How to sell on eBay in 2024? Explained for beginners by Digimagg

What is eBay?

eBay is one of the longest-standing and most renowned online marketplaces globally. Every year, hundreds of millions of buyers visit the site, collectively spending billions on a diverse range of products, from luxury items like yachts and collectible baseball cards to handmade clothing and footwear.

Despite its popularity, eBay is a fiercely competitive marketplace, presenting challenges for sellers aiming to distinguish themselves. While the platform offers tools for creating listings and improving sales chances, there's an art to crafting the perfect listing and outshining competitors. This article will delve into selling on eBay, offering insights and strategies to help you optimize your sales performance on the platform.

Why sell on eBay?

eBay boasts approximately 132 million global buyers and receives around 100 million monthly site visits. The platform contributes to roughly 5% of total online sales, translating to billions in annual revenue. While these figures are dwarfed by Amazon's, eBay offers a more cost-effective selling model, taking a smaller commission. Unlike Amazon, eBay also avoids direct competition with sellers through its own product lines.

Considering customer preferences is crucial; not everyone favors Amazon or other platforms. Including eBay, along with platforms like Facebook Marketplace and Craigslist, in your selling strategy can tap into a distinct buyer segment. Neglecting eBay could mean missing out on potential customers.

Certain sellers, especially those dealing in collectibles or rare items with high auction potential, can benefit significantly from eBay. The platform not only helps maximize item value through auctions but also attracts a large audience of buyers seeking such items. Therefore, listing these items on eBay can lead to higher interest and sales, despite lower overall user and sales volumes.

How to sell on eBay?

To begin selling on eBay, you'll need an eBay account, a bank or PayPal account, and an item that people are interested in purchasing.

Setting up your account

Creating an eBay account is a straightforward process that does not require extensive documentation. However, before you start, familiarize yourself with eBay's policies to ensure your item is eligible for listing:

• Account creation: For a personal account, enter your first and last name, as well as your email address. If you're using eBay for business purposes, sign up for a business account. After registering, eBay will email you a verification code link to activate your account.

• Choose a username: Once your account is verified, you'll be prompted to select a username. You can skip this step initially, allowing you more time to choose a memorable username. Note that certain terms, such as "eBay" or "administrator," are prohibited in usernames.
• Link your payment method: eBay allows linking to a PayPal account, a checking account, or a credit/debit card. For a personal account, this completes the setup process, enabling you to start listing (and purchasing) items on eBay.
• Sign up as a business seller: If you're creating a business account, the final step involves submitting your business information, including your Employer Identification Number (EIN), stakeholder details, and banking information, to eBay. This process is guided by a wizard and typically takes between 10 and 15 minutes to complete, depending on the size and structure of your business, as indicated by eBay.

Listing creation

Creating a listing is straightforward: input product details, set your price and format (fixed or auction), choose shipping options, establish return policies, and select payment preferences. Throughout the process, eBay offers valuable guidance and tips to enhance your listing.

The key is to be thorough and descriptive. Fill in all fields and incorporate relevant keywords that buyers might use. Include multiple photos and videos to showcase features and condition. Provide comprehensive details in the description to ensure your listing stands out among similar items.

• Initiate your listing: Upon reaching the listing initiation page, input product details such as brand, model, and other relevant information. For instance, when selling a digital camera, include the ISBN, UPC, manufacturer, series, and model name. eBay will suggest items based on the information you provide.

• Discover a match: eBay will display items from its product database. You can add more specifics to narrow down the search. Upon locating the item you intend to list, choose its condition ("new," "open box," "used," or "for parts or not working") and proceed by clicking "Continue to listing." If your product is listed in the database, eBay can autofill much of the listing information and provide stock images.

• Listing title and item details: eBay suggests a listing title based on the information you've entered. If your item isn't in eBay's product database, you'll need to input this information manually. eBay evaluates your title based on length and prompts you to include essential details like brand, color, size, and condition. Your title is crucial for making a strong first impression, so ensure it's compelling and informative.

• Include images and description: You can upload up to 24 images and videos and craft a detailed description for your listing. eBay offers a stock image if your item is in its product database. It's important to add images and videos to showcase unique features and reassure buyers about the item's condition. The description can be enhanced using various fonts, font sizes, bulleted lists, and more. One-click artificial intelligence (AI)-generated descriptions are also available.

