A common trap many sellers fall into when they first begin to experience some success is that they fail to manage their eBay cash flow. Too often, their initial success results in a spending spree that consumes all their profits.

Suddenly your sell-through rate is up, profits on everything you sell are excellent, and the money is pouring in. It can be tempting to take all your profits out of the business for the vacation you’ve been dreaming of; a new wardrobe; a down-payment on a new vehicle or other major purchase.

While those things sound nice, you can not let yourself give in to the temptations, if you want your business to continue to grow.

Every business experiences peaks and valleys in sales throughout the course of a year. Most sellers understand that. But what many beginning sellers don’t realize is that, throughout the year, their business will also experience peaks and valleys in the opportunity to buy inventory also.

They fail to understand that profits on paper is not the same as cash on hand.
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