvy. Most look at the purchase sales price only, not factoring in any other fees like taxes, registration, commissions nor shipping and handling. Instead of calculating their "all in" total, they look at a single number.

So, with that, don't be afraid to charge for shipping, under the condition that you're respectful on 2 levels...

1) Package sturdy and secure, don't be lame and lazy. No collector wants to receive damaged goods or in packaging where the merchandise could have, but luckily didn't get damaged. Most collectors are willing to pay for adequate packaging.

2) Ship promptly, don't be tardy, everyone is impatient.

With that, no need to use Media Mail and circumvent the USPS law (it is illegal and subject to fines and penalties). It shouldn't matter to you, as the customer is paying for shipping, so go 1st class, or better yet, with adequate packaging, use Priority Mail (and don't be stupid with flat rate envelopes, most of the time you can get the same service for under 1 lb using a BOX. Envelopes even with cardboard support are often easily bent, where if boxed properly, you'll be wiser and have more assurance of not getting customer complaints.

Don't undercharge international bidders, nor ship as a "gift" or fool around with customs declarations of value. It's their cost of doing business as an international customer to adhere to the law.

Don't be afraid to charge a "Handling" fee that's reasonable to cover your overhead of packaging materials (including bubble wrap, packing popcorn, boxes, markers, tape, etc.) - and as you know, if you sell on eBay, they charge a commission on shipping revenue, so if you do that "exact cost" shipping fee, you're actually subsidizing that and taking a slight loss. Round up the shipping fee to cover the commission and your overhead. It shouldn't be a profit center per se, but also shouldn't contribute to an overhead expense either.

Don't necessarily treat a $1 book differently than a $1,000 book, as that $1 book is still important to the buyer. However, if you do sell a big ticket item, go above and beyond how you package it, amp it up and don't just get USPS Delivery Confirmation Tracking (those parcels are often left unattended at doorsteps), but get that SIGNATURE REQUIRED service for accountability. A person buying a dollar book that needs to pay $6 shipping is just "the cost of doing business", and feel free to add bulk buy discounts on shipping to motivate buyers to consume more.

Comic Book reselling is tough at times with modern hot books and variants to "flip" the main thing is to keep your COG's (cost of goods) cheap. Don't buy expensive books at high prices hoping to turn a profit when the market can crash. You're better off buying $1 books to sell for $2-3 than a $50 book that can drop to $25 easily within 2 weeks.

Flipping is also about greed. Those who are greedy, end up holding a lot of dead inventory and tie their money up.

Have a win goal and loss limit, like in investing and gambling. Moving product at a profit quickly is key, so you don't "buy 10, sell 3; then buy another 5 of another title; then sell 4" where you're continually adding to your inventory. A true flipper gets in and out of inventory and moves on with life onto the next item to take in and turn out. If you buy a book for $5 and sell it for $10, even if it later goes to $25, you're still a winner, doubling your money (on the gross dollars), which is great. Once you start speculating and getting greedy you'll be left holding too much trash over far less treasure.

Truth be told there is no "Buy Low, Sell High" strategy in the pure since that you'll never really ideally optimize selling at a peak. The peak is usually discovered once something is retreating on the downslide. Usually both the price and demand (can't even give it away at times) drops fast. So, that's why being greedy can be foolish. Just set a profit margin goal and move on.

When you price, don't do "penny auctions" if you can't afford to assume the risk and need the reward. If you factor in, after fees (ebay and pay pal), plus what's "worth your time" you should ideally start your auctions off at about 25% over what your cost of goods are (and if you buy from a LCS and are not a reseller, factor in the cost of your sales tax and bags/boards into what the true acquisition cost is to you as your cost basis to price your merchandise)

Don't be afraid to take losses on books that don't sell. If you can turn 100 books into $100 that cost you $300, taking that $200 loss isn't bad if you can then turn that $100 into $300 or more on another investment.

[Spider-Fan]

Nice. The only thing I would add to that is insurance. Insurance protects the SELLER. if you sell something expensive that you can't afford to eat, pay the couple extra bucks to get it insured. If something happens and you don't have insurance, YOU will be screwed. The buyer will get a full refund from ebay, paypal, or thier credit card. The buyer doesn't need insurance.

