Can You Really Make a Profit and Work From Home With an Online eBay Store?
In an effort to find a way to work from home and truly generate some income with a home based business, I decided to try my hand at an eBay store.
I will share with you my experiences as a newbie at eBay and show you what I have learned along the way so far.
Why I decided to try eBay: I decided to try my hand at eBay when I had just about given up on everything else.
I was working in Direct Sales Marketing and had just about spent every dime I owned trying to get my website out to the masses and I could not sell a thing.
I did not like making about 500 phone calls every day trying to reach someone to get them to listen to a presentation and being hung up on because they did not remember opting into my website.
I also resorted to going back to MLM and thought maybe I could peddle a great Vitamin Juice product but that did not work.
I then tried my hand at travel memberships but soon found out not everyone has a passion for travel like I do and they would rather spend more money on 1 vacation then have a great membership that gives great prices on several trips.
I guess I'm one of the few, rare, people that likes to travel several times a year.
I also tried some affiliate sales and hoped to make a small commission by marketing someone else already established business.
When I ran into financial difficulties and I was not sure how I was going to pay for my business expenses, I started looking at other options and along came eBay.
When I started seriously considering the possibility of selling something with an online store, I realized that I do have a lot of junk around my house that I could probably sell for a good price.
I also have a goal of moving to Kauai some day and when I do, I'm going to have to get rid of a lot of extra junk and stuff I have kept all these years so I figured, why not start unloading it now.
It is amazing what excitement it creates when I start thinking about the more stuff I sell, the easier my move to Kauai will be.
What I did first: At first, I wasn't sure what would sell but I started doing some research using a really valuable eBay took called "Terapeak.
" Terapeak lets you research what sells and what does not sell on eBay and it gives you some information the most successful techniques used to sell something.
For example, say I wanted to sell an old antique Queen Anne chair.
I could research Terapeak with search words "Antique Queen Anne Chair" and see how it did over a specific time frame (30 day,s 90 days, etc).
Once the search results come back, it will show me what the average price for the item was, what the average shipping cost was, the days it sold best, the time it sold best, and even the best way to sell it using either Auction, Fixed Price, or Store.
I then started looking around my home for those things I had tucked away and really had no need for.
GameCube Games, Sheer Cover Mineral Foundation Makeup, Susan Lucci Microdermabrasion systems, etc.
I even got into my closet and got out all the new clothes I had never worn that still had tags on them.
GASP!! Ladies, we all know we have something in our closet we bought and never wore and it still has the tag on it with the great sales price we paid.
Finally, it was time to start listing my stuff on eBay.
eBay has a great system of listing items and it will walk you step by step in listing what you want to sell.
What I did not know was the fact that there are cheaper ways to list items in eBay to avoid some of the "listing fees" you will pay which I will into detail on in future articles.
A friend of mind had told me she avoided eBay because it was too expensive with fees to bother trying to sell anything, but I did not really pay much attention to what she had said until I started paying those fees.
Experiences with selling on eBay: One of my first experiences in selling on eBay was paying those fees.
It can be mind blowing when you list 3 items and suddenly your see your eBay balance is $10.
eBay charges you a listing fee depending on how much you list your item for in your auction (fees vary a little for fixed price and store inventory listings).
If you decide to add a bunch of pictures to your listing, eBay will charge you about $.
15 for each photo after the first one which is free.
You can save a little by paying for the Image Gallery and so forth.
If you choose to list your item in more than one category, you will pay for that also.
You will also pay if you decide to add a subtitle which does sometime help you sell better depending on what your Terapeak research has shown you.
You can try something called Auctiva to see how you can save on fees.
I found this accidentally when observing another sellers listing and being very impressed with how it looked.
Auctiva can help you set up some very professional listings.
Additional fees you will encounter are "final value fees" when your item sells and when you use PayPal, you will be paying a small fee there also.
I soon found out why it is so important to become a Powerseller on eBay - your fees will not be so much when you reach powerseller status.
I struggled with shipping in my first few attempts.
I had no idea what the difference was between USPS Parcel Post, Priority Mail or Flat Rate Box and Envelope.
Luckily eBay has all kinds of information to help you learn the best and most cost effective ways to ship your items.
Definitely take the time to learn this one.
There is a lot to take into account when shipping Internationally so take your time here and if you are new at it, consider waiting a little while before offering to ship overseas.
Learning Curve on eBay: I soon found out that you really have to take into account all of your fees when you list an item and decide on a price.
You can list something for $.
