How to Make Money on Ebay

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How to Make Money on Ebay


<ul><li><p>how tomakemoney</p><p>on</p><p>todd alexanderAustralias leading eBay expert </p><p>the official pocket guide for australian sellers</p><p>ho</p><p>w to m</p><p>ake m</p><p>on</p><p>ey o</p><p>n</p><p>P E R S O N A L F I N A N C E</p><p>Cover photograph: iStock</p><p>Cover design: Lisa White</p><p>to</p><p>dd</p><p> al</p><p>ex</p><p>an</p><p>de</p><p>r </p><p>Do you want to earn an income selling items on eBay? Could eBay become a vital sales channel for your company? Did you know 50,000 Australians earn part or all of their income selling on eBay*, and for a growing number of businesses its an important sales channel?</p><p>For the first time, eBay expert and employee Todd Alexander provides invaluable advice for serious sellers to boost their online sales. Written in clear language with concise step-by-step instructions, this official guide is written specifically for Australians.</p><p>How to Make Money on eBay is an easy-to-use, comprehensive guide that includes:</p><p> tips for secure online selling ideas for sourcing products to sell advanced selling tools to save time and boost profits tips for improving your ranking in eBays search results marketing advice for increasing sales and ensuring repeat </p><p>customers</p><p> tips for staying ahead of the competition the twelve eBay rules every seller should know.</p><p>Whether youre an eBay novice or have been trading on the site for years, this is the one guide you need to ramp up your sales quickly and cost-effectively.</p><p>*AC Nielsen Research, 2006</p><p>EBAY_FINAL.indd 1 24/12/09 11:43:47 AM</p></li><li><p>how tomakemoney</p><p>on</p></li><li><p>make</p><p>the official pocket guide for australian sellers</p><p>This page intentionally left blank </p></li><li><p>how tomakemoney</p><p>on</p><p>todd alexander</p><p>the official pocket guide for australian sellers</p></li><li><p>Todd Alexander is an employee of eBay but wrote this book independently of his employment. While recognising this book as The Official Guide . . ., eBay takes no responsibility for its content and readers are advised that using the content of this book does not necessarily mean that the reader will have success buying and selling on eBay. The contents of this book contain the views of the author only and do not necessarily reflect the views of eBay.</p><p>eBay International AG is the exclusive owner of all rights in the title to, interests and good will in the eBay identification and use of the above in this book is by permission.</p><p>First published in 2010</p><p>Copyright Todd Alexander 2010</p><p>All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, without prior permission in writing from the publisher. The Australian Copyright Act 1968 (the Act) allows a maximum of one chapter or 10 per cent of this book, whichever is the greater, to be photocopied by any educational institution for its educational purposes provided that the educational institution (or body that administers it) has given a remuneration notice to Copyright Agency Limited (CAL) under the Act.</p><p>Arena Books, an imprint of Allen &amp; Unwin 83 Alexander Street Crows Nest NSW 2065 Australia Phone: (61 2) 8425 0100 Fax: (61 2) 9906 2218 Email: Web:</p><p>Cataloguing-in-Publication details are available from the National Library of Australia </p><p>ISBN 978 1 74237 036 1</p><p>Set in 11/13 pt ITC Berkeley Oldstyle Std by Bookhouse, Sydney Printed in Australia by McPhersons Printing Group</p><p>10 9 8 7 6 5 4 3 2 1</p></li><li><p>Contents</p><p>Introduction vii</p><p>Chapter 1 Safe trading tips for eBay sellers 1</p><p>Chapter 2 Becoming an eBay seller 7</p><p>Chapter 3 Sourcing products to sell 12</p><p>Chapter 4 Preparing and creating listings 23</p><p>Chapter 5 Save time with Turbo Lister 32</p><p>Chapter 6 Providing outstanding customer service 58</p><p>Chapter 7 Managing your inventory with </p><p>Selling Manager Pro 69</p><p>Chapter 8 Branding and marketing 90</p><p>Chapter 9 Optimising your success 120</p><p>Chapter 10 Tax, legal and eBay policy considerations 129</p><p>Summary 137</p><p>Appendix: eBay fees 140</p></li><li><p>This page intentionally left blank </p></li><li><p>vii</p><p>Introduction</p><p>No doubt the majority of Australians have heard of eBay as a place to buy a wide selection of items, usually at great prices. Compared to international markets, Australia has been slow to adopt e-commerce, with few of the major retail stores offering a comprehensive online offering. Over the years, eBay has become the primary destination for the majority of online shoppers. Here are some statistics that will help you to decide whether selling on eBay could provide you with additional incomewhether that is personal, or supplementary to your business: eBayhasaglobalpresencein39markets.Your</p><p>items do not have to be offered for sale in every market, but you can add them selectively for no additional fee.</p><p> eBayhasapproximately88.4millionactivemembersworldwide.InAustraliaalone,5.35million unique visitors went to in December2008(Nielsen//NetRatingsNetview).