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7 Things You Need to Know Before You Sell on eBay

 eBay headquarters edit of image by Coolceasar CC BY-SA 3.0

eBay headquarters edit of image by Coolceasar CC BY-SA 3.0

How to Make Selling on eBay Worth It

Before you start building your eBay empire, there are a few items to consider in laying a firm foundation for your future profits. Even if you don't plan on establishing an actual eBay empire, a little preparation will go a long way in saving you time, lowering your stress level, and maybe even saving you money.

When I started on eBay, I spent a lot of time agonizing over the wrong details while overlooking some of the most crucial preparation. To help you avoid the painful mistakes I made, here are my top tips for you to consider before you open your eBay account.

What to Consider Before You Start Selling on eBay

  1. Decide if You Need a Personal or Business Account
  2. Choose a Good eBay User Name
  3. Set Up a PayPal Account
  4. Know That Buyers Will See Your Return Address
  5. Get Shipping Supplies Before You List
  6. Consider if You Really Want to Sell Something for 99 Cents
  7. Remember That eBay Gets Paid, Too

When I started selling on eBay, I spent a lot of time agonizing over the wrong details while overlooking some of the most crucial preparation.

1. Decide if You Need a Personal or Business Account

Your first decision is whether to set up a personal or business account. Unless you have already set up a business entity and are ready to start raking in the money, start simply with a personal account. If business booms, you can upgrade to a business account later without losing any transaction history. If you already have a business entity, either a brick-and-mortar retail store or an online business, then go ahead and set up a business account.

If you want to start a new business and open an eBay business account, then first make sure your business is set up legally. This includes registering your business name with your state and following your state's laws regarding sales tax collection.

Some people want to keep the account they use for personal purchases separate from their selling account. The advantages are that it can convey a more professional appearance and protect your privacy by not showing buyers your list of purchased items.

Quick-Start Tip #1: Start simply with a personal account.

2. Choose a Good eBay User Name

Some user names make people wonder, "What were they thinking?" If you don't want to elicit that type of response from potential buyers, then choose a name that people will not find offensive, is not sexually suggestive, and doesn't convey a negative connotation or negative attitude. Check out eBay's guidelines to learn their criteria of what is and isn't allowed in user names.

A good user name is important, but don't put off opening an account while you dream up “the perfect name.” The good news is that eBay will let you change it later if you have a sudden epiphany after setting up your account. You can change your name as often as every 30 days (although that won't help you "build a brand"), and your feedback will still stay with you.

Quick-Start Tip #2: Already have an Amazon seller account or other e-commerce business name? Consider using the same seller name on eBay.

3. Set Up a PayPal Account

You'll need a PayPal account if you want to get paid. This is the simplest option for new merchants, although there are a couple other options if you really hate PayPal. You can use your personal PayPal account or set up another PayPal account for your business.PayPal does allow users to have one personal and one business account, so it's completely legit to have two accounts. Each account must have a unique email address, bank account, and credit card associated with it.

If you're not setting up as an official business yet, then I'd suggest also holding off on the business PayPal accountant, as you can change over later. Do be aware that using your personal account will show buyers your personal name rather than your business name on the payments they make to you. If that is a big concern to you, then you'll want to set up a business with PayPal and eBay. That's more than we'll cover in this article.

Buyers don't incur fees when they use PayPal, but as a seller, you will be footing the bill. See PayPal's fees page for up-to-date info on their fee structures. If their fees seem high to you, remember that all the stores we shop at pay to process the credit cards we love to use. This is part of the cost of running a retail business, and you'll need to account for it as an expense and when calculating your per-item profit.

Quick-Start Tip #3: Start out using your personal PayPal account and upgrade later if the need arises.

4. Know That Buyers Will See Your Return Address

Items you ship out will need a return address. If you don't want that to be your home address, then get a PO Box before you list your first item. I cringed when I realized that my full name and home address were going out on the shipping labels I had printed up through eBay. It surprised me and scared me a bit to lose that privacy. Now you know and won't be surprised!

You can get a post office box at the US post office, a UPS store, or a variety of other locations. USPS post office boxes start as low as $14 for six months, but even that may be cost-prohibitive if you are only listing items occasionally. You can read more about options in my ToughNickel article "How to Get a Business Address for Your At-Home or E-Commerce Business."

Quick-Start Tip #4: Use your home address until you start selling on a regular basis.

5. Get Shipping Supplies Before You List

When you list an item for sale, you will be asked to enter the dimensions of the box and weight. This means that you need to have the item boxed and any cushioning material added before you click to submit the listing. You MUST weigh & measure this shipment-ready package before you list the item.

