Starting a Business on Ebay

The one thing that stops many people from starting their own business on Ebay is the simple fact they don't know what to sell, or even where to start. They've heard the overnight success stories and want to get in on a piece of the Ebay-business pie, but their lack of knowledge blocks their way.

The truth is, overnight success stories are few and far in between. There is money to be made, of course, but you have to work for it as you would any other home-based business. You best bet it to choose an item you enjoy selling, something that others would be interested in buying enough that you could make a steady income with.

If you want to practice, Ebay veterans suggest you start by selling whatever you have lying around the house that you don't need anymore. If you've already done that (or have recently had a garage sale) you can offer to help your friends and neighbors sell off their items they no longer want. Slowly climb upwards and extend your offer to your local neighborhood, charging a fee for selling their items (make sure you include the Ebay fees in the price.) Take the money you earn from this and use it to purchase the type of item, or "widget", you want to sell. In recent years Ebay has begun offering the option of a Trading Assistant, who will help sell your items on Ebay. If you go this route, you'll save time for yourself while still making money on the sale. They also offer their new "Marketplace Research" option, allowing sellers to follow the market trends of their particular industry. Revealing charts and "top searches" (the most often-used phrases by customers when utilizing the Ebay search engine) help sellers tailor their marketing approach and strategies for a monthly fee of $10.

Once you've learned the basics of selling as a business, consider specializing in one type of "widget". Think about your interests and hobbies. Do you make candles or clothes in your off time? Collect baseball cards or movie memorabilia? Selling items from categories you're very familiar with will both establish you as an authority on the product and make your business far more enjoyable than selling a product you don't care much about. Also think about the job(s) you had, and think about what products helped you out. If you found them handy, it's likely others will as well. Selling what you know and enjoy is the main key on Ebay; if you don't know the product, you won't be very invested in it and that will be obvious to your buyers. First-hand knowledge of your product will give you a great advantage over your competitors.

Have your product and you're ready for business? Great. Now's the time to get all the legal issues out of the way - check with your local government and tax department to see what licenses you need, especially the seller's permit. The seller's permit is what allows you to call yourself a self-employed Ebay seller and lets you buy your product wholesale. Without this permit you're just another hobby seller, and will be treated as such by wholesale companies.

On the subject of drop-shipping, it's probably going to be an expensive and unnecessary option for you in the beginning of your home-based career. Ebay authorities suggest you try to establish a relationship with your manufacturing company, then approach them with the possibility of drop-shipping. Using a drop-shipping company right off the bat will only deplete your earnings. Cut out the middle-man in the beginning, and you should enjoy greater success than those who go all out from day one and spend on unnecessary services.

With these tips in mind you should have your Ebay business off the ground in no time. Just remember, success usually doesn't come overnight, and if you don't enjoy what you're selling, it's time to find another "widget".