Selling Challenge Coins on eBay
Posted on March 22, 2008
Filed Under Collecting Thoughts
As an ex-seller on eBay I have the know-how to give advice on selling on eBay. Challenge coins have not gone away from the giant auction house in the least. You will see the same familiar faces selling on the venue that you have for years past with new faces popping up only once in a while. There is no secret really in this process. You need great coins that people desire. However, there are some behind the scenes you may not know. Let’s look at where the coins you see on eBay come from:
- Drop shippers are one of the most common avenue for sellers. This allows them to take a cut from the manufacturer and not have to hold the actual coin. You will see this in extended shipping times or the same coins from multiple sellers. If you have bought this type of coin you have received something more than likely less valuable since it would be mass produced 9 out of 10 times. You will sell coins if you choose this route but you will be splitting serious profit between the actual maker and eBay.
- Another trick of the trade is buying lots either at great prices or in lots slotted in the wrong categories. Sellers that get these deals generally do really good on reselling them. People that retire, separate, or just don’t want to collect anymore just want to ditch the coins. This is a perfect opportunity to rack up on cheap coins that sell. Most of your big time power sellers choose this route to add to their stock and you can also. Make sure you are hunting through the odd categories someone might think of listing coins in.
- Another rare way to get started is financing your own coins to sell. This by far is the most lucrative if you pick the right coins to make. You get full profit and new coins on the market that no one else has brings mega sales the first few times out. This excites buyers and enhancing the collections of many. This is in presumption you can actually make a great coin. There have been many times sellers often have the wrong company make them, or just suck on design. Usually you will see the remains of a coin gone wrong as masses of them are packed in lots on eBay.
- Trading challenge coins with other wholesalers or dealers is a nice way to go. However you are trading for their duplicates which means you now become their competition. This is not a smart way to go usually, however, you will find some sales through this. Sellers love to trade off their dead coins that don’t sell. This is one area you could easily get screwed.
So we looked at just 4 ways sellers gain the coins they sell. Of course there are others but we will just focus on those right now. Let’s look at coins that bring good money:
- Coins attached to valuable units like aviation, artillery, K-9, EOD, Special Forces, and highly needed war time units go for big bucks. If you get you hands on this group of coins you will be doing yourself well. Stay away from the weaker ones unless you need some loss leaders to get people into your store.
- Custom coins bring in huge dollars as we mentioned above…but be careful.
- Odd shaped coins are a winner almost every time. Find these and maximize on this type as much as you can. Buyers love unique coins. Round coins are the norm and some people want to break away from that to enhance their racks.
- High military brass or civilian equals are huge money. Never pass these up if you can authenticate them. Some people just love these!
We gave you 4 more examples on great selling types of coins. You can brainstorm and research these at your will. We had good luck through the tests of time in these areas and you can always check out what your soon to be competition is selling. Seeing we gave you the pros, let’s give you some things to stay away from:
- Stay away from Korean duplicates. We started on these and have since left this scene shortly after saintcross (eBay seller, now changed usernames) started undercutting us. These are not authorized in many cases or they are cheap and everyone has them. You can buy direct from many places on an average of $3.50 a coin including shipping. If you truly desire this just email us and I will give you the suppliers so you can directly compete with the other Korean coin sellers.
- You might want to pass on the drop shipping places. Generally most of their designs are not great although the minting might make up for it. You will find they are churning out the same coin for your competition and who wants to be the same as everyone else. You need something to standout on. Your shipping will suffer if you don’t keep the product on hand and God forbid they run out of stock and you already sold the coin. In our eyes, there is money there, but not enough in a long term plan.
- Don’t peddle used coins. You will get dinged and probably lose buyers quickly. The coins your sell should be mint or close to. You will find your way out of the game just as fast as you came in.
We didn’t give you 4 that time but we think you can brainstorm. Some of the other tips we can give are to be prepared to fork over a nice chunk of profit to the USPS, eBay, Paypal, your supplier. You will keep a small chunk but that depends on your tax bracket. Yes, you will actually have to file the income if you are even moderately successful. Selling on eBay has become tougher these days. If you only sell challenge coins it will hurt a little more. Try to spread your wings and list other products if you can. This will guide people to your store and might create extra sales.
This is our basic tour on what to be looking for. Most people never become big in this area because of the saturation a few have in the market. Don’t be discouraged, just go in with reasonable expectations. Part 2 will be out soon enough as we give tips to increase your selling.
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