eBay has become one of the easiest ways to make money on the Internet from your home. The auction site has a world-wide audience, and sellers do not have to advertise the items they have for sale due to the sheer volume of buyers on the site.
Auction sellers can open a seller’s account for free, and they can also open a PayPal account to accept payment for their auctions for free. Counting the time needed to verify personal information, it takes about 2 days to become a full-fledged eBay seller.
5 Steps To Success
When you begin to sell on eBay, there are 5 things that you must do to make it a profitable venture:
- Make sure that you know what your break-even price is before you list an item for sale. This is true on drop shipped goods, wholesale products or used items. Many eBay “How-To” publications tell you to start your bidding price at something ridiculous like one cent. They say this is to draw attention to your product. However, this can easily backfire. How well do you think you will do on eBay if you are selling items for a dime that you paid $5 for? Know what they item cost you to offer, incorporate the eBay sellers fee you will have to pay and the PayPal commission, and use this as your base price. Breaking even is a much better risk than going in the red.
- Understand the cost of shipping. One of the biggest mistakes that eBay sellers make is charging the wrong price for shipping. If you charge too little for your shipping you are not covering the cost of shipping and the packing materials and you are cutting into your profit. If you charge too high for shipping, you lose many potential bidders. Try to be as accurate as possible. If you are seriously going to sell on eBay, you need to invest in a scale and a measuring tape.
- Understand Customers. Your buyers can make or break you on eBay. If your product descriptions are bad, if your packing is poor, if you take too long to ship an item, they are going to post that in your feedback. If your feedback rating is goes too low, you can lose your sellers status on eBay. Many people will not bid on items from people that have negative feedback. Always make an effort to describe your product accurately, even if it is damaged, and pack it carefully.
- Keep listing items. Anyone that sells on eBay will tell you that the more items you have for sale on the site, the more traffic you will have for your items. Many people that view one of your products will click on the link that says “See seller’s other items” and they will view your other products. The more you have listed on eBay, regardless if they are similar products or not, the more you make.
- Drop shipping can be risky. When you use a drop shipping service you must be very careful. You cannot risk listing items on your auctions for sale that are on back order or have been cancelled without notice, This type of delay in getting people their product, or having to refund their auction will lead to negative feedback and a possible loss of your account. Research a drop shipper very carefully before committing to selling their products.
If you are willing to commit the time to selling on eBay you will find that you can make a profit quite fast. Auctions can be run for 1, 3, 5, 7 or 30 days, providing you a way to make an income on a daily basis.
Many people have found that after a very short period of time they can leave their day jobs and work from home on eBay full time. The easiest way to do this is to become very familiar with the site and how all the different promotional tools work.
eBay has many free tools for sellers on their site. They are very active in trying to empower their sellers to be successful. Take advantage of all these free tools and marketing tips. The more knowledge you gain about the online auction community, the more successful you will become.