This may be one of the easiest parts of the whole deal! Just pick out a user name and set up both accounts. Paypal requires that you verify your bank account, so you will need to set up online banking (free through every bank) to do so. A word of caution: if you have a PO Box, you will need to provide both PayPal and Ebay with your physical address. This is where your items will be shipped if you win an auction. Unfortunately, UPS, a popular alternative to the USPS used by many sellers, does not ship to PO Boxes.
2. Find Some Junk to Sell
Now this, this, is the easiest part. Everything from old jewelry, knick-knacks, books, kid’s toys and clothing, stock car parts, to broken electronics, everything sells on Ebay. If you’re not sure that your item will sell, look it up on Ebay and see if there are similar items up for auction.
Starting out, this will be difficult. As a seller with no feedback, you will be hard to trust. For beginners to pros, win your potential buyers over with these tips:
Try to use a decent digital camera and take good pictures of your item. More pictures in your ad costs more money, so make the most of two or three pictures at the max. Put your item against a black or white background and shoot your picture.
In some instances, Ebay has stock pictures that you can use. Typically items like books, CDs, and DVDs have stock photos available. Use these, but only if the picture accurately describes the item.
If there are no stock pictures to use and you have a shoddy camera, sometimes Google Images can provide a picture. Search for your item, save the picture to your hard drive, and upload it to your ad.
Honestly, for most items that I sell for around a hundred dollars or more, I start with a bid of $0.99. Many buyers know how much items are really worth and will bid accordingly. There have only been a few instances where I have started an auction that low and been disappointed with the results. In many cases, buyers spend above and beyond what you expected.
d. Charge a fair price for shipping.
Unfortunately, many sellers use the cost of shipping to make a profit. Your feedback scores will suffer if it is discovered that you do this. Make it clear to your buyers exactly what they are getting with their shipping money. Here are some ideas of what to include:
- Free delivery confirmation
- The cost of packing material is included
- The cost of shipping includes shipping and handling
There are two ways you can charge for shipping and a couple of other questions you may need to ask yourself:
- Flat Cost to All Buyers
Inside the continental USA, the cost of shipping is a flat rate. Say for example, $5. This means that whether they live five or five hundred miles away from you, the cost of shipping will be $5. Good if they live close by, bad if they live across the country. - Calculated Cost Varies by Location
Weigh or guess the weight of your item, and then select the size of packaging you will be using. The computer, using USPS and UPS typical rates, will then charge the buyer depending on their location. When you invoice your buyer (more on that later) you will have the option of lowering the shipping if you choose.
Lastly, you will need to decide if you are willing to ship internationally. There are pros and cons associated with deciding to do this. Pros include a wider range of buyers. Cons include the possibility of the item being lost and the cost of shipping being astronomical. Check off which countries you would ship to and see if you have any bites.
e. Choose How You Want to Be Paid
PayPal verified is the easiest way to ensure that you will receive your money. If you choose to accept checks or money orders, you must wait for those to be sent to you in the mail, and wait for them to clear before you can ship out your item. I have found that using PayPal is the best and most widely used method of accepting payment for an item.
Do you want to deal with returns? If so, will you refund all of the payment plus pay for the buyer to return the item to you? You may state that all sales are final, or you may accept returns for defective items (hard drives, games, etc) only. No matter what your stand on returns is, make it clear to all potential buyers.
g. Put in Any Optional Items
Do you want a portion of the proceeds to go to charity? Do you want to provide free shipping to your buyers? Look over these options carefully. Many people will bid higher on items that support their favorite charity or organization.
4. Watch for Your Auction to End
You may need to invoice your winning buyer. Here you can provide additional check out instructions or adjust the cost of shipping. Sometimes an invoice is sent automatically and you will not need to do it. Make sure you check though, as you cannot expect payment if the buyer has not received a statement.
5. Be True to Your Word
If you claim that you will ship within 1-2 days upon receipt of payment, do so. Any other statements you made in your ad, you will be held accountable for. Ship items in a timely fashion in the way you declared you would.
Leave feedback for your buyers. Would you recommend them to other sellers? If not, you will not be able to leave any negative feedback; you will just leave none at all. The only way to get feedback is to leave feedback. More feedback equals more trust from buyers and potentially lower fees through Ebay. It pays to do this one extra step.
7. Pay the Man
Both Ebay and PayPal require a portion of your profit for their services. Ebay will send you a monthly statement and will charge you based on two things: final value fee plus insertion fee. The insertion fee varies depending on what category you post your item into, and what price you start your auction with. The final value fee is a percentage of your overall earnings. Ebay is very fair with these fees, and they will charge you less the more you use their site. Ebay will either take the money from your PayPal account or you can pay them using a debit or credit card. The choice is up to you, but make sure they get paid or they can suspend your account.
PayPal also takes a portion of your profit, but it does so automatically. Basically you pay PayPal in order to help you receive and manage your profit.
8. Pay Yourself
Using PayPal, there are several ways to get your money. You can have it directly deposited into your verified bank account, you can ask them to cut you a check (for a small fee), or you can use a PayPal debit card for purchases. Personally, I have it deposited into my account for security reasons. The only drawback is that it can take 3-4 business days for that transaction to be completed, but PayPal has been known to do it faster than that upon occasion. (As a side note, credit unions tend to accept direct deposits from PayPal quicker than a regular bank. Why, I’m not sure, but it may be worth looking into.)
9. Wash, Rinse, Repeat
Now you are on your way to becoming a great Ebay seller! Ebay is a piece of cake to use, and you will find your own niche once you gain more experience. Considerable profit can be made by selling the weirdest of items, and you won’t know until you try.
After you run out of your own junk to sell, check garage sales, GoodWill, craigslist.org, or sell stuff for your friends and family. Have fun!