How can people possibly sell an item on ebay from $1 - $3, with FREE SHIPPING, and make ANY money?

Your goal sometimes should be to cover only the price of the product and shipping cost. Some sellers are even willing to take a 20 cent or even a couple of dollars hit in the transaction.

No profit and/or a lost even, why?

To expose your potential customers to other products on your eBay store and have them experience your customer service. That is where you will make your profit, selling your $20 or $50 items.

For example, when your favorite store has an unbelievable sale, you rush in and instead of buying that one item you end up buying a dozen other items. The store ends up making a big profit although they almost gave away the one item they were advertising.

depending on what you sell for 2.99 or 3.99 (etc) you can ship it and still make a profit (for instance-if it doesnt weigh much it will ship cheaper). i kinda wondered that when i saw this guy that repeatedly sold stickers for .01 with free shipping. not only did it cost him more money to list the item than what he sold it for, but then he had to pay at least .44 shipping.

This is a TOTAL SCAM. 100% Fraud. Ignore this ad and do not communicate further with the seller. Read the warnings on Craigslist. NEVER buy a car sight unseen, Never give anybody anybody any moeny who promises to ship you a car. A car you'll never see and a seller who will disappear.

well they aren't selling something for a $1 that is large enough and enough enough to cost $5 to ship plus they don't pay for signature receipt.

if they are making money they are making it in volume...there are also ebay fees and paypal fees.

they buy in bulk

or buy surplus

if you can get items for pennies on the dollar and then resell them online for normal retail, you'll make profit even if you offer free shipping