99 to avoid high listing fees, get peoples attention, and get bids, but if only one person bids on it and it sells for $.
99, you need to make sure your fees are covered.
Remember - there will be a final value fee, a PayPal fee, and that doesn't even take into account what you might have paid for the item.
Then you have shipping to contend with.
If you offer Free Shipping on an item, it will get you ranked higher in the searches but that means you are paying for the shipping.
Depending on what it is you are selling, that can be expensive.
So if you sold an item for $.
99, and offered Free shipping, chances are you are actually in the negative loss margin instead of the profit margin.
It only takes one time of going into the negative profit on an item to learn not to do this again.
Be sure you don't make your shipping charges too high either.
It is a violation of eBay policy to charge crazy outrageous shipping charges to make up for the cost of your item.
Luckily, eBay does have a shipping calculator which allows you to get an idea of what it will cost to ship something.
You also have the option of offering flat rate shipping or calculated which is what I used in the beginning until I got a better idea of how the shipping thing works.
Calculated shipping lets a buyer see what shipping charges would be based on where they are in the US, Canada or Internationally.
It also gives them some options on what they are willing to spend to get the item to their house slow via USPS Parcel Post or Priority Mail.
Be forewarned though, some buyers will mark you down when they leave feedback because they don't like the shipping costs as compared to those that offer Free Shipping.
This is going to be something you'll have to experiment with to find out what works for you.
You've heard the saying, "a picture paints a thousands words" well this isn't always the case on eBay.
You need to take great pictures, make sure they are your own pictures, and offer lots of different views and detail when you do.
Since people cannot put their hands on the item you offer, they really need to see as much detail as possible and this will help sell your item quicker too.
Also, be very honest about any problems, damage, etc with the items you sell.
You want to be sure that what your customer gets is what you advertised.
Boosting your eBay Traffic using Social Networking and Attraction Marketing: Until you start gaining some sales volume in your store, chances are you won't be getting the same kind of visibility as the Power Sellers and people that have been around awhile.
If you don't offer Free Shipping, you won't be placed very high in the keyword search findings on the site either so it can be very challenging getting people to see your stuff if you are on page 25 of all the travel suitcases.
This is where experience and knowledge about Social Networking sites and Attraction Marketing can really benefit you.
I created a blog which I can do right there on eBay and I began blogging about my store listings and many other things.
Once I added a new post, I "pinged" my blog through sites like pingomatic.
com in an effort to have the search engine spiders find me.
I also took it one step further and I made sure my eBay store site was mentioned on all of my Social Networking accounts like MySpace, Facebook, Twitter, and LinkedIn.
Another tip for you, when you put your eBay store URL in blogs and Social Networking sites, be sure you add "?refid=store" at the end.
Basically what this does is help you get store referral credits when you refer someone to your store through a promotion of some sort and they buy from you.
You'll actually earn up to 75% credit on your Final Value Fees when you send people to your store from somewhere outside of eBay.
(blogs, website, Facebook page, etc) Where do I go from here: If you are new to selling on eBay, you may want to go to eBay.
com and create an account for yourself.
You can follow the step by step guides and tutorials and get to the point where you begin listing items for sale on eBay.
Start small with that new pair of shoes you never wore, or those old golf clubs you thought you would use more than once.
Search around eBay to get an idea of how other people listed items like yours and get some ideas on how to proceed.
Be sure you create your own unique listing - do not copy or take pictures from other peoples listings - this can get you in to trouble.
For the more advanced seller on eBay, consider trying Terapeak to research your items prior to listing if you are not doing that already.
You might be surprised at how much valuable insight you can gain that will only benefit your listing.
Overall, if you take into account some of the things I've mentioned here, you really can make a nice profit on eBay.
When you find the perfect thing to sell, and it is something in demand, and you can get it at a great price (wholesale, dropship, etc), you will start making a profit.
As with all good things, it does take some time, work and effort, but it will happen.
Be sure to do your homework and research what you want to sell to see if it is worth the time, effort, and fees, and to get some great ideas on how to promote the item.
Minimize your fees as much as you possibly can, and until you get a higher ranking on eBay and the search engines, consider using a Blog, Article, Squidoo Lens, or Social Networking Site to drive traffic to your eBay Store.
Remember to put a Referral Credit link on your eBay store URL to save up to 75% on Final Value fees, and be sure you list an item at a good, reasonable price and do not go crazy on the shipping fees to make up for the price.
You can also be active in the forums, and other eBay communities to find out how to build a very successful eBay Business.
