1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.
Dismiss Notice
Have you checked if your business appears in our directory? Add your basic information for FREE!

Click Here to know more!!

If you would like links to source leads, upgrade from £12.50 a month!

Click Here to subscribe!
Dismiss Notice

Hi Guest!

Our website stays online because of the support of our advertisers. A huge part of them are from banner ads that appear on our site. While some of them seems to be intrusive for some, these ads are needed to keep our community running and continue providing free membership service for buyers.

In light to this, we request that you disable ad blocking programs or add our website to your ad blocker's whitelist. This keeps us from offering our basic membership to everyone for free and help with maintenance costs of our website.

If you have already disabled ad blocking programs or added us into the whitelist, please ignore this message, this message will disappear in a few seconds!

Babz Media on eBay

Discussion in 'Online Marketplaces - eBay, Amazon, Etsy and more' started by Sc0tty, Mar 19, 2013.

  1. Sc0tty

    Sc0tty

    Joined:
    Jan 19, 2010
    Messages:
    701
    Does make me laugh these jealous people, I start this to get an insight into how to improve what I am doing and to learn from them. Its seems there plan is stack em high and sell them low. Probably with the plan of putting lots of people out of business so once there is less competition they can rise their prices and start making a decent level of income.

    My HDMI cable arrived today (ordered yesterday) , it came in its own packaging which says they have tested the product. That baffles me even more. Most ebayers just send the cable. They have the expense of packaging and testing. Okay the packaging probably cost a fraction of a penny, and the testing probably took seconds, but its all added costs on what is a cheap product.

    I was a bit surprised it was sent first class, though the discount they get from RM probably means they pay the same for first class as I would for second class.
  2. MSFB

    MSFB

    Joined:
    Dec 13, 2010
    Messages:
    2,248
    It's almost certain that some of their products will make a loss, if you really want to get to the bottom of it you need to look through all their products and find the ones that are making a profit.

    Bear in mind also that this is a relatively young company. There have been many others surviving off a massive turnover but eventually go bust 2-3 years down the line. It has to be a consideration with babzy as well.

    Can someone pose as a pick and packer and get a job in the warehouse and do some snooping round?
  3. Sc0tty

    Sc0tty

    Joined:
    Jan 19, 2010
    Messages:
    701
    Okay I am thinking out loud here. Going to try to do some maths:

    £1.89 Item cost.

    Paypal Fees 14p (micro payments)
    Ebay Fees @5% 9p - taking into account 20% discount that becomes 7.5p
    Envelope - 1.6p (best price on ebay)
    Postage - 57.7 (best price on RM prices)
    VAT - 37.8p

    Costs Excluding Item cost: 118.6p

    That leaves 70p for the item cost. Now I have seen similar products for around $0.50, and I imagine they can get for less than that. But lets say they get them to the UK for £40p which is probably alot more than they pay for them. That leaves 30p profit, and considering they will probably get the item for less, the envelope for less and postage may even be lower; with the amount of items they sell that is still a decent profit, 15% excluding warehouse and wages and other fixed costs.

    Someone said they sell a £1m a month, so that's £160k a month profit before rent, wages and utility bills.

    Now they may focus on low margins, but thats still a decent business in my eyes as a small guy.
  4. Dean

    Dean

    Joined:
    May 22, 2008
    Messages:
    9,437
    I doubt very much that they are testing their items with the sort of volume they are churning out. They are probably paying the manufacturers for the custom packaging which will cost next to nothing.
    PG likes this.
  5. Gary

    Gary

    Joined:
    Aug 22, 2009
    Messages:
    16,364
    I was just about to write the same thing...lol, anyone can get their supplier to put a tested sticker on, and in the quantities they would be ordering probably at no cost, or at least point something of a p per unit.
  6. MSFB

    MSFB

    Joined:
    Dec 13, 2010
    Messages:
    2,248
    What item is this based on? Does the product cost include delivery? What about VAT?

