>selling virtual item for 30 dollars a piece
>pay 25.2$ for each of them
>site I sell on takes 5% so I get 28.5 after tax
>3.2$ profit margin on each item
>other people sell the same item on the site
>total average daily sales for the item is ~250
>I am able to acquire ~150 of the item in bulk once or twice a week
>usually list all 150 on the site at the same time
>takes 2 days to sell out everything usually
I've noticed that on the days after I've sold out and before I've restocked, that the price dips down to 29.5-29 and once I come in and list all 150 for 30, basically flooding the market, the price for which everyone else sells also goes up to 30.
It is in my interest for the price of this item to be as high as possible on the site I'm selling at.
What is the best strategy I can take to keep the price from dipping? I am currently responsible for 10-20% of the weekly sales for this item.
I've been considering dumping in another 3-5 grand to increase my overall profit. Would increasing the amount I sell allow me to more easily control the price of the item?
>flooding the market, the price for which everyone else sells also goes up
why does the price rise when there is more supply, and why does it drop when you aren't around? sounds backwards.
I honestly have no explanation. It's strange to me as well. The thing that's most odd is that during my sales days when I sell 80 of the item, the total number sold for that day doesn't for from 250 to 330. It barely increases from the 250 average at all. I don't understand that part either.
But I can only assume the reason me flooding the market has an impact is because when someone wants to sell this item, he will most likely check out the listings other people have for it and base the price on that. If I go in with 150 items @ 30 dollars, people will open the listings page and only see my shit for quite a long time, instigating them to set their prices at 30+ as well.
Pure speculation desu
When I sell an item on this site, it goes to my balance as opposed to directly to my bank/paypal. I have to request a cashout and once I do it takes 2-5 days for me to get the money. I currently only have ~4200 dollars into this so I'll buy the items with that and sell it within 2 days and then spend 2-5 days waiting to get the money so I can start over.
Super annoying and no way around it.
So there is no other limitation besides the fact that you don't have more money to invest? Also, do you roll your profit back in to the venture (e.g. able to buy 150 one week, 160 the next week, 170 the next, etc.)? What do you estimate the full demand to be if you weren't limited in how many you could purchase?
>So there is no other limitation besides the fact that you don't have more money to invest?
That and the cashout frequency.
>Also, do you roll your profit back in to the venture
>What do you estimate the full demand to be if you weren't limited in how many you could purchase?
It's hard to say. I estimate I can sell at least 350 a week. 450+ isn't unrealistic.
Additionally, there are literally hundreds of different items being sold on this site and I can make a profit on all of them to varying degrees.
I chose to focus on 1 and this specific one in particular because it is extremely easy to buy, has a decent profit margin relative to other items that cost the same, and is very easy to sell.
If I do reach the point where I can buy more of this item than there is demand for on the site, which will take a while, I can diversify and invest money into other items as well.
Looks like you struck a gold mine and I envy you. I would ask what site you buy these on but understand it isn't in your best interest to say. Virtual items are the easiest, least labor intensive things to sell. I made money doing this in WoW then made money in Diablo 3 RMAH before it was shut down. The most money I ever made on one virtual item was selling an ethereal tiger mount for $800 that I got from a Blizzard convention. Also, before eBay changed their rules on selling cryptocurrency I made a killing last year buying and selling cryptos. I think one month I netted like 6 grand. Ahhh those were the days.
If I were you I would strike this hard and fast because some opportunities like this fade over time. I would test the limit to see where the demand really is and then fully exploit it. If you have the cash then might as well.