There are many gracious PowerSellers who will share with you how they became so successful.
I will share with you my experiences as a newbie at eBay and show you what I have learned along the way so far.
Why I decided to try eBay: I decided to try my hand at eBay when I had just about given up on everything else.
I was working in Direct Sales Marketing and had just about spent every dime I owned trying to get my website out to the masses and I could not sell a thing.
I did not like making about 500 phone calls every day trying to reach someone to get them to listen to a presentation and being hung up on because they did not remember opting into my website.
I also resorted to going back to MLM and thought maybe I could peddle a great Vitamin Juice product but that did not work.
I then tried my hand at travel memberships but soon found out not everyone has a passion for travel like I do and they would rather spend more money on 1 vacation then have a great membership that gives great prices on several trips.
I guess I'm one of the few, rare, people that likes to travel several times a year.
I also tried some affiliate sales and hoped to make a small commission by marketing someone else already established business.
When I ran into financial difficulties and I was not sure how I was going to pay for my business expenses, I started looking at other options and along came eBay.
When I started seriously considering the possibility of selling something with an online store, I realized that I do have a lot of junk around my house that I could probably sell for a good price.
I also have a goal of moving to Kauai some day and when I do, I'm going to have to get rid of a lot of extra junk and stuff I have kept all these years so I figured, why not start unloading it now.
It is amazing what excitement it creates when I start thinking about the more stuff I sell, the easier my move to Kauai will be.
What I did first: At first, I wasn't sure what would sell but I started doing some research using a really valuable eBay took called "Terapeak.
" Terapeak lets you research what sells and what does not sell on eBay and it gives you some information the most successful techniques used to sell something.
For example, say I wanted to sell an old antique Queen Anne chair.
I could research Terapeak with search words "Antique Queen Anne Chair" and see how it did over a specific time frame (30 day,s 90 days, etc).
Once the search results come back, it will show me what the average price for the item was, what the average shipping cost was, the days it sold best, the time it sold best, and even the best way to sell it using either Auction, Fixed Price, or Store.
I then started looking around my home for those things I had tucked away and really had no need for.
GameCube Games, Sheer Cover Mineral Foundation Makeup, Susan Lucci Microdermabrasion systems, etc.
I even got into my closet and got out all the new clothes I had never worn that still had tags on them.
GASP!! Ladies, we all know we have something in our closet we bought and never wore and it still has the tag on it with the great sales price we paid.
Finally, it was time to start listing my stuff on eBay.
eBay has a great system of listing items and it will walk you step by step in listing what you want to sell.
What I did not know was the fact that there are cheaper ways to list items in eBay to avoid some of the "listing fees" you will pay which I will into detail on in future articles.
A friend of mind had told me she avoided eBay because it was too expensive with fees to bother trying to sell anything, but I did not really pay much attention to what she had said until I started paying those fees.
Experiences with selling on eBay: One of my first experiences in selling on eBay was paying those fees.
It can be mind blowing when you list 3 items and suddenly your see your eBay balance is $10.
eBay charges you a listing fee depending on how much you list your item for in your auction (fees vary a little for fixed price and store inventory listings).
If you decide to add a bunch of pictures to your listing, eBay will charge you about $.
15 for each photo after the first one which is free.
You can save a little by paying for the Image Gallery and so forth.
If you choose to list your item in more than one category, you will pay for that also.
You will also pay if you decide to add a subtitle which does sometime help you sell better depending on what your Terapeak research has shown you.
You can try something called Auctiva to see how you can save on fees.
I found this accidentally when observing another sellers listing and being very impressed with how it looked.
Auctiva can help you set up some very professional listings.
Additional fees you will encounter are "final value fees" when your item sells and when you use PayPal, you will be paying a small fee there also.
I soon found out why it is so important to become a Powerseller on eBay - your fees will not be so much when you reach powerseller status.
I struggled with shipping in my first few attempts.
I had no idea what the difference was between USPS Parcel Post, Priority Mail or Flat Rate Box and Envelope.
Luckily eBay has all kinds of information to help you learn the best and most cost effective ways to ship your items.
Definitely take the time to learn this one.
There is a lot to take into account when shipping Internationally so take your time here and if you are new at it, consider waiting a little while before offering to ship overseas.
Learning Curve on eBay: I soon found out that you really have to take into account all of your fees when you list an item and decide on a price.
You can list something for $.
99 to avoid high listing fees, get peoples attention, and get bids, but if only one person bids on it and it sells for $.
