How to run a successful ebay business?

how to run a successful ebay business

Selling on eBay in – What You Need to Know. eBay is one of the largest online marketplaces, which means it can be a great place to sell goods. If you want to reach millions of customers from the UK and around the world, advertising products on eBay can be one of the fastest ways to do it.

Many people use eBay to sell one-off items. If you’re decluttering your home, for example, selling items on eBay can be a viable way to make some money from items you no longer want or need. However, this isn’t the only way you can use eBay.

As well as facilitating individual sales, eBay also allows businesses to list their products online. This means you can start your own eBay business with a view to making profits. If you want to supplement your income or even give up your day job to become an ecommerce guru, read on to find out everything you need to know about selling on eBay.

How To Start an eBay Business

You can sell virtually anything on eBay, although some items, such as event tickets or property, are prohibited or subject to certain conditions. Before you can start trading, you’ll need to decide what type of goods you want to sell on eBay.

When you’re choosing what type of products to sell, it can be helpful to select goods that you’re interested in and/or knowledgeable about. This insight will make it easier for you to understand consumer demands and to gather relevant information for your listings.

However, personal preference isn’t the only thing that’s relevant when it comes to deciding what goods to sell. You’ll also need to research the eBay market for particular products and determine whether you can find suppliers to meet your needs.

Once you’ve done this, you’ll be in the perfect position to launch your business on eBay.

How To Set Up an eBay Business

To start selling goods on eBay, you’ll need to register with the site and create an account. If you want to operate a business and sell goods via eBay, you’ll need to register and then set up a business account. To do this, users need to supply the following information:

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If you want to open a shop within the eBay marketplace, you’ll also need to have an active PayPal account and at least 5 positive feedback scores from buyers. You can open an eBay shop without a PayPal account, but you’ll need to have at least 10 positive feedback scores before you’re permitted to do this, as well as a bank account, credit card or debit card to pay your seller’s fees.

Setting Up an eBay Shop

You don’t have to set up an eBay shop in order to sell on the marketplace, but many businesses find it advantageous to do so. When you launch an eBay shop, it allows you to use your company name and branding more prominently, which can enhance your professional reputation and make it easier to acquire customers. In addition to this, users can add your store to their list of Favourite Shops, which makes it easier to buy goods from you in the future.

If you choose to set up an eBay shop, you will need to pay a monthly subscription fee. These range from £25 for a basic package up to £399 for an eBay shop with unlimited free fixed listings. Businesses who opt for a £399 per month ‘Anchor Shop’ will also gain access to eBay Concierge, a free service that gives you direct access to expert support.

What Are the Fees for Selling on eBay?

As a business, you’ll pay various fees for selling items on eBay. However, the exact fees you’ll pay are dependent on whether you have an eBay shop and, if so, which Shop package you choose.

If you don’t have an eBay shop, you don’t need to pay a subscription. Instead, you’ll simply ‘pay as you sell’. Current rates are set at 30p for fixed price listings and 30p for auction-style listings, although these fees can be changed at any time. If an item sells, you’ll also pay a final value fee, which is based on the sale price and the category the item was listed in.

If you open an eBay shop, you’ll still need to pay final value fees, but you’ll get reduced listing fees. If you open a basic eBay shop, for example, you’ll receive 250 free fixed price listings, 50 free 7-day auction-style listings, and then pay 10p per additional fixed price listing and 15p per additional auction-style listing, based on current rates.

In addition to this, business users can choose to pay extra fees to add other elements to their listing, such as a reserve price, buy it now price, or larger ‘Gallery Plus’ images.

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The seller’s fees can seem confusing at first, as they’re made up of various components. However, once you begin selling and gain experience on the marketplace, you’ll be able to calculate potential fees quickly and learn to offset them against the profit you make.

Do I Need a Business Licence to Sell on eBay?

If you want to sell goods on eBay as a business, you don’t need a business licence to do so. Instead, you can choose to operate as a sole trader and simply use a trading name on your eBay shop.

If you already have an established company that’s registered with Companies House, you can use your business name to trade on eBay too.

How To Sell Other Companies Products on eBay

Most users who sell on eBay are resellers. This means that they resell products made by other companies, rather than manufacturing their own goods. If you plan to sell TVs made by Sony, laptops made by HP, or kitchen appliances made by Morphy Richards, for example, you would be selling other company’s products.

Providing the goods have been purchased legitimately, you shouldn’t have any issues reselling them. If you buy items in bulk and resell them individually, for example, this is a viable business model. However, you won’t be able to use a company’s branding or logos in order to advertise or sell goods, unless you have their permission to do so. Nor will you be able to advertise your business as an ‘official retailer’ or ‘official reseller’ unless you have been granted this title by the company in question.

How To Find Wholesalers for an eBay Business

Buying in bulk can reduce your costs and allow you to increase your profits, providing you can find the right wholesaler. A simple online search will connect you to thousands of wholesalers, but you’ll need to do your own research to decide which ones could be right for you.

Some wholesalers have high minimum orders, which may not be suitable for a start-up business, for example. Similarly, if you purchase goods from a wholesaler based overseas, you’ll need to factor in import costs and shipping.

As well as searching for wholesalers for an eBay business, you may want to look for dropshippers too. A dropshipper holds stock and, when you receive an order, you simply send the order and delivery details to the dropshipper. The customer’s goods are then dispatched directly to them. This model means you won’t need to hold stock or ship large volumes of stock around the globe. As a result, you could substantially reduce your costs by working with a dropshipper.

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The price of goods will have a major impact on the profits you’re able to generate, so take a strategic approach when it comes to finding wholesales and/or dropshippers. Identify every potential wholesaler or dropshipper that can accommodate your needs and make contact with them to discuss potential terms and prices. By doing so, you can find the best range of vendors for your new eBay business.

How To Run a Successful eBay Business

If you want to increase your success on eBay, approach your venture as you would any other business. Start by creating a comprehensive business plan, which will allow you to identify meaningful goals and objectives, as well as potential barriers. In addition to this, use your business plan to calculate any potential costs, such as purchasing stock or paying seller’s fees. This will give you the opportunity to ensure you have an appropriate level of funding in place.

A key element of your business plan will be to source goods at a cost-effective price from a reliable supplier. It may take time for you to find the right wholesaler or drop-shipper, so don’t try to rush this part of your preparation.

Once you’ve got your business plan finalised and you’ve found the right suppliers, you’ll be ready to register for an eBay business account and can start listing goods for sale. When you’re first starting out, it can be beneficial to list just a few goods for sale, as this gives you the opportunity to familiarise yourself with the listing tools that are available.

Maximising Profitability with an eBay Business

To increase sales and optimise final selling values, be sure to experiment with different types of listings. Add extra pictures or providing more details could have a positive increase on sales, for example. With consistent A/B testing, you can successfully boost your sales and increase the price at which products sell.

You’ll also want to minimise your own costs in order to make your eBay business more profitable, so think about how you can achieve this. Storing goods at home, instead of renting storage space, could be a viable option, for example.

For budding ecommerce entrepreneurs, eBay can be a lucrative platform to advertise and sell products. With a global reach, you can connect with millions of customers from all over the world and, by doing so, you’ll have the opportunity to sell goods and generate profits at a rapid pace.

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