Starting an eBay Business

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Tips & Advice to help you make your decision on Starting an eBay Business

With the popularity of the Internet and auction sites around the world, many business owners have made the leap to starting an eBay business in addition to maintaining their retail storefront. Operating an eBay business, however, is a unique opportunity which requires a certain amount of training in order to be successful.

There are a couple of ways to gain the experience you need to successfully operate a successful eBay business. The first is to hire a personal consultant who has the know-how and experience you need. The second involves taking a training course, often made available on a limited basis through conferences at local hotels or business centers. The final opportunity for starting an eBay business may be to work with a successful eBay operator on an independent basis to gain insight into the operation of an eBay venture.

However you decide to proceed, there are specific skills you will want to learn. For instance, what is the best way to work with your merchandise? Will you work with suppliers who are willing to drop ship the products to your customers for you, or will you prefer to maintain stock in a warehouse and ship the items personally? How much overhead should you be prepared for?

To answer these questions, or find a business consultant who can help you find the answers, feel free to visit any of the resources on the left side of this page, compiled for your benefit by Business.com.

Starting an eBay Business

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.

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.
Try: 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.
Try: Click on C reate 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.
Try: 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.
Try: 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.
Try: 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.
Try: 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.
Try: 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.
Try: 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.
Try: 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.

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.