ebay business plan

How to Start an Ebay Business

Candice Landau

16 min. read

Updated March 18, 2024

Free Download:  Sample Retail and eCommerce Business Plan Templates

If you’re researching how to start an eBay business, you’ve come to the right place.

Ebay is an online shopping and auction venue that allows people to buy and sell used or new products, either as a business or as a way to clear out clutter and make a bit of extra cash.

While the site is free to use, eBay does charge some seller fees . There’s a per-item insertion fee and a final value fee, as well as fees for any additional but optional features used. We’ll go into this in more depth later.

• 1. Decide what to sell

Pick a product that works for you

One of the first things to consider when you want to start a business on eBay is what you’re selling.

Figuring out what to sell isn’t something only aspiring eBay entrepreneurs need to do; it’s key for anyone starting a business . What service or product is a good fit for you, for your location, over the long-term, or just for the moment because it’s selling like hot cakes?

Factor in shipping and storage

As you work through the process of deciding what to sell, remember to keep things like shipping and storage costs in mind. Mailing a USB drive is a whole lot easier than a billiards table. If you’re thinking of selling fragile items, consider the extra packaging costs and the potential for breakage.

Be aware of restrictions

That said, you’re free to sell pretty much anything—well, almost anything. Ebay does have a list of things you cannot sell, or that have restrictions. It’s worth reviewing the list as it does include things like art, event tickets, and gift cards.

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Start with what you know

If you’re not sure what to sell, it’s a good idea to think of what you love and what you know. Do you have a hobby ? Perhaps you’re an avid collector of Polaroid cameras and you know everything there is to know about how the products have developed over time.

We suggest picking something you know because an important part of selling on eBay is knowing what the market for these items looks like.

Ask yourself:

• Is it in demand?
• What do people looking for it consider before buying?
• What does it typically sell for?
• How should you describe it?
• Where should you list it (category)?
• Do you know where to get ahold of it at an affordable price so that you can resell for a profit?

Of course, this doesn’t mean you can’t pick something you’re less familiar with. If you’re a great researcher and are looking for a new hobby, perhaps now is the time to branch out.

Research popular products

Ebay has a great section on “what to sell”  on their site. Electronics, fashion, and collectibles are consistently listed among the most popular categories.

Popular selling items in electronics in 2018 include:

• Game consoles
• Mobile phone accessories
• Bluetooth speakers

A word of warning regarding electronics: If you’re just getting started, it might be good to stay away from them for a while, especially if you’re selling second-hand electronics. Figure out how the site works before you have to deal with complaints and returns, regarding faulty monitors, keyboards, or hard drives.

Popular selling items in fashion in 2018 include:

• Athletic shoes
• Accessories like belts and sunglasses
• Replacement bands for smartwatches
• Hair accessories

Popular selling items in collectibles in 2018 include:

• Trading cards
• Gaming sets like Magic the Gathering and YuGiOh
• 2. Set up your eBay store account

If you’re going to be listing a lot of items each month, an eBay store is a good idea, if for no other reason than because it will save you money.

Normally, when you list items on eBay, you are doing so as a member of the general public and you do not need to commit to any monthly fees. With an eBay store, however, you are required to pay a monthly fee. You can decide on a package that best suits your needs and keeps costs relatively low.

At present, eBay offers five store packages with varying discount structures:

• Starter: 100 free fixed-price listings/month and costs $4.95 per month (billed annually)
• B asic:  250 free fixed-price listings/month and costs $21.95 per month (billed annually)
• Premium: 1,000 fixed-price listings/month and cost about $59.95 per month (billed annually).
• Anchor: 10,000 fixed-price listings/month and costs $299.95 per month (billed annually).
• Enterprise: 100,000 fix-priced listings/ month and $2,999.95 per month (billed annually)

A store is a good idea if you don’t have an ecommerce website and you want a more personalized place to direct people to. It’s also a good idea if you sell a lot of similar products. People may want to browse and see what else you have.

Africa Direct’s eBay store is a great example of a store that operates as a website in micro. Given that it’s so easy to purchase on eBay—many people already have their card details saved and linked with PayPal—it’s more likely that someone will buy from your eBay store than from an eCommerce website they may not trust, or that requires them to get up and find their credit card.

• 3. Make your Ebay business official and legal

What you need to know about starting a business

Use this free downloadable business startup checklist to help you stay organized as you get closer to launching your eBay store. Operating an online store, especially one that’s so easy to set up, does not mean you are exempt from all of the legal requirements a “normal” business has to meet.

In fact, as soon as you start selling a lot on eBay, or turning a regular profit, the IRS will classify you as a business, and you will need to meet all the requirements a normal business has to meet. If you do intend to run a business, even if you’re not yet making regular sales, it may be worth formally registering your business. It costs very little and will keep you in the clear.

This will include:

• Registering your business name
• Obtaining a Federal Tax ID number
• Obtaining any federal and state licenses or permits
• Deciding on a legal business structure

Business structures

Broadly speaking, there are four legal structures or business formats. For some people, picking a form of business is straightforward; for others, a consultation with a lawyer is necessary.

If you’re relatively comfortable handling these processes yourself, you can go through a company like LegalZoom, which helps hundreds of small business owners prepare legal documents for business incorporation and the likes. However, if you’re at all unsure about which one will best suit your needs, we strongly advise consulting with a legal professional .

If you can, look for someone that’s a member of your local Chamber of Commerce. Here’s a brief overview of each business formation, with a little bit of information regarding their suitability to your eBay business, as well as things you may want to consider.

Sole proprietorship

A sole proprietorship is the preferred type of business for many individuals running either a part-time or full-time business on their own. It’s the simplest form of business and is incredibly easy and affordable to set up. You can run a sole proprietorship from your personal checking account and can deduct many of the expenses related to the running from your state and federal taxes.

The risk associated with a sole proprietorship is that all business liabilities are linked to you personally. If you default on loans or have outstanding debts, you could lose your personal assets.

Partnership

Forming an eBay partnership with one or more people can be a very productive way of making money on this platform. It may start out with an oral agreement, but a formal written agreement should always be created; consider all duties, possible disputes, restrictions, and provision for worst-case scenarios—i.e., “What happens if…”

The partnership itself must file Form 1065 to the IRS, and the profits are taxed based on individual returns (established by terms stated in the written agreement, or by percentage of ownership). Legally, each partner is responsible for themselves and each other. Any lawsuits that occur can potentially involve all or both of you, so be sure that partners are aware of their duties and any legalities that may surround them.

A word to the wise: Ebay states in its User Agreement that you may not “transfer your eBay account (including Feedback) and user ID to another party without our consent.”

So, if your partner decides to back out, or you go separate ways and want to start separate businesses, if you haven’t made it clear from the start who gets the account, you may be looking at starting from scratch or undergoing a heavy legal dispute. This is one agreement you should probably read.  

Limited Liability Company (LLC)

As the name suggests, the liabilities of Limited Liability Companies are generally not passed on to the owners. This means that the owner or owners’ liability does not extend beyond the amount they invested in the company.

In terms of taxation, however, the owners or members are all liable. When taxes are due, profits and losses are calculated for individuals based on their percentage ownership or investment. The Form 1065 must still be filed to confirm proper income reporting by members. The LLC itself can reduce the tax paid by members by paying as a corporation and keeping some profits in-house.

Corporation

A corporation is a legal entity operating entirely in its own right. As an employee-owner you cannot take money from the company bank account for your own pleasure. It must be for an officially accountable purpose.

There are two types of corporation you can set up: S or C. The former allows profits to be passed to your own tax return, and the latter files its own tax returns, and you are officially an employee. The state in which you set up your corporation will determine how much tax you pay and the rules you must follow.

You should make yourself aware of tax rates in your state, and never set up a corporation before you’re totally aware of exactly what it means, and the implications for you as an individual owner and employee.

• 4. Start listing your items

Understand the fees

If you haven’t already, take a moment to familiarize yourself with eBay’s selling fees .

Be proactive about your policies

Think through how you’ll answer buyers’ questions. Don’t skip laying out clear customer service and return policies.

Determine the payment methods you’ll accept from buyers

Ebay offers a few different payment options for sellers : Paypal, credit and debit cards, as well as checks and money orders, payment on pickup, or bank transfers.

Create your seller account

Before you can list any of your items, you’ll need to set up a seller account. First thing, you’ll have to decide whether to set up a “personal account” or a “business” account .

If you’re starting an eBay business and plan to sell a good volume of items each month, you’re going to want to pick the business account—the personal option is for casual sellers. The process is simple and straightforward and eBay will guide you through it all. Once you’re set up, take some time to familiarize yourself with your seller dashboard.

Create your listings

To create your first listing, log into your eBay account. Click the “sell” link in the top right-hand corner. This will take you to your Summary page.

Once you’re on this page, you will see a vertical navigation on the left side of your account. Click the blue “Sell an Item” button. Ebay will guide you through the rest of the process.

One of the first choices you’ll have to make is whether to create a template for your listing. If you know that you’re going to sell a lot of the same type of category, setting this up from the beginning can save you a lot of time. Don’t underestimate how important your product description wording is in helping your item be seen and sold.

In order to sell your items and maximize your chances of getting seen, you will need to include:

• A strong title and description (pick something people will be searching for)
• Additional information about specific aspects of the item (some categories allow for this)
• The condition of the item
• Pictures of your item (the higher the quality, the better)
• A selling format (auction-style or fixed price)
• A listing duration
• A starting price (see our tips above on pricing your items)
• The payment methods you’ll accept (see our explanation above)
• Your shipping costs and locations
• Your return policy
• 5. Price your items

Fortunately, there’s a lot of information available on how to price your items . Performing a simple eBay search for the specific item you’re looking to list should give you a good idea of the right ballpark figure.

However, sometimes prices may vary wildly—some sellers prefer to list items with fixed prices while others prefer to start with a much lower price and run their sale as an auction.