99, you need to make sure your fees are covered.
Remember - there will be a final value fee, a PayPal fee, and that doesn't even take into account what you might have paid for the item.
Then you have shipping to contend with.
If you offer Free Shipping on an item, it will get you ranked higher in the searches but that means you are paying for the shipping.
Depending on what it is you are selling, that can be expensive.
So if you sold an item for $.
99, and offered Free shipping, chances are you are actually in the negative loss margin instead of the profit margin.
It only takes one time of going into the negative profit on an item to learn not to do this again.
Be sure you don't make your shipping charges too high either.
It is a violation of eBay policy to charge crazy outrageous shipping charges to make up for the cost of your item.
Luckily, eBay does have a shipping calculator which allows you to get an idea of what it will cost to ship something.
You also have the option of offering flat rate shipping or calculated which is what I used in the beginning until I got a better idea of how the shipping thing works.
Calculated shipping lets a buyer see what shipping charges would be based on where they are in the US, Canada or Internationally.
It also gives them some options on what they are willing to spend to get the item to their house slow via USPS Parcel Post or Priority Mail.
Be forewarned though, some buyers will mark you down when they leave feedback because they don't like the shipping costs as compared to those that offer Free Shipping.
This is going to be something you'll have to experiment with to find out what works for you.
You've heard the saying, "a picture paints a thousands words" well this isn't always the case on eBay.
You need to take great pictures, make sure they are your own pictures, and offer lots of different views and detail when you do.
Since people cannot put their hands on the item you offer, they really need to see as much detail as possible and this will help sell your item quicker too.
Also, be very honest about any problems, damage, etc with the items you sell.
You want to be sure that what your customer gets is what you advertised.
Boosting your eBay Traffic using Social Networking and Attraction Marketing: Until you start gaining some sales volume in your store, chances are you won't be getting the same kind of visibility as the Power Sellers and people that have been around awhile.
If you don't offer Free Shipping, you won't be placed very high in the keyword search findings on the site either so it can be very challenging getting people to see your stuff if you are on page 25 of all the travel suitcases.
This is where experience and knowledge about Social Networking sites and Attraction Marketing can really benefit you.
I created a blog which I can do right there on eBay and I began blogging about my store listings and many other things.
Once I added a new post, I "pinged" my blog through sites like pingomatic.
com in an effort to have the search engine spiders find me.
I also took it one step further and I made sure my eBay store site was mentioned on all of my Social Networking accounts like MySpace, Facebook, Twitter, and LinkedIn.
Another tip for you, when you put your eBay store URL in blogs and Social Networking sites, be sure you add "?refid=store" at the end.
Basically what this does is help you get store referral credits when you refer someone to your store through a promotion of some sort and they buy from you.
You'll actually earn up to 75% credit on your Final Value Fees when you send people to your store from somewhere outside of eBay.
(blogs, website, Facebook page, etc) Where do I go from here: If you are new to selling on eBay, you may want to go to eBay.
com and create an account for yourself.
You can follow the step by step guides and tutorials and get to the point where you begin listing items for sale on eBay.
Start small with that new pair of shoes you never wore, or those old golf clubs you thought you would use more than once.
Search around eBay to get an idea of how other people listed items like yours and get some ideas on how to proceed.
Be sure you create your own unique listing - do not copy or take pictures from other peoples listings - this can get you in to trouble.
For the more advanced seller on eBay, consider trying Terapeak to research your items prior to listing if you are not doing that already.
You might be surprised at how much valuable insight you can gain that will only benefit your listing.
Overall, if you take into account some of the things I've mentioned here, you really can make a nice profit on eBay.
When you find the perfect thing to sell, and it is something in demand, and you can get it at a great price (wholesale, dropship, etc), you will start making a profit.
As with all good things, it does take some time, work and effort, but it will happen.
Be sure to do your homework and research what you want to sell to see if it is worth the time, effort, and fees, and to get some great ideas on how to promote the item.
Minimize your fees as much as you possibly can, and until you get a higher ranking on eBay and the search engines, consider using a Blog, Article, Squidoo Lens, or Social Networking Site to drive traffic to your eBay Store.
Remember to put a Referral Credit link on your eBay store URL to save up to 75% on Final Value fees, and be sure you list an item at a good, reasonable price and do not go crazy on the shipping fees to make up for the price.
You can also be active in the forums, and other eBay communities to find out how to build a very successful eBay Business.
There are many gracious PowerSellers who will share with you how they became so successful.
