Mercari is the king of trading second-hand Japanese goods. It is a website that only works for Japanese people, but the number of buyers is extremely large as Mercari always ensures the best product quality. Keep reading to find out how much Mercari charges and how to sell items on this website.
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How Much Does Mercari Charge?
First of all, you need to create an account to register to sell on Mercari Japan. When selling on Mercari, the seller must provide the correct address, goods information, and delivery time. A little note on wallet registration, you must notify the system of your online bank account in Japan or your Credit Card number.
How much does Mercari take? On the Yahoo Auction system, buyers have to pay a 294 yen monthly account maintenance fee. You will not lose a single penny at Mercari. But for each item sold, you pay the system 10% of the item’s value.
Tips to Optimize Profits on Mercari
To sell, the first thing you need to do is post a photo of the product as well as describe the condition of the goods carefully. It will help the sale sell faster. With false descriptions, you will be sued and not compensated, your account will be locked and you cannot sell anymore.
To list any product, you need to know all the things about it. Because buyers are sensitive and learn carefully the products they need to buy, especially second-hand goods. They do not want to lose money without getting the goods as described. Therefore, any product you want to sell should have a detailed description. Also, make product photos better and easier to sell.
How much to charge?
We can freely set the price between 300 yen and 9,999,999 yen. There is no sales tax for transactions between individuals. When a product is sold, we charge a sales commission of 10% of the product’s price. In some categories, they charge a license fee besides the sales commission. If you are uncertain about pricing, we recommend the following.
- If it is new or unused, try adding a price of 60% to 80% of the list price.
- If it is almost unused or clean, try adding a price of 30% to 60% of the list price.
- If the feeling of use and dirt is noticeable, try adding a price of 20% to 40% of the list price.
Should I post a firm price?
Many sellers post current selling prices that differ from what we sold when the customer bid. The price competition to push the goods quickly of the sellers still takes place often. Therefore, it is important to use pricing software to compete with your competitors’ products.
As you know, Mercari always has the policy to protect customers. It is illegal for you to post counterfeit goods. Such fraud can lead to imprisonment of up to 10 years.
What if my clothes don’t sell?
Besides electronics, the fashion segment on Mercari is a veritable paradise for shopaholics. Here buyers have no trouble finding complete collections of all famous, world-class fashion brands such as Uniqlo, GU, Nike, and Adidas at a very reasonable price.
In addition, what people are most interested in are branded goods such as clothes, shoes, handbags, and accessories from names like Louis Vuitton, Gucci, and Chanel. They sold extremely well, all with prices 2-3 times cheaper than new products. Not only that, at Mercari you can also easily find items that are sold out or in the limited edition at dream-like prices.
If your clothes do not sell, maybe your clothes do not come from a luxury brand. You can research the market price of other sellers and reduce it to the lowest price.
Understand retail arbitrage
Let’s start with a simple quiz. One day, suppose the stock price of stock X rose from the previous day and closed the transaction. Which was the larger number of shares bought / price or the number of shares sold / price of X shares on that day? That is the question.
The answer is “same”. You can hear the reader’s voice telling you not to be stupid. We had asked college students the same question before. They thought a little and were wise enough to come up with the correct answer. Some students said that there were a lot of potential purchases, the demand that could not be bought and sold.
The price of various assets and commodities, not limited to stock prices, rises because buyers bought the upper price. There may be various motives, but if we decode it, it gives a feeling of prime point. We bought something for sale above the market price, thinking that it would go up more. The composition is exactly the opposite when it goes down.
When a specific stock or the overall market price fluctuates, if we explain that it is a composition, everyone will get angry. Market officials were aware of it earlier, and the Fed members’ policy interest rate forecasts were wary of the fact that the performance was a surprise and the tweet of the president of a certain country who repeated irregular remarks eased market anxiety about today. We will explain the reason and motive for the buyer to buy the upper price, such as not being hawkish.
The price difference between cash and futures is the basis. And they usually traded futures at a slightly higher price than cash because of the occasional short-term interest rate and various expenses. When futures are bought more than this theoretical basis (premium state), the arbitrator sells expensive futures and buys cheap spots. And the basis converges near the theoretical value.
If the premium condition continues for several business days, arbitrage buying will also continue. By the way, these days when HFT (High-Frequency Trading) is in full swing, we also execute this trading at a speed that the human eyes cannot catch.
When the price difference between the two becomes lower than the theoretical basis (discount state), the arbitrator buys cheap futures and sells the spot and the basis also approaches the theoretical value. It is counter-trading the positions accumulated by arbitrage buying and is arbitrage cancellation.
This way, arbitrage is a passive transaction. And the principle is that we make arbitrage purchases when someone buys futures higher than the theoretical value. They resolved the contract only when the situation was reversed.