Whatever you do – don't do what I did! Don't guess what size box the item will fit into or how much it will weigh all packaged and ready to go. And don't just accept the options that auto-populate based on what other sellers chose for their shipping! This could really mess up your shipping fees when the item sells. If the buyer is paying, they will expect to pay what was shown, even if the actual cost turns out to be higher. If you are paying, well, you could end up with a much bigger bill than anticipated! You really can't downgrade the shipping once the item is sold, as it isn't fair to a buyer to get an item later than they expected.

Quick-Start Tip #5: Weigh & measure the shipment-ready package before you list the item.

6. Consider if You Really Want to Sell Something for 0.99

Think twice before following eBay’s listing advice to start your auction at .99 cents. You'll be safest having the buyer pay shipping costs if you do start with a low bid, so that a low ending bid doesn't end up costing you shipping and the product cost both as losses. Bidding wars don't always ensue, and as a new seller, you don't have the experience to know which prices are guaranteed to soar and which ones are going to sink you!

If it will break your heart (or your wallet) to sell that low, then you may want to set a minimum opening bid. Set it high enough that you will be happy to sell and make a profit. You don't even have to list your item as an auction. You can use the "Buy it Now" feature, set a price you are comfortable and see what the market says. There is also a "Make an Offer" feature you may want to look into using once you get the hang of the basics.

Quick-Start Tip #6: Don't start your auction at 99 cents unless you know what you're doing!

Do you know what your expenses will really be when you sell on eBay?

Do you know what your expenses will really be when you sell on eBay?

7. Remember That eBay Gets Paid, Too

Don't be one of the whiners who say, "eBay is a ripoff! I lost money selling my items on eBay!" Well, if you learn about eBay’s fees before you list your first item, you will know what to expect!

Understand that the amount an item sells for will not go directly into your pocket as profit. You will pay eBay for hosting your item, PayPal for processing the payment, shipping fees to the buyer (if you choose to pay them), packaging costs, the cost of the item itself, and any incidentals of business. What's left after all that is your profit. Every business has overhead; eCommerce is no different.

eBay charges an insertion fee” to list the item and a “final value fee” when the sale closes. Those are just the basic fees, and there are additional fees for other features to help you sell your items. As of the time of this article and based on auction-style listings, the insertion fee was free for up to 20 items per month (with some exclusions), and the final value fee was 10% of the total amount of the sale. The “total amount of the sale” is the sales price, shipping, and any other fees you charge the buyer.

Selling on eBay eliminates the need to sit outside at a garage sale all weekend or to pay rent and utilities in a standard retail location, but it doesn't guarantee a profit anymore than opening up the doors of a new store in a local mall guarantees a profit.

Quick-Start Tip #7: Consider all your expenses when calculating profit.

eBay's Fees

Insertion FeeFinal Value Fee

First 20 items free each month

10% of total sale

Simple Is Good

Although getting started on eBay can seem like a daunting task, you can keep it simple when starting out and grow your business as you learn. The most important aspect of selling successfully on eBay is good customer service and positive feedback, so make that your initial focus of learning. Making money will mean nothing if you get poor feedback by disappointing buyers.

For more information, visit eBay's "Learning Center" under the "Customer Service" tab and work your way methodically through the “New to eBay” topics, use their "Search" to find answers to your burning questions, and most importantly – take a look at eBay's rules and policies. (A list of links to important eBay seller information is included further down the page.)

Note: This information was last updated on February 7th, 2017. This information was initially gathered in December of 2012 and is subject to change without notice. All information should be verified directly at the eBay site for the most up-to-date information.

What Should You Sell?

eBay Tips and Tricks

This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.

Comment on "What You Need to Know BEFORE You Sell on eBay: 7 Quick-Start Tips"

Amanda Rose (author) from Florida's West Coast on April 11, 2017:

Liz Elias - good luck this time around! It helps to have learned from our mistakes, doesn't it? I appreciate your comment, thanks so much.

Liz Elias from Oakley, CA on April 11, 2017:

I just began putting listings up a month or so ago after about a 3-year hiatus. I left when it became "FEE-Bay" a few years back.

Now, they no longer expect you to start a listing at 99 cents, and say as much in their updated tutorials. Also, you can now list up to 50 items per month for free (as of this writing, 4-11-17).

I did make those mistakes the first time around, and lost my a**; essentially ended up paying to have the buyer take the item off my hands. Not this time! I have to really watch it, as I'm not selling very high-value items right now, so the pennies do have to count and mount up in my favor.