    This could be one of their 'profit' items - I wonder how many of these they have and how many others are ultimately losing money.
  7. Sc0tty

    Sc0tty

    Joined:
    Jan 19, 2010
    Messages:
    701
    Product cost is a complete guess, but as I have seen the same sort of item on one of my suppliers website for 50cents (33p), postage even by airfreight if you ordered enough would be less than 15p per item. They will get the item cheaper than that and send it over by sea so shipping will be even cheaper. VAT is not included as they would reclaim that.
  8. Phari

    Phari

    Joined:
    Sep 10, 2010
    Messages:
    454
    I would think all cables are tested at manufacture, so the tested sticker is probably done then or at packaging.
    They may have a big backer ( Dragon possibly)

    I expect the warehouse that person went to was only part of the operation, it is probably where the main packing goes on. Plus in the evenings maybe the main staff have gone home and they run a skeleton staff overnight.

    Good luck to them if they are doing well, i think the way the country is at the moment anyone running a business and keeping their head above water is doing well.
    Dean likes this.
  9. MSFB

    MSFB

    Joined:
    Dec 13, 2010
    Messages:
    2,248
    But what is the product? And they would need to give 20% of the sale price as VAT to HMRC is my point
  10. Sc0tty

    Sc0tty

    Joined:
    Jan 19, 2010
    Messages:
    701

    A HDMI cable, I have said this many times. And VAT at point of sale was already included in my costs.
  11. Nick-D

    Nick-D

    Joined:
    Oct 29, 2005
    Messages:
    4,847
    What kind of envelopes do they use? I would have assumed it was a bubble envelope or something?
  12. Sc0tty

    Sc0tty

    Joined:
    Jan 19, 2010
    Messages:
    701
    C/0 bubble envelopes. Having a quick look you can get 5000 on ebay for just under £300, they can obviously get them cheaper as they themselves sell envelopes.

    http://www.ebay.co.uk/itm/5000-C-0-...UK_Envelopes_Mailing_Bags&hash=item484042092b

    Just realised it would be slightly less, forgot to take off VAT on eBay fees and Envelopes, do Paypal Charge VAT?
  13. Nick-D

    Nick-D

    Joined:
    Oct 29, 2005
    Messages:
    4,847
    That's 6p each? Or is my maths wrong?
    I only query because i used to work in packaging and the company were buying millions and cost price was still 4-5p each.
  14. Dean

    Dean

    Joined:
    May 22, 2008
    Messages:
    9,437
    I get the Mail Lites cheaper than that and Babz sell them anyway so they are defo getting them cheaper.

    There is no VAT charged on Paypal fees as they are classed as bank fees.
  15. Sc0tty

    Sc0tty

    Joined:
    Jan 19, 2010
    Messages:
    701
    Your right, its 6p, I got my maths backwards. I used to be really good at maths, but its all disappearing so quickly.
  16. MSFB

    MSFB

    Joined:
    Dec 13, 2010
    Messages:
    2,248
    No VAT on paypal.

    So we know 1 product they could be making 30p on. What's the sales history say?
  17. successjourney

    successjourney

    Joined:
    Jan 8, 2009
    Messages:
    4,176
    :eek: It's another Babz time?!

    I don't know what they are doing but I do hope that they are turning massive profits and, one day, they come to TWF and enlighten us all, if not inspiring!

    Provided they are running a profitable business (and I hope and think they are), I'd do anything to be at their position. Running such a massive operation at 23, it's definitely where I wish I were, not being afraid of some real hard work (and rewards that comes with it).

    Kudos to them!
    Dean likes this.
  18. Dean

    Dean

    Joined:
    May 22, 2008
    Messages:
    9,437
    And where have you been young lady?! Welcome back ;)
    successjourney likes this.
  19. successjourney

    successjourney

    Joined:
    Jan 8, 2009
    Messages:
    4,176
    Trying to get a grip with Time Management! Apparently, it's inevitable to stay away from addictive forums to achieve that? It's said that it takes 60 days to form (or a break) a habit - I failed! :(

    Thanks - hope all is well Mr Big Mac! ;)
    Dean likes this.
  20. Dean

    Dean

    Joined:
    May 22, 2008
    Messages:
    9,437
    All is well thank you. Thought you might have found another addiction somewhere else! As far as forum addictions go, this one isn't too bad I guess :)
    successjourney likes this.
Back to top

Share This Page