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How To Make Money On eBay

by | Apr 9, 2019 | How To | 0 comments

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What Is eBay?

When it comes to selling items online, the multitude of options can seem overwhelming to newcomers. One of the most well known and widely used platforms is eBay. Many people choose to use eBay as their primary, or sometimes only, a platform of choice. With over 150 million active users it’s not hard to see why eBay is viewed as the go-to place to make money online. It might be easy to follow the herd and go with a popular site like eBay, but is it the right choice for you? Here we will outline a few points to consider that will help you decide if making money on eBay is the right choice for you.

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Advantages

  • The first and most obvious reason as to why so many people choose to operate through eBay is the sheer number of potential customers that use the platform. With millions of active daily users, the potential available audience is significantly higher than if you were to consider using a more niche platform.
  • eBay is a very safe platform to use. eBay has dedicated an immense amount of time and resources into ensuring that both buyers and sellers are protected against potential scammers. Through automatic transaction tracking, ensuring physical items for up to $200, unpaid item disputes and various other measures, eBay will help you protect your business and sales. If you are a new entrepreneur and lack confidence, then these layers of protection will go a long way to keeping your business safe and secure from fraud. Whereas if you were to go with a smaller platform or create your own online store, you would be a lot more vulnerable.
  • In addition to simply selling your items at a fixed rate, you can also auction them off to the highest bidder. eBay started off as an auctioning platform that the later expanded into selling. If you do choose to auction your items rather than selling them, you are exposing yourself to some more risk. Your earnings through will be less predictable since you cannot be certain that items will be highly sought after and go for a large amount. We recommend that you just auction your second-hand items and sell your new products at a fixed rate.

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Disadvantages

  • eBay can be fiercely competitive. While it is true that the many millions of active eBay users result in a lot of potential customers for your business, the reality is that there will also be millions of competing sellers. eBay is often the first choice of many people when they decide to sell items online. Trying to establish a foothold on the platform can be quite challenging due to the sheer volume of competition that will already have thousands of positive ratings and reviews will be a significant challenge.
  • eBay has several fees associated with it. Every listing that you place on the site after the first 50 listings. Additionally, eBay will then also charge a 10% commission rate on each sale that you make. Almost every other platform that you can operate on will charge you less than this. If you are planning on running a large store, it may be better for you to open a store on a different platform. However, if you are running a smaller operation or are simply flogging your extra items lying around the house, then eBay is still a fine choice.
  • You oftentimes won’t be able to charge as much as you would want to charge due to the expectations of the site’s users. eBay has garnered a reputation as a place that’s great for bargain hunting. Many of the people searching around the site will all be looking for the cheapest deal they can get their hands on. If you aren’t auctioning a high demand item, then you may find that you have to sell your items for lower prices in order to get your initial sales. If you can’t properly support yourself with those profit margins, consider a different platform.

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Tips to making money on eBay

  • Become a buyer first. This offers a few benefits, first of all, it lets you get to grips with the platform from a buyers perspective. You will see what an appealing ad looks like, what the competition is doing, what items are in high demand or low supply, etc. Secondly you show buyers that you have a history with eBay. As is the case with most online platforms users are more willing to trust stores with more experience. Even though getting your first few sales will still be a challenge you can at least get a head start through getting buyer reviews.
  • Make sure to take multiple high-quality photos of your chosen product. You will want to convey as much information as possible to your customers so that they get the best possible idea of what they’re buying. The added transparency of fully displaying your wares not only increases the chances of purchase but also improves the odds of you getting a good seller review from the buyer. These reviews will help you acquire more customers later on down the line.
  • Choose when to upload your auction carefully. Generally, most casual and impulse buyers will browse through eBay during the evenings on the weekend. Plan the start of your auction carefully so that it will end during this critical time. That way more people will see it and more bids will be placed on it.
  • Be open and transparent with your product descriptions. Obviously, you want people to buy it so you will try to convince them to do so, but don’t lie or hide information to achieve this goal. Buyer protection will ensure that you must refund them if they are unhappy with the condition of the product. If you are open in the first place and don’t lie, then you won’t have to deal with refunds or negative reviews. Both of these can harm your business in the long run.

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How to sign up for eBay

      1. First of all, you will need to head over to eBays home page. Then you will need to click on the register button on the top left of the screen.

 

2. You will need to choose whether to create a standard account or a business account. For a standard account simply input your name, email, and create an account password.

3. Your account is now ready to go.

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