Steps To Begin Your Business on eBay
If you’re trying to figure out how to begin an eBay business You’ve come to the right spot.
eBay can be described as an online auction and shopping site that lets people buy and sell second-hand or brand-new items, either for business purposes or as an opportunity to eliminate piles of clutter and earn a bit of additional money.
Although the site is completely accessible for free, eBay does charge some charges to sellers. There’s a per-item fee for insertion as well as a final value cost along with fees for any additional, but not required features that are used. We’ll explore more detail on this in the future.
1. Determine what you will offer for sale
Choose a product that is effective for you
One of the most important aspects to take into consideration when you’re looking to begin a business on eBay is the product you’re selling.
Finding out what you can sell isn’t just something that experienced eBay entrepreneurs have to think about It’s essential for everyone who is just starting out a business. What kind of product or service is the best fit for you, in your area, in the long term, or in the present because it’s selling fast?
Factors in storage and shipping
While you go through the process of deciding on what to offer, keep shipping and storage costs in your mind. Sending a USB drive can be a lot simpler than mailing playing billiards. If you’re thinking about selling things that are fragile, take into consideration the additional packaging costs and the risk of breaking.
Be aware of the restrictions
You’re also free to sell almost anything, well pretty much everything. eBay has some items that you can’t sell, or have limitations on. It’s worth looking over the list since it can include items like artwork or event tickets as well as gift cards.
Start by focusing on what you know.
If you’re not sure of what you want to offer it’s good to think about your passions and interests and then what you’re comfortable with. Do you have a particular passion? Maybe you’re a devoted fan of Polaroid cameras, and you’re aware of all there is to know about how these cameras have evolved over time.
It is recommended to choose something you’re familiar with since an essential aspect of selling via eBay is knowing what the market is like.
Have you asked yourself these questions?
- Is it in demand?
- What factors should those looking to buy it think about prior to buying?
- What do they usually sell it for?
- How do you describe it?
- What is the best place to list the item (category)?
- Have you got a clue on where you can obtain it for an affordable cost so you can sell it for an income?
However, that isn’t a reason to not pick something that you’re not acquainted with. If you’re a seasoned researcher and looking for an exciting new pastime, maybe this could be the time to explore new avenues.
Tips: If you are a fan of conducting studies on the market, Terapeak is worth a trial. It allows you to gain access to exclusive details about how consumers behave, as well as what products are doing at a higher level on eBay, Amazon, and Alibaba. It is free to try during the first 30 days.
Explore popular products
eBay offers a fantastic section of “what to sell” on their website. Electronics, fashion, and collectibles are always included in the top categories.
Electronics that are the most popular items to sell for 2018 are:
Game consoles
Mobile phone accessories
Laptops
Bluetooth speakers
A word of caution about electronics If you’re just starting out, it could be beneficial to avoid electronics for a few months, particularly in the case of selling second-hand electronic devices. Learn how the site functions before you must handle returns and complaints concerning defective keyboards, monitors, and hard disks.
The most popular fashion items for 2018 include:
Athletic shoes
Accessories such as belts and sunglasses
The replacement bands are compatible with smartwatches.
Makeup
Hair accessories
The most sought-after items for collectors this year include
Stamps
Coins
Cards for trading
Gaming sets such as Magic the Gathering and YuGiOh
2. Create an account on eBay. eBay store account
If you’re planning on listing lots of things every month, creating an eBay site is a great idea, if you have any other reason then it can save you money.
When you post items on eBay it is this as a member of the general public, and are not required to subscribe to pay monthly fees. When you set up an eBay store, however, you’re bound by law to cover a monthly charge. You can choose the best package for your needs while keeping costs to a minimum.
As of now, eBay offers five store packages that offer different discounts:
Starter Package: 100 fixed-price listings per month cost $4.95 each monthly (billed annually)
Basic: 250 monthly fixed-price listings cost $21.95 for a monthly (billed annually)
Premium: 1000 fixed price ads per month and costs around $59.95 monthly (billed each year).
Anchor: 10,000 fixed-price listings per month which cost $299.95 monthly (billed each year).
Enterprise: 100,000 fixed-priced listings per month. $2,999.95 each month (billed annually)
A store is a great idea if you don’t own an online store and would like a more personalized site for people to go to. It’s an excellent idea to sell lots of similar items. Some customers might want to go through to see what other products you’ve got.
Africa Direct’s eBay store is an excellent example of a store operating as a micro-site. Since it’s easy to buy on eBay–a lot of people already have their credit card information stored and linked to PayPal, it’s most likely someone will purchase through your eBay store rather than an eCommerce site that they might not consider, or one that will require them to go online and locate your credit card.
3. You must make your eBay company legal and official
What do you need to be aware of when starting a business
Utilize this no-cost, downloadable checklist for businesses to ensure you’re well-organized as you move closer to the launch of the eBay store. The fact that you operate an online store, particularly one that’s easy to create isn’t a guarantee that you’re not subject to all laws that a “normal” business has to comply with.