Tip: Use eBay’s Advanced Search feature to find out how much an item you want to list has sold for in the past.

Don’t forget that eBay’s default search method is “Best Match,” which takes into account both the item’s shipping price and its list price.

The combined price is what really matters

As with a real-life store, you’ve got to make sure your products are easy to find. The best way to do this is to balance your shipping and list price to ensure it’s fair, and to keep your seller rating high through good customer service. A fair price will make it more likely that your results come up higher when people look for items like yours.

Tip: If you want to increase your search visibility, you can experiment with eBay’s “ reserve price ” settings.

Basically, you’ll be able to set a low price but at the same time, set a lower price limit, so that if your reserve price is not met when people bid on your item, it will not sell. To set a reserve price you will need to pay a small fee per item . Be sure to look closely at your item listing preview so you can catch any errors or things you missed before it goes live

• 6. Ebay legalese and stuff you ought to know

Running a business isn’t supposed to just be hard work; you’re supposed to enjoy it too. One of the things that can get in the way of this is not knowing the rules you should be playing by.  

To keep problems to a minimum, you’ll want to familiarize yourself with eBay’s values, understand what you can and cannot sell on the site, know what to do when your competition doesn’t play fair, and of course, what to do about a “difficult bidder” or a buyer who doesn’t pay.

Each of these problems has been covered in depth by eBay, so we’ll include the most important links to each one here:

• Know eBay’s values and honor them
• A list of prohibited and restricted items
• Ebay’s profanity policy
• What to do when you can’t follow through on a sale
• 7. Set up your offline eBay headquarters

While you’re still in the beginning stages of building your eBay business, spend a little time thinking about how it will function offline. Meaning—where do you store your inventory? Do you have a dedicated workstation for packaging up your shipments?

Especially when you’re first starting out, just make it work for you. You can get started in your spare room or garage.

Don’t over complicate it. But do think ahead, especially if you’re looking at growing your business and inventory quickly. Start with putting together a good record-keeping system so you know what you’ve got on hand in terms of inventory, and you can find it easily.

Decide how to store your eBay stock

Depending on what you sell, some good items to stock up on that will make storing goods easier include:.

• Plastic or steel shelves
• Clear plastic boxes (if you’ve got a lot of stock) with clear labels
• Plastic Ziploc/snack bags (good for smaller items)

We recommend clear storage boxes so that it’s easy to see what you’ve got on hand.

Keep track of your inventory

Whether you prefer to use a paper notebook or a software program, there’s no doubt about it—keeping a record of all your inventory is important, especially as your business grows and as it becomes more important to keep good records in case the IRS ever looks into things. The best way to keep track of a lot of inventory is to invest in a good bookkeeping system.

Set up your packing supplies and workstation

An essential part of your HQ is “the shipping department.” In order to ensure a smooth-running operation, you’ll want to make sure you’ve got everything you need readily available, especially if you’ve promised to ship items fast.

Items you should always have on hand:

• Something to clean up packaging with—a sticker removal product like Goo Gone or un-du, or simply WD-40
• Bubble wrap
• Shipping tape
• Styrofoam packing peanuts
• Plastic bags and trash bags (good for wrapping larger items and for waterproofing)
• A variety of envelopes (including the handy bubble mailer envelopes that keep items safe)
• Boxes (check out your local USPS store for more info)
• Now go and master selling!

You’ll learn a lot as you go—test your prices, listing language and processes often so you can be sure you’re being as efficient as possible.

Also, put together an ecommerce or online business plan. You can use this free downloadable business plan template to get started, and you can take a look at some example eCommerce business plans in our library to help you think through the process.

Why build your own business plan? Think of it as a framework to help you think through what you need to do to be successful. Do you have financial goals for your business? Your business plan should be a tool to help you meet those milestones and become the most successful eBay business you can be.

Candice Landau is a marketing consultant with a background in web design and copywriting. She specializes in content strategy, copywriting, website design, and digital marketing for a wide-range of clients including digital marketing agencies and nonprofits.

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How to Start an eBay Business: 15 Things to Know

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If you're an aspiring e-commerce merchant, you may have wondered what it takes to start a successful business on eBay. After all, eBay is one of the oldest and most recognizable e-commerce platforms. The site had 182 million active buyers in the second quarter of 2019 and averages 1.8 billion site visits per month — second only to Amazon. In other words, it's a great place to launch your e-commerce career.

However, selling on eBay isn't a walk in the park. It takes skill, dedication and more than a little insider knowledge to turn your online store into a respectable operation. Below you'll find some key tips that can bolster your chances of success as an eBay seller.

How to start an eBay business: The basics

The process of starting an eBay business is actually fairly simple. But before you dive in, we recommend doing a little planning. Namely, consider what you will be selling, what payment methods you'll accept, customer service policies and shipping methods. Also, have a look at the eBay seller policies and rules to make sure eBay can support your e-commerce business idea . Once you feel ready, here's what you do:

1. Choose your account type

To get started with eBay, select the "Register" button on the homepage. You'll be directed to a page where you can create an account. eBay allows you to choose between a personal account and a business account. A personal account is for casual selling, while a business account allows you to sell large quantities of products. You can also register a legal business name and customize your store with your business's branding. While it’s free to create an eBay business account; you will have to pay seller fees associated with the listing and selling of your products.

2. Register your account

To register your account, you’ll need to provide your legal business name, email and phone number, and create a password. Next, you’ll be prompted to create a username. Then, eBay will ask for your legally registered business address and phone number in order to verify your credentials. Once you provide all this information and click "Register," you should have immediate access to your account.

3. Set account preferences

The first thing you want to do when you log into your account is adjust your account preferences. To do so, click “Account settings" on the menu bar. From here you will be able to update shipping information, buyer requirements, communication preferences and addresses associated with your account.

The most important thing to update here is your payment method, as this will be how you pay for your selling fees. You can choose among PayPal, direct debit or credit card. This card or account will be charged automatically based on your seller invoice.

4. Add inventory

Now comes the fun part — adding products to your store. Start by clicking the “sell” link in the upper right-hand corner of your account page. eBay offers two methods for adding inventory: A quick listing form and an advanced listing form. The quick listing tool expedites the process of adding products by allowing you to enter keywords to describe your item. eBay will place you into one of their product categories and offer listing suggestions based on your descriptions.

The advanced listing tool allows you to go more in-depth with the information you provide. You can input a product title, product categories, photos, item description, selling details and shipping information, among other criteria. With both the quick listing and advanced listing methods, eBay calculates your seller fees based on the product information you provided. Therefore, it's important to pay close attention to the information you enter.

The most important elements include your selling information (auction vs. fixed-price), payment information (PayPal, eBay Managed Payments , offline credit card payments or pay upon pickup), return information and shipping details (flat-rate vs. calculated).

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

How to start an eBay business: 15 tips

Now that your business is off the ground, let's talk about some tips that will help you navigate the marketplace and take your eBay store from ordinary to extraordinary.

1. Start small

Don't invest a large sum of money into inventory when first learning how to start an eBay business. Instead, start small. Find a few items to sell, and get some experience taking photos, writing listings, testing pricing options and interacting with buyers. Make sure you can handle the core functions of maintaining an e-commerce business (filling orders, handling returns etc.) before you start to scale up with more products. Even if your eBay business is a side hustle, you need to dedicate time to it every day if you want to see real results.

2. eBay's free — up to a point

You can list 50 items per month for free. You’ll pay a small fee for each listing beyond that allotment. This is known as an insertion fee. These fees are charged per listing, per category. For most categories, the fee is 35 cents per listing.

You also pay a final value fee (a small percentage of the sale price) once an item sells. This is called the final value fee, which is a percentage of the total amount paid by the buyer, including shipping and handling. For most categories, the final value fee is 10% of the total sale amount with a maximum fee of $750. Also, don't forget about payment processing fees. If you use Managed Payments, the fees will come directly from eBay

You can also ramp up to a more robust eBay store by paying for a subscription (known as eBay Stores). Starting at $19.95 a month (for an annual subscription), this option gives you hundreds or thousands of free listings per month.

Visit eBay Fees for details about fees, including a fee calculator and a tool to help you pick the right eBay store option.

3. It helps to have a niche

One of the keys when figuring out how to start an eBay business is to identify a niche. Your eBay business is simply more likely to succeed if you develop a specialty. For example, if you sell only collectibles, buyers are more likely to come back to you again and again than if you sell collectibles along with used smartphones, video games, handbags and cookware. Better yet, specialize in niche collectibles, such as 1960s Disney collectibles or Bakelite bracelets.

Check out what's hot on eBay right now, to pick up product ideas.

4. You can’t get away with amateur photos

As with any e-commerce site, you need good product shots. Use well-lit, high-resolution photos on a plain background that show products from multiple angles. Include close-ups, and indicate scale. Use eBay's picture service tool to ensure that photos render properly on mobile devices.

5. The more detail, the better

A picture may be worth 1,000 words, but detailed product descriptions help items sell too.

Start by choosing a category for your item. Then write a listing title using keywords such as brand name, size, color or model number — any term people might use when searching for this product. In the description, include plenty of product details and more keywords.

You should also try to optimize your product listings for SEO and take advantage of eBay’s Best Match algorithm. In the same way that Google sorts search results, the eBay Best Match considers factors like listing title, item popularity, price, listing quality and more to determine what customer's see first when they search the eBay site.

6. You’ve got to price it right

While eBay is best known for auction-style listings, you can also set a fixed price for an item to help it sell faster. eBay's quick listing tool suggests the best pricing options to attract buyers based on how similar products sold in the past.

7. It’s not over when the item sells

Once you make a sale, it’s important to complete that sale quickly and accurately. To do so, make sure you send out the correct product through the shipping method you’ve indicated as quickly as possible, as this creates a good customer experience. eBay has tools you can use to calculate postage, print shipping labels and pay for shipping right from home. Plus, you can get free shipping supplies from the U.S. Postal Service, UPS and FedEx.

Learn about eBay shipping options .

