Money Maker: An Adventure into Selling on eBay

It all started back in the winter of 2004. I was interested in making some cash and I was fiddling around the internet in hopes of finding an interesting project but I had no idea that my two goals could intersect. I was familiar with eBay but only as a buyer not as a seller. I was searching for a crystal radio kit or something similar but I could find anything that I thought was worth it. Everything I found was either to toy like or cheap looking.

By the way: A crystal radio is a very simple radio receiver.

There are many different versions but the simplest usually consist on a Germanium diode, a length of 22AWG magnet wire, a capacitor and a high impedance 20M Ohm ceramic earphone. The wire is wound around a cylinder (2” Dia PVC pipe or cardboard tube). A remaining length of wire is extended to a distance and acts like an antenna. The other end of the wire which emerges from the circuit is used to touch (tap) the coil at various points which helps you search for a station.
The main difference between a crystal radio and a standard radio is that it does not use a battery or power source. The circuit gets its power by creating current from the passing of the weak radio waves over the extended antenna. Since the signal is so weak the earpiece needs to be very sensitive to listen to the stations as they come in.

After much research, I realized that I might have to buy the components separately. If I were to do so, I would also have to buy a solderless breadboard. The radio would end up looking more like a lab experiment than a children’s toy. But I liked that idea.

So, I began to search for the parts individually. That’s when I really got a surprise. It was going to be expensive. At least $40 plus shipping (from several vendors) to get everything I needed. Maybe $60-$70 total. No way was I going to pay that for items that essentially cost pennies.
I went to an online electronics part distributer and found I was right about some of the parts. They did cost pennies, that is, if you bought 100’s or 1000’s of them and the more you bought the cheaper they got. I took a deeper look at the diodes. They sold 10 diodes for $5-$10 on eBay and I could buy 1000 of them for pennies per diode. Essentially, I could sell 70 cents of merchandise for $5 + shipping until I got rid of the ones I didn’t need.

I know what you might be thinking. I know it’s not much and it might not be worth all the work. But I jumped in and it worked. Very well I might add. There was a demand. The demand turned out to be bigger than I thought since the N134A diode was also used for building/fixing distortion pedals for guitar enthusiasts. About $80 turned into $800. It all took about 2-3 months. They went quick and I managed not to spend the money as it came in. I was over the moon with joy. I was ready to double down. So, I did. This time buying about $1000 of diodes and offering them in different pack sizes. (Qty:10, 25, 50, 100 etc.) Not many sellers were offering these specific diodes at this time. I had very little competition and it worked again. This time it took about 6 months to clear the inventory.

About a year into my eBay adventure I had expanded and diversified into different products with different degrees of result. The initial success with the diodes died down as seller after seller followed me into the market. The profits from that item declined making it not worth the effort any longer, but I don’t regret it. There are several lessons I learned selling on eBay.

• If you don’t have competition, you soon will
• What interests you usually interests other people too
• The profit from your product line will slowly dry up as competition comes in. You need to keep polishing your listing/brand and offer more value with your product to separate yourself from the rest.
• Always start small. If it worked with a small inventory it’ll work when you buy in bulk.
• Keep researching new items and new opportunities. Keep moving.
• The biggest risk is doing nothing at all and regretting it later.

I did manage to build a crystal radio about a year and a half later. That is, once I was selling all the components separately. LOL

Thank you for reading. I hoped you enjoyed my eBay experience. I have other stories of what did and didn’t work on eBay which I’ll post if there is any interest.

Cheers,
Keep Steeming!!!

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