Starting an eBay business can be a very exciting endeavor, but one that requires you to manage clients, vendors and lots of products. Many people consider the entrepreneurial route, but it is a risky road to take, especially if you don't set yourself up for success. You don't have to sell a unique product, but you should offer a one-of-a-kind service.

Anyone can launch eBay business services with the right attitude and financial backing. Competition will be fierce. You can't expect to put your feet up because it's your own business. On the contrary, you should expect to work very hard in the beginning. Before quitting your full-time job in hopes of becoming your own boss and offer eBay business services, ask yourself the following:

1. Are you committed? It takes more than just a good idea to begin eBay eCommerce services. It takes time, money and hard work.

2. If applicable, do you have the right partners? Friends are sometimes best left at that: they are not always good business partners. Vet potential partners as objectively as possible.

3. Have you done your research to make sure there's demand for your product or service? You may have a great idea, but how many others have the same idea?

Action Steps
The best contacts and resources to help you get it done

Open an eBay business with credibility and get licensed

Businesses are legally required to obtain certain government licenses. Your state may regulate your eBay businesses via seller's permits, zoning and land use permits, federal and state employer tax ID numbers, and business name certificates. Regulations vary from state to state, as do state agencies that do the regulating. There are online resources that can help you file these documents.

I recommend: The Internal Revenue Service will help you obtain an employer tax ID number for your business. Business Licenses is a fee-based online resource with statewide permits, including home occupation permits.

Join an association and build industry credibility when you launch eBay eCommerce

Business owners who start eBay eCommerce don't have to go it completely alone. Consider joining an industry association for support. Organizations bring together professionals with the same goals and challenges. As a member you'll have access to certification and educational opportunities. Many associations also organize networking events, so you can meet industry peers, vendors and suppliers.

I recommend: The Professional eBay Sellers Alliance provides an online calendar with upcoming events for educational and networking opportunities. It also offers access to publications and other tools to assist you as you build your business. EBay itself hosts numerous groups for business owners to share their successes and concerns.

Partner with reliable vendors when you open eBay eCommerce services

When you open eBay online services, it's imperative that you partner with vendors who can help you build your business. All your vendors must be dependable, accommodating, offer a wide variety of products, and be reasonably priced. You want to build a long-term relationship with your suppliers, so they must share your interest in pleasing your clients.

I recommend: EBaySuppliers.com provides a wide range of Asian products for eBay sellers. They include drop shipment services. MegaGoods.com offers an electronic drop shipment service; its manufacturers include Panasonic and Sony.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  As you begin to offer eBay eCommerce services, you may decide to balance your own finances. But as your business grows, consider partnering with an accountant who can help you with tax issues, and help you build a financially sound company.

There’s no doubt, eBay has emerged as the hottest online marketplace in the world. By launching your own eBay business, you can gain access to 200 million shoppers worldwide and nab a share of the $40 billion dollars currently exchanging hands on the online auction site. Getting started is easy thanks to a host of seller’s tools you can find on the site, and start-up costs are minimal. To get your business going, you need to:

1. Decide what you want to sell.
2. Start small with a few test items.
3. Price products effectively.
4. Take advantage of eBay’s seller’s tools.
5. Market your business.

Action Steps
The best contacts and resources to help you get it done

Sign up for PayPal

PayPal makes it easier for buyers to purchase your items and allows you to receive payments from credit cards, debit cards, bank accounts and PayPal accounts. Items listed on eBay that offer PayPal as a payment option are 6 percent more likely to sell. PayPal fees (from 1.9 percent to 2.9 percent + 30 cents) are only applied when you accept a payment.

I recommend: Sign up for a PayPal Business or Premier Account before listing any items for sale.

Create a seller’s account

Every seller needs an eBay seller’s account. To create this free account, you’ll need to provide credit card and bank account information. Fees, which start at 20 cents, are only charged when you list items for sale.

I recommend: Click on Create Seller’s Account and provide the required information.

Get equipped

You don’t need a fancy computer to run an eBay business, but you do need high-speed Internet access.

I recommend: Check Verizon or AT&T/Yahoo! for business DSL in your area. Popular high-speed cable access providers include Time Warner Cable and Comcast.

Invest in a camera

Listings that include photos are more likely to result in a sale. Take photos of your merchandise from several angles using adequate lighting and a plain background. Setting your camera for medium resolution will provide sufficient quality while still allowing for quick uploads.

I recommend: Digital cameras are best because they offer easy transfer to your computer and easy upload to eBay. Use a tripod to get sharper photos. Find them at Best Buy or Circuit City.

Develop strong listings

By supplying accurate and detailed information in your listings, you can vastly improve your chances of making a profitable sale. The best listings start with a winning title, are placed in the proper categories and feature photos and thorough descriptions that include a product’s precise measurements, sizes, colors and condition. Successful listings also list acceptable payment methods and shipping costs.

I recommend: Review what you’ll need to provide in the Sell Your Item form before you complete the form online. Get tips from eBay on how to create “The Perfect Listing.”

Use eBay’s seller tools

Take advantage of the seller’s tools eBay offers to help you simplify the selling process. Free listing tools can help you list a single product or multiple items quickly. Use its Web-based tracking and sales management tools to monitor your listings and maximize sales.

I recommend: Choose the various seller’s tools that meet your needs. Some basic tools are free; other more sophisticated versions require a modest monthly fee. When first launching your eBay business, start with the scaled-down versions.

Complete sales efficiently

To ensure customer satisfaction and good ratings for your eBay business, ship merchandise promptly using the appropriate packing materials.

I recommend: Visit the eBay Shipping Center for tools to help you calculate shipping fees, print shipping labels and track packages. Get free eBay-branded shipping boxes for Priority Mail and Priority Mail Flat Rate service delivered to your office courtesy of the U.S. Postal Service.

Buy wholesale

Like any business, the key to success is selling your merchandise at a profit. To pump up your profit margins, reduce your expenditures by purchasing products wholesale.

I recommend: GeteStore and Doba sell goods to merchants at low prices and will even ship them directly to your customers. Also check out the wholesale lots available on eBay.

Market your eBay business

Drum up business by spreading the word about your new online enterprise. Direct potential customers to your merchandise with banner ads and email campaigns.

I recommend: Get help with email marketing from Constant Contact, whose services are used by more than 75,000 small businesses and associations. Launch a banner ad campaign with help from HeyBannerBanner.com, which produces ads for small budgets.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Choose an eBay user ID carefully as it will become your brand identity. Choose an ID that reflects your company image and that gives shoppers an idea of what you’re selling.
• •  Price your products effectively to make profitable sales. Check your competitors’ prices by reviewing other listings in your product category and check current retail prices for your product if available. A good plan is to set your prices below retail value and slightly lower than your competition.
• •  When shoppers ask questions via email, respond quickly. A slow response time can lose a sale.
• •  Create a designated area where you can photograph your merchandise. An area with natural lighting and a plain background is best.
• •  Set aside an area for inventory and shipping materials.
• •  Always provide feedback on your customers. This will encourage them to leave positive feedback for you. The more positive feedback you get, the more potential customers will be comfortable buying from you.
• •  Purchase insurance when shipping high-priced items.