As when you begin selling lots of items on eBay and/or generating an annual profit and generating a regular profit, the IRS will declare you a business and you’ll need to satisfy all the standards an ordinary business needs to be able to. If you are planning to operate a business, even if you’re not selling regularly It might be worthwhile having your business registered informally. It’s not expensive and will ensure that you’re on the right track.
This includes:
Name registration for your business
Finding a Federal Tax ID number
Inquiring about any federal or state permits or licenses
Determining a legally-sound business structure
Business structures
In general terms, it is possible to choose from four legally-valid structures or business models. For some, selecting the right business type is simple; however, for other people seeking advice, consulting with an attorney is recommended.
If you’re comfortable with handling these tasks by yourself, you could go with a firm such as LegalZoom which can help thousands of small-scale entrepreneurs prepare legal documents for incorporation of their businesses and similar. If you’re any time unsure of which is best suited to your needs We strongly recommend consulting with a professional in the field of law.
If you’re able, search for someone who’s an active member of the neighborhood Chamber of Commerce. Here’s a quick overview of each type of business that includes a small amount of information on their compatibility with your eBay company, and some other aspects you might want to think about.
Sole proprietorship
A sole proprietorship is the type of business choice for many people who run an hourly or full-time enterprise solely. It’s the most basic kind of business that is very simple and cost-effective to establish. It is possible to run sole proprietorship out of your personal account in your checking account. You can deduct a lot of costs associated with running the business of your business from federal and state taxes.
The danger of sole proprietorship lies in that the liabilities of the business are tied to you personally. If you default on loans or are in debt, you may be unable to access your personal assets.
Partnership
The formation of the eBay partnership with a few people is a great method to earn money through this platform. It could begin with an informal agreement however, a formal written agreement must be drafted; to take into consideration the various obligations, potential dispute limitations, and provisions for the worst-case scenarios–i.e., “What happens in the event of a dispute? …”
The partnership must submit Form 1065 with the IRS and the earnings are taxed according to individual tax returns (established according to the terms of the agreement in writing, or according to a percentage of the ownership). Legally each partner is accountable for each other and for themselves. Any lawsuits that happen could possibly involve each of you therefore makes certain that your partners are aware of their responsibilities as well as any legal responsibilities that be in place.
A word of caution: eBay states in its User Agreement that you may not “transfer your eBay account (including Feedback) and user ID to another party without our consent.”
In the event that your partner chooses to back out, or you decide to go different ways and wish to create separate companies If you’ve not clarified from the beginning who will get this account could be the beginning over again or being involved in an extensive legal battle. This is a contract you ought to review.
Limited Liability Company (LLC)
As the name implies, the obligations in Limited Liability Companies are generally not transferred to owners. That means the owner’s or owners’ responsibility does not exceed the amount they put into the company.
For tax purposes but members or owners are all responsible. If taxes are due, the number of losses and profits are determined for individuals on the basis of their shareholdings or investments. Form 1065 should be submitted to verify that the members are reporting their income correctly. The LLC is able to reduce the tax that members pay through the use of an organization and retain some profits within the company.
Corporation
A company can be described as a legally-constituted entity that operates completely in its own way. As an employee-owner, you are not able to access the company’s bank account at your pleasure. It has to be used for a legally enforceable purpose.
There are two kinds of corporations you can set to operate: S or C. The first allows profits to be remitted directly to your tax return, while the latter is able to file their own taxes and you’re an official employee. The state where you establish your company will decide the amount of tax you have to pay and what regulations you have to follow.
It is important to be aware of the tax rate in the state you live. You should also not establish a business without knowing the exact meaning of taxation and what it means for you as an individual proprietor as well as an employee.
4. Begin with a list of your items
Be aware of the costs
If you’re not familiar with it take the time to learn about eBay’s selling charges.
Take charge of your policies
Consider how you will address questions from buyers. Do not forget to outline the clear return and customer service policies.
Choose the payment method you’ll accept from customers
eBay offers several different payment options for sellers. Paypal debit and credit cards along with checks, money orders, cash at the time of pickup, and bank transfer.
Make sure you have a seller account
Before you are able to list the items you want to sell, you’ll need to create an account as a seller. The first step is to decide whether you want to establish an account as a “personal account” or a “business” account.
If you’re planning to start an eBay business and are planning to sell a substantial amount of items per month, you’ll choose the personal account. This is for sellers who are casual. The process is easy and easy, and eBay will walk you through the process. Once you’ve got your seller account set up you can take some time to become familiar with your dashboard for sellers.
Create your listings
To begin the first eBay listing sign in to the account you have created on your eBay account. Select the “sell” link in the upper right-hand corner. This will bring you to the Summary page.
When you’re there, you’ll notice vertical navigation on the left-hand right side of the account. Select”Sell an Item” in the blue “Sell an Item” button. eBay will assist you with the remainder of the process.
One of the initial choices you’ll need to decide on is whether you want to develop an example listing. If you’re certain you’ll be selling many of the same kinds of categories creating this template, in the beginning, could make a huge difference in time. Do not underestimate the importance of the product description’s wording to aiding your item to be seen and purchased.
