Should You Open an eBay Store?
The Question Most Often Asked
eBay Store Owners are often asked by Sellers if they should open an eBay Store. Below is basic information to help you decide if you should or not.
Should You Open an eBay Store?
This is a very difficult question to quickly answer as there is no one easy or simple answer. Are you an experienced seller established on eBay or just starting out? This guide is directed more at those who have little to no experience selling on eBay.
Selling on eBay is not as easy as it may appear. For us starting on eBay was easier than most, as we had been in business for 25 years (retail store and mail order) and we already had experience selling online operating an established commercial website. With that said, learning how to sell on eBay was different; it did take time to learn how to sell here.
First, you must have a reliable supply of good-quality products, excellent customer service, and business, marketing and accounting experience or knowledge helps (almost a must).
Selling on eBay is not as easy as it may appear. For us starting on eBay was easier than most, as we had been in business for 25 years (retail store and mail order) and we already had experience selling online operating an established commercial website. With that said, learning how to sell on eBay was different; it did take time to learn how to sell here.
First, you must have a reliable supply of good-quality products, excellent customer service, and business, marketing and accounting experience or knowledge helps (almost a must).
The Learning Curve
Learning how to set up an eBay Store is one thing, but there is also finding product, setting prices, writing effective listings, establishing clear and effective terms of sale, learning about payment options, mailing costs and methods, international sales, taxes, producing quality pictures, listing strategies, following through on the transaction, promoting your store, and so on.
The learning process of selling on eBay and setting up a store can be very time consuming. It can be done, but you have to be prepared to invest your time and have patience. I guarantee it won't happen overnight, most people don't realize how much time is involved in starting out on eBay to becoming a profitable seller.
If you have never sold on eBay, I recommend you think about it very carefully, and preparing a basic business plan should be your first step. If you just jump in and list 'a bunch' of items hoping to make money day after day, you will very likely be disappointed.
Be sure you thoroughly read and understand the difference between store and core listing and final value fees (FVF) (for eBay.ca refer to store and core listing) and that store inventory format (SIF) listings have less visability on regular eBay searches.
The learning process of selling on eBay and setting up a store can be very time consuming. It can be done, but you have to be prepared to invest your time and have patience. I guarantee it won't happen overnight, most people don't realize how much time is involved in starting out on eBay to becoming a profitable seller.
If you have never sold on eBay, I recommend you think about it very carefully, and preparing a basic business plan should be your first step. If you just jump in and list 'a bunch' of items hoping to make money day after day, you will very likely be disappointed.
Be sure you thoroughly read and understand the difference between store and core listing and final value fees (FVF) (for eBay.ca refer to store and core listing) and that store inventory format (SIF) listings have less visability on regular eBay searches.
What to Sell
Ask yourself if you will have the inventory to meet expenses each month, and be able to make a profit as well. It is very hard to find dependable suppliers of quality products for resale. Some sellers do have established suppliers, but the majority of non-business individuals most likely buy at flea markets, private sales, garage sales or sell off their own unwanted goods. Some use drop shippers (most of us don't recommend this and read why here), and of course many sell their own handmade products.
You can ask, many do, but sellers will likely not divulge who their wholesalers are, if in fact they are dealing with a wholesaler. Many will be dealing with jobbers, not wholesalers. Jobber is a level between wholesale and retail. Don't take it personal, these sellers have invested too much time locating their suppliers and they aren't about to give that information out to someone else.
Also, unless you are an established business with a business/tax license who is prepared to purchase large quantities, most reputable wholesalers will not deal with you. They keyword here is reputable; there are lots of people who represent themselves as wholesalers who are not. The only thing I can suggest is research, research, research.
Whatever you decide to sell, again, research, research, research. Search through eBay listings. Is there a demand for your product, what kind of competition is there in the market you will be selling in, and is that market already flooded with these items?
Then research if that product is selling (through a completed listing search). How many are being sold, how often are they sold, what prices are they getting?. You may find there is too much competition to cover your costs or to make any decent money.
You can ask, many do, but sellers will likely not divulge who their wholesalers are, if in fact they are dealing with a wholesaler. Many will be dealing with jobbers, not wholesalers. Jobber is a level between wholesale and retail. Don't take it personal, these sellers have invested too much time locating their suppliers and they aren't about to give that information out to someone else.
Also, unless you are an established business with a business/tax license who is prepared to purchase large quantities, most reputable wholesalers will not deal with you. They keyword here is reputable; there are lots of people who represent themselves as wholesalers who are not. The only thing I can suggest is research, research, research.
Whatever you decide to sell, again, research, research, research. Search through eBay listings. Is there a demand for your product, what kind of competition is there in the market you will be selling in, and is that market already flooded with these items?
Then research if that product is selling (through a completed listing search). How many are being sold, how often are they sold, what prices are they getting?. You may find there is too much competition to cover your costs or to make any decent money.
Asking for Help and Advice
I would suggest you start with the eBay Discussion Boards, available on both the US and Canadian sites. There is many Help and Category Specific Boards. Be sure to look over the Buyers and Bidding Board to see what complaints buyers usually have. Read as many threads (discussions) as you can which may apply to your situation.
The Discussion Boards are important to read, as these are actual eBay users (both buyers and sellers), not eBay staff. The Discussion Boards are a great place to learn about the mistakes others have made, so you don't. There is also an eBay Stores Discussion Board on both the Canadian and the US sites. Don't be afraid to ask questions. You may also refer to "How To Sell on eBay", on Seller Central or Selling Basics.
The Discussion Boards are important to read, as these are actual eBay users (both buyers and sellers), not eBay staff. The Discussion Boards are a great place to learn about the mistakes others have made, so you don't. There is also an eBay Stores Discussion Board on both the Canadian and the US sites. Don't be afraid to ask questions. You may also refer to "How To Sell on eBay", on Seller Central or Selling Basics.
In Summary
And lastly, if you are new to eBay with (0) or low feedback, your chance of success with a store is very small, you really need to build up both your feedback and experience. Sometimes opening an eBay Store is not the answer, at least not right away. Perhaps look in your closets and around the house, and see what you can sell (regular auction or fixed price core listings) and see what selling is like on eBay first. Start with small steps, if you jump right into a store, you are most likely looking at a disaster.
Good luck with your venture and don't be too discouraged. Be realistic, prepare a plan and take the time to properly learn the ins and outs of selling on eBay.
I hope this helped in answering the basic question of "Should I Open an eBay Store?".
Good luck with your venture and don't be too discouraged. Be realistic, prepare a plan and take the time to properly learn the ins and outs of selling on eBay.
I hope this helped in answering the basic question of "Should I Open an eBay Store?".
Guestbook Feedback
Let me know if you found this information helpful or just say Hi
eBid-Squid wrote...
Good info ..Thanks 5Star
You should write one about ebid.net stores..
Posted November 24, 2008
nki07 wrote...
I am new to Squidoo and Squidoo community but I must say that this is great information for both newbies and professional ebayers. Good work!
nki07
http://www.squidoo.com/globallinkmarketing
Posted June 15, 2008
chefkeem wrote...
***** Thanks for answering some of the questions on my mind. I started selling on eBay a few weeks ago (my Agasweet flavored agave nectar) and I made 3 sales pretty quickly, but now it's "dead" again and I really need to learn how to do all this right.
Posted March 30, 2008
Scarboroughseashells wrote...
Again, love this lens! I've made it my featured lens of the week in my seashell lens. :)
Posted August 05, 2007
docwoman wrote...
Fabulous lens for newbies and oldies alike! You're a star -- 5 stars that is, lol!
Posted July 30, 2007
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