Is this wrong?

[Josue DG]

So eBay is running their Microsoft cashback promotion again. Its currently at 14%. I also received an email from eBay for an extra 8% cashback. Unfortunately, I do not have the need or want for another lens, flash, body, or anything else. Not wanting to let these promotions go to waste, Im thinking I can make some cash for gas or lunch.

So would it be bad or morally wrong to purchase a new lens using my 22% cash back and reselling it to make a small profit?

[hawkeye60]

That's what businesses do all the time. They buy up close outs, etc. and then sell for a profit. They risk their capital in doing so as do you, and for that risk you make a profit, hopefully.

[sandpiper]

So would it be bad or morally wrong to purchase a new lens using my 22% cash back and reselling it to make a small profit?

Nothing wrong with it, but is the profit margin worth the hassle?

You say "purchase a new lens", do you mean brand new or second hand? If it's brand new when you buy it, you will be selling it as used and may struggle to get the price it cost you.

Allow for all the costs involved. Is there shipping to pay, or sales taxes? They will add to the purchase price but won't add to your selling price. If you are buying to sell, you should declare the profit to the taxman. OK, for one item you will probably get away with not doing that, but you are still liable.

Where do you plan to sell it? Ebay tends to get the best prices, but you are unlikely to get more than it originally sold for and quite probably less (particularly if it was new and is now used). So your profit is going to be, maybe, 20% of the original sale price (i.e. your cashback). Then knock off your listing fees, final value fees, paypal fees which will add up to about 12% or so of your sale price leaving you with very little. If it doesn't reach very close to the original selling price, you could end up losing money on the deal once your fees are paid.

You could sell it elsewhere, on here for example, but what can you get for it?

You also have to be aware that there is always a possibility that the buyer could give you problems, potentially try and scam you and claim non-delivery. Sellers shifting large quantities of gear allow for a small percentage of loss through returns and such shenanigins, it's built into the markups. That doesn't work with one item.

I'm not saying that you can't make a profit on such a deal, but the margin seems very small. Most people who buy to sell (I've been there, done that) look at being able to at least double the purchase price, when it comes time to sell. That allows for all the extra costs involved, a degree of product loss etc., and still leaves a decent profit overall.

Do the math and if you feel that the minimum profit you expect to make is sufficient to cover all the time and effort involved (not to mention the risks), then go ahead. Otherwise, look around at other ways of making money which give a better return.

It isn't difficult to find bargains that you can turn around for several times what you paid for them. Try your local fleamarket, where you can pick items up for a fraction of what you can sell them for. Buy a 'job lot' off ebay, I saw a job lot of several dozen, good name brand camera bags, pouches etc., recently that went for about 10% the true value of the items. Buy something like that and offer them on here, or elsewhere, individually at half retail price and you should sell them quite easily and make 300% or more profit, rather than the 10% you might make on the lens.

[plucks]

Or just buy some glass for yourself!

[sandpiper]

Or just buy some glass for yourself!

I think that option was pretty well ruled out in the opening post, why would anybody buy something they don't want, for themselves, just to use a cashback. :rolleyes::rolleyes:

I do not have the need or want for another lens, flash, body, or anything else.

[Josue DG]

Thanks for the info Sandpiper. I totally forgot about all the fees and hassle of weeding out all the spam emails. I might just end up asking friends if they have anything they want to purchase so the discount wont go to waist.

[rklepper]

I don't think there is anything wrong with it, just make sure that the lens you purchase is 1) easily resold and 2) has a high resale value.

[rklepper]

I think that option was pretty well ruled out in the opening post, why would anybody buy something they don't want, for themselves, just to use a cashback. :rolleyes::rolleyes:

HAHA. Because that is what people do. :)

[adebartolo]

If you feel like not letting the discount go to waste why not buy the item for a friend that is in the market for that item. You could save him money and perhaps pick up a dollar or two for your effort.