A Youtuber has revealed how people are making a massive amount of profit by selling Poundland products online.
Youtuber Zain Shan has exposed one eBay seller who made a whopping £513 in just seven days by re-selling Poundland hanging baskets.
These baskets only sell for just a £1 but the seller has chanced his luck and flogged them online in packs of two for £13.30.
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The Mirror reports that the seller has sold 86 units in total.
Selling them in quantities of two is a good idea, according to Zain who explained that the postage costs are similar but you're able to charge at a higher price.
He also looked at if any other sellers were pushing similar items which shows if they are in demand, and there were.
Poundland branded them as 'hanging baskets with liner' and the eBayer sold them as 'basket with liner included GARDENING'
In the Youtube video, he looked at how much of a profit the seller would make after shipping and eBay fees.
Using a free eBay/Paypal online calculator, Zain calculated that with every two units sold, the seller makes £5.97 in profit.
Zain regularly posts Youtube videos on how to make money and says: “That person has sold 86 of them within one week, he managed to make £513.42 profit, which is a very, very decent profit.”
This process is known as product “flipping”, where someone will buy a relatively cheap product with the view of selling it on at an inflated price online.
But it is never that simple as eBay is oversaturated with items and there is no guarantee that your items will definitely sell.
If you're looking to try it out, it's worth keeping your receipts if you need to return the goods.
You must take into account eBay selling fees.
eBay charges a final value fee of 12.8%, including postage, plus 30p per order - this is deducted automatically from your sales.
Facebook Marketplace don't take a fee and it is free to list items on Gumtree.
In terms of tax, if you become a trader you need to pay tax.
If you're selling unwanted stuff every so often - for example, if you're having a clear-out - then there is generally no tax to pay on the money you make.
However if you are making or buying goods with the intention of selling them on a regular basis - then any money you make does become taxable.
There is a tax-free trading allowance of £1,000 that can be applied to these types of earnings each year.
If the item is branded then that brand name should be included in your eBay listing so the buyers knows exactly what they're spending their money on.
