Need to make a little extra cash or even a full time time, try selling on eBay.
Selling on eBay is rapidly becoming a mainstream way to make money online.
There are a few ways to make money on eBay:
- As a seller or;
- Operating an online eBay store
Regardless of which you prefer here is what you need to know to learn how to make money on eBay in 2017.
Know Any eBay Success Stories?
If you know any people have had success with eBay let me know in the comments down below. I would like to hear about them and possibly use them in a future update of this article. So if you know of anyone who has had, or is having success on eBay tell them to leave a comment down below.
How To Make Money On eBay: Getting Started
Set Up An eBay Account
To get started making money on eBay you need to register and set up a seller’s account on eBay. This is the first step that you do.
Setting up an account does require either a credit card, debit card, or bank account information. eBay needs this information so they can charge you the seller fees (more info on this below).
When you set up your account you’ll want to tell eBay how you would like to pay for these fees each month and also what types of payments you’ll except from your buyers.
Option to Set Up A Business Account
eBay has an option to set up a business account if you currently have a business. This is account offers certain benefits that a normal ‘seller account’ or ‘store account’ doesn’t have. You will need to provide a few additional details such as your business name and account information to start.
Option To Link PayPal To Your eBay Store
If you are looking to operate your own ‘eBay store’ eBay provides an option to link PayPal to that account. That way eBay as well as customers have one platform to do all transactions.
PayPal also offers ‘Seller Protection’ this protection covers you in cases of “chargebacks, claims, & reversals for unauthorized payments and items not received for eligible transactions that are paid with PayPal”.
Feedback Profile Set To Public
When setting up your eBay seller profile you want to make sure that your feedback profile is set to ‘Public’ and not private.
If it is set on private you can not sell on eBay. The more positive your reputation becomes the more people will see you as ‘reliable’ and ‘professional’.
Listing Items On eBay
Monetize Your ‘Spring Cleaning’
Once you have an eBay account set up you can begin listing items on eBay. If you don’t have a stockpile of goods to sell you can sell things from around your residence.
Think of it as monetizing your ‘spring cleaning’ . You can also go to thrift stores or wholesale stores and buy low priced marked items and sell them on eBay.
Limit To Free Listings
Every seller on eBay gets a certain number of ‘free listings’ each month. If you go over that number you are charged an ‘insertion fee’. The amount of free listings depends on which level of a member you are. There are 3 levels of membership:
Write honest Descriptions Of Items
Before you list your items you must come up with a title, description & take pictures. The title and pictures are pretty simple and easy.
The description however must be honest and upfront. Anything that is defective or non-working must be disclosed.
Being honest in your description also helps to build trust and reliability with your customer base which we will talk about in the next section. Having honest descriptions is one way to build trust with your customer base.
Basic eBay Fees:
If you list an item and you pay an ‘insertion fee’ and that item sells eBay will generally give you a ‘insertion fee credit’. This fee only applies if you go over your limit of free listings.
Final Value Fee
However once your item sells eBay gets what is called a ‘Final Value Fee’ The FVF is not a set fee and is different for every item you sell. It is based on the total amount of the sale, shipping cost and other costs minus sales taxes.
These fees are fees that each eBay seller should be aware of. The percentage of the fees also depends on whether your selling them at auction or fixed price and if you have opted in for any additional supplemental or advanced listing services.
eBay Fee Schedule
For more information on the fee schedules and how they are calculated can be found HERE.
Know Any More Tips?
If you know anymore tips on listing items on eBay let me know in the comments down below. I would be glad to use them in a future update of this article.
Make Money On eBay: Grow Your Customer Base
When selling items on eBay it is important that you know your customer base and cater to that base. There are many ways to do this, however in 2017 the following ways are proving to bring in the real money.
Research The Competition
You are not one selling stuff on eBay. You are also not the only one selling your items; such as baby clothes; which is why researching the competition is so important.
Not sure how much to list your items? Search eBay for items similar to yours and figure out the average price.
If you don’t do accurate and through research you could undercut your competition through price gouging which could lead to other sellers and buys leaving negative feedback on your profile. You could also have the price too high and not sell at all.
Research your competition and leverage that knowledge to turn a profit faster and easier then your competition.
Quality Over Quantity
Always provide quality to your customer base. This means taking quality pictures of a quality product. A picture is worth a 1000 words, so why not have the words be positive.
Having a quality logo, quality store design, and quality shipping standards also helps to build a reputation of quality. Having a unique logo or store design will go a long way in attracting a customer base.
