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Wow, this thread is old.
I am a year out of selling anything on eBay. I bet it is a lot harder now (isn't everything?). They key is still how low you buy. That only really matters until someone buys lower.
If I were to do it again, I probably wouldn't.
As I was taught by a friend, if you sell peanuts, you make peanuts. Don't go the way of the high volume, low priced shippables. The work will drive you crazy and the fees as a percentage of sales will kill you.
I also had deals with local manufacturers and never paid for anything up front.
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