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.
