The other day i was thinking of ways to make money from the internet. I thought of an idea and was wondering if it is legal. My plan is to put item up on ebay that i dont own yet and once a bid is placed i would order it and then send to to the buyers house after i receive payment. I will be charging more than i paid for it. It sounds like a fool proof plan but i'm not sure if it is legal.
If this were a stock transaction, it would be called "trading on margin" and legal.
Unfortunately, I don't know the answer to this question. I think it has less to do with whether it's legal than whether it violates the seller's contract you sign with ebay.
i'm going to try to sell computer parts and the way I see it is this: Ebay is for selling stuff that you own to other peoplle across the country/world. If I buy a computer part I own it so I am just selling one of my posessions for a little bit more than i got it. I'm not scamming the company, they get their money I get mine. So I don't think there would be any legal issues.
That's not the problem. There's certainly no issue with selling on ebay for a profit.
If I understand your initial post, you are posting an auction for a part you do not yet own. I would imagine that the ebay seller's contract requires that you actually possess the object you are selling. If you post an object that you don't own, you are breaching that contract, and would be subject to whatever damages the contract includes.
I would also question what, exactly, the benefit of this arrangement is? Why not buy the object, then sell it for a higher price?
because if i buy the object and no one buys it from me i'm left with a part i dont need. So if i dont buy it i have nothing to lose. I have some starting money so once i get a bid on that item i will order it so I know that it will be profitable.
Ah. I see.
Then my point above still stands. You will want to review the sellers contract carefully. I would imagine that this would be a violation of that contract.
i'll check it out. Thanks.
Just make sure you set a reserve price or your auction may not cover your costs.