Tickle Me Elmo Arbitrage

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October 4, 2006 by Rich Whittle | 5 Comments

Kevin Harmon at Starting an eBay Business Blog:

Many people ask me when its time to implement your holiday plan on Ebay – this year, I’ve got a simple answer – TMX Elmo.

So, what happens when a company releases a hot product in limited amounts? Please turn to page 9 of your freshman economics book – guns vs. butter. Remember that?

Here is where Ebay has completely changed our economy. In the past, when a hot item sold out in stores – tough luck, Mr. Parent! Your kid’s gonna get another hula hoop for Christmas and like it. Remember Cabbage Patch Dolls?

Enter Ebay – the most efficient marketplace on planet Earth. Look how the ecomony has changed.

About a week ago, the Tickle Me Elmo TMX toy was released to retail. The cost of the TMX at Toys R Us? $40.00. The toy was released with a limited number of units, and immediately sold out nationwide.

Luckily for daddy, there’s now this thing called “Ebay” where you can sell stuff, and if your stuff is hot, you’re getting a convertible for the holidays.

National Retailers with Tickle Me Elmo TMX’s @ $40.00 = 0

Number of auctions on Ebay for the TMX @ up to $500.00 = over 6 THOUSAND.

Photo by eBay.