Have you been considering starting an online business and thinking eBay is the platform for you, the next logical question is how to start an eBay business.
eBay is a good online marketplace for starting a legit business and earning good profit.
eBay offers you the opportunity to run a business from the comfort of your home at your convenience.
This blog post takes you through the steps to starting your own profitable business on eBay.
The first step to starting a business on eBay is deciding what to sell. Of course, you can choose from various products and categories, but what should you consider when deciding on a product to sell?
As a beginner, starting with one product instead of multiple categories at a time is wise. Your goal is to get the experience and knowledge of what selling on eBay entails; when you are conversant with the basic system, you can then decide to expand/
It’s important first to know what can’t be sold on eBay or products with special regulations to save yourself the trouble of starting over when your listing is taken down.
For example, you can’t sell products like alcohol, or coin firearms on eBay, while products like used perfumes have specific regulation that guides ebay sellers; knowing this will save you some trouble.
Once that is settled, the cost of the product you want to sell plays a role in deciding which products to opt for.
First, note how much you are willing to invest, then narrow down the options of products that fit the bill. This helps you to rule out products you can’t afford.
Apart from cost expenses, you also have to consider other expenses like eBay insertion fees if you exceed the allowed number of product listings.
Finally, the final value fee, which is the commission eBay collects after every sale, cost of shipping, cost of packaging materials, etc.
Once that is done, you can then search for a popular niche to sell. One good way to find a product is by searching eBay itself or other sites like Alibaba to get an idea of products that do well.
Before setting up an account, you must decide which accounts you would operate out of. Is a business account more suited to your plans, or it’s better to operate from a personal one?
The business account suits you if you already run a business and want to move to an online store. The business account also helps with branding, registering a business name, etc. In addition, you can sell in large quantities using a business account. On the other hand, a personal account is merely for casual selling.
There are different ways to register a business for example as a sole proprietorship, limited liability company or a partnership
When setting up a business account, you would be required to provide this information; your business name, email, and phone number and create a password.
Next, you will be asked to provide a valid registered legal business address which will be used to verify your credentials. After this is done, you are set.
When starting a new eBay seller account, you should understand some basic terms and information to help you navigate the platform effortlessly.
What does the term “listing” mean? Or what does it mean to list an item? Listing means the advertisement of the item you are selling, which includes price, item description, promotional options(if any) shipping options.
There are three types of ebay listing;
1. Fixed price listing (also known as buy it now): in this type, a seller can sell different quantities of the same item or different quantities of different variations of the same item. An example of this is selling T-shirts. You can sell one T-shirt in different colors and sizes; this type of listing is called a fixed sale price.
2. Auction Listing: Also called auction-style sales, is when potential buyers or potential customers compete for 1 item. There is usually a Reserve Price, which the auction winner or highest bidder must meet to purchase.
3. Classified ads: in this type, the ad is created on eBay, but the transaction or the exchange of the item for money is usually done outside eBay. Only a few categories can be sold as classified ads, like vehicles.
There are different fees that apply at different stages in the selling process on eBay. However, for most casual sellers, it is free to list items until 250 items per month; anything above that will cost you an insertion fee of $0.35 per listing.
Apart from the insertion fee, a final fee of $0.30 applies to every item sold.
There are about nine areas where eBay has set up policies to guide users and avoid conflict.
These policies include policies on selling practices, selling protection, shill bidding, avoiding eBay seller fees, seller performance, tax, intellectual property, and VeRO program, prohibited and restricted item and product safety guidance for sellers.
It is important to carefully study these policies to avoid breaking the rules, which can lead to loss of account and even more severe consequences
eBay has set limits based on the stage of development to give ebay sellers and ebay buyers a more balanced experience. The more a seller increases sales and activity and gives great service, their limitations are released.
The standard limit for new sellers is up to 10 listings per month, worth at most $500.
Before you operate your eBay business account, you would need a seller’s license to operate your business legally.
Therefore, before starting your business on eBay, you should check with your local government to know which license you need, follow the registration process and obtain your license.
This will save you from future problems in your business.
The next step is to set up policies to aid the smooth running of that business. Your policies show the buyer what to expect in areas like payment and shipping, thereby eliminating any surprises and improving reliability for both parties.
To create a policy, you first create a policy drop-top on your account and choose your policy. Next, you give a descriptive name and add a brief description. Finally, you add policy details and save.