To check the status of a payment on a sale you've made, go to "My eBay" on your account home page, navigate to “Sold” items and select “Awaiting payment.” If you find that there seems to be an issue with receiving payment, contact eBay customer service or reach out to the buyer directly.

8. Be ready for some returns

To compete with other e-commerce sites, your eBay business should offer returns. It's best to deal with returns as quickly as possible so as not to upset the customer. You can customize return options and choose whether you or the buyer pay for return shipping via your account settings.

You can also reduce the likelihood of a return by using clear photos and detailed descriptions in your listings and clearly stating your return policy.

9. Face issues head on

Aside from returns, you're likely to face a situation where the product you shipped out got lost in the mail, or a customer had an issue with a problem they received. The best way to handle these situations is promptly and professionally. You should refer to eBay's policies on dealing with these kinds of customer concerns so that you approach them in the best way possible.

10. Use the eBay seller hub

With this free seller tool, you can access a dashboard to see how your listings are performing, quickly list new items, and see the status of orders and returns. Viewing this data regularly helps you improve your listings for better results.

If you’re an eBay Stores subscriber, you can use eBay Seller Hub to create promotions, discounts and other marketing messages.

11. Improve your seller profile

Consider your Seller profile as your eBay reputation. When you receive positive reviews and ratings, you’ll add clout to your seller account — which is why it is extremely important to prioritize good service. Positive reviews make your business more appealing to customers and can also help your products rank in eBay. Furthermore, having a good Seller profile will give you more leverage with eBay. For instance, you may be able to get an increase in listing limits if you're known as a highly reputable merchant.

12. Solicit feedback

Because positive reviews are so important for the success of your business, you need to be proactive about seeking them out. If you delivered excellent service to a customer and they were pleased with their experience, ask them to leave a review. If you receive a negative review, you can reply to the feedback, request a revision from the seller or contact eBay and ask for it to be removed.

13. Download the eBay app

Downloading the eBay mobile app allows you to manage your business on-the-go. The app is free and available for Android, iPhone and iPad devices.

Using the eBay mobile app, you can create, edit and monitor your listings, relist items, provide tracking information and respond to questions from customers.

14. Connect eBay to your own store

If you already operated your own e-commerce store before launching a store within the eBay marketplace, be sure to connect your store to your eBay account. This is a great way to filter traffic from eBay onto your own website and allow customers to learn more about your brand.

Note that many e-commerce platforms come with a free eBay integration — including Shopify and BigCommerce.

15. Network with other sellers

Hundreds of thousands of merchants sell on eBay — why not get to know them? The eBay Community was designed to teach merchants how to start an eBay business. On the eBay Community webpage, merchants share information on growing their business, marketing strategies, buying inventory and more. For those new to e-commerce, this is a great place to learn more about selling on eBay.

Start Your Dream Business

Frequently asked questions

Can i sell on ebay without a store.

Yes, you can sell on eBay without opening an eBay store. You can also ramp up to a more robust eBay store by paying for a subscription (known as eBay stores).

Do I need a tax ID to sell on eBay?

No, a tax ID number is not a requirement to sell on eBay, although income earned from eBay sales may still count as taxable revenue. Those looking to turn their eBay shop into a business should obtain a tax ID.

How many things can you sell on eBay for free?

You can list 50 items per month for free on eBay. You’ll pay a small fee for each listing beyond that allotment. This is known as an insertion fee. These fees are charged per listing, per category. For most categories, the fee is $0.35 per listing.

How much is an eBay store per month?

Starting at $19.95 a month (for an annual subscription), an eBay store gives you hundreds or thousands of free listings per month. Visit eBay Fees for details about fees, including a fee calculator and a tool to help you pick the right eBay store option.

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Seller Hub offers everything you need to build and grow your business on eBay. With it, you have access to a variety of tools that will help you manage your orders, downloaded detailed reports, and more.

Great Price badge

A Great Price badge helps eBay shoppers quickly and easily discover high quality inventory at highly competitive prices. When a Great Price badge appears with your qualified listing, your item will get buyers’ attention because they know they’ve found a great product at a great price.

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eBay Business Plan Template [Highly Actionable]

There are over 25 million sellers on eBay.

No matter what you sell, with competition like that, you need to have a plan. Fortunately, with around 182 million users, there’s plenty of opportunity to grow and thrive.

The purpose of an eBay business plan is to articulate your idea and figure out how to make it feasible.

To do this, you will need to explore the different aspects of your business which define what it is and how it will operate. Once you have a handle on the crux of your business, you will be able to determine the resources you’ll need to succeed and which areas you can automate.

In this eBay guide, we will cover the following bases:

• 10 benefits of an eBay business plan
• How to start your plan
• Your eBay business plan template
• Business plans and the bigger picture
• Plan to save time and money with A2X accounting

10 Benefits of an eBay Business Plan

Why bother with a business plan for your eBay store in the first place? Let’s see.

• Cash flow will be managed better: Meaning, quite simply, a better chance of survival.
• Stick to your strategy: You can more easily avoid getting caught up in routine and interruptions as life takes over.
• Measurable objectives are easy to track: See your progress, plan for and celebrate it! You can decide ahead of time what you do next at each stage of your growth.
• Your instincts and educated guesses will be more accurate: You’ll have the data as well as the experience to back them up.
• You’ll better manage interdependencies: When one thing relies on another, you will be able to plan for that and ensure you are prepared for multiple scenarios.
• Delegation and automation will be easier: You’ll be able to see where it slots into the bigger picture, as will any employees you might take on.
• You can be proactive rather than reactive: Basing your decisions on evidence and data means you can take more calculated risks and push forward.
• Never base decisions on assumptions: With solid records and information about your business, you won’t risk making baseless assumptions ever again. You know what they say about assumptions…
• Easy to correct your course: If you are tracking your journey and its projections aren’t matching your goals, you can act early with less fallout.
• Provides solid foundations for investment or sale: If you want others to invest in your business or even buy it, giving them this level of detail and records could prove invaluable and get you a higher price.

That’s a pretty strong argument for making a business plan. And remember, at this stage, you don’t need all the answers for how you will make millions. Growth strategy comes next.

For now, we want to focus on articulating the spine of your business and its vital organs - what does it need to exist and function efficiently?

Starting a Business Plan: eBay Guide

Feel free to play along with us. Here are some questions for you to start thinking about in preparation for writing your eBay seller business plan. This should help you get into the zone and start covering off the basics.

After we explore these, we will move onto an example eBay business plan template which you can bookmark and use for your own business.

Who are you?

Your store came into being for a reason. Why? What was the problem, and how are you attempting to solve it for customers? This should become your value proposition.

Do you have a brand identity yet? This is an important part of growing an ecommerce store. If you want to earn customer loyalty and build awareness, you will need to consider this.

What is your brand positioning? What do you want customers to think and feel about you?

Discover strategies for building your ecommerce brand .

Where are you going?

What are your short and long-term goals? Ensure that most of them are SMART goals , i.e., measurable. This way, you can use them to make informed decisions about your business, make realistic predictions and forecasts, and grow in an intentional, proactive way.

How to set business goals and strategies to achieve them .

What will help you get there?

What tools and resources might you need to help you achieve your goals? What will they cost? How will you measure the return they should give you? Will you set parameters for when to invest in them, and when to pull back?

You don’t need too much detail on these in your initial plan, but it’s good to have an idea of your dream ecommerce toolkit.

By thinking through any future commitments you might make to software or human resources, you can ensure you get the maximum output from calculated input, with profit at the end.

How and why you should be planning for your ecommerce technology development .

eBay Business Plan Template

Now that you’ve had a chance to lay the foundations of your eBay business plan, let’s get to work!

Just as every business is unique, there will be a multitude of business plan options out there to match. Some fit on one page, some spread across one hundred pages.

This is our eBay business plan sample based on the critical elements every ecommerce seller should consider in the early stages, made simple and easy to digest. Anyone should be able to pick up your plan and understand it.

If you’re more of a visual learner, scroll down for an infographic that shows how each element of your plan relates to the others and the bigger picture.

Remember, as you grow and develop, so can your eBay business plan. Get good at prioritizing!

____________________________________________________________________________

Executive Summary

A one or two-line summary of your business idea.

An overview of your product - what is it? Where are you sourcing it from? How much are you paying for it? Does this change based on volume?

Value Proposition

Keep it short and simple: how will your product beat the rest. What makes it unique?

How to build a value proposition .

Target Market and Competition

Who is your target demographic and who else is selling to them? How will you cut through the rest and stand out to that audience? You could also do a SWOT analysis for inspiration.

How to define your target market .

Marketing Strategy

Where does your audience spend time and how will you reach them there? How much will you spend on marketing efforts?

Guide to ecommerce marketing in 2021 .

Fulfilment Model

How will you ship your products? What will this cost you? Will you explore dropshipping? Will you start out one way and evolve as you grow? What will be your parameters for this?

eBay shipping options and advice for sellers .

Budget and Sales

Forecast your sales and outgoings. What should your profit margins be? What volume of sales do you need to survive and thrive? Is your business financially viable?

How to forecast sales for your ecommerce business .

Ecommerce demand forecasting: what it is and why you should care .

Break down your goals into bite sized chunks. Set a timeline, what you want to achieve by then and what you’ll need to make that happen. Be realistic!

Examples of milestones for small businesses .

Team and Resources

What roles exist within your team, or may exist in the future? What will they need to succeed? What roles can be outsourced or automated?

Funding and/or Investment

Identify how much you need or have raised, from whom, and when you plan to pay it back. Alternatively, you might look for this at certain milestones. The more information you can offer potential stakeholders, the better.

Tips to fund your ecommerce business .

Business Plans and the Bigger Picture

This helpful infographic offers a way to visualize some of the elements of a business plan and how they relate to each other:

Image source .

Save Time and Money with Automated Accounts

Money will be the lifeblood of your business.