</p><p> OnanaveragedayforeBayAustralia,a babyitemissoldevery24seconds;aDVDissoldevery18seconds;atoyissoldevery</p></li><li><p>How to Make Money on eBayviii</p><p>18seconds;andapieceofwomensclothingsells every 6 seconds.</p><p> eBayusersworldwidetradeUS$2000worthofgoods every second.</p><p>But the figures alone only tell part of the story. The simple fact about eBay is that it grants you and your business instant access to one of the busiest shoppingplatformsontheplanet.Youritemscanbeavailableforsale24hoursaday,sevendaysaweek(regardlessofwhetheryouintendtoworkthosehoursornot).BuyersloveeBaybecausetheycanshopfromthe comfort and safety of their own home at a time that is convenient to them,and theydonthave tofight over parking spaces or with trolleys that lead them in the opposite direction.</p><p>The other thing eBay offers is transparency. At any given time, you can see what items are for sale, who is selling them, how much they sell for, and how frequently they sell. This is the kind of information most businesses would pay a lot of money for to find out about their competitors or potential markets for their products. This does mean your own sales are open to inspection, of course, but smart businesses work to streamline their business models so they can continually stay one step ahead of the competition.</p><p>And so it is that very year, hundreds of thousands of people clean out their garages and cupboards and sellthingstheynolongerneed.Sometrawlthroughgarage sales and markets looking for those rare or unique items that might fetch a great price on eBay, makingalittlebitofprofitalongtheway.Sellingon</p></li><li><p>Introduction ix</p><p>eBay is open to just about everyonebut how do some people turn it into a money-making venture?</p><p>There are countless books, courses, e-guides and the like that promise to teach you how to make millions of dollars on eBay in your first year . . . all from the comfort of your ownhome. Some evensuggest that you can do this working as little as one hour a day. While these things might conceivably be possible, the reality of the situation is that making money on eBay requires a serious business approach, aswell as a thorough examination of the optionsavailable to you, and a lot of trial and error.InAustralia,themostsuccessfuleBaysellers(and</p><p>someof themdo sellmore than$1millionworthofitemseachyear)arethosewithlargewarehouses,multiple staff members and various supply channels of stock, a lot of it from overseas. While not everyone willneedtostartthatbig,knowingeBaysadvancedselling techniques at the outset will help ensure you get the finer details right from the very beginning. SuccessfuleBaybusinesseshavedisplayedfantasticgrowth rates, but they require careful planning and a thoroughknowledgeofeBayssystemsandprocesses.Likeanything,makingalotofprofitdoesnttendtohappen easilyotherwise everyone would be selling oneBayandwedallbemillionaires.</p><p>This book is an advanced selling guide for people and businesses who want to use eBay to either estab-lish an online channel to complement an existingbusiness,expandtheironlinepresence,orforthosewanting to start a business from scratch using eBay as their primary channel. Before you get into this book, it is advisable to read How to Use eBay/How </p></li><li><p>How to Make Money on eBayx</p><p>to Use PayPal byToddAlexander (Hachette LivreAustralia,2008)itcoversallofthebasicsofbuyingand selling on eBay Australia and using PayPal, the online payment mechanism widely used on eBay. There are also chapters on online safety, which are a must for anyone buying or selling online.</p><p>Each chapter of this book is designed, in the simplest way possible, to help ensure you are aware of, and are using, the multitude of selling tools available to streamline an eBay business. Making a profit is not only about securing the right products at the right price and being able to sell them successfully, itsalsoaboutensuringyouhaveagreatreputationand lots of repeat customers. More importantly, profit is also about minimising your other business costs, and when it comes to selling on eBay, one of the most expensiveisthetimeitcantaketosellhundredsorthousands of items. Not every tool covered in these chapters will be necessary for your eBay sales. They are provided here as options, and after reading the book you should choose those that are most suitable to your skills, your products, and how much time and resources you have to invest in selling on eBay. Establishing the right business systems upfront is the only way to help optimise your performance on eBay, and beyond.</p><p>Each month, more than 5 million people visit eBay Australia (Nielsen//NetRatingsNetview), and thereisnt a single business in the country thatwouldturn down traffic like that! According to June 2006 AC Nielsen research, 52,700 Australians make their full- or part-time living on eBay, and for more than 17,500 it is their primary or only source of income. </p></li><li><p>Introduction xi</p><p>Why not add your name to the list? Like any way of making profit, nothing is guaranteed, but arming yourself with the right knowledge is key.