[IndySportsCards]

Great information by seasoned professionals in this thread, heed their advice and you can build a solid reputation and create a solid history of satisfaction. Very proud to among such a great group of people!

[Branesergen]

Nice. The only thing I would add to that is insurance. Insurance protects the SELLER. if you sell something expensive that you can't afford to eat, pay the couple extra bucks to get it insured. If something happens and you don't have insurance, YOU will be screwed. The buyer will get a full refund from ebay, paypal, or thier credit card. The buyer doesn't need insurance.

This right here! When I sell a card for over $100 (or any I don't want to risk losing) I pay for insurance and signature confirmation. Makes my total about $8 but worth the piece of mind, especially if I have the room in my profit. I personally believe the word "insured" on a label makes them take a little extra care with it. They probably don't but I like to think they do lol

[Branesergen]

A bagged and boarded comic wieghs in over 3 oz. I've never had an Adequately protected comic weigh in at 8oz or less. Whether it's a comic mailer or two sheets of sturdy cardboard in an envelope.

I use a Gemini comic mailer, brand new, and cut about 4 inches off the left flap. This puts a regular bagged and boarded comic at 7-7.8oz for me. I used to double board but that put me over 8oz so I cut it back. Tape the comic down on both ends and wrap the tape around the mailer flap on both sides so it cant shift. Fold the inner flaps so they secure the comic and act as my 2nd board. Then cut and fold the outer flaps, one band of tape across the length and double seal it with my label. Throw on a do not bend sticker on the front and back and take it to the PO. Granted I've only shipped about 20 this way but zero issues so far. *knocks on wood* My security blanket is I'm only selling current and nothing big ($3-$10) and have an extra copy to cover any issues.

[CMS1]

Insurance and signature confirmation is a huge one for me with higher value items. You can get burned big time without them. I had added it for packages for years and never had problems. Then this past year I had two claims with one for a lost package and another for a damaged item. If you ship priority mail you are covered to I think $50 or $60 and if it more than that you can add more for an additional payment.

[Spider-Fan]

I use a Gemini comic mailer, brand new, and cut about 4 inches off the left flap. This puts a regular bagged and boarded comic at 7-7.8oz for me. I used to double board but that put me over 8oz so I cut it back. Tape the comic down on both ends and wrap the tape around the mailer flap on both sides so it cant shift. Fold the inner flaps so they secure the comic and act as my 2nd board. Then cut and fold the outer flaps, one band of tape across the length and double seal it with my label. Throw on a do not bend sticker on the front and back and take it to the PO. Granted I've only shipped about 20 this way but zero issues so far. *knocks on wood* My security blanket is I'm only selling current and nothing big ($3-$10) and have an extra copy to cover any issues.

I"m sure its fine. I just know those mailers come in just under 5 oz, so when you through a bagged and boarded book inside, some tape and a label, I've always run up over 8.0oz. I typically charge $3.50 for shipping, so re-using mailers I about break even after fees. I really don't sell many floppies on ebay though. I'll list them through the board here, but too often on ebay because of all the drama/scammers. I try to stick to professionally graded books only for ebay.

[Comix Guy]

If you're going to get serious about flipping, you need to setup a spreadsheet with formulas.

[Spider-Fan]

If you're going to get serious about flipping, you need to setup a spreadsheet with formulas.

I do that anyway, just to keep track of my expenses. I've been less diligent the last year and a half though, so I'm actually spending a big chunk of my time off this month getting that back on track.

What I bought, what I sold, what I paid in fees/shipping, etc... Its really more about cards, because I sell a lot of what I get in sealed boxes. Comics, I pretty much just buy what I want, so that spreadsheet will be full of red.

[Comix Guy]

I do that anyway, just to keep track of my expenses. I've been less diligent the last year and a half though, so I'm actually spending a big chunk of my time off this month getting that back on track.

What I bought, what I sold, what I paid in fees/shipping, etc... Its really more about cards, because I sell a lot of what I get in sealed boxes. Comics, I pretty much just buy what I want, so that spreadsheet will be full of red.

Right, I always put what I paid on the back of the book.
My spreadsheet is setup as such:
NAME PAID SOLD SHIP FEES PAYPAL NET NOTES ROI

Overhead is not calculated as it is a cost of doing business. This includes things like bags & boards, tape, mailing supplies, etc...