• Pricing: eBay suggests the selling format and listing price based on your item. You can manually adjust the format and enable potential buyers to make offers, setting a minimum price. eBay provides insights into how similar items have been priced in the past 90 days, aiding in setting an optimal price. Monitoring competitors' pricing can also be beneficial.
• Shipping: For each listing, you can choose up to two domestic and one international shipping providers. Sellers determine who covers shipping costs. Offering free shipping can attract more customers, but it may impact your profits. To offset this, consider including shipping costs in your listing price. Additionally, you can offer local pickup, allowing buyers in your area to collect the item in person (all payments are managed through eBay).
• Payment Options: eBay automatically includes credit/debit card options (Visa, Mastercard, Discover Card, and American Express are supported, though not in all listings), Apple Pay, Google Pay, and PayPal. Depending on your category and location, you may also accept checks, money orders, cash on pickup, and wire transfers.
• Listing Preferences: Configure your handling time (between same day and three business days), confirm your location details, and set your return policy. You can specify a return period (14, 30, or 60 days) and define who covers return shipping costs.

Effective tips and strategies for selling on eBay

eBay is a highly competitive marketplace, and gaining an advantage on the platform can be challenging. There is a learning curve to creating optimal listings and finding the right price point to attract buyers. Strategies that work may not be effective indefinitely, as succeeding in online marketplaces requires ongoing adaptation.

Setting up an eBay store

An eBay Store allows you to consolidate all your listings on a branded page and provides additional tools for brand building and customer outreach. For instance, you can create and distribute newsletters, run sales, and offer coupons to maintain engagement with customers and encourage repeat business. eBay Store subscribers also enjoy discounted eBay-branded shipping supplies and preferential rates for selling fees.

One of the notable benefits of an eBay Store subscription is access to Terapeak Sourcing Insights. This tool, available to all eBay Store (Basic and above) subscribers, offers real-world sales data across all eBay categories, aiding in strategy optimization.

However, an eBay Store may not be necessary for everyone. If you don't list many items monthly or have a limited range of items listed concurrently, an eBay Store may not be suitable.

Utilizing eBay's partner programs

eBay has developed various programs over time to assist sellers in addressing trust, shipping, and payment issues inherent in ecommerce platforms:

• eBay Guaranteed Delivery ensures that items are delivered within a specified timeframe, or customers receive compensation. Since fast shipping is crucial for eBay buyers, participating in this program can attract more buyers to your listings and increase sales potential.
• eBay International Shipping simplifies international selling for US-based sellers by managing international shipping, customs clearance, tracking, and post-transaction requests and returns.
• eBay Academy is a free learning program that helps sellers maximize their use of the platform. It serves as a guided tutorial, introducing sellers to eBay's tools, features, and best practices.

Understanding eBay's fees

eBay generates revenue through selling fees, which include insertion fees for listing items and final value fees upon sale, as well as additional programs like eBay Stores that enhance the seller's experience. Selling fees can vary based on seller behavior and performance, listing format and category, item price, and optional add-ons. Similarly, the cost of programs like eBay Stores varies depending on the chosen tier.

Comprehending eBay's fee structures is essential for selecting the right account type and programs. For instance, frequent sellers may benefit from an eBay Stores subscription, while those with international customers might find eBay International Shipping advantageous.

Insertion fees

Each eBay user receives 250 "zero insertion fee listings" monthly. Beyond this limit, an insertion fee of 35 cents is charged for each item listed or relisted. Insertion fees are not refundable, and sellers are charged regardless of whether the item sells. If an item is listed in multiple categories or duplicates are posted, an insertion fee is charged for each category or duplicate listing.

Optional listing upgrades, such as longer listing durations, bold text, subtitles, reserve prices, and others, incur additional insertion fees. While these upgrades can range from a few cents to a few dollars, they can significantly impact a buyer's choice between your item and a competitor's.

Final value fees

Final value fees are charged at the point of sale and vary based on the listing's category, price, and seller performance. Typically, sellers pay 30 cents plus a percentage—usually between 10% and 15%—of the total sale amount, which includes the item price, shipping and handling charges, and sales tax.

eBay Stores offer various tiers and payment plans, with fees varying accordingly. Subscribing to an eBay Store provides access to additional tools for managing and promoting your business within eBay. It also increases the number of zero insertion fee listings per month, reduces insertion fees for additional listings, and lowers final value fees on each sale.

• Starter: $7.95 per month or $4.95 per month with an annual subscription
• Basic: $27.95 per month or $21.95 per month with an annual subscription
• Premium: $74.95 per month or $56.95 per month with an annual subscription
• Anchor: $349.95 per month or $299.95 per month with an annual subscription
• Enterprise: $2,999.95 per month; available only with a one-year commitment

In starting on eBay and setting up listings, the process is straightforward, but surpassing competitors is challenging. There's a learning curve in building your brand, optimizing listings, determining the right pricing, and adapting to evolving customer and market trends. However, if you can navigate these challenges, eBay can be a lucrative platform for your online business or for decluttering your space.