Tips on How to Start an eBay Business.
How to Start an eBay Business –Starting a business on eBay is a normal progression for most people who come to the site. They tend to start as buyers, get hooked, learn to sell, and then find out that, by fulfilling their goal of clearing out their house and also selling.
Becoming a great eBay seller means there is a great deal of work and a lot of fun ahead of you. Once you are ready to start up your eBay Business, follow these steps to ensure that your business is legally compliant and avoid wasting time and money as your business grows:
In this article, I will list a few steps on how to start an eBay business. Follow these few tips to do some research, set up, and successfully sell on eBay:
1. Decide what to sell eBay
Pick a product that works for you
One of the first things to consider when you want to begin a business on eBay is what you’re selling.
Figuring out what to sell is not something only aspiring eBay entrepreneurs need to do; it’s key for anyone starting a business.
What service or product is a good fit for you, for your location, over the long-term, or just for the moment because it’s selling like hotcakes?
You have to consider the following factors when you want to decide what to sell.
a. Factor in shipping and storage
As you work through the process of deciding what to sell, don’t forget to keep things like shipping and storage costs in mind. Mailing a USB drive is a whole lot cooler than a billiards table.
If you are thinking of selling fragile items, consider the extra packaging costs and also the potential for breakage.
b. Be aware of restrictions
Most people feel that they have the freedom to sell anything, almost anything. Well, eBay does have a list of things you cannot sell, or that have restrictions.
It is worth reviewing the list as it does include things like art, event tickets, and also gift cards.
c. Start with what you know
If you are not sure what to sell, it’s a decent idea to think of what you love and what you know. Do you have a hobby? Perhaps you are an avid collector of Polaroid cameras and you know everything there is to know about how the products have developed over time.
We suggest you pick something you know because an important part of selling on eBay is knowing what the market for these items looks like.
Ask yourself the following questions:
- Is it in demand?
- What do people looking for it consider before buying?
- What does it typically sell for?
- How should you describe it?
- Where should you list it?
- Do you know where to get hold of it at a cheap price so that you can resell for a profit?
- Research popular products
eBay has a great section on “what to sell” on their site. Electronics, fashion, as well as collectibles, are consistently listed among the most popular categories.
2. Set up your eBay store account
If you are going to be listing a lot of items each month, an eBay store is a good idea, if for no other reason than because it will save you money.
Generally, when you list items on eBay, you are doing so as a member of the general public and you also do not need to commit to any monthly fees.
With an eBay store, you are expected to pay a monthly fee. You can decide on a package that best suits your needs and also keeps costs relatively low.
A store is a very good idea if you don’t have an e-commerce website and you want a more personalized place to direct people to.
It’s also an excellent idea if you sell a lot of similar products. People may want to browse and see what else you have.
Africa Direct’s eBay store is a very good example of a store that operates as a website in the micro. Given that it’s so easy to purchase on eBay.
Most people already have their card details saved and linked with PayPal. It is more likely that someone will buy from your eBay store than from an eCommerce website they may not trust, or that requires them to get up and find their credit card.
3. Plan your business.
A clear plan is necessary for success as an entrepreneur. A few important topics to consider are your initial costs, your target market, and also how long it will take you to break even.
4. Form a legal entity.
Starting a legal business entity prevents you from being personally liable if your eBay Business is issued.
Use free downloadable business startup checklists to assist you to stay organized as you get closer to launching your eBay store.
Operating an online store, especially one that is so easy to set up, does not mean you are exempted from all of the legal requirements a “normal” business has to meet.
In actual fact, as soon as you start selling a lot on eBay, or turning a regular profit, the IRS will classify you as a business, and you will also need to meet all the requirements a normal business has to meet.
If you do intend to run a business, even if you are not yet making regular sales, it may be worth formally registering your business. It costs very little and will keep you in the clear. If you’re based in the USA, a limited liability company (which is affordable to set up) is the most popular for smaller businesses and eBay stores. However, depending on where you’re based each company will have its own preferred/popular business entity that you can register.
5. Register for taxes.
You will need to register for a selection of state and federal taxes before you can open a business.
6. Open a business bank account.
A dedicated checking account for your eBay Business keeps your finances organized and also makes your business appear more professional to your clients.
7. Set up business accounting.
Recording your different expenses and sources of income is critical to understanding the financial performance of your business. Keeping precise and detailed accounts also greatly simplifies your annual tax filing.
8. Obtain necessary permits and licenses.
Failure to acquire necessary permits and licenses can result in weighty fines, or even cause your business to be shut down. So make sure you obtain the necessary permits and licenses.
9. Get business insurance.
Insurance is highly suggested for all business owners. If you appoint employees, workers’ compensation insurance may be a legal requirement in your state.
10. Define your brand.
Your brand is what your establishment stands for, as well as how your business is perceived by the public. A strong brand will assist your business stand out from competitors.
11. Establish a web presence.
A business website allows clients to learn more about your establishment and the products or services you offer. You can also use social media to attract new clients.
By using these few tips, which I have discussed, you will be able to take advantage of all the opportunities eBay provides for new entrepreneurs.