[fastballspecial]

I have read some very good information in here for newer sellers.

I don't disagree with much of it.

Id like the idea of packing all your comics the same way because that's what I do. Now as mention above a $200 book I will go a few steps further, but my base package gets the same whethers its $1 or $30 and buyers appreciate that.

I cant emphasize packing enough especially during the holiday season. I go overboard from Nov to Jan on purpose. Shipping costs should be factored into your shipping and keep your costs the same way.

I don't ship media, but I get several packages shipped that way to me. I really think they flag the ones that are using it for the weight advantage. Never had one flagged to me but I only buy a few at time.

Anyone looking to do this professionally you better think twice and then think again. This industry is dominated by greedy individuals on the reselling side and you can easily become one and get stuck with a lot of inventory.

Comic buyers come in all shapes and sizes. Learn to grade well because your reputation will depend on it. If you enter the slab market be very aware that the are even more pitfalls because more money is involved.

Ive been doing this a very long time as a fun hobby. Ive made killer flips and even buy books that are losers for me or break even books. I do this to attract new buyers.

Networking in the industry is a must and that will take a long time. There is a no shortcut to being a good seller in this industry. It take time to develop trust.

Inventory management is a must. Sometimes it smarter to just walk away from a deal that will take forever to make your money back.

And lastly everyone ships differently. What you have to keep in mind is this. Would you like your comic shipped this way? If you even think for a minute the answer is "No" then you better re-think how your are packing your books. You cant use enough cardboard is the mantra I use. Yours will be different.

Several years down the road pass all this advice onto other new sellers our industry will be better for it.

[dannyman]

I don't buy anything that I don't feel I can double my money on. I don't get these morons that buy $4 books to sell them for $6-$7 on ebay.

[Branesergen]

I don't buy anything that I don't feel I can double my money on. I don't get these morons that buy $4 books to sell them for $6-$7 on ebay.

Really? Morons?? Soooo to get this straight - As long as you can sell it for $1 more, make sure you're reading that correctly, its $1 more, then you're not a moron? Hahahahahahaha

[Cujobyte]

Really? Morons?? Soooo to get this straight - As long as you can sell it for $1 more, make sure you're reading that correctly, its $1 more, then you're not a moron? Hahahahahahaha

I think what Danny meant is it's not worth the time/effort to put into it at that low a profit (if there is a profit).

I tend to agree on the smaller stuff. I just posted my first submission, and forgot how much "equity" you can get into buying raws, of course I've been doing this a LONG time though and was taught how to press from the same guy Matt Nelson (cgc) learned how to press originally from.

It's a risky thing trying to flip stuff in today's market. I'm a huge collector first, and have only ever done the buy/flip things to pay for my own collection whenever possible. I also speculate on certain things and have done well 80-90% of the time. Due diligence pays off.

[Branesergen]

I think what Danny meant is it's not worth the time/effort to put into it at that low a profit (if there is a profit).

I tend to agree on the smaller stuff. I just posted my first submission, and forgot how much "equity" you can get into buying raws, of course I've been doing this a LONG time though and was taught how to press from the same guy Matt Nelson (cgc) learned how to press originally from.

It's a risky thing trying to flip stuff in today's market. I'm a huge collector first, and have only ever done the buy/flip things to pay for my own collection whenever possible. I also speculate on certain things and have done well 80-90% of the time. Due diligence pays off.

Oh I get all that. Just his comment stated "double" and then went on to use numbers that were $1 to $2 under double.

[Spider-Fan]

If I could buy a book for $500, that is guaranteed to resell for $700, I'm all over that. On the other hand, if I could buy a book for $5 that is guaranteed to resell for $7, I'm not touching it... Even buying a $5 book that I can sell for $10 doesn't excite me. My regular job is paying a lot better return on my time.

[dannyman]

Even if a $4 book sells for $8 on ebay then its not double. unless you ignore fees and consider your TIME is worth nothing...

I truly feel for the guys who pound out a living flipping books on ebay for $1-$2 profit. Don't get me wrong I respect them for what they are doing but I will donate a book to the goodwill before I force myself to deal with the idiots on ebay all to make a buck.