How to Make Money on eBay
It’s safe to say that everyone knows about eBay. If you haven’t heard of eBay then you must be living under a rock. This great auctioning platform for buying and selling gives you an opportunity that cannot be ignored. So take advantage of it.
The potential is there. The popularity of buying online continues to increase year after year as consumers feel more secure about spending their money on the web. This security allows well-established brands like eBay to continue gaining more members. In the end, that means they offer you more potential customers.
You have two options with making money through eBay. The first is to sell some of your old stuff. Cleaning out the closets might be the biggest reason most people sign up as a seller on eBay. It provides a much easier platform for selling older items.
Let’s start with the basics by walking you through setting up and selling something from around the house. We all have older stuff that we don’t use. I recommend that you find something right now that you could live without. Got it? Great! Let’s get started.
Register with eBay
Naturally, the first step is to sign up for an account with eBay. Registering is fairly simple although as a seller, you will be required to provide information in order to verify your identity. There are two things you will be required to do in order to verify your identity:
1. Confirm your Phone Number
EBay offers two ways to verify your phone number: a call option and a text option. Either way, the process is simple and effective. They send you a PIN number. Then you enter that number on eBay to verify that the number you provided is indeed, your phone number.
2. Select and Verify an Automatic Payment Method
As a seller, you are required to provide a method for making automatic payments to eBay. I know this sounds unusual but this is simply to pay your fees for posting objects and paying eBay Buyer Protection reimbursements. The following can be used as a payment method:
- Credit Card
- Debit Card
- PayPal
- Bank Account
Once you select a payment method, click Continue to move on. Fill out all required information and agree to eBay’s terms of service. Once this is done, your information will be verified. Upon verification, you are ready to start selling on eBay.
Selling your First Product
Here’s where the path ahead forks into two directions. When starting out on eBay, it’s probably best to stick with listing just a few items from around the house. As you grow your profile, you can start selling more items. That’s where opening an eBay store comes into play. For now, let’s focus on getting your first item listed.
Step 1: Take Photos
I should rephrase that. Take high quality, clear photos of the product you are planning to sell. Capture the product from all angles. A picture is worth a thousand words (as the saying goes), so be sure to take the time to get this right.
Step 2: Write a Product Title
The product title is what buyers will see in their search results. It’s you’re first opportunity to advertise the product you’re selling so give them an informative title. You get 80 characters (not words) so use them to your advantage. Be clear and concise. Ask yourself what would catch your eye. Try to include the following:
- Brand
- Size
- Color
- Condition
Try to avoid punctuation as they make a title appear amateurish. Furthermore, don’t use words like “LOOK” or “GREAT”. I see this more than I would like and can only shake my head. Finally, do not use all caps in a title. This is something else I tend to see a lot of (shaking my head again). If you’re accurate with your title, you will get buyers to bid on your items. You don’t need to yell to buyers (ALL CAPS is the text equivalent of yelling).
Step 3: Write a Description
This is your opportunity to pitch your product. The buyer has clicked and gotten this far, so they are interested. Now make the sale!
- Use correct grammar and spelling.
- Don’t abbreviate words.
- Keep the information organized
- Always begin with the most important information
- State the condition of the product in great detail
Include any information that you would want to know if it were you looking to buy the product.
Step 4: Post the Product
EBay charges a fee to list products on their website. However, this fee is minimal. Once you have pictures, a title, and description of the product, go ahead and list it.
Once you sell a few products and establish some feedback, consider opening an eBay store. This is where the big money making opportunities come from. The rest of this chapter will discuss some of the details of opening an eBay store and show you how to tap into a vast stream of income.
Choose your Selling Category
If you plan on turning eBay into a long-term opportunity, then you will need to choose a category to specialize in before continuing. If you’re just planning to earn some extra cash by selling stuff from around the house, then you don’t really need to bother with this. In fact, you can start selling immediately after verifying your identity if you want.