To be able to make your item more attractive for sale and increase the chances of being seen it is necessary to include the following:
A well-written text and title (pick something that people are seeking)
Additional information regarding particular elements of this item (some categories allow this)
Its condition
Images of the product (the more high-quality the more professional)
Selling style (auction-style or fixed cost)
A listing duration
A price that is a starting point (see our previous tips on pricing your products)
The payment options you’ll be accepting (see our explanation in the previous paragraph)
Locations and costs for shipping.
Return policy for your product
5. Prices for your products
There’s a wealth of advice about the best way to price your items. A simple eBay lookup for a product you’re hoping to list will give you an idea of the appropriate number.
However, prices could fluctuate widely. Some sellers prefer listing items at fixed prices, while others prefer to begin with a low price and make their sale an auction.
Tips TIP: Use eBay’s Advanced Search feature to find the price the item you’re looking to sell has been gone for in the past.
Remember eBay’s default search option will be “Best Match,” which considers both the shipping cost of the item as well as its list price.
The total price is the most important thing
Like a store in real life, You must ensure that your items are easily found. The best way to achieve this is to be sure you balance your list price and shipping to ensure that it’s fair and also to keep your business’s standing out with excellent customer service. An honest price makes it more probable that your outcomes will be more prominent when buyers search for similar items to yours.
Tip: If you’re trying to boost your search engine visibility Try experimenting using eBay’s “reserve price” settings.
You’ll be able to set an affordable price, however at the time you can set the price to be lower which means that when your reserve price isn’t exceeded when bidding on your item, it may not be sold. In order to set a reserve price, you’ll have to pay a fee per item. Make sure you look carefully at the preview of your item so that you can spot any errors or mistakes you missed prior to going live.
6. eBay legalese, and things you need to be aware of
The business of running a business shouldn’t be thought to be a chore It’s supposed to be fun in the process too. One thing that could hinder doing this is not being aware of the rules that you must be adhering to.
To keep the problems to the minimum, you’ll need to be familiar with eBay’s rules and regulations, be aware of the items you can and can’t sell on the platform and be aware of what to do if your competitors don’t behave in a fair manner and, of course, know what you can do with the “difficult bidder” or a buyer who hasn’t paid.
Each of these issues is thoroughly covered by eBay and we’ll add the most important links for each below:
Learn about eBay’s principles and honor the principles of eBay and honor
A list of restricted and prohibited items
The policy of Ebay’s profanity
What do you do if your buyer doesn’t make payments
What do you do if you aren’t able to follow through on an offer
7. Establish an offline eBay headquarters
When you’re in the early stages of establishing the foundation for your eBay business, you should spend some time contemplating how it’s going to operate offline. That is, where do you keep your inventory? Are you equipped with a designated station for packaging your packages?
Particularly when you’re just beginning, you must do what you can to make it work. Start in your spare space or in your garage.
Don’t get too involved. However, you should think ahead particularly if you’re looking at expanding your company and inventory rapidly. Start by creating an efficient system for keeping records so that you are aware of what’s in terms of inventory and can locate it quickly.
Find out how to organize your eBay stock
Based on the products you sell Some good things to keep in stock that can make storage more convenient are:
Steel or plastic shelves
Clear plastic containers (if you have a lot of inventory) With clear labels
Snack bag made of plastic (good for items that are smaller)
We recommend storage boxes that are clear to make it easy to check what’s in your possession.
Maintain track of the items you have in your possession
It doesn’t matter if you use either a notebook made of paper or a software application There’s no doubt that keeping track of your inventory is crucial and especially so as your company expands and it becomes more essential to keep accurate documents in case the IRS will ever investigate things. The most effective way for you to maintain track of an enormous amount of your inventory is to purchase an effective bookkeeping system.
QuickBooks is a popular choice among many eBay sellers because it effortlessly connects to the eBay account, so you won’t need to spend any time moving things manually.
Put up your packing supplies and workstation
One of the most important aspects of your headquarters will be “the shipping department.” To keep your operation running smoothly it is essential to ensure that you have everything you need in stock in particular if you’ve pledged to get items shipped quickly.
Things you must always keep on hand:
Clean up packaging using a sticker removal tool such as Goo Gone or un-du, or just WD-40
Bubble wrap
Shipping tape
Styrofoam packing peanuts
Bags made from plastic or trash (good to wrap larger objects and to waterproof)
An assortment of envelopes (including the useful bubble mailer envelopes that ensure items are safe)
Boxes (check out the nearby USPS retailer for further information)
Learn to sell!
You’ll be learning a lot while you’re learning. Test your rates by listing the language and process often to be certain you’re as efficient as you can.
Create an e-commerce and online company plan. It is possible to use these free, downloadable templates for business plans to begin with, or you can take the time to look through some examples of online business plans in our collection to assist to think about the procedure.
Why should you create the business plans of your choice? Consider it as a structure to assist you in determining what you must do in order to be successful. Are you able to set budget goals in place for your company? Your business plan must be an instrument to help you achieve those goals and to become the most profitable eBay company you can be.
