(Hat tip to Miles Per Day for the title inspiration)
Good afternoon everyone. Back in July, there was a lot of commotion about the US Mint American Eagle 20th Anniversary Platinum Proof Coin. The platinum coin went on sale at 10am PT on July 6 for $1,300 and there was a private group who would buy the coin from you for $1,325 (and provide a free shipping label), so you could make ~$20 profit by buying this platinum coin and then selling it to this private group. Since this was a limited release, I figured I could sell the coin on eBay for much more than $1,325 and make more than a ~$20 profit. So, how did I do?
Since I wanted to be one of the first people to have the coin listed on eBay, I paid an extra $15 for expedited shipping. My total cost was $1,320.95.
I tried selling the coin for $1,499.99… no bites. How about $1,449.99… no bites. How about $1,399.99…no bites. How about $1,349.99…no bites. By this point, I had listed and relisted the platinum coin multiple times over ~2 months. I was sick of this platinum coin and wanted to get this platinum coin sold and out of my life. I eventually accepted a Best Chance Offer (Buy It Now price that the buyer and seller both agree on) for $1,2750.00. Ouch, that hurt. I was looking at a loss of $45.95 ($1,320.95 – $1,275.00) before taking into consideration eBay fees, PayPal fees, and shipping costs. The largest fee was the eBay Final Value Fee which is 10% of the selling price, so I paid $127.50 to eBay.
Then it was the PayPal fee which is 2.9% + 30 cents, so I paid $37.28 to PayPal.
Then I shipped the item via UPS Ground with insurance and signature confirmation for $25.43.
When I added up selling the coin for a loss, plus eBay fees, PayPal fees, and UPS shipping , I had a total loss of $236.16. Ouch, I did terribly. I knew eBay fees would be 10%, PayPal fees would be ~3% and shipping would be ~$25, so I would have had to sell the coin at $1,547 just to break even ($1,547 – $154.70 in eBay fees – $46.41 in PayPal fees – $25.00 in shipping = $1,320.95). I overestimated how popular the platinum coin would be and took a big loss. In the future, I will skip coin reselling and stick to what I know best: gift card reselling, where I know the buy price, sell price, and I can calculate the profit/loss before buying a single gift card.
If you have any questions, please leave a comment below. Have a great weekend everyone!