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Ebay Recession-proof?

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OK I know if retail spending goes sour, this will definately effect traders on ebay. That is obvious.

But I do know from first hand experience there are a few big players in the UK ebay market that are trading in customer returns / ex-display / end of line items. These are mainly customer returns, but they skillfully word there adds to cover themselves in disclaimers. The profit margins dwarf anything that I have ever seen before, even house prices. There is nothing wrong with the products they sell. Some are genuine ex-displays, and some are returns by customers because they probably found it cheaper after they purchases it, and return it with an excuse stating it has a fault. I have personally seen a few businesses flourish over the last year.

Have I had a go? Yes. Did I make money? Yes, but not enough. Was I dedicated? No. Will I do it again? Maybe.

Why would this business be recession proof? Well here is my theory. They (I mean these type of traders, which I believe there is alot of them), are all buying from main auction houses throughout the UK( of which I personally know of two major auction houses). Traders amongst the floor determine the price (too a large extent), you will always get the customer from the street wanting a bargain and always having a bid buying one or two items. These newbies often never return as buying such a small quantity drastically increases the risk of actually buying a dud genuine return. The traders buy these products in the 100's and are continually gearing themselves up for bigger buys. Prices on the floor are extremely sensative to what is happening on in the market. For example, a particular portable DVD player drops in price in a major retailer, and you can see this instantly feed through on the bidding.

In conclusion if the recession bites, auction bidding would respond immediately. I have seen this happen just when a particular item goes on sale. Remembering these are returns which the major retailers / manufacturers are just trying to salvage some money, there is no reserve set on these prices. So if ebay sale prices start to dive, so will the cost of these items.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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