No matter how strong and in depth your eBay business plan is, without efficient accounting, your business won’t survive.

Luckily, accounting is a critical element of your ecommerce gig that you can automate.

Repetitive number crunching is what software is designed for, so why not leave it up to the mechanical experts?

See what A2X can do for your business:

Try A2X for eBay for free today! Sign up here .

Also on the Blog:

• Ecommerce Accounting and What Makes It So Different
• Ecommerce Accounting Principles
• Find an Ecommerce Accountant
• The Best eBay Accounting Software for Sellers
• eBay Managed Payments: Everything You Need to Know

Learn how to manage your eBay accounting the right way

Accounting for eBay sales comes with a unique set of challanges and opportunities. Discover the key challenges sellers face, the taxes and fees, and a free setup checklist.

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Unlock Online Success: Starting Your Own eBay Business

Main Sections In This Post Steps To Starting An eBay Business Points to Consider Resources Knowledge Is Power Featured Video

This article provides a comprehensive overview of what to anticipate when running an eBay business and a detailed step-by-step guide.

Moreover, you’ll discover a compilation of valuable resources to assist you throughout the startup phase and when your eBay store is operational and prepared for transactions.

There is an abundance of information to cover, so it’s advisable to bookmark this page for future reference. If you find this post helpful,  consider sharing it with others!

Let’s get started with the steps.

Steps to Starting an eBay Business

1. gaining an overview of what you’re getting into.

This section aims to provide valuable insights that will aid you in making informed decisions for your eBay business.

I highly recommend carefully considering the key points discussed here before entering the startup phase.

a.) Is Starting an eBay Business the Right Step for You?

There is a key factor to succeeding in business, and that factor is you!

Understanding how you feel about owning and running a business is important.

Passion: A Crucial Element for Success

Passion is a crucial element for success in your own business. Passion is the driving force you need. When you’re passionate about your business and problems, arise, you look for solutions. On the other hand, without it, you’ll look for a way out.

How passionate are you about owning your own business?

Let’s look at an interesting perspective:

Imagining Freedom and Choices

Imagine doing anything you want without restrictions and enough money to last you for the rest of your life. That means money has nothing to do with how you will spend the rest of your life.

An Important Question

In this situation, would you start an eBay business?

If your answer is yes, it shows that you are passionate about owning and operating an eBay business and are heading in the right direction.

Exploring Alternatives

However, if your answer is no, it prompts another question:

What would you prefer to do instead?

Perhaps, you should pursue that path instead.

In Summary: Passion is Essential

In summary, you need to be passionate about the business you are starting. Passion serves as the fuel that drives your commitment and determination.

It empowers you to overcome challenges and seek solutions. So, before embarking on an eBay business, evaluate your level of passion and ensure it aligns with your aspirations.

For More, See How Passion Affects Your Business . Also, see,  Considerations Before You Start Your Business to identify key points for a new business owner.

2. An Overview of Owning an eBay Business

Next, let’s spend some time on key issues to give you an overview of what to expect from owning and running your business.

A Quick Overview of Owning an eBay Business

Operating an eBay business offers individuals a platform to reach a wide customer base and potentially achieve success in the online marketplace.

Entrepreneurs can build a thriving eBay business by following key points for success, navigating challenges, and meeting customer expectations.

With dedication, strategic planning, and a commitment to excellent customer service, owning an eBay business can be rewarding and profitable.

What it’s like to operate an eBay business:

Running an eBay business involves creating and managing an online store to sell products or services. It offers flexibility, allowing entrepreneurs to work from home or anywhere with internet access.

The process typically begins with setting up an eBay seller account and creating compelling product listings. An eBay business owner must regularly monitor inventory, handle customer inquiries, process orders, and arrange shipping.

Additionally, they may have to manage feedback, ratings, and reviews to maintain a positive reputation.

Points to Succeed in Operating an eBay Business:

Consider the following key points:

a. Product Selection:

Choose products with demand in the eBay marketplace and consider competition, profitability, and market trends.

b. Competitive Pricing:

Set attractive prices to customers while allowing for a reasonable profit margin—research similar listings to understand the pricing landscape.

c. Compelling Listings:

Craft engaging and informative product descriptions, highlighting unique selling points and using high-quality images. Utilize keywords relevant to potential buyers’ search queries.

d. Excellent Customer Service:

Respond promptly and courteously to customer inquiries, address concerns, and resolve issues effectively. Positive interactions contribute to customer satisfaction and encourage repeat business.

e. Efficient Order Fulfillment:

Ensure timely order processing, secure packaging, and reliable shipping methods. Promptly update customers on the status of their orders to build trust and customer loyalty.

Running an eBay Business also comes  with its fair share of challenges. Some common obstacles include:

a. Competition:

The eBay marketplace is highly competitive, with numerous sellers offering similar products. It requires strategic differentiation and effective marketing to stand out and attract customers.

b. Operational Efficiency:

Managing inventory, order processing, and shipping logistics can be demanding, especially as the business grows.

Implementing streamlined processes and utilizing tools like inventory management software can help alleviate these challenges.

c. Customer Feedback:

Maintaining a positive reputation is crucial on eBay. Negative feedback or low ratings can impact sales. Business owners must actively manage customer feedback and address any concerns promptly.

What Customers Expect

Customers on eBay expect certain standards from the businesses they interact with. They anticipate:

a. Accurate Product Descriptions:

Clear and detailed descriptions accurately represent the product’s features, condition, and specifications.

b. Transparent Pricing:

Customers appreciate upfront and competitive pricing, including additional costs like shipping fees or taxes.

c. Reliable Communication:

Timely responses to inquiries and updates regarding order status, shipping, and tracking information.

d. Secure Transactions:

Customers expect secure payment methods and protection against fraudulent activities.

By understanding and meeting these expectations, eBay businesses can establish trust, foster customer satisfaction, and encourage repeat purchases.

b.) Pros and Cons of Owning an eBay Business

Pros of Running an eBay Business:

• Wide customer reach and potential for sales growth.
• Flexibility to work from home or any location with internet access.
• Low startup costs and easy entry into the online marketplace.
• Opportunity to establish your brand and build a positive reputation.
• Access to eBay’s built-in traffic and existing customer base.

Cons of Running an eBay Business:

• Intense competition from numerous sellers.
• Fees associated with eBay’s platform and payment processing.
• Reliance on eBay’s policies and changes in marketplace dynamics.
• Limited control over the customer experience and branding.
• Difficulty in scaling the business beyond eBay’s platform.

c.) eBay Business Models

Types of eBay Business Setups and Their Business Models:

• Individual Seller: Individuals sell personal items or occasionally list products they acquire. Business model: Selling unused or unwanted items for personal profit.
• Small Online Store: Owners create an online store within eBay, focusing on a specific product niche or category. Business model: Selling niche products with a dedicated store and customer base.
• Dropshipping: Sellers list products from suppliers and fulfill orders directly from the supplier. Business model: Acting as a middleman, earning profit through the price difference between a supplier and retail prices.
• Wholesale/Retail: Sellers purchase products in bulk at wholesale prices and sell them on eBay at retail prices. Business model: Buying and reselling products for profit, leveraging volume discounts.
• Auction Seller: Sellers list items for auction, allowing customers to bid and purchase. Business model: Generating revenue through competitive bidding and maximizing profit from popular items.
• eCommerce Brand: Businesses establish their brand and product line using eBay as a sales channel. Business model: Creating and selling unique products with brand recognition and customer loyalty.

Each eBay business setup and its associated business model offer different opportunities and strategies for success in the online marketplace.

Making Your eBay Business Stand Out:

• Unique Product Selection: Offer a distinctive range of products that are not easily found elsewhere on eBay. Focus on niche markets or specialized items that cater to specific customer needs.
• Compelling Listings: Create visually appealing and informative product listings with high-quality images, detailed descriptions, and engaging content. Use keywords relevant to your target audience to improve search visibility.
• Excellent Customer Service: Provide exceptional customer service by responding promptly to inquiries, addressing concerns, and resolving issues effectively. Offer personalized assistance and go the extra mile to exceed customer expectations.
• Competitive Pricing: Set competitive prices that offer customers value while allowing for a reasonable profit margin. Regularly monitor the market and adjust prices accordingly.
• Strong Branding: Develop a strong brand identity through consistent visuals, a memorable logo, and cohesive packaging. Establish a unique brand voice that resonates with your target audience.

Add-On Ideas for an eBay Business:

• Bundling and Cross-Selling: Create product bundles or offer complementary items to encourage customers to purchase additional products from your store.
• Exclusive Promotions: Offer exclusive discounts, promotions, or loyalty programs for repeat customers to foster customer loyalty and incentivize repeat purchases.
• Customization Options: Provide customization services or personalized products to cater to individual customer preferences and enhance the perceived value of your offerings.
• Fast and Free Shipping: Offer expedited or free shipping options to attract customers who prioritize quick delivery or want to avoid additional costs.
• Value-Added Content: Create helpful blog posts, how-to guides, or video tutorials related to your products to establish yourself as an authority in your niche and attract potential customers.

By implementing these ideas, you can make your eBay business stand out from the competition and create a unique selling proposition that appeals to customers and encourages them to choose your business over others.

3. Research

Ebay business research.

Thorough Research: A Crucial Step

You must conduct thorough research for the business you intend to open before taking any other action. With quality information, you will know what you’re getting into. Otherwise, you might find yourself in a situation you don’t expect.

Seeking Insights from Experienced Individuals

One way to get the best information is from people experienced in running an eBay business. They are qualified to give you information you can depend on. The time you spend with them can be priceless and an opportunity to gain insights from their knowledge and years of experience.

Article: Finding the Right People

I have written an article with ideas to help find the right people to contact and approach them in an acceptable and non-threatening way. The steps go beyond this post, but I strongly suggest you read the article from the link below to understand what you’re getting into.

See An Inside Look Into the Business You Want To Start  for all the details.