</p><p>Before we begin, there are four basic rules to makingmoneyoneBay.Observethese,andyoullbewellonyourwaytorealisingmaximumprofit.1 Sourcetherightproductsfortherightprice.2 Provide the kind of service that separates you </p><p>from your competitors.3 Market your products better than any of your </p><p>competitors.4 Continually look for ways to improve your busi-</p><p>ness model.</p></li><li><p>This page intentionally left blank </p></li><li><p>1Chapter 1</p><p>Safe trading tips for eBay sellers</p><p>Much has been written about the dangers of trading online. In actual fact, selling on eBay or your own web site generates no greater security threat than starting your own retail or wholesale business. When selling online, remaining safe can be achieved by using simple commonsense.</p><p>Passwords</p><p>As your eBay sales grow, you may need more than one person to access your eBay and PayPal accounts. RememberthatanyonewithyoureBaypasswordhasthe ability to alter business-critical functions, and even has the ability to purchase items on the site. Keeparecordofallemployees/colleagueswhoknowyour eBay password, but never put the password in writing or circulate it via email. The password should be a combination of letters and numerals, and a mixtureofupperandlowercase.Foraddedsecurity,consider changing your passwords on the first of </p></li><li><p>How to Make Money on eBay2</p><p>every month. This means that only those employees who need to gain access to eBay on a daily basis will know it, and past employees, or those who have changed roles, will not be able to maintain access.</p><p>In order to sell on eBay, all sellers must offer PayPal (theeBay-ownedonline-paymentmechanism).YourPayPal password should be guarded more carefully. Only those who are empowered to make financial decisions for your company should be granted access to your PayPal account as, once logged in, they can transfer funds or pay for items bought online, and they may also be able to gain access to your bank account and credit card information.</p><p>Financial accounts</p><p>In order to limit the threat of loss, it is advisable to open a bank account and a PayPal account and have a credit card all of which are only used for business purposes. Limit the amount of funds available in each so that if their security should be breached, your loss is limited to a low amount. Somebanksnow offer mobile phone password protection when transferring money to new accounts, while your credit cardsTCVnumber (located on the back ofthecard)meansapersonmusthavethecardintheirpossession in order to use it.Stay on top of your financial records. Always</p><p>double-check your financial statements and query any unfamiliar amounts with your bank immediately.For PayPal, you can limit the type of access</p><p>your employees can gain if you open a business account. In doing so, different passwords allow </p></li><li><p>Safe trading tips for eBay sellers 3</p><p>different employees access to the areas of the site you specify. Again, if you see any activity on your PayPal account that looks questionable, contact PayPal immediately.</p><p>Spoof mail</p><p>Spoofisanunfortunaterealityoftheonlineworld.Spoofemailsarecreatedbycriminalstotrytotrapyou into entering sensitive or financial information online. Once gained, your information can then be usedforfraudulenttransactions.Recentdevelopmentshave made it easier for law-enforcement professionals to track down online fraudsters, but the best way to avoid being the victim of online fraud is to use protection. Makesureallthecomputersyouuseforyour</p><p>eBay sales are enabled with security software. Neverenteryourpersonalorfinancial</p><p>information into a website with which you are unfamiliar.</p><p> Ifanofferorrewardsoundstoogoodtobetrue, it probably is.</p><p> IfyoureceiveanemailpurportingtobefromeBay, PayPal or your financial institution, and it asks you to enter your password via email, reportitasspoof(,, or check your banksspoofmailforwardingaddress).</p><p> Whenmakinganonlinepayment,makesurethe site uses a verified security gateway.</p><p> Toavoidreceivingspoofaltogether,createanemailaddressthatisdifficulttoguess.For</p></li><li><p>How to Make Money on eBay4</p><p>example,ifyoureBayuserIDisabc123,dontmake your email address or your contact email Online fraudsters have sophisticated software to help them guess your contact information, leaving you open to unsolicited email that can be a nuisance or a threat to running your business.</p><p>PayPal seller protection on eBay</p><p>PayPal offers sellers on eBay protection on qualifying transactions in the event that the sale should be the subject of a credit card chargeback, or when a buyer claimismadethroughPayPalsonlinedisputeprocessfor items not received or significantly different to whatwasdescribedby the seller. Sellerprotectionisprovidedatnoextracharge. Inorder tomakeaclaim, a seller must: sellanitemoneBayandacceptpaymentintotheirAustralianPayPalaccount(theitemmustbe a tangible good, not digital or a service, for example);</p><p> sendtheitemviaanapprovedpostalservicetothebuyersaddress,asstipulatedonthePayPaltransactionpage(approvedpostalservicesinclude those that can provide proof of ship-ment, an official acceptance...</p></li></ul>