Good article for newbies.

Amanda Rose (author) from Florida's West Coast on March 10, 2017:

Glad you enjoyed the hub and thank you so much for commenting! Shipping from Canada would certainly be a game-changer in ecommerce. Good luck with whatever biz you decide to do!

Amanda Rose (author) from Florida's West Coast on February 07, 2017:

Fanseller - You can buy and sell out of the same personal account. You can close out the business account to make it simpler for you. Click on the "Help & Contact" link at the top of the Ebay site to close the business account. Please visit Ebay's Seller Center (linked to in article) for more information and to learn the ends and outs of Ebay.

fanseller on February 05, 2017:

Help please! Signed up just last night as EBay seller, however, I couldn't see how to 'sell' on a personal account. EBay only showed me how to buy with it. Consequently, I signed up as a business.

I'm not, though, so your comment about being legal concerns me. What am I dong wrong or where do I go to remedy this please?

Laura Rosar on December 05, 2016:

Im so glad that I read this article!! I had sold on ebay quite often a few years back and found that I had success at it. Now that being said a large portion of the items I sold were found, I am an addicted dumpster diver I am always amazed at the things people toss out! things of value. I rescue them and make a profit :). But it appears things have changed the shipping rule you mentioned was not in place when I was selling Im so thankful I read your posting that is an area of the process that can really hit your profit if done without much thought :( , Thank you!

Daljeet Kaur from India on March 24, 2016:

Nice write up. Thanks for sharing!! These things are actually helpful and need to keep in mind while selling on ebay and any other online store. There are many other people who might be selling the same product as of yours , so its you who need to be proactively smart to know and plan things.

Amanda Rose (author) from Florida's West Coast on December 18, 2015:

You're right, Karlcei, those steps aren't hard. They're just good things some people (!) don't think of before listing on ebay! Have fun and make some money with your selling!

Karl Johnson from Leesburg, Virginia, USA on December 18, 2015:

This is really a nice story! Though the steps you have described are not hard, but most of the people (who never tried before) don't know the tricks.I am gonna sell something..

Ade from South Wales on July 24, 2015:

Hi Amanda

A really nice hub filled with great advice. The 99 cent auction is always fatal in the end. I had a really bad experience with trying this and it cost me quite a bit of money. Luckily I didn't dwell on it. I've been selling on eBay U.K for about 15 years and I'm still totally addicted. Keep up the great work!

Amanda Rose (author) from Florida's West Coast on June 20, 2015:

Thank you point2make, I'm glad you found it interesting.

point2make on June 18, 2015:

This is a good hub. It would be very helpful to anyone wanting to try the eBay way. Most people, I believe, do not take the time to prepare for selling on eBay and get a little overwhelmed and discouraged very quickly. As they say " A little knowledge can go a long way". Well done!

Amanda Rose (author) from Florida's West Coast on May 07, 2015:

Thanks for sharing your experiences, Nadia! Oy! We learn a lot about shipping/mailing items out of painful necessity, eh? May you have continued e-commerce success!

Nadia Soto on May 06, 2015:

Very helpful hub page. I am still an individual seller and yes I made about 5 shipping mistakes in perhaps 200 or more transactions. I took the loses to maintain a good reputation, but now I've learned. For example, I made a listing of a furniture item weighing more than 70 lbs. For that, I used the Ebay shipping calculator but it never mentioned that the USPS does not send items weighing that much. I've had to cancel the transaction because the customer was unwilling to pay the real price for shipping it to his place which is across the nation through a viable service like UPS Ground. Point is, I 've taken some hits but my drive to deliver good customer service through fast shipping, proper packaging and knowing all my fees and shipping details have all made my business grow. I also sell on swap meets used and working items, not worth that much but the ones that are of excellent quality or very specialized, I always sell online. There is always a need of sorts for something.

Amanda Rose (author) from Florida's West Coast on January 10, 2013:

Thanks for commenting, Vickiw. It is nice to know someone is reading! Is there no way to write in the listing that you will only ship to those 2 provinces? Any other sellers do that? Many of ours in US say only ship to continental United States - as our Alaska and Hawaii get price.

Vickiw on January 10, 2013:

Very interesting Hub. I have sold a couple of things, but have come to the conclusion that it is not worth it, as Canada is such a huge country, and our mailing costs are equally huge! Wish we could sell only in two provinces, as anything beyond that is prohibitive. There must be a secret, but I don't know it. I do know that if I order used books from my favourite place in our province, they take them to the US, and mail them back from there!