How to Make Money Selling on eBay - How to Manage Inventory

Merchandise inventory management is a constant battle for those who have high-volume eBay businesses. Yet if a seller wants to know how to make money selling on eBay one of the keys to success is that inventory management. The lower the amount of cash that is invested in inventory on-hand and the higher the sales, the more likely the odds are for business success.

So how can a seller know when the right level of inventory has been established? How can a seller know when the right level of inventory has been achieved? Those who know how to make money selling on eBay know that there are several components to the perfect answer.

The right answer is based on current sales levels, inventory currently on hand, orders for new resale merchandise that are in transit, and the level of safety stock that is desired. All of these factors combine to provide the answer.

Do you want to know how to make money selling on eBay? Start by taking all of the inventory components and creating the right inventory levels for your eBay business. Place the current numbers for your eBay business into the following formula:

Current On-hand Inventory + Resell Merchandise In-Transit - Anticipated Sales = Anticipated Inventory

Current Inventory can be obtained by physically counting all of the merchandise that is currently on hand and available for sales.

Resell Merchandise In-Transit is simply the merchandise that has been purchased to replenish inventory and is on the way to your business.

Anticipated Sales are the sales that you anticipate making during the selected timeframe. It can be sales for the next week, two weeks, or month. This number can be projected based on current actual sales levels.

Anticipated Inventory is simply the quantity of merchandise that you plan to have in-stock and available for resale as a result of adding everything together. If you have established a safety stock level, the anticipated inventory should be that safety stock level plus anticipated sales for the period until more new replenishment stock arrives.

Do you want to know how to make money selling on eBay? Start by using this formula to help you manage your inventory to the lowest levels possible. By minimizing the investment in inventory an entrepreneur creates the opportunity for greater profits. Managing the inventory helps to ensure that merchandise is always available for shipment as sales are made as well.

To your eBay success!

To read my free e-report Go Here! Bob Hamilton is an entrepreneur, writer and consultant. Bob sold his brick and mortor store to sell on eBay and has been helping others to get started on eBay ever since. http://www.openingadollarstore.com