Target Audience

Overview: Understanding Your Target Audience

Understanding your target audience is key to the success of an eBay business. When you know your target market, you can make offers specifically appealing to customers and provide products and services that interest them.

This approach enhances customer satisfaction, increases the likelihood of conversions, and fosters repeat business.

Potential Target Audience for an eBay Business:

• Online Shoppers: Seeking discounted or unique items.
• Collectors: Searching for rare or limited-edition items.
• Small Businesses: Looking for cost-effective sourcing options.
• Individual Sellers: Interested in selling their own products through eBay.
• Bargain Hunters: Seeking deals and discounts.
• Resellers: Aiming to find profitable items to resell for a profit.

For more, see How To Understand Your Target Market.

4. Looking at Financials:

Overview: Startup Costs, Revenues, and Profits

This section provides a comprehensive overview of the essential aspects of startup costs, monthly expenses, revenues, and profits for your eBay business.

Startup Costs: Accurate Estimation for a Smooth Launch

To ensure a successful launch, it is crucial to accurately estimate the startup costs. This estimation process is vital from the planning phase until your business opens.

Underestimating the costs can lead to financial constraints and hinder the opening of your business, while overestimating may create an impression of unnecessary risk.

Consider factors such as the scale of your operation, chosen location, employment needs, equipment purchases, and rental or leasing arrangements.

Research and list all necessary items while incorporating emerging issues during your estimation process.

For more detailed information, refer to my article on  Estimating Startup Costs.

Sales and Profit: Factors Influencing Success

It is important to recognize that your sales are influenced by several key factors, including the popularity of your products and services, the demand for what you offer, and effective marketing strategies to reach your target audience.

Profitability: Considering All Expenses

Achieving profitability goes beyond the profit earned per sale. It requires careful consideration of various expenses, including rent, payroll, and other overhead costs.

To ensure success, your sales must generate enough revenue to cover monthly expenses and enable you to pay yourself a salary.

Understanding and managing these aspects effectively allows you to position your eBay business for financial success and sustainable growth.

For More, See Estimating Profitability and Revenue

Sample Financial Lists for an eBay Business:

Sample Estimated Costs to Start a New eBay Business in the USA:

• Product sourcing and inventory: $5,000
• eBay seller account setup: $0 (free)
• Packaging and shipping supplies: $500
• Photography equipment (if needed): $300
• Initial marketing and advertising: $1,000
• Website/domain registration (if applicable): $100
• Legal and business registration fees: $500
• Total Estimated Costs: $7,400

Sample Estimated Monthly Expenses for an eBay Business in the USA:

• eBay fees and commissions: $200
• Shipping costs: $500
• Packaging materials: $200
• Advertising and marketing: $300
• Software and tools (inventory management, accounting, etc.): $100
• Internet and utilities: $100
• Total Estimated Monthly Expenses: $1,400

Sample Moderately Profitable Profit and Sales Projection for an eBay Business in the USA:

• Monthly Sales Revenue: $8,000
• Cost of Goods Sold: $4,000
• Gross Profit: $4,000
• Operating Expenses (including monthly expenses): $2,000
• Net Profit: $2,000
• Annual Sales Revenue: $96,000
• Annual Net Profit: $24,000

Please note that these sample figures will vary based on your circumstances, industry, and business model.

You can use the above samples for ideas and as a starting point. Every situation is different, and many factors come into play.

Remember, these are just examples. Your figures will be different. Starting a business involves careful planning and consideration.

Consider getting professional advice when calculating your business’s startup costs, expenses, and potential revenues and profits.

5. Choosing The Right Business Location

Choosing the Right Location for Your eBay Business

Selecting the right location for your eBay business is pivotal, even if you primarily operate online.

Remember that you will still need to ship products to customers as an online business.

Consider proximity to shipping facilities, efficient logistics, and access to reliable shipping services when choosing your business location.

For more about business locations, see Choosing The Best Location for Your Business.

6. Choose a Business Name

Choosing an eBay Business Name

When selecting a name for your eBay business, choosing something catchy and suitable is important. Aim for a name that is easy to pronounce and memorable.

Remember that business names tend to remain unchanged, so the name you select now will stay with your company for the duration of its existence.

Furthermore, securing a matching domain name for your online presence is essential. Ensure that another business does not already register the desired name.

Here are ideas for eBay business names to inspire you:

• Bargain Finds
• TrendyTreasures
• SelectSavings
• The Bargain Bin
• Discount Delights
• Savvy Shopping
• Auction Avenue
• Thrift Haven
• Budget Bonanza
• Bargain Central
• The Sales Spot
• Auction Galaxy
• Affordable Finds
• Discount Dynasty
• Bargain Boulevard
• Value Junction
• Discount Depot
• Frugal Finds
• Budget Buys
• Discount Express
• The Bargain Barn
• Value Vista

For more, see the following articles:

• How To Register a Business Name
• Registering a Domain Name For Your Business

7. Register Your Company

Ensuring the Legality of Your eBay Business

To ensure the legality of your eBay business, there are crucial steps you need to take. Consider consulting with a professional to ensure proper setup, tax benefits, and liability protection.

Professional Consultation for Legal Compliance

Consulting with a legal or business professional is highly recommended to ensure your eBay business is set up correctly and complies with all applicable laws and regulations. They can guide you through the necessary steps and help you understand the tax benefits and liability implications.

Common Types of Registrations for an eBay Business

Here are some common types of registrations to consider for your eBay business:

• Business Structure : Determine the most suitable legal structure for your business, such as a sole proprietorship, partnership, limited liability company (LLC), or corporation.
• Tax Identification Number : Obtain a tax identification number, such as an Employer Identification Number (EIN) from the Internal Revenue Service (IRS), if required for your business structure.
• DBA (Doing Business As) : If you operate under a name different from your own, consider filing a DBA to legally use that name for your eBay business.

Permits and Licenses for an eBay Business

Depending on the nature of your eBay business, you may need to obtain certain permits and licenses. Here are some to consider:

• Sales Tax Permit : If you sell taxable products, you may need to register for a sales tax permit and collect sales tax from customers.
• Home Occupation Permit : If you operate your eBay business from home, check if you need a home occupation permit or any local zoning permits.
• Resale Certificate : If you plan to purchase items for resale, you might need a resale certificate to avoid paying sales tax on those purchases.

Ensure you research and comply with all necessary registrations, permits, and licenses to operate your eBay business legally and responsibly.

Consulting with professionals in the field can provide invaluable guidance tailored to your business needs.

Registration:

• How to Register Your Business
• How To Register a DBA
• How to Register a Trademark
• How to Get a Business License

Business Structures:

• How to Choose a Business Structure
• Pros & Cons of a Sole Proprietorship
• How To Form an LLC
• How To Register a Business Partnership
• How To Form a Corporation
• How To Choose a Business Registration Service

8. Create Your Corporate Identity

Corporate Identity: Establishing a Professional Image

A Corporate Identity (Corporate ID) serves as a visual representation of your eBay business. It consists of various components such as your logo , business cards , website , stationary, business sign , promotional items, etc.

Consistency for Impact

Maintaining a consistent and professional design across these elements is crucial in impressing new and existing customers. A cohesive Corporate ID showcases the professionalism and credibility of your business, leaving a lasting impression.

Key Components of Corporate Identity

• Logo: A unique and recognizable symbol that represents your brand.
• Business Cards: Professionally designed cards that provide essential contact information.
• Website: An online platform that reflects your brand image and showcases your products or services.
• Stationary: Consistent design across letterheads, envelopes, and other office materials.
• Business Sign: An eye-catching display that promotes your business’s presence.
• Promotional Items: Branded merchandise that helps increase brand visibility and customer engagement.

Building Trust and Recognition

By ensuring a unified Corporate ID, you effectively communicate your brand values and create a memorable visual identity. Consistency fosters trust, enhances brand recognition, and makes your eBay business more appealing to potential customers.

Investing in a Strong Corporate Identity

Devoting time and effort to develop a well-crafted Corporate ID is a worthwhile investment. It contributes to your eBay business’s long-term success and growth, elevating its professional image and setting it apart from the competition.

See A Complete Introduction to Corporate Identity Packages for more.

9. Writing a Business Plan

The Importance of a Business Plan for Your eBay Business

A business plan is an essential document for your eBay business. It serves multiple purposes, including acquiring funding and attracting investors. Moreover, it acts as a roadmap to guide you during the startup and operational stages.

Crafting a Clear Vision

Writing a business plan takes time and effort as you create a vision of what your business will be like when it’s open. It requires careful planning and thoughtful expression of details.

Choosing the Right Approach

When creating your business plan, you have various options available:

• Write from scratch.
• Hire a professional.
• Use a template.
• Utilize business plan software.

Active Participation for Distinction

Active participation is crucial regardless of your chosen option, especially if you decide to hire a professional. You want your business plan to be distinctive and effectively communicate the nature of your business and how you will manage it.

Continuous Improvement and Adaptability

Remember that your business plan can change and be optimized as you gain experience. Reviewing the document periodically and making necessary changes to your plan or operations is advisable for ongoing success and adaptability.

Investing time and effort into crafting a well-structured business plan is essential for setting a solid foundation and achieving long-term success with your eBay business.

Sample Business Plan: Fictitious eBay Business

Executive Summary:

Our eBay business, TrendyTech, aims to become a leading online retailer specializing in trendy and innovative tech gadgets.

We will leverage the power of eBay’s platform to reach a global customer base and provide a seamless shopping experience.

With a focus on exceptional customer service, unique product offerings, and effective marketing strategies, TrendyTech aims to achieve sustainable growth and profitability in the highly competitive tech industry.

Business Description:

TrendyTech will offer various cutting-edge tech gadgets, including smartphones, smart home devices, wearable technology, and innovative accessories.

We will carefully curate our product selection to cater to tech enthusiasts, early adopters, and consumers seeking the latest technological advancements.

Our business will be operated solely on the eBay platform, allowing us to tap into its existing customer base and use its robust e-commerce infrastructure.