Having quality will also help to establish a Brand Identity. This identity is what returning and first time customers will use to judge you and your products on.
Establish A Brand Identity
Whether you’re selling on eBay as a seller or you have your own ‘eBay store’ it is important to establish a brand identity. This identity is what people come to know you buy. So if you are just starting out it is important to provide quality over quantity.
It is also important to associate your brand with honesty and rewarding prompt buyers with positive reviews. Having a positive track record will help to push your brand over the competition given enough time and feedback.
Good Feedback = Good Customer Base
To really start making money on eBay you need a lot of positive feedback from your customers.You can get positive feedback in the following ways:
- Be Honest About What You’re Selling
- Be Responsive To Customer Questions
- Provide Prompt Shipping
- Provide Feedback To Buyers
- Ask Customers To Rate Your Services In Follow Up Emails
- Send A Handwritten Thank You Alongside The item To The Customer
Doing a few of the above listed things will lead you have have more positive feedback and better yet, possible RETURNING customers. That means more business for you and your Brand.
Keep Costs Down
It is important starting out to keep the costs down. Your goal is to make a profit at first and establish a customer base.
To make a profit you have to keep your buy costs down as well as your shipping costs.
However it is also important to keep your tax liability as low as possible. For advice on tax liability consult a tax professional or tax attorney, no advice is given here.
Once you have an established customer base and every cost is accounted for you can then begin to map your strategy for expanding your business. But do not expand your business until you have a base and you have experience in the ‘true costs’ of running a business on eBay.
For Tax Purposes; as well as being good business practice; it is important to keep records of all transactions.
These records will be used to see the health of your business and what needs improvement. These records will also be needed when your figure your tax liability.
For help with managing your records consult a tax professional or a tax attorney.
Know Of Any Other Ways To Build A Base?
If you know of any other ways to build a customer base on eBay let me know in the comments down. There are different ways to build a base so if you have a tip tell me below.
Make Money On eBay: Wholesalers vs. Dropshippers
Unless you have an unlimited supply of the item you are selling you are going to need to find a reliable product sourcing venue. In the world of eBay there are two big product sourcing options:
Wholesalers are businesses that sell products at wholesale which is cheaper and can lead to you having a bigger profit.
Examples of wholesalers are outlet stores, thrift stores, Goodwill, the list goes on. This is a great option for people starting out making money on eBay.
Dropshippers store items for you until they are sold. Once they are sold they ship them out to the customer.
Using dropshippers means you have less control over your business then you would have if you used the wholesale method.
Dropshippers are useful for large sellers on eBay that move huge amounts of items in a month, once you become established using dropshipping is a cost friendly option.
Which Option Works The Best
Let me know in the comments below which option you think works best for selling on eBay. I would like to hear from everyone who actively sells on eBay which method works for them.
Advertise On eBay
eBay allows a seller to advertise on eBay with ‘classified ads’. If you want to bring attention to an item that you just put on eBay you can pay $9.95 for a 30-Day listing on eBay’s classified ads. You can do ads in every category except real estate.
Ads do expire after 30 days, however you can always renew or cancel your advertising at anytime through your ‘My eBay’ portal.
Hard Work Will Pay Off
If you work hard and long enough you may qualify for eBay’s PowerSeller Program.
This program offers you special access to USPS shipping rates, access to phone consultations and help with health insurance.
To qualify you the seller:
“..seller needs to consistently sell a significant volume of items, provide a high level of service to buyers, maintain a positive Feedback score, and meet the requirements for detailed ratings and eBay Buyer Protection and PayPal Buyer Protection case standards.”
Still A Challenge To Succeed on eBay
Success will not happen in a week or two it will take months and even years to fully succeed on eBay. This is due to a lot of variables but the biggest reason is a lack of training programs by eBay to help people get started. For people new to selling on eBay it can seem like success will never come and for some it never does.
If eBay had a comprehensive training program it would help to bring more people into eBay and help to turn petty cash into a full time income online.
eBay Isn’t The Only Way To Make Money
eBay is a fantastic platform that millions of people use monthly to make money online. However eBay isn’t the only way to make ‘bank’ online.
A great alternative to look into is Writing Online for companies and blogs. To learn about 3 legit ways to make money writing online please read ‘Make Money Writing Online‘
Be Successful Online, Get Real Training To Succeed
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Leave A Comment Below
If you have any questions about how to make money on eBay leave them down below. I would be happy to help in any way I can. Also if you know of any other ways to make money on eBay also leave them down below.
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