The payment method policies are policies that show the buyer what payment methods are accepted. After filling in your description name and description, you have to select at least one payment method. Payment methods available are PayPal, credit card, etc.
Shipping policies are set to guide and inform the buyer on shipping details like local and international shipping cost rate, estimated delivery time, shipping method, and other related policies. In addition, shipping policies provide options for shipping services like economy, standard, and expedited services.
There is also something called eBay Global shipping program, where you send your product to eBay’s global shipping center, and the rest will be done for you; this is a great option for those who plan to ship internationally.
This set of policies is very helpful in avoiding problems if any discrepancy happens. For example, if a problem arises with the product, this policy is set to guide the actions of both buyer and seller to avoid any confusion or conflict.
After your account is set up and all policies are set, the next step is adding inventory. You need to note a couple of points while listing your product.
While listing your items on eBay, there are some things you could do to make your products more attractive and reach more people. Below we discuss how to optimize your listing and boost your visibility.
When listing your item, ensure that you list them correctly in the right category to ensure it would be seen by prospective buyers and avoid eBay taking it down.
Photos play a very important role in selling as they are usually the first thing buyers look at when searching for a product.
A photo can create either a good or bad first impression, so you should put some effort into making them look good. It is very important to ensure that you take real photos of the product and good professional photos.
This sends a good message to the buyer about the product and the seller.
While taking photos, ensure the item is in top condition, especially if you sell a used item. Use a good background while taking the photo to make the item look appealing.
This section is responsible for making your product visible when searched by prospective buyers.
Therefore, it’s important to use major keywords when writing your title. However, try to use only a few keywords; less important ones can be used in the subtitle.
Keywords like designer name (e.g., forever 21), model, type (e.g., open toe, high hill), use (e.g., casual dress shoe), etc. can be used to make the product easily searchable.
This part of your listing helps buyers understand in detail what they are buying.
Make sure to use easy-to-understand English words. Be sincere in your description, and make the description accurate and fact base.
For example, if you are selling a used mobile phone, you should state when it was bought and how long it’s been used. Make sure that what you describe is exactly what the buyer would receive if purchased.
Also, state how much the shipping cost is or if you offer shipping benefits. State also the estimated delivery time from when the product is purchased.
eBay offers various shipping options that you can use. You can either deliver it yourself or use a shipping service.
The choice of shipping depends on the location of delivery, whether local or international, the type, size, and value of the shipped item, the urgency of delivery, and so on.
eBay has a rich list of shipping services like UPS, USPS, DHL, etc., that you can choose from.
After the shipment has been sent, make sure to send the tracking number to the customer and upload tracking to eBay.
After successfully selling items, you still have to get a summary of your transactions which will be used for tax filing.
One benefit that eBay provides sellers is that they have a detailed record of all their transactions which are readily downloadable in PDF format at the seller’s hub when needed.
The record will involve the transaction date, buyer name, order number, fees, payout date, and other information you would need for tax filing.
It’s very important to do your research properly on what to sell when starting your eBay business.
Some platforms like Alibaba already provide good recommendations based on popular product purchases, which can give you a good idea of what to sell.
One good thing about Alibaba is that it has recommendations based on location, making it easier.
Make sure you browse for examples of the product you want to sell and make a note of keywords that are easily searchable, and edit where necessary. Of course, the easier your product can be found, the better.
Don’t take bad photos. Make sure the photos you use are clear, with details shown clearly in separate photos, and try to make the photo appealing.
The better the product looks in the photos, the better your chances are of selling a product.
Offer free shipping as much as possible because items with such benefits get more attraction and have a higher chance of being bought.
Selling and making a good profit on eBay requires time, so be patient with yourself and learn as much as possible; with time, growth will be a natural consequence of your hard work.
Running your store on eBay helps save you money compared to selling without a store. However, the benefits in cost vary based on the subscription fees you choose.
A subscription affords you as little as $0 insertion fee for a number of your listings per month and a lower final value fee.
Every beginner on eBay will begin with the starter pack and pay about $4.95 monthly for yearly renewal and $7.95 monthly for monthly ebay store subscription renewals.
An average eBay business seller makes about $35,000 yearly, and about $70,000 for experienced sellers.
However, it’s important to state that your net profit margin depends on the costs you incur on shipping and other fees and how much inventory you can sell.
On eBay, there is always a handling time in which the seller has to send out the item through the chosen service selected by the buyer. So you would have as long as the handling time set for each item, usually between 1 to 30 days.