Market Analysis:

The tech industry is experiencing rapid growth, driven by technological advancements and increasing consumer demand for innovative gadgets.

With the rise of online shopping, eBay has become a go-to platform for tech enthusiasts seeking diverse products. TrendyTech aims to capture a significant share of the online tech retail market by targeting tech-savvy consumers who value convenience and trendiness.

Competitive Analysis:

TrendyTech will face competition from various online retailers on and off the eBay platform.

However, our focus on offering trendy and innovative tech gadgets and excellent customer service will differentiate us from competitors. We will constantly monitor market trends, stay updated with new product releases, and maintain competitive pricing to ensure our edge in the market.

Marketing and Sales Strategy:

Our marketing strategy will encompass various channels, including social media advertising, search engine optimization, and collaborations with tech influencers.

We will create engaging content like product reviews and tutorials to build brand awareness and drive traffic to our eBay store.

Additionally, we will offer special promotions, loyalty programs, and personalized recommendations to enhance customer loyalty and increase repeat purchases.

Operations and Management:

TrendyTech will operate as an online-only business, utilizing eBay’s seller tools and platforms for inventory management, order processing, and customer communication.

We will establish strong relationships with reputable suppliers to ensure a consistent supply of high-quality products.

The management team will consist of experienced e-commerce professionals who deeply understand the tech industry and are committed to delivering exceptional customer experiences.

Financial Projections:

We anticipate steady revenue growth based on our market analysis and projected sales. We expect to achieve profitability within the first year of operation and aim for a healthy profit margin.

Our financial projections will include detailed forecasts for sales, costs of goods sold, operating expenses, and net profit. We will regularly monitor and analyze key financial metrics to ensure financial stability and make data-driven decisions for future growth.

Conclusion:

TrendyTech is poised to become a prominent online tech retail industry player. With a strong focus on customer satisfaction, unique product offerings, and effective marketing strategies, we are confident in our ability to capture market share and achieve long-term success.

By continuously adapting to market trends, staying at the forefront of technological advancements, and delivering exceptional value to customers, TrendyTech will establish itself as a trusted brand in the eBay marketplace.

Please note that this fictitious business plan is intended for illustrative purposes only.

For information on creating your business plan, see,  How to Write a Business Plan.

10. Banking Considerations

Choosing the Right Bank for Your eBay Business

Consider selecting a nearby bank that specializes in catering to business owners. A separate business account is essential to segregate expenses from personal spending. This facilitates easier expense tracking and efficient bookkeeping and provides vital proof in case of a tax audit.

Developing a Professional Relationship

Establishing a professional relationship with your banker is a wise move. They can provide valuable advice and financial services and streamline application processes for your business needs.

Accepting Credit and Debit Cards

Applying for a merchant account is crucial for your eBay business to accept credit and debit card payments. This enables you to offer convenient payment options to your customers and expands your potential customer base.

Choosing a bank that understands the unique requirements of businesses like yours ensures access to tailored services and guidance.

With a strong banking partner, you can manage your finances and confidently navigate your eBay business’s financial aspects.

For more, see, How to Open a Business Bank Account. You may also want to look at, What Is a Merchant Account and How to Get One.

11. Getting the Funds for Your Operation

Getting Funding for Your eBay Business

Securing the necessary funds to start and operate your eBay business is crucial to realizing your entrepreneurial vision. Consider the following funding options:

• Traditional Lenders : Approach banks and financial institutions for business loans based on your creditworthiness and business plan.
• Private Loans : Explore borrowing from individuals or private lending platforms that provide business financing.
• Investors : Attract potential investors willing to invest in your eBay business in exchange for equity or a stake in your company.
• Selling Assets : Consider selling any valuable possessions or assets to generate capital for your business.
• Collateral : Explore using collateral, such as real estate or inventory, to secure a loan.

When meeting with a loan officer, keep the following considerations in mind:

• Present a comprehensive business plan highlighting your eBay business’s viability and potential.
• Demonstrate a clear understanding of your market, competition, and growth strategy.
• Show your ability to repay the loan through financial projections and a robust business model.

Here is a sample list of documents needed to apply for a business loan for a NEW eBay business:

• Business plan outlining your goals, strategies, and financial projections.
• Personal and business tax returns.
• Financial statements, including balance sheets and income statements.
• Bank statements and proof of assets.
• Legal documents, such as business licenses and registrations.

By exploring different funding options and preparing the necessary documents, you can enhance your chances of securing the funds needed to launch and grow your eBay business successfully.

See, Getting a Small Business Loan for more.

12. Software Setup

Software Considerations for Your eBay Business

Regarding software for your eBay business, several important considerations must be remembered. Simplify your decision-making process by following these steps:

• Researching Software Options : Take the time to thoroughly research different software options before deciding. Implementing a program from scratch is easier than switching to a new system once your data is already in another program.
• Demo, Reviews, and Forums : Look for software providers that offer demos or trials. This allows you to explore the features and functionality firsthand. Additionally, read reviews and participate in forums to gain insights from other user’s experiences with the software.
• Expense Tracking and Tax Preparation : Research software solutions for tracking expenses and preparing financial documents for tax filing. Consulting with your bookkeeper or accountant can help you choose the accounting software that best suits your needs.

List of Software Used for an eBay Business :

• eBay Seller Hub: A comprehensive platform provided by eBay for managing your eBay business, including listing, inventory management, and order processing.
• Inventory Management Software: Options like QuickBooks Commerce, Sellbrite, or SkuVault can help you track and manage your inventory efficiently.
• Accounting Software: Consider popular accounting software like QuickBooks, Xero, or FreshBooks for streamlined bookkeeping and financial management.
• Shipping and Order Management: Tools such as ShipStation or Shippo can assist in managing shipping and order fulfillment processes smoothly.
• Customer Relationship Management (CRM): CRM software like HubSpot or Salesforce can help you manage customer interactions and track sales leads.

Selecting the right software for your eBay business can enhance efficiency, organization, and growth.

Take the time to evaluate your specific needs and explore these software options to find the best fit for your operations.

Check out Google’s latest search results for software packages for an eBay business.

13. Get The Right Business Insurance

Ensuring Adequate Insurance for Your eBay Business

Insurance coverage is crucial to protect your eBay business from unforeseen incidents. Consider the following concerns when seeking insurance:

• Comprehensive Coverage : Ensure your insurance policy covers various aspects, including protection for customers, employees, yourself, anyone on the premises, and your property. It should address potential risks and liabilities associated with your eBay business operations.
• Professional Liability Insurance : Consider obtaining professional liability insurance, also known as errors and omissions (E&O) insurance, to safeguard against potential lawsuits arising from professional negligence or errors in providing services.
• Home-Based Business Insurance : If you plan to operate or manage your eBay business from your home, inform your home insurance agent. This is important because running a business from home may impact your existing home insurance policy, and you might need additional coverage to protect your business assets.
• Competent Insurance Broker : Seek the assistance of a knowledgeable insurance broker specializing in small businesses or e-commerce enterprises. They can guide you through the insurance selection process, assess your needs, and help you secure sufficient coverage tailored to your eBay business.

By addressing these concerns and working with an experienced insurance broker, you can effectively protect your eBay business and mitigate potential risks.

Remember to review and update your insurance coverage periodically as your business evolves.

For more, see What to Know About Business Insurance . You can also browse the latest Google search results for eBay business insurance .

14. Select Suppliers

Choosing Reliable Suppliers for Your eBay Business

Building strong relationships with your suppliers is vital for the success of your eBay business. Consider the following factors when selecting suppliers:

Reliability and Trustworthiness :

It is crucial to work with suppliers who are reliable and trustworthy. They should consistently deliver quality products on time, helping you maintain customer satisfaction and meet demand.

Competitive Pricing :

Suppliers offering competitive prices can secure better profit margins and provide competitive pricing to your customers. Seek suppliers who offer favorable terms, discounts, or bulk pricing options that align with your business goals.

Inventory Management :

Ensuring that your suppliers consistently provide the necessary stock is essential for running your eBay business smoothly. Look for suppliers with efficient inventory management systems and the ability to handle your demand requirements.

4. Mutual Benefit :

Treating your suppliers respectfully and ensuring they benefit financially fosters a positive working relationship. This can lead to long-term partnerships, improved communication, and potential future opportunities for collaboration.

By carefully selecting reliable suppliers and nurturing strong relationships, you can establish a robust supply chain that supports the growth and success of your eBay business.

Regularly evaluate your suppliers’ performance and explore new options when necessary to maintain a competitive edge in the marketplace.

For More See,  How To Choose a Supplier.

15. Physical Setup

With a physical location and a hybrid online/brick-and-mortar business

Layout: Setting Up the Physical Setup/Layout

Creating a well-planned physical setup or layout is essential for an eBay business. It involves organizing your space to maximize efficiency and allow for seamless operations.

Signage: Establishing Effective Signage

In addition to installing your main business sign, incorporating signage throughout relevant areas, such as parking lots, exits, and special sections, is crucial.

Well-designed signs serve as guides, directing people and conveying a sense of professionalism in your business operation.

Office Setup: Enhancing Productivity

An organized office is essential for optimal productivity as the hub of your eBay business management.

Ensure your office is fully equipped with the necessary tools and resources to manage your business activities effectively. A well-structured office space creates a conducive environment for focused work and efficient operations.

See, Here are Considerations for The Setup of Your Office, for tips and ideas to make your office work for you. Also, have a look at our article About Company Signs.

16. Creating a Website

Using a Website and an eBay Site

Utilizing a website, an eBay site, and an account can be a powerful strategy for your business.

Here’s how they complement each other:

Website: Establishing an Online Presence

A dedicated website allows you to create a customized online presence for your eBay business. It provides a platform to showcase your brand, products, and unique selling propositions.

A website allows you to design a user-friendly interface, share detailed product information, and incorporate various marketing elements to attract and engage customers.

