How to Start an e-Bay Business

February 14th, 2008 · No Comments

First off, I’ll let you know that I’m neither an accountant nor a lawyer. However, I feel strongly that you should seek the advice of both if you decide to take e-Bay to the next level and actually start an e-Bay Business. You need advice on what type of legal form of business you should use (sole proprietor, LLC, corporation, etc.), sales tax requirements, any licensing requirements, zoning restrictions, etc. You should also have an informal business plan outlining what you want to name your business, what market(s) you plan to target, how you plan to expand your inventory offerings, etc.

Alternatively, you can access some great information sources for free or low cost business advice. Try your local small business development center and SCORE. You might want to check with your local Chamber of Commerce as well–mine offers all kinds of classes, consulting, and assistance. These resources are truly wonderful. I’ve used them all at various points in my life and have found them so helpful, whether I was in the planning stage of a business or had run into an operating problem.

Remember, you’re staring a business. With an e-Bay business your start-up costs are much lower than with a traditional business or franchise; however, it’s still a business and should be treated as such. You’ll also want advice on tracking your income, expenses, and net income. I firmly believe that some people selling on e-Bay believe that as long as they are making sales, or they have Powerseller status, that they are doing well. They can’t be sure, however, until they factor in the e-Bay listing and final value fees, Paypal fees, and other costs of doing business.

One of the first problems that most run into when starting an e-Bay business is sourcing products. Do a Google search and you’ll find a huge number of sites offering items you can sell on e-Bay, or drop shipping sources, or …you name it.

But, whom can you trust? I would stick with e-Bay approved third party providers to prevent any problems with sourcing products and ultimately fulfilling the orders you receive. One such e-Bay certified provider is Worldwide Brands. They offer a free preview on their website, as well as free e-books and other information useful for making an informed decision. This source of wholesale products and drop shipping sources is highly recommended if you wish to market physical products on e-Bay.

Another option is to offer e-books, but that topic deserves a post of its own. My husband prefers to offer physical products, I prefer e-books, special reports, and other digital products.

I would encourage you to continue to explore the e-Bay training resources at the e-Bay site (or begin to do so if you haven’t already). Don’t miss out on the e-Bay University.

Once you have a source for products, I would encourage you to develop an e-Bay store early in your e-Bay business. If you’re really serious about having an e-Bay business, you must have an e-Bay store. There are many advantages to having your store–lower listing costs, reduced final value fees if buyers link directly to your store from off e-Bay, a more professional appearance, and many others. Start selling online today. Open a storefront on eBay.

Here’s a success formula to help summarize what I’ve covered: