E-BAYING

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Just about everyone has sold items on eBay or knows someone who has. Most people sell items they have in their home or garage that are of no use to them any longer or they are moving and need to clean house. Earning a few extra dollars selling their usable junk is fun and doesn’t take much time out of a persons day. Right?
What if you decided you wanted to go a step further and make selling on eBay a small business venture. Could you earn enough to give up your part-time job or maybe pay for the Harley Davidson motorcycle you’ve had your eye on for the last year?
Yes, you can earn an income selling on eBay and compete with the big companies. 

      How To Start Knowing where to start is the first major step       to embracing the concept of running an eBay business. The tools you need to begin an eBay business are:

● A computer and printer

 ● A digital camera

 ● An account with eBay and PayPal

 ● Some type of merchandise

Before you take that first step with your new eBay business, contact your city and/or county sales tax division. Most counties and states require you to file with them and obtain a sales tax number. You may need to collect taxes from your eBay customers on their purchases and you may have to file for sales tax collection every month. You can set up your sales page on eBay showing the customer that sales tax needs to be charged and collected. After an item is purchased, sales tax for that particular state will be added to the total bill. There are people who don’t claim their income or collect taxes on their sales from eBay. This is very careless and dangerous. No one wants the IRS knocking at their door.
After obtaining information from the city and/or county regarding your business, you have one more decision to make. Do you want a separate bank account just for business expenses and income? This is a decision each individual must decide for him or herself. I would suggest you open a separate account so money affecting the business would not be mingled with your household expense money. You will eventually need a business
account as your eBay sales grow and your income increases. This is a concern you could discuss with a CPA or tax attorney.
Set Up the Ebay and PayPal Accounts The first step is to register with eBay and PayPal by opening an account if you don’t already have one. I can’t stress enough that you should read all the rules and regulations set forth by eBay and Paypal. You need to follow the guidelines to have a successful business. Both eBay and PayPal have excellent tutorials on running an online business and you can find unlimited information on the web regarding selling on eBay. There are also classes you can take that instruct you on running an eBay business. Do your homework and get the facts before making that first business sale.
Find Merchandise To Sell After setting up an account on eBay and PayPal, you need to decide what you are going to sell. Selling your unwanted household items, your stock will eventually be depleted and selling your ex-husbands possessions is not a good idea. You need to find your niche or market. Do you have an interesting hobby that could lead to sales on eBay?
What do you have a knowledge of that people want? Is there a need that should be filled? Selling items that you are interested in or knowledgeable about helps but don’t limit your sales to these items. With a little research, you can become quite knowledgeable on any topic.
Obtaining merchandise to sell can come from many different sources. Most beginning eBay business owners don’t have thousands of dollars to invest in merchandise. Obviously, you need merchandise to sell to make money but you need money to buy merchandise to sell. To start your business from the ground up with no capital takes imagination and ingenuity.
How about sticking $50.00 in your pocket and hitting the garage sales early Saturday morning? You would be amazed at the items put out for sale under $5.00. Look over the merchandise and keep in mind what will be valuable for resale. You don’t want to purchase large or bulky items (too expensive to ship), nor would you purchase any item that was illegal to ship.
Remember to look at the merchandise with this in mind: 'who would want to buy this item and what would they be willing to pay'? If it cost you
$3.00 to buy and $4.00 for shipping & handling, what is the minimum profit you are willing to make? Don’t forget you have eBay fees that will have to be paid for the posting of this item for auction and depending upon payment type, you may have PayPal fees. If making $3.00 profit is okay with you, then figure out what your eBay fees are and set the selling price. Remember you are trying to purchase items for quick resell to fund your business. You could reasonably visit 5 or more garage sales in one morning. The earlier you arrive at the garage sales, the better the selection.
Flea markets are another great avenue to visit for eBay merchandise. Once again you need to have an idea of what is marketable and what price you can place on the item. One good draw of the flea market is they will probably have a large quantity and may give you a discount if you buy in bulk. So if you find a great item for $4.00, you could ask for a discount if you purchase 10 or more. Always check the quality of the item and ask yourself, “Is there a market for this”. Do not think you can buy high end, name brand merchandise for just pennies on the dollar. If someone at a flea market is selling Chanel No. 5 for $15.00 an ounce, walk away from the dealer and do not look back. He isn’t selling the real Chanel and you don’t want to do business with a fraud. You never want to promote any item on eBay as a brand name that isn’t genuine. Your reputation as an honest business owner is at stake and there may be legal issues involved as well. Buy from honest sources and remember the old adage, “If it sounds too good to be true, it probably is”.
Stores that have “going out of business sales” are a good place to look for merchandise for eBay sales. Once again you need to know what is hot on the market and what price people will pay. If you find a store that specializes in Christmas items going out of business in August, hurry on in. Good quality Christmas cards, lights, decorations and figurines bought cheaply can be resold for a nice profit. Just remember, offering people good holiday merchandise at a low price before the holiday season is smart business.
Depending on sales and promotions, you may be able to pick up some real bargains at Kmart, Wal-Mart, Costco or Sam’s Club. Each of these stores buys in volume and always has some price breaker offerings. These price breaker items are often called loss leaders (they are sold below cost) and they are used to generate sales for higher ticket items. This is a common practice in most retail stores today, especially the big box stores. If you spot a great deal on a loss leader, buy as many as you can afford and resell for a few dollars less than the other eBay seller. Once your eBay business has started making money, you can snatch up good buys and sit on them until the demand rises.
Example: You are able to purchase 1000 small American Flags for $50.00 during a February sale. You buy the flags and hold onto them until the 4th of July and sell them for 50 cents each. You’ve made a nice profit for yourself with very little work. The flags were easily stored and you only tied up a small amount of money for the 5 months you held the flags. Always think ahead and plan for the next big sale.
Buying in bulk as stated earlier can be profitable. You need to have storage space for the merchandise where it will be kept clean, dust free and easily accessible. Also if you buy good quality merchandise, it may be stored for months or years until the demand is up for your item. If you purchase 100 Christmas placemats, don’t worry if they don’t all sell this year. You can always store the placemats until next year and market them a little earlier than other eBayer’s market their Christmas wares. Any item can be recycled for sell as long as there isn’t an expiration date.
There are many “Wholesale Warehouses” that sells merchandise in bulk. You need to do a lot of investigation before signing up with these wholesale distributors. These wholesale companies may be located in the US or may be located overseas. Ask questions before signing on the dotted line. You certainly don’t want 1000 coffee makers arriving every other month on your door step. Know what type of merchandise you are ordering and when and how it is shipped. With some of the wholesalers, they keep the stock in their warehouse and direct ship it to your customer (for a charge) when you make the sale. This is pretty convenient for you as the business owner. Buying from wholesalers is not for the start-up eBay business but you do need to keep this in mind as your sales increase and you have some capital to invest in more merchandise.
When you are first starting out selling on eBay, the items you sell may be inexpensive (you can’t afford to stock the higher ticket items) which means you will have to sell more items to earn $100 a day. After a few weeks in business with more capital in your pocket, you may be in a position to sell more expensive items which equates to fewer sales to maintain your earnings goal of $100 per day.
There are other ways of earning money on eBay besides selling merchandise. Do you have a service that can be offered on eBay? How about ghost writing (no, I am not referring to Alfred Hitchcock) or offering a “How To” e-book on a subject in which you are proficient or have an interest in. If you could write an e-book on an interesting topic and sell it for $9.99, you would only need to sell 10 books to earn $99.90 for a day. There would be no trips to the Post Office and no worry about replenishing products as they sell. Material for an e-book could be obtained from doing web searches on a chosen topic and then compiling
your information. Remember you are not re-inventing the wheel; just presenting it with a new cover.
Another opportunity for earning money selling on eBay is selling other peoples wares. This can be profitable for the experienced eBay seller. Note, I said “experienced” seller. I do not suggest a beginner using this method as there are many pitfalls which a newbie might encounter. If a beginner thinks he wants to venture in this direction, I suggest you read, “Don’t Get Burned on eBay” by Shauna Wright.
Okay, we’ve discussed obtaining the merchandise to sell. Now we need to proceed to the next important step. How do you market your wares?
How to Market on eBay Before you list your first item on eBay, browse through the site and look at other seller’s products. Examine the pictures of the merchandise they are selling and read the descriptions of the items. What do you like or dislike about the seller’s listed auction? What caught your attention and made you look at that particular item instead of the other 1500 items that were listed in the same category? Critique other seller’s listings so you can apply your new knowledge to your own auction.