Synergy Between Website and eBay Site/Account:

By integrating your website with your eBay site and account, you can create a seamless customer experience. You can use your website to drive traffic to your eBay listings, cross-promote your products, and provide additional information and support.

Your website is a hub for building your brand identity, while your eBay presence expands your market reach and taps into the existing eBay customer base.

Together, they enhance your online visibility, credibility, and sales potential.

By utilizing both a website and an eBay site and account, you can leverage the strengths of each platform to maximize your online presence, reach a wider audience, and drive growth for your eBay business.

For more, see How to Build a Website for Your Business .

Points To Consider

Here is a list of equipment you may need for an eBay business:

• Computer: A reliable computer or laptop for managing listings, communicating with customers, and handling administrative tasks.
• Internet Connection: A stable, high-speed internet connection ensures smooth online operations.
• Digital Camera/Smartphone: A digital camera or smartphone with a good camera quality for capturing product photos.
• Lighting Setup: Proper lighting equipment, such as lamps or lightboxes, to enhance the quality and presentation of product images.
• Packaging Materials: Various packaging materials, including boxes, envelopes, bubble wrap, packing peanuts, tape, and labels for secure and professional shipping.
• Shipping Scale: A scale to accurately weigh packages for calculating shipping costs.
• Shipping Labels and Printer: Thermal or adhesive shipping labels and a printer for printing shipping labels and invoices.
• Storage Solutions: Storage shelves, bins, or racks to organize and store inventory efficiently.
• Shipping Supplies: Shipping supplies like shipping tape, void fillers, and shipping labels to ensure safe and secure packaging.
• Shipping Labels: Labels for marking packages with shipping information, return addresses, and tracking numbers.
• Office Supplies: Basic office supplies such as pens, notebooks, envelopes, and filing systems for managing paperwork and order records.
• Packaging Tape Dispenser: A tape dispenser for quick and efficient sealing of packages.
• Label Printer: A label printer for printing product labels, barcodes, and shipping labels.
• Heat Gun/Shrink Wrap: A heat gun or shrink wrap machine for shrink-wrapping products for added protection.
• Storage Containers: Storage containers for organizing and storing smaller items or inventory components.

Remember, the specific equipment needs may vary depending on the nature and scale of your eBay business.

It’s important to assess your requirements and select the equipment that best suits your operational needs and budget.

Marketing Considerations

Attracting Customers to Your eBay Business

Marketing your eBay business is an ongoing process that requires consistent effort.

Investing in effective marketing techniques directly correlates to increased revenue generation.

While hiring a marketing agency or expert is an option, it’s not always necessary. You can take charge of your marketing efforts by seizing opportunities to bring awareness to your business whenever they arise.

Simplifying your marketing process involves creating awareness, promoting your offerings, and engaging with potential customers. As you refine your marketing strategies and leverage various channels, you’ll steadily grow your customer base and elevate the success of your eBay business.

See our article How To Get Customers Through the Door and our marketing section for articles that will provide ideas to bring awareness to your eBay business.

Focusing on Your Skill Set for an eBay Business

It’s important to assess your skill set and determine your ability to successfully run an eBay business. Recognize that if you lack a specific skill, you can learn and acquire it or hire someone with that expertise.

Essential Skills for an eBay Business Owner:

• E-commerce Knowledge : Understanding the fundamentals of online selling, including product sourcing, pricing strategies, and customer engagement.
• Product Research and Selection : The ability to identify profitable products, conduct market research, and make informed product sourcing and inventory management decisions.
• Marketing and Promotion : Skills in promoting products, creating compelling listings, utilizing SEO techniques, and leveraging social media platforms to attract customers.
• Customer Service : Providing excellent customer service, addressing inquiries, resolving issues, and ensuring customer satisfaction.
• Organization and Time Management : Effectively managing inventory, orders, and shipping processes, as well as efficiently allocating time for different business tasks.
• Analytical Skills : The ability to analyze sales data, identify trends, and make data-driven decisions to optimize business performance.
• Financial Management : Basic financial literacy to track expenses, calculate profits, and manage finances effectively.
• Communication and Negotiation : Strong communication skills for building supplier relationships, negotiating deals, and interacting with customers professionally.
• Problem-Solving : A proactive approach to identifying and resolving challenges that may arise during the operation of the eBay business.
• Adaptability and Learning Agility : Being open to new trends, technologies, and market changes and continuously seeking opportunities for personal and business growth.

By possessing these essential skills or being willing to develop them, you increase your chances of running a successful eBay business and navigating the dynamic e-commerce landscape effectively.

Gaining Skills through Expert Tips

Expert tips are valuable resources for improving your skill set, regardless of whether you’re an expert or a novice.

Experts can discover easier methods or gain new perspectives, while novices can benefit from many tips to enhance their skills and knowledge.

See the latest search results for expert eBay tips to gain tips and insights.

Valuable Resources for Your eBay Business

This section will find a collection of resources that provide up-to-date and popular information to support your eBay business.

These resources are beneficial during the startup phase and when your business is fully operational. They offer valuable industry insights and practical tips to enhance your business operations.

Utilizing these resources will help you better understand the eBay marketplace and equip you with the knowledge to improve your business strategies.

Industry Trends and Statistics

Benefits of Industry Trends and Statistics for Your eBay Business

Examining industry trends and statistics for your eBay business offers several advantages.

It helps you stay informed about market shifts, understand customer preferences, identifies emerging opportunities, and make informed decisions to stay competitive in the dynamic e-commerce landscape.

See the latest search results for trends and statistics related to the eBay industry.

Top eBay Sellers

Gaining Insights from Established eBay Businesses

Examining established eBay businesses can provide valuable inspiration and ideas.

It helps identify gaps in the industry that you can address in your own business and discover aspects that you may have overlooked or can improve upon in your current operations.

See the latest search results for the top eBay businesses.

The Future of the eBay Industry

Benefits of Researching the Industry’s Future for Starting an eBay Business

Researching the industry’s future offers several advantages for those starting an eBay business.

Identify emerging trends, anticipate customer demands, adapt to market changes, and make informed decisions to position the business for long-term success in the evolving e-commerce landscape.

See the search results for the future of the eBay industry.

eBay Businesses for Sale

Considering Buying an Established eBay Business

When buying an existing business on eBay, there are pros and cons.

Benefits of Purchasing an Established eBay Business:

• Immediate Revenue: You start earning income from the day you take over the business.
• Skip Startup Phase: Bypass the time-consuming startup phase and immediately begin operations.
• Proven Business Model: You have assurance that the business has proven successful.
• Clear Financials: You know the business’s revenue, profit, and expenses upfront.
• Existing Customer Base: Benefit from an existing customer base, saving time and effort in building one from scratch.
• Established Reputation: The business has already built a reputation, providing a foundation for growth.

Disadvantages of Buying an Established eBay Business:

• Higher Cost: Purchasing an established business typically has a higher price tag due to the goodwill and customer base.
• Potential Customer Loss: If you want to make significant changes to the business, it may lead to customer attrition.
• Inherited Reputation: Acquiring a business means inheriting its reputation, both the positive and negative aspects.

See the latest search results related to eBay – businesses for sale to browse the latest listings.

Knowledge Is Power if You Use It!

Harnessing the Power of Knowledge for Your eBay Business

The internet offers a wealth of information about your industry. In the following sections, you’ll find valuable links to access information that can be utilized during the research, startup, and operational phases of your eBay business.

These resources provide valuable insights to enhance your understanding and make informed decisions for the success of your business.

A Day in the Life

A Day in the Life of an eBay Business Owner: Tips and Insights

Discover valuable tips and insights from industry professionals to understand what to expect as an eBay business owner.

Learn from their experiences to better navigate the daily operations and challenges of running a successful eBay business.

See the search results related to a day in the life of eBay business owners.

eBay Business Owners Interviews

Interviews with eBay Business Owners: Valuable Information and Insights

Exploring interviews with experienced eBay business owners provides essential information and valuable insights.

Take the time to delve into this section to gain diverse perspectives and valuable insights, offering a clearer understanding of the industry and what to expect.

See the search results related to interviews of eBay business owners.

Publications

Publications: Staying Updated with the Latest eBay Business Information

Publications serve as a valuable resource to stay informed about the latest information and trends in the world of eBay business.

Explore these publications to stay updated and gain valuable insights for your own business endeavors.

See the search results for publications related to an eBay business.

Engaging in eBay Forums: Building Relationships and Gaining Insights

eBay forums let you join relevant discussions and foster connections with industry peers.

Actively engaging in forums offers the opportunity to understand customer perspectives and gain invaluable insights that can benefit your eBay business.

See the latest search results related to eBay forums.

eBay Business Courses: Enhancing Skills and Staying Current

Enrolling in courses related to eBay business is an excellent avenue for learning and improving your skill set.

Courses provide valuable knowledge and help you stay updated with the industry’s evolving dynamics.

See the latest courses related to running an eBay business.

Subscribing to eBay Blogs: Ideas and Industry Updates

You can access a wealth of ideas and industry updates by subscribing to eBay blogs.

Subscribe to those that provide value and regular updates, curating a valuable collection of blogs that offer a continuous stream of information for your benefit.

Look at the latest search results for eBay blogs  to follow.

Staying Updated with eBay Industry News

Keeping up with the news is an excellent method to stay informed about the latest happenings in the eBay industry.

Set up alerts to receive notifications whenever the media cover new developments.

See what’s in the news related to an eBay business?

Exploring eBay Industry Videos: Tips and Unexpected Insights

Watching videos about the eBay industry provides valuable tips and insights. Additionally, explore related videos that YouTube suggests, as they often cover topics you may not have considered, broadening your understanding of the industry.

See the links to YouTube Videos Below.

• Videos related to starting an eBay business can be found here.

For More Business Ideas, See our Collection of Business Ideas.

Privacy Overview

How to Start an eBay Business in 5 Simple Steps

You might find eBay to be the platform of choice if you’re looking to start a business with minimal capital and a broad reach. This online marketplace has low barriers to entry and the potential to reward successful entrepreneurs with good profit for a low-risk business. 