On the other hand, long-term sellers need to specialize in a specific area and work toward gaining a reputation in that area, After all, you wouldn’t go to Best Buy to find the latest deal on frozen foods.
Treat this as if you are opening a physical store. What are you planning to sell? What products do you have experience with? This will be the biggest decision you will make so choose wisely. Whatever category you decide on, be absolutely certain that it’s something you have experience with. Trust me when I say that you cannot sell products that you know nothing about. This inexperience will show itself through descriptions and other more subtle factors. So just stick with what you know. Of course, we are only talking about the main category. Your store can be comprised of several subcategories – up to three levels in fact. Here’s a few examples:
Electronics>Computers>Laptops
Electronics>Computers>Hard Drives
Electronics>Video Games>Accessories
Electronics>Video Games>Consoles
In the above example, the main category would be electronics, followed by a narrower category and then narrowed even further. The list is quite extensive but I’m sure you get the basics. You are even allowed to set up categories of your own. You don’t have to use the ones provided by eBay but most users will be searching using those categories.
Learn more about setting up a store and managing categories in eBay’s help section. Practice makes perfect so don’t be afraid to play around with the interface. Here are the basics:
Adding a Store Category and Subcategory
Log into your eBay account and then visit the My eBay section. Then choose Manage my Store. Check under the categories to find an option for adding a category to your store.
Setting up a subcategory requires one additional step. Once you have selected your category, select Add Category again.
Category Tips
Always keep a few things in the back of your mind when setting up categories on eBay. Remember that like all other opportunities that I’ve shown you throughout this book, success on eBay is not going to happen overnight. However, these tips will get you started in the right direction.
When doing anything on eBay, you should look at it through the eyes of a buyer. Are you making changes that benefit the buyer’s experience? Categories are supposed to work for the buyer in a way that enhances their buying experience. People shop online because it’s easy to find what they want. So believe me, they are not going to jump through hoops to buy one of your products. They will simply move onto the next seller – one who has made their life easier.
Although eBay recommends that you set up products by brand, I feel that you should focus mostly on the price and type of item. Online shoppers are generally looking to buy a specific product for the lowest price possible. Most searches will be based on item type and price, not by brand name. You can list the brand in the product title and description.
Finding a Wholesaler
In order to be able to offer products on eBay for discounted prices, you will need to find a wholesaler. Wholesalers sell products in bulk. Since these products are sold in large quantities, they are much cheaper on a per unit basis. The problem that most beginners run into is that they don’t know how to go about finding great wholesalers. This will either make or break your store. Here are five tips for finding the right wholesaler.
1. Start at the Source
Most people completely skip this option. However, if you want to find wholesale deals, then why not start at the source? If the product you want to sell is a brand name item, then check out the brand’s website. They will often have wholesale deals for their products. After all, that’s how local brick and mortar stores get the item to sell. You may be required to call them in order to get this information though.
Some larger brands will only sell through large distributors. If that’s the case, then you can ask for a list of their distributors. So this time hasn’t gone to waste. In fact, it has kicked off your search on a positive note and given you a list to potential wholesalers.
2. Search the Web
Okay, I understand that some of you will not want to call or negotiate with large brands. Maybe you’re even looking for a more generalized option? Either way, searching the web for wholesalers is another great option.
When you start building a list of contacts, it’s a good idea to create a spreadsheet so that the information is available to you in an organized manner.
3. Find Wholesalers on eBay
There are wholesalers galore on eBay! Be sure to check out the ones in related categories. Building business relationships on eBay is a good way to save countless hours of work in the future. Plus, eBay tends to attract low volume wholesalers, which is perfect for your needs! You can buy in low bulk and sell for a profit with very little risk.
4. Network
Joining professional networks is often a good way to find wholesalers. You will find that some retailers are not keen on giving information to sellers. This makes networking even more valuable. The sooner you start building business relationships, the more work you will save yourself in the future.
