Doing It eBay: An eBay Business Means Fun and Profits in a Global Marketplace

Home
>
Online Auction
>
Doing It eBay: An eBay Business Means Fun and Profits in a Global Marketplace

Doing It eBay: An eBay Business Means Fun and Profits in a Global Marketplace

In 1995, when Pierre Omidyar introduced an online business venue that was essentially a virtual garage sale with auction pricing, no one knew a retailing revolution was about to occur. That site became known as eBay, and it's hard to find someone today who hasn't at least heard about the popular online auction company.

What's important to understand from the start is that eBay is a sales channel that you can use exclusively or in addition to selling through a retail operation, mail order catalog, independent Web site, or network of direct salespeople. You decide the type of business you want to have, what type of merchandise you're going to sell, and how you're going to operate.

To sell on eBay, you'll pay a listing fee to post your merchandise and a final value fee (a small percentage of the sale price) when the item sells. For the current eBay fee schedule, check the eBay site.

What can you sell on eBay?

Though eBay is a popular place for the sale of used items ranging from high-dollar antiques to second-hand junk, it's also a venue for brand-new, up-to-the-minute merchandise of all types and in all price ranges. Deciding what to sell on eBay can be particularly challenging because your options are virtually limitless. Some of the more popular categories of items are cars, computers, consumer electronics, books, movies, music, sports items, collectibles, clothing and accessories.

As you take the first step of deciding what to sell on eBay, keep these points in mind:

· Have an interest in the product. Don't choose a product based on potential profits alone; be sure it's something you'll enjoy working with.

· Cost and sale price. How much will the item cost you and how much can you reasonably expect to sell it for?

· Availability. Is the merchandise readily available or will you risk having to deal with supply problems?

· Storage. Do you have room to store the merchandise?

· Packing and shipping. Consider what is involved in packing and shipping the merchandise. Even though the buyer typically pays the shipping costs, think about your labor, time, and potential breakage.

· Seasonal issues. Will the item sell year-round or be subject to seasonal fluctuations?

How do you sell on eBay?

You have a variety of ways to sell on eBay. In addition to the traditional basic auction, where you post your item with a starting price and wait for bidders to drive the price up, you can use a number of other pricing features and auction types. In addition to auctions, you can also set up your own eBay store, which will allow you to sell auction and fixed-price merchandise from your special location on eBay. You'll pay a monthly fee based on the level of store services you want, plus additional fees for items listed and sold.

The technical side of eBay

eBay has evolved into one of the most user-friendly sites on the Internet. Getting set up as a user is a simple process that you can complete in just a few minutes. You will be required to provide your name, address, e-mail, and telephone number, as well as a credit card number and your checking account information. eBay uses this information to confirm your identity, which protects the integrity of their operation, and to collect auction fees. If your contact information changes, be sure to notify eBay immediately.

You must register to buy or sell on eBay, but you can browse around the site without registering. Before you do any business on eBay, take the time to get to know the site. Set aside several hours to get online and browse around, study listings, read the help pages, understand the various tools and how you can use them, check out the forums, and get comfortable with how the site works.

Once your business is up and running, you'll probably want to consider using supplemental auction management software, which will save time and money, make you more efficient, and improve the level of customer service you offer.

Getting started as an eBay seller

Start off by buying a few things, then start selling, posting just one or two auctions at a time until you're comfortable with how the process works. You'll make mistakes, especially in the beginning, but if you learn from them they'll be worth the cost.

Keep in mind that eBay is ever-changing. As the economy cycles, you'll experience changes in pricing and demand. And as more people start operating on eBay, the competition will increase and prices may decline slightly (great when you're buying, but not when you're selling).

If you plan to make selling on eBay a full-time business, expect to work hard. Though there is plenty of money to be made on eBay, it's not a get-rich-quick or easy deal. You'll invest as much time and energy as you would in a traditional retail operation--but your potential for profits is greater.

Don't be intimated by the sheer size of the operation, and keep in mind that eBay has reached less than ten percent of its potential market-which means there is plenty of room for you. So find your eBay niche, get online, and watch your business grow.

Jacquelyn Lynn is the co-author of Make Big Profits on eBay: Start Your Own Million $ Business (with Charlene Davis, Entrepreneur Press, 2005) and the author of Start Your Own Business on eBay, plus nine other titles in Entrepreneur's Start-Up Guide Series. For more information, visit http://www.jacquelynlynn.com

In The News:

Yahoo! News: Top Stories

Obama names special watchdog for federal spending (AP)

AP - President-elect Barack Obama said Wednesday that reforming massive government entitlement programs Â— such as Social Security and Medicare Â— would be "a central part" of his effort to control federal spending. Obama made the pledge but provided few details as he named Nancy Killefer as his administration's chief performance officer, creating a new White House position aimed at eliminating government waste and improving efficiency.

Israeli strikes, Hamas rockets resume after pause (AP)

AP - Israeli airstrikes and Hamas rockets resumed after a brief pause Wednesday to allow food and fuel to reach Palestinian civilians in Gaza, where an Israeli warplane dropped leaflets urging some residents to flee because of imminent attacks.

Burris expects to join Senate 'very shortly' (AP)

AP - Roland Burris said Wednesday he should be able to join the Senate "very shortly," after talking to newly supportive Democratic leaders and working on lingering legal obstacles. Talking to reporters on the second day of a Washington power odyssey that would intimidate many, the 71-year-old Burris declared himself happy and said he was pleased with his meeting with Sens. Harry Reid and Dick Durbin.

Obama hails 'extraordinary' moment with presidents (AP)

AP - Confronting a grim economy and a Middle East on fire, Barack Obama turned Wednesday to perhaps the only people on the planet who understand what he's in for: the four living members of the U.S. presidents' club.

End to Minn. Senate race pushed even further out (AP)

AP - Minnesota's grueling U.S. Senate race, already dragging on two months past Election Day, has now moved even further from the voters Â— and into the hands of lawyers.

Drug made from genetically engineered goats may become scientific first (AP)

AP - You've heard of making cheese from goats' milk, but prescription drugs? In what would be a scientific first, an anti-clotting drug made from the milk of genetically engineered goats moved closer to government approval Wednesday after experts at the Food and Drug Administration reported that the medication works and its safety is acceptable.

C-sections best for baby when close to due date (AP)

AP - Babies do better after a scheduled Caesarean section if they're born no sooner than seven days before their due date, a new large study of U.S. births shows. Those delivered earlier had more complications, including breathing problems, even though they were full term, the researchers reported in Thursday's New England Journal of Medicine. Even just a few days made a difference, they said.

Brad Pitt says he was faithful to Jennifer Aniston (AP)

AP - Brad Pitt insists he didn't cheat on Jennifer Aniston with Angelina Jolie. In a story posted on W magazine's Web site, the 45-year-old actor defends both women and says his relationship with Jolie didn't begin until after he and Aniston split in 2005.

Pa. man opens neighbor's door with chain saw (AP)

AP - An eastern Pennsylvania man may face up to 37 years in prison for tearing open a neighbor's door with a chain saw. Police say 34-year-old Robert Kane began sawing through the front door of Jamie Zaleski's apartment in Scranton while Zaleski and several friends ran out the back.

AP source: Browns to hire Eric Mangini as coach (AP)

AP - The Cleveland Browns have agreed to hire Eric Mangini as their head coach, a person with knowledge of the negotiations told The Associated Press. Mangini, fired last week by the New York Jets, reached an agreement with the club Wednesday, said the person who spoke on condition of anonymity because Mangini's contract has not been finalized.

Budget deficit to hit $1.2 trillion in fiscal 2009 (Reuters)

Reuters - The U.S. budget deficit will swell to a record $1.186 trillion in fiscal 2009, congressional forecasters said on Wednesday, the result of an economic recession that has cut tax receipts and caused massive government bailouts of banks and automakers.

Israel pounds Gaza again (Reuters)

Reuters - Israeli aircraft and tanks pounded the Gaza Strip on Wednesday and troops battled Palestinian guerrillas on the ground as U.S. backing for a proposed truce raised expectations of an end to the 12-day-old offensive.

Union gears up for negotiations with GM and Chrysler (Reuters)

Reuters - United Auto Workers bargaining teams are arriving this week in Detroit as the union gears up for negotiations with General Motors Corp and Chrysler LLC, which are mandated to cut labor costs under a $17.4 billion federal bailout.

Senate Democrats move to seat Burris (Reuters)

Reuters - In an abrupt switch, Democratic leaders began talks on Wednesday to swear in Roland Burris, appointed by embattled Illinois Gov. Rod Blagojevich to replace President-elect Barack Obama in the U.S. Senate.

Salmonella outbreak sickens 388 across U.S.: health officials (Reuters)

Reuters - An outbreak of salmonella food poisoning has made 388 people sick across 42 states, sending 18 percent of them to the hospital, U.S. health officials said on Wednesday.

Private job losses mount, ominous for payrolls (Reuters)

Reuters - Job losses and plans to lay off workers hammered the struggling U.S. economy in the final month of 2008, according to private reports that could foreshadow surprisingly grim labor market data from the government on Friday.

Gates says Afghan surge may cost $5.5 billion in fiscal 09 (Reuters)

Reuters - Defense Secretary Robert Gates has told Congress that a planned buildup of U.S. forces in Afghanistan could add $5.5 billion to U.S. war costs in the current federal fiscal year, officials said on Wednesday.

U.S. says Madoff sent diamonds in violation of bail (Reuters)

Reuters - One of the packages accused swindler Bernard Madoff sent in violation of a court order contained about 13 watches, a diamond necklace and other valuables worth more than $1 million, prosecutors said in court papers released on Wednesday.

Israel approves tougher war on Hamas (AFP)

AFP - Israel on Wednesday approved an even tougher war on Hamas, warning residents to flee southern Gaza ahead of planned bombardments of cross-border tunnels, as the Palestinian death toll passed 700.

Kremlin lays down terms as gas crisis engulfs Europe (AFP)

AFP - Russian President Dmitry Medvedev on Wednesday laid down terms for a resumption of Russian gas shipments via Ukraine to Europe as tens of thousands of Europeans suffered heating cuts amid freezing weather.

Doing It eBay: An eBay Business Means Fun and Profits in a Global Marketplace

Online Auction Online Auction