Four rules that should be followed are:

● Take clear, bright pictures of the item you are selling (using a tripod to ensure the pictures are in sharp focus).

● Write a concise description of the item that is for sale. 

Disclose all defects that the item has; do not try to hide any imperfections.

 ● Never misinform or lie to a potential buyer.
Rule number 1 is pretty obvious. Have you ever scrolled down an eBay page looking at some items for sale? If the seller hasn’t posted an image of the item in the gallery, I don’t bother to click on the item title to see what is there. If a seller can’t afford the 35 cents to post an image in the gallery he is obviously not motivated to sell his wares. Likewise, have you ever been interested in someone’s listed item but the picture is so blurred or out of focus you can’t really see the product? Sometimes, the picture is so bad, you can’t tell what they’re selling! You want to show off your item to catch a prospective buyer’s attention so please take clear pictures.
A few months ago I was browsing through weight lifting equipment on eBay. I had a weight lifting set that I planned to sell and I wanted to get an idea of what people had to offer. I ran across an item that listed gym equipment for sell for $20,000 with no pictures and just a brief
description. I noticed the seller was new (this was their first listing) and I felt a little sorry for them and emailed them with some advice. I advised them they needed to insert some photos of individual equipment and maybe a photo of the whole gym. I explained that with them being new to eBay and auctioning equipment for such a high price and no photos, no one would bid on their gym equipment. I offered this advice in a friendly manner and the person did email back and said there was too much equipment to photograph and they just couldn’t list everything that was for sale. Needless to say no one bid on the gym equipment and the seller still had to pay the eBay fees for running the ad. You would think they learned their lesson but a week later the same ad ran again with the same results.
Some Important Rules to Help Your Sales The first important rule and the best advice I can give a newbie eBay business seller is get organized. After you have purchased your merchandise for auctions, take a couple hours or days and photograph each item. Then write a clear, informative description of the item. Doing this ahead of time will save time and you will be able to place all your merchandise up for auction whenever you desire without having to get the camera out or tax your mind with writing. This will become important as your business grows and your time is limited.
Rule number 2 and 3 should be self explanatory. Let the potential buyer know exactly what they are bidding on. Give them all the pertinent details of the item up for auction and if you don’t know the make or model year, let them know. Also, disclose any defects or blemishes the item may have. Don’t try to hide a defect or scratch as this is dishonest and may lead to an unhappy buyer. Treat your buyers as customers.
Rule number 4 should be followed in all your everyday dealings. Don’t lie to anyone you’re doing business with. You want to grow your eBay business and the best way to do this is by selling a good product at a good price and treating people fairly.
Tools for EBay Sellers There are many tools you can utilize to help market your wares. You can find some of these tools for free on the web and others you need to purchase. There are hundreds of E-books offered on the web to assist beginning eBay sellers and there are classes offered at an affordable price. It may benefit you to save the money you earn selling your own 

