eBay is one of the few ways that anyone can launch a smaller business in minutes. With hundreds of resources at your fingertips, starting a business on eBay can be fast, easy, and nearly investment free. Here are nine steps to get you started
Selling products on eBay is one of the few ways almost anyone can become a business owner in minutes, with no upfront investment and the advantage of working from home. eBay businesses can be tailored to fit everyone from stay-at-home moms and retirees to college students, disabled workers, and anyone looking to make a little extra cash part time or even build a million-dollar business. Perhaps that's why there are currently more than 247 million registered users buying and selling on eBay, generating nearly $60 billion in sales each year. If you want a piece of that $60 billion pie, there are nine key first steps you'll want to take to be successful.
1. Start With Used Items
Rather than shelling out hard-earned cash to buy brand new products to resell on eBay, begin your eBay business selling used merchandise. In fact, start with what you already own -- what you have in your attic, basement and closets, suggests Steve Weber, owner of Weber Books in Falls Church, Virginia, and author of eBay 101: Selling on eBay for Part-Time or Full-Time Income. Selling used merchandise has many advantages: It's easy to come by, you don't need to do much research to learn about it and, says Weber, "the profit margin can be fantastic -- you can get 10 or 20 times the markup," since you either already own it or were able to purchase it for pennies on the dollar from others cleaning out their closets.
The downside to selling used merchandise that you've bought from places like garage sales, thrift shops or household auctions is that it's labor-intensive. That is, it takes more time to find and prepare such merchandise for sale than it does for new items. But the fact that it's lower-risk and lower-cost makes it an extremely attractive place to start.
2. Develop a Specialty
Once you've sold some castoffs and become more familiar with the selling process, begin thinking about a niche or a type of product to specialize in. "You don't have to do this immediately," says Weber, but start thinking about your hobbies, interests and work experience as possible bases for your eBay venture.
It's virtually impossible to become an expert in everything, but learning as much as you can about one or two product categories can significantly improve your profit potential on eBay, because you'll be able to more accurately predict what price each product will sell for.
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"Many people who are now on eBay started by selling products related to their hobbies," says Jody Rogers, president of Beachcombers, located in Altamonte Springs, Florida. Rogers and her partner, Asad Bangash, began dabbling in eBay in 2001 and went full time three years later selling primarily Indian shoes, glass bangles and henna. Their online business has grown at an astounding rate -- in July 2007, the two generated nearly $25,000 in sales, their best month thus far.
Rogers and Bangash found "a niche we knew about that wasn't hugely flooded with competition: ethnic items." The duo had an interest in ethnic products from the start, which is something they believe is important when it comes to owning an eBay business. Being passionate about or fascinated by a particular subject or product category will inspire you to learn as much as you can about it, making you a more savvy seller.
Also, "if you don't take time to learn about your product, you may lose sales," says Cheryl L. Russell, author of eBay Income. The more you demonstrate your expertise to buyers, the more likely they are to want to do business with you.
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