Ebooks are not the way to make money on eBay, as glutted as the eBay market is with them. But, there is still money to be made with them if you know how to work the system. Selling an ebook on the site subjects you to intense competition, many times by people selling the exact same product for a dollar or less. There are also those who sell them even cheaper, losing money on each transaction through eBay and PayPal fees. But there is a hidden profit potential behind those .01 ebooks.
The cheap ebooks people sell on eBay are often sold with resale rights. This means that you can always find plenty of inexpensive ebooks to sell, but it also means there are hundreds of people already selling it. But by utilizing the sales in another way, a workable list can be built in order to generate sales for the real items you are selling.
Buyers on eBay these days are looking for incredibly cheap ebooks. So to get the customers you need, your books will have to be priced similarly. By having a low price, you will get more customers, making your list grow quickly. Once the sale is made, you can talk the customer into subscribing to your newsletter or other targeted marketing...