5 Steps to Start an eBay Business

Ready to start selling on eBay? Just follow these simple steps:

• Create a formal business
• Create your eBay seller account
• Choose a product to sell
• Set up your accounting with QuickBooks
• Get ready to sell your first product

The Easy Parts of Starting an eBay Business

The barriers to entry in entrepreneurship have never been lower. Setting up your eBay account only takes a few minutes. You simply need to enter your details, complete a few steps, and you’re ready to sell.

Your eBay account comes with a storefront, so you don’t even need a separate business website to sell your products online.

eBay seller accounts also come with valuable tools to make it easier for novices to compete with more seasoned sellers. For example, eBay has exclusive insights tools called Terapeak Product Research and Terapeak Sourcing Insights .

You can use it to find popular products that sell well on eBay. You can also use it to analyze product availability, sales volumes, and pricing trends over time. In short, you’ll be able to make data-driven decisions without complicated and time-consuming market research.

Finally, keeping track of your accounting can seem daunting if you’re starting a business for the first time. But QuickBooks can help make the process much easier.

The best part is it integrates natively with eBay. Using QuickBooks to manage accounting for your eBay business allows you to:

• Monitor your inventory
• Track sales tax
• Analyze sales reports
• Generate federal reporting forms for payroll

The Difficult Parts of Starting an eBay Business

Unfortunately, some aspects of starting an eBay may prove challenging. Still, it is possible to overcome these hurdles and create a successful business. Anticipating these challenges beforehand will increase your chances of success.

The first obvious hurdle is high competition. eBay is saturated with vendors. Many of these vendors most likely already sell the kinds of products you hope to stock. So you’ll have your work cut out for you attracting a steady stream of customers.

This is especially true in the beginning when you don’t have customer feedback to boost your credibility.

eBay also imposes selling limits for new vendors. These limits make sense from eBay’s perspective. New sellers need to build credibility by providing high-quality products and maintaining high service levels.

But the limitations can make it challenging to be profitable right out of the gate. Furthermore, this limit is based on potential sales rather than actual sales, which many new vendors find arbitrary.

An eBay business is still worth starting, even with these challenges. So if you’re ready to set up your business, here’s how to go about it step-by-step.

Step 1 – Create a Formal Business

You’ll need to register your business if you want to create an eBay business account. If you haven’t already, get the formal requirements to register your business out of the way. The IRS still considers eBay a business, and you’ll need to meet the requirements as a business.

Choose a Business Structure

A Limited Liability Company (LLC) is the best business structure for an eBay business. In addition, you will be eligible for limited liability protection. This means that the courts can’t come for your personal finances or assets if your business fails or is sued.

Some of the requirements for forming an LLC include:

• Business name
• Article of organization
• Operating agreement
• Business licenses and permit

There are excellent online business formation services you can use to help form your LLC. These services take charge of all the challenging aspects of forming your LLC, including filing the appropriate paperwork. 

Register for Taxes

Once you have an official LLC, apply for an Employer Identification Number (EIN). You can get your EIN for free by submitting your application to the IRS website. You need an EIN to open a business bank account and when hiring employees.

You’ll be reporting your business income on your personal tax return. You may also need to pay self-employment taxes. Any other taxes you need to pay depends on your total sales and profit.

Step 2 – Create Your eBay Seller Account

Now you’ll create your eBay seller account. The account comes with valuable tools for market and product research that you’ll need in the next step. Also, you have a chance to get familiar with the platform before you start selling.

Choose Your Plan

eBay offers a personal account for casual selling. But if you’re hoping to run a business, it is better to go with the business account from the start. The business account supports selling bulk products.

You also get the chance to run your business under its legal name and brand it to your liking. The personal account is limited mainly to selling things you no longer need. 

eBay offers five subscription options:

• Starter Store – Costs $4.95 per month
• Basic Store – Costs $21.95 per month
• Premium Store – Costs $59.95 per month
• Anchor Store – Costs $299.95 per month
• Enterprise Store – Costs $2,999.95 per month

We recommend getting started with the basic plan. It’s affordable and a good option for entry-level sellers. Then, you can easily upgrade to a plan with higher sales volumes when your business takes off.

Register Your eBay Account

Now it’s time to create your eBay store. The process is straightforward. Just follow the prompts and provide the required information. It only takes a few minutes to complete the registration process.  

Some of the information you’ll need to provide include:

• Your company’s legal business name
• The registered business address and phone number
• Business bank account number
• Tax information

Step 3 – Choose a Product To Sell

You’ll first need to decide which product to sell. Remember, eBay has selling limits for new sellers. So you’ll need to pick your products carefully to maximize your chances of success.

Do Product Research

eBay’s product research tool, Terapeak , will prove invaluable for this step. You get this tool with all plans, including the basic seller account. You can find it under the Research tab in your Seller Account.

You’ll get all the insights you need to pick your first product. Be sure to check out metrics such as categories with high demand and low supply, top-performing products, competitive listings, and trends in prices.

Some of the essential metrics you’ll be able to track for your first product include:

• Total sales
• Total sellers
• Sell-through rate
• Sold price range
• Average sold price

Choose Your Products

By now, you should have a list of potentially profitable products. Price is an important consideration at this point. You’ll lose some of the retail prices because of eBay and payment processing fees. So, choose a product that gives you an excellent chance to make a profit.

It is usually worth choosing at least two different types of products to sell. More than the price, choose products that you are familiar with and passionate about. It’s hard to market a product you don’t believe in.

Finally, it may be worth staying away from electronics. At least for now. Electronics have high demand and good profit potential. But you’ll almost certainly get returns and complaints about faulty products. So it is better to get some experience under your belt before moving on to these products.

Step 4 – Set Up Your Accounting With QuickBooks

You’ll need to pay taxes for your eBay business. At the very least, you’ll need to keep track of your profits, losses, and cash flow. Setting up accounts for your first business can be daunting.

But QuickBooks is an easy-to-use accounting software to help you with this step. It makes the process so much easier and stress-free.

Choose Your QuickBooks Plan

You can go to their site to choose your QuickBooks plan and sign up for the accounting software. QuickBooks offers four subscription options. These include:

The Simple Start plan is good enough for newbie eBay sellers. It comes with great accounting functions, including:

• Track income and expenses
• Accept payments
• Manage invoices
• Capture and organize receipts
• Send estimates
• Manage cash flow
• Run general reports

Sign Up For QuickBooks Ecommerce

Your basic plan is good enough. But you can make accounting even simpler by signing up for QuickBooks Ecommerce . QuickBooks has an accounting software plans specifically for ecommerce sellers. Plans begin at just $15 per month. You’ll be able to:

• Track and fulfill eBay orders
• Track eBay fees and payouts
• Manage eBay inventory
• List product details directly to eBay

You still get the major accounting features that QuickBooks online offers, including:

• Tracking income and expenses
• Maximizing tax deductions
• Calculating tax on invoices automatically
• Running custom reports for your eBay business

Plus, you’ll be getting 50% off for the first three months. Then, you can decide if you want to continue to pay for the current monthly price depending on the results and benefits you’ve enjoyed.

While QuickBooks Ecommerce comes with the Simple Start plan, you’ll need to upgrade to the Essentials plan to enjoy additional accounting functions like time tracking and managing bills. You’ll even be able to add two more users and sales channels to your accounting software with this plan.

Connect QuickBooks to Your eBay Account

eBay connects natively to QuickBooks Ecommerce. You can do this from your QuickBooks navigation bar. Simply click Browse Apps > eCommerce > eBay built by QuickBooks Ecommerce .

The best part is QuickBooks Ecommerce allows you to sync orders, inventory, vendor information, expenses, employee information, and customer information across sales channels. In addition, you’ll get all this information on a single platform, allowing you to manage multiple sales channels easily.

Step 5 – Get Ready to Sell Your First Product

You’re almost ready to make your first sale. But, you’ll need to complete setting up your eBay account before you can make your first sale.

Add a Payment Method

Your payment method is essential for two reasons. First, you’ll need a way to receive payment from your customers. Second, you’ll also need to pay your eBay fees. You can set up your preferred payment method by navigating to My eBay > Selling > Accounts > Payments.

We suggest opting for eBay’s Managed Payments. Here, eBay manages your payments in one place. This option also allows you to set your preferred payouts frequency. Managed Payments also offers your customers a good range of payment options, so you don’t miss out on a sale.

It is also a good idea to set up automatic payments for your seller fees. This option ensures that you’re always on top of the fees rather than allowing them to pile up.

Set Up Shipping

eBay allows you to choose how you’d like to get purchases to your customers. You’ll want to offer multiple shipping options to cover all your bases. Either way, you have total freedom to determine how to ship products.

You can even choose to exclude specific countries, regions, and shipping locations.

eBay integrates with the most popular and trustworthy carriers, including FedEx, USPS, UPS, DHL, Lasership, and Lonestar Overnight. Finally, you’ll want to offer your customers regular shipping updates or a way to track their shipments. 

Don’t forget about handling returns. This factor is a common pain point for sellers and customers. To this end, eBay lets you create a returns policy under Returns Preferences .

For example, you can choose to automatically refund clients in case of a dispute. You can also let them keep the item if it’s below a certain amount. 

Create Your First Listing

You are ready to make your first sale! You’ll see the Sell button at the top of the eBay page.

Click it and complete the form with the relevant product information. Some of the information you’ll be asked to provide includes the product category, product title and description, item specifics, product pictures, price, and listing format.

You’re now ready to sell your products and make money!

Privacy Overview

Business Plan Template for Ebay

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

Starting an online business on eBay is an exciting venture, but without a solid plan, it can quickly become overwhelming. That's where ClickUp's Business Plan Template for eBay comes in handy!

This template is specifically designed to help entrepreneurs and individuals outline their goals, strategies, financial projections, and market analysis in one comprