eBay Business

What Is Involved In Running An eBay Business?

A day in the life of an eBay business owner starts by checking for any orders that may have come in overnight, especially if they sell to customers from all around the globe in a number of different time zones. An eBay store never closes its doors, so orders may be coming in 24/7.

A great deal of paperwork needs to be processed, but can be automated to a certain degree.

However, the eBay business owner is responsible for the reconciliation of payments with invoices as well as getting all of the products ready to ship as they are sold.

Packing and shipping orders takes up a major portion of the workday, unless the business owner is selling drop shipped products. In which case, they will need to check order statuses to ensure that all shipments are being processed correctly.

A portion of the eBay business owner's day is spent finding more products. Some time is spent searching for the currently most popular items and selling prices on eBay to establish the type of products to look for and how much should be paid for them. Once the business owner has a few target products in mind, they begin their search.

Many eBay sellers visit antique shops, flea markets, garage sale, estate sales and thrift shops to find items to list. Other eBayers who sell new or refurbished electronics, appliances, etc.

place orders and either have them shipped to them for inventory or drop shipped directly to the customer. No matter if they are searching online or on the street, the efficient eBay business owner is always searching for products to sell.

A major part of the eBay business owner's workday is spent listing items on the eBay website. They must take the time to photograph the items they plan to sell and upload the pictures. Next, they create product descriptions and list prices that are competitive according to previous research.

Finally, some time must be taken to leave feedback for all of the other eBay members with whom the eBay seller has done business. This is also the time to file notices for unpaid items and send payment reminders to customers.

Equipment Necessary To Run A EBay Business:

Computer with Internet access
eBay seller's account
Shipping boxes of various sizes
Packing materials such as bubble wrap, box tape, etc
Mail scales
PayPal account or some other way to accept credit card payments

The Cons Of Running An EBay Business:

Requires at least a full day of work, unlike some entrepreneurial jobs
Competition is high and it is difficult to earn a profit if supply is higher than demand
EBay fees can eat into your profits quite considerably
It is difficult to know for sure if an item is going to bring in profit or if you will actually lose money instead

The Pros Of Running An EBay Business:

Flexibility to set your own work schedule
Can be set up as a practically automated business thanks to the various tools and applications available
An ideal work-at-home job
Easy business to start that anyone can do

Skills Necessary To Run An EBay Business:

Basic computer skills
Basic mathematical skills
Business savvy
Sales skills
Ability to know a deal when you see it

Licenses Necessary For Running An EBay Business:

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Some suppliers and drop shippers require you to have a business license or tax ID before they will do business with you.

Some states may require you to get an auctioneer's license to sell consignment items on eBay.

Check with local authorities for any additional permits or licenses required in your state.

Associations:

Professional EBay Sellers Alliance

Online Selling Association

Antiques, Vintage & Collectibles Online Sellers Association

Employees & Job Requirements:

As your eBay business continues to grow, you may wish to hire additional help. You can enlist individuals to scout for products, deliver orders to customer, pack and ship products or a number of administrative duties.

Approximate Minimum Startup Cost:

You can start this business that with virtually no money. An eBay account is free and you can begin by selling items that you have laying around your house. If you want to start with a little more products, then you can pay anywhere from $100 to $2,000 or more depending on where you get your products and the quantity in which you invest.

Additional information

Not all products are permitted for sale on the eBay website. Browse eBay's prohibited items list at http://pages.ebay.com/help/policies/items-ov.html before listing any questionable items.

12 Steps to starting A ebay business

Before You consider a ebay business, see 16 Questions to Consider Before Starting a Business
1. Ensure A ebay business is for You!

You have a choice as to what business you're going to start, so start one that's right for you. Getting into the right business can dramatically increase your success. Get into the wrong business and your success rate drops. Read Five Secrets to Getting into the Right Business for more information.

2. Understand How A ebay business Operates

How can you run a ebay business if you don't know much about the business? What if you run into an issue that you can't or won't deal with? Then what? You're in a business that you hate working in and that's a problem. See Understand How a Business Operates for more information.

3. Make Sure there is a Profitable Market for Your Business

What's the use of starting a ebay business that is not profitable? You'll be putting all your effort in something that can't support itself or you. There are a variety of issues when it comes to setting the stage for profitability. See Tips for Identifying a Profitable Market.

4. Create a Business Plan For Your ebay business

A business plan is a must for any size business because it helps you stay focused, see the big picture, and get funding. It's something that you create when you start your business and then update as your ebay business evolves. Read our free online guide on How to Write a Business Plan

5. Set up your Business Team

Setting up your team includes finding the right employees and professionals that will help you run your ebay business.

You don't need to employ everyone you work with, but you will need a team of people you can depend on, which could consist of a lawyer, accountant, banker, and consultant, as well as professionals in your industry.

See Creating a Business Team for more on this subject.

6. Get a Small Business Loan if You Don't Have the Money to Start

If you don't have the money to get started, then you'll need the necessary financing or you won't have the opportunity to start your ebay business. This can be done as a small business loan, a personal loan, or other small business financing options.

For more on financing your ebay business see our guide on Financing Your Small Business

7. Legalize Your ebay business

In order to run your ebay business legally you'll need to abide by government rules and regulations on the state and local level.

You'll need to do your research, determine what type of business (sole proprietorship, corporation LLC, etc.) to register, create and register your business name, and register your ebay business with state and local authorities.

To go through the business registration process, see Chapter 6: Making Your Business Legitimate, starting with 6 Easy Steps to a Good Business Name.

8. Get Equipment for Your ebay business

In order to run your ebay business successfully and efficiently you'll need to acquire the right type of equipment. How can you run an online business without a computer? You can't! This is an important issue. See Acquiring Equipment for more on this topic.

9. Insure Your ebay business

Make sure you have the proper insurance for your ebay business. Without the right coverage you could lose everything you've worked for. For tips on insuring your ebay business, see our free online guide: Insuring Your Small Business.

10. Prepare To Accept Money

You'll need a way to accept money, you can't depend just on cash or checks. You'll need to accept plastic: Visa, MasterCard, and American Express. To do that you'll need to apply for a merchant account. See Setting Up a Merchant Account for more on this topic.

11. Set up Your Accounting System

Running a ebay business requires you to collect taxes, and report your earnings. So it's best to set up an accounting system in before you start your ebay business. See Setting Up Your Accounting System for more on this topic.

12. Acquire Customers for your ebay business

In order to exist, every business needs customers. Getting customers is one thing you'll need to be good at. If you can master the tasks of getting customers, it's just like turning on a cash machine almost any time you want. See Acquiring Customers for more on this topic

See Also: Our Free Online Guide to Starting A Business

ebay business Issues's:

Estimating Startup Costs - Find out if you're forgetting something

ebay business Research:

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Business Builders For Your ebay business:

Business cards for Your ebay business

Business Plan for Your ebay business

Business Insurance for Your ebay business

Small Business Loans: Finance Your ebay business

More Business Ideas:

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