5. Subscribe to Publications within your Category
This includes magazines, email newsletters, and other forms of media. Have you ever noticed all of the classified ads in a magazine? Next time you have one, take the time to read through those ads. You will find that a large majority of them are wholesalers. So take the time to subscribe to a few magazines and email newsletters within the category you plan to sell.
Selling your First Item
The first sale is always the most difficult. It takes a lot of patience to await that first buyer. The problem is that buyers tend to look for sellers who are already established. Since you need buyers in order to get feedback, this creates a paradox. Here are some tips for getting that first buyer.
1. Leave Positive Feedback for Other Buyers
This is often overlooked but can help establish new sellers on eBay. Most shoppers understand how eBay works and they also understand that everyone has to get started somewhere. However, if you have no prior transactions through eBay, then you will be ignored. So make a couple of purchases. Once you have received your product, leave descriptive feedback. Do this at least three times before selling your first product. Sellers will then leave positive feedback on your behalf as a buyer. It’s a win-win situation.
2. Be Prepared
Before you post your first item, be 100% sure that you’re prepared as a seller.
Is your PayPal account verified with eBay?
Are you ready to package and mail your product?
Have all of your mailing supplies on hand?
These are easy to overlook when your focus is on selling your first product. However, once you finally make a sale, you need to ship it out as quickly as possible. This will lead to positive feedback.
3. Do your Homework
Here’s that word again. Homework is a part of business so get used to it. Before listing your item, search for similar products. See what other sellers are charging for their products. Since you don’t have feedback, you will often need to charge lower prices than your competition. In fact, a good trick is to take a loss on your first few sales in order to gain feedback. I know this doesn’t sound too appealing, but you have to think long-term. Another option is to sell something that you own for a very cheap price. That way, you’re not actually taking a loss. You’re just trading an item for feedback.
4. Start off Small
Don’t start off by selling a product that costs hundreds of dollars. Start out small. As you build your reputation, you can start selling higher cost items. Like all other opportunities, be patient and don’t take on more than you can handle.
For smaller items, you can start off bidding at $0.99. These types of listings attract a lot of bidders. There are several advantages to starting off small and working your way up.
5. Treat your Buyer like You would Expect to be Treated
Once you make a sale, ship the product as quickly as possible. Package it carefully and also send your buyer a message as soon as the product ships. This is a great practice and will lead to generous comments in your feedback. Assume that you are the one ordering the product. How would you expect to be treated?
Keep Selling and Continue to Grow
Once you have a few pleased buyers under your belt, you will start seeing your sales take off. Don’t stop there. Continue to grow your brand and keep the new customers rolling in. Once you sell all or most of your items, continue to reinvest a percentage of your profits into more inventory.
Also, there is the option of selling other people’s stuff for them. If your town doesn’t have one of those “We Sell Stuff on eBay” stores, then you could consider starting one. Heck, you don’t even have to start out with a physical store. Post a few advertisements in the local newspaper. Once you have taken the time to build your selling profile, you might as well make the most of it.
Tips for Success on eBay
Let’s end this chapter by listing a few tips that you can use to make life on eBay a lot easier.
Take the time to go through eBay’s extensive help section. This place is filled with tools and useful tips that even veterans would find useful. It includes audio, videos, and helpful posts.
Budget some time on a regular basis to browse through all of the listings in your category. This should be done at least once a month. The idea is to get an understanding of what’s trending and what competitors are selling the most. Plus you can stay up to date on pricing.
Don’t underestimate the usefulness of local store’s liquidation sales. Sometimes, you can stumble on a great deal where you live. Make local connections with retailers that sell products related to your category.
Don’t be afraid to take risks. At the same time, don’t take dumb risks. Learn how to calculate how big of a risk it is and judge whether the reward justifies it or not.
Keep your inventory organized in a way that you can easily find an item once it sells. This becomes more important as your sales pick up.
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