Selling Lululemon on eBay Archives

Don’t Be a Unicorn Thief

About buying & selling New With Tags Lululemon items on eBay

Hello Lulu Lovers everywhere. I am writing to make a public service announcement regarding selling New With Tags Lululemon items on eBay. I’m not writing about those of you who bought something a long time ago, and just forgot about it in your closet, then realizing it was still there decided to make some extra cash on it- that’s fine. This post is for people who buy very popular items on Lululemon.com when they are first released, with the explicit intention of reselling them. I’m also not talking about people who live no where near a store & don’t want to pay return shipping if they think they can make a few bucks on the one extra size they bought. I’m talking about people who do it for a living. A good example is Top Car Broker on eBay. She always has tons of NWTs items on eBay. Always highly sought after, future unicorns, for above retail. Don’t know what a unicorn is? Check out my post on Lululemon Slang.

These often sell out on Lululemon.com in a matter of hours. For example, she currently has listings for 22 Gratitude Wraps, which just came out on Monday and sold out completely in two days. She currently has them listed for $170.94, each. They retailed for $118. They definitely would have sold for that, and I think it’s wrong to use information acquired in the community (she belongs to many of the chat groups) against the community itself. However, Lululemon does have the right to refuse to sell to her, if they want to. I’ve heard of them refusing to sell to others for various reasons (they return too much, they sell on eBay- like she does, they buy too much in different sizes), or so the buyers (customers) say. Lululemon never issues anything in writing, the customers just are no longer able to process orders online, then they call GEC and they just say something vague. They are still able to buy in-store, but you can’t buy the quantities in-store like you can online, particularly with regards to markdowns. I think TopCarBroker has a friend with a yoga studio, or a strategic partner store (I believe they receive their merchandise at a discount) and then she resells it and they split the profit OR she does just order online and for some reason Lululemon does nothing to stop it. I have no doubt that they know who she is and what she does. I know that my account would be flagged if I spend 2500 on Gratitude Wraps. Which is why I wonder how it is that year over year, she gets away with it. I regard it as taking advantage of the community, others may see it as a business opportunity. Those of you who do: Please start, this will create competition & perhaps it will run her out of business. Thank you.

I know there may be people who disagree with me, but I hope you can see it from the perspective of a true Lulu Addict & if you can’t that’s OK too. Just leave your opinion in the comments below. Thanks for reading!

UPDATE

I wrote an update to this post. You can find it here.

The Difference Between Paying As Gift & As Goods On PayPal

At the request of a reader, I’ve decided to elaborate on what I mean when I refer to paying as gift, or as goods when buying and selling Lululemon.

With regards to buying and selling in venues OTHER THAN eBay, so Facebook or elsewhere online, you can ask the buyer to pay you the money as a “Gift.”

When you sell something, the buyer opens up PayPal and the payment options are “Goods” or “Friends and Family.” When you’re asking a buyer to pay as “Gift,” you’re really asking them to click “Friends and Family” when they payment options come up. This means that the buyer is sending you the money and if something is wrong or they want a refund, they really don’t have the right to get one. Although they may be able to if they contact PayPal, as I have heard of some cases where PayPal grants the refund regardless of the fact that it was paid as “Friends and Family,” but it’s rare. (As an aside, you may also be able to contact your credit card company, if you paid PayPal with a credit card, but you never know if they’ll help either.) In any case, typically, when a buyer pays for your goods as “Friends and Family” they are trusting that you’ll deliver their item and it will arrive as described. Hence, the safest way to buy something is to pay AS GOODS.

On eBay, the buyer has no choice but to pay “As Goods.” That’s how eBay honors it’s guarantee. “We guarantee that you will get the item you ordered or you will get your money back. eBay Buyer Protection covers the original purchase price plus original shipping on virtually all items on ebay.com.” You can find more information on eBay’s guarantee here. Unfortunately, eBay passes on the PayPal fees to the seller, which are 3-4% of the sale price. What really sucks is that eBay owns PayPal***, so it charges you when 3-4% when you make a sale, then eBay charges you another “final value” fee, which varies depending on the listing type. You can find out more about final value fees here.

The reason that buyers pay as goods is to protect themselves, and the reason that eBay charges that back to the seller is because eBay is very “buyer-centric.” The PayPal fees pay to protect the buyer against a poor quality item, or an ignorant or dishonest seller so the seller has to pay them. Of course, most sellers factor this into their price, so in the end, the buyer ends up paying them anyways. So, if a buyer can choose whether or not to pay the extra 3 or 4%, why not give them that choice. This is where selling in Facebook groups or in other online venues can be useful. For more information on selling in Lululemon Facebook groups, like where they are, check out this post.

If you’re on Facebook, as a seller, you can ask people to pay “as gift or as goods.” And if they opt to pay as goods you can say “If paying as goods, please add fees.” Which, to most buyers means add the PayPal fees to the total dollar amount that they send you. For example, if you’re selling a hundred dollar item, they’d have to send you $104 in order to cover the PayPal fees. Then the buyer gets to decide whether they trust you enough to send the payment as a gift, or pay extra money if they’re concerned about whether or not they’re receive what they ordered in good condition.

If you’re an honest seller, with excellent feedback, who constantly delivers excellent-condition items on-time, as a buyer, I’m pretty likely to trust you enough to send money “as gift.” Plus, I don’t want to pay the extra money if it’s unnecessary. This is only one reason why it’s important to develop and maintain a good reputation in the Facebook groups.