cast-offs and take an eBay class before beginning your business venture. Gaining knowledge is an asset to any quest.

 There are even computer programs available to aid your research on eBay. They can help you to determine:

● Whether a product will sell and for how much

● Ways to increase a listing´s chances of selling

 ● Ways to boost your profits on each listing 

● Market trends for your specific product

 ● The size of the market and your specific competition
Get Items to the Buyer After you have made the sale, you need to ship the item. One important lesson is to learn how to calculate the cost of shipping for items. It will not benefit your business if you charge the customer $3.00 for shipping and it cost you $5.00 to ship. It is also very bad business to gouge the buyer with high shipping costs.
You can purchase a small postal scale to weigh your items. You can calculate shipping costs based on the weight of the item by using UPS, FedEx or USPS web sites. For heavier items, use a bathroom scale and weigh yourself and then weigh yourself holding the boxed item. The difference will be the weight of the boxed item you plan to ship.
Having boxes, tape and packing supplies available is a plus. To save time and frustration, it is best to have a shipping box ready for the item you are auctioning. This way you can have the item packed and ready to attach a shipping label on the box. I once sold a target, compound bow that I was no longer using. The odd shape of the bow made it hard to pack so I looked around for a couple of weeks until I found the right size box for shipping. (I could have taken the compound bow to a UPS shipping center and let them pack it for me for an outrageous charge). After finding the right size box and packing up the bow, I listed the item on eBay and it sold in 2 days. As you can see, it was smart to find the right size box before putting it up for auction.
Sold items need to be mailed off as quickly as possible to the customer. The more positive feedback you receive from customers the higher your rating will be. The higher you’re rated, the more trust customers have in you.
Dealing with Dissatisfied Customers As with any business that deals with the public, you will have unhappy customers. Whether it is the quality of the product they bought, the time in shipping transit or the price they paid, customers will complain. You need to resolve the complaint as fast and efficiently as possible. It is much better if you and the customer can resolve any issues by yourselves. PayPal does have a Buyer Protection Plan which is suppose to protect both buyers and sellers. Notice, I said “suppose” to protect sellers. It really protects buyers so I suggest if you sell anything over $25.00 (or whatever amount you decide you can’t afford to lose) to add shipping insurance in the shipping and handling that you charge the customer. That way if a customer says the parcel was lost or damaged, you can recoup your money.
A claim of a lost item may mean you refund the customers purchase price (less shipping and handling) or give them a discount on a future buy. How well you resolve the complaint may pay off in sales in the future. Once again, read “Don’t Get Burned on eBay” by Shauna Wright for great insight on eBay selling.
Summary In review, the steps needed for a successful eBay business are:
1. Read all tutorials for eBay and PayPal

2. Register with eBay and PayPal 

3. Select suitable merchandise

 4. Photograph and write up description of item to be auctioned

 5. List the merchandise for auction

 6. Ship auctioned item to bid winner
One of the biggest mistakes a newbie eBay seller makes is not reading the rules and regulations for eBay and PayPal. I mentioned this at the beginning of this article but want to stress its importance. To make money selling you must follow certain guidelines which will protect you and your earnings.
Setting your goal of $100 a day in eBay sales is viable. You need to research your products and plan for this business to succeed. Don’t be afraid of making mistakes or failing, just work hard to reach your goals. When you have those first sales under your belt you will know what it feels like to be a winner.
You can earn an income from selling merchandise or services on eBay. Earning $100 a day is not unreasonable and after a month or more your earnings could certainly increase. 

Happy eBaying

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Milan Tomic

Hi. I’m Designer of Blog Magic. I’m CEO/Founder of ThemeXpose. I’m Creative Art Director, Web Designer, UI/UX Designer, Interaction Designer, Industrial Designer, Web Developer, Business Enthusiast, StartUp Enthusiast, Speaker, Writer and Photographer. Inspired to make things looks better.

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