On eBay there’s no way to get the buyer to pay the PayPal fees, except for rolling it into your final price. On Facebook, you can ask them to pay them, if they choose to. There’s no “button” they can push to pay the fees, they can only add them to the final total and send you that amount, then PayPal will deduct the fees automatically.

I hope that helps you understand the difference between paying as “gift” vs. paying as “goods.” Thanks to “addictedtoink,” for inspiring this post!

UPDATE- October 11,2015

The fact that this post continues to be a main source of traffic for my blog makes me happy. The reason it remains popular is because unfortunately, I don’t feel that PayPal does the best job of explaining exactly how this works, and I feel that my post gives a thorough explanation of exactly how you are protected by PayPal and when.

The reason I feel that PayPal doesn’t have the best explanation is because, if you search “difference between gift and goods on PayPal,” PayPal’s website comes up with explanations of the different types of payments, but the website doesn’t explain how or when you’re protected. For example, under gift, PayPal writes “Select this payment type when you’re sending money as a gift for a birthday or other special occasion.” What it fails to mention is that people are not protected when they use this payment.

The other available posts are community boards, which some people may find tedious to scroll through, so I think that my post, while it is “Lululemon-centric” is better at explaining how and when you’re protected and when you’re not. Why don’t you let me know what you think about this post, and if there is any way I can improve it to reflect what you’re searching for?

Thanks for reading!

***eBay and PayPal are now separate companies.

How to do the eBay. AKA: Selling Lululemon using eBay.

This blog is meant, primarily, to help people sell their Lululemon collection. I want to talk about selling, specifically, on eBay. Some of these tips might be applicable to eBay in general, but I do like to keep myself on topic. So, please comment with your opinions on how I can improve this post, especially regarding its specificity and relevancy to Lululemon.

First thing first! Learn how to prepare your item for sale.

Decide When to Sell- market trends occur year-round and always merit consideration. But there are other factors to consider. I have limited closet space, so I’m constantly considering and re-considering pieces of my Lululemon wardrobe. But once I decide to sell, I prepare the item for sale and it gets zip-locked. That way, the condition of the item is unchanged.

Sell many items at once- I recommend selling multiple items at once. Because there are so many listings for Lululemon items, I like to do as much as I can to make sure my ads get noticed! I try to add at the end of my listings “If you’re looking for more Lululemon, check out my other listings!” Hopefully they do. The more views you get, the more watchers you’ll get the more sales you’ll create! If you sell in multiples, one person who was searching for something may look at another ad and buy that instead! You never know!

Give your potential customers the attention they deserve- Make sure you have the time to dedicate to your sales. If someone messages you with a question, answer it ASAP. People are fickle, someone may be very interested in your item and if you don’t respond quickly, they’ll move on to something else. This is particularly true at the very beginning and towards the end of your listing. People who are considering the BIN option may ask questions immediately after you list the item. After all, it’s a GREAT item and they don’t want to miss out! Answer them quickly and you may earn that sale! Leave them hanging, and they will certainly explore other options.

Pricing- When you list your item, BIN is probably the most optimal outcome. You never know whether something will sell or not, or how high it will go if you post as auction only. Never price your item at 0.99. This doesn’t work for Lululemon items. It works for other things. It works for commodity-like items where there are too many of the same thing to keep track of and everyone is looking for the lowest possible price on the same thing. But Lululemon is NOT a commodity (as in a mass-produced, unspecialized item, made to be used up), it is an asset. It retains value over time and that’s part of the reason your collection and its sale can be lucrative. If you price your item too low, you’ll just get a bunch of people who will watch your auction, and you will not get what your item is worth. Price your item fairly, and you should get what it’s worth, or at least close to that much. The most important factor in getting what your item is worth is ensuring that it is listed correctly. For help trying to find the name and colour name of your item, read this post or this post for even more (extensive) advice. I also think it’s a a good idea to price your item such that it meets eBay’s minimum requirements with regards to start bid vs. BIN price. The current rule is that the BIN price must be a minimum of 30% higher than the starting bid. The BIN should be what you want for your item, in the best possible outcome. It should be optimistic, but not ridiculous. Try to find out the value of your item and price it accordingly. People like a good deal, but there’s no need for you to give your things away! The reason I think this is a good idea is because if people think they can get a really good deal by simply *watching* your item, they will. However, if your item is $100 and the SB is $70, people are more likely to BIN if they’re actually interested in the item. Then you get what you want, a sale, and they get awesome, awesome Lulu.

Shipping- Regardless of where you are, I recommend offering shipping to Canada AND the US, as this is where the highest concentration of buyers reside. I am so honoured to be able to say that I have had readers from Singapore, Australia, the UK & New Zealand! Therefore, I find it appropriate to mention that the largest market for Lululemon is the US & Canada. And that regardless of your home port, I recommend offering your goods to the largest available market and that means these two Western nations.

eBay’s Global Shipping Program- whether you choose to use this or not is up to you, I just want to let you know that in my experience, it over-charges the buyer. And beware of being automatically or mistakenly opted-in.

Finally, my advice is to keep your eBay account as private as possible. Don’t name it after yourself or tell people your eBay handle. The reason being that eBay is purely business and once people know who you are, it becomes personal. I once witnessed a public argument on a Facebook group about a $2 shipping charge discrepancy & both the buyer and the seller posted their own thread talking about this “terrible buyer/ seller on eBay.” Then, everyone realized what was going on and it was a mess.

Please be a responsible and courteous buyer/ seller. The market rewards excellence in service, who knows, maybe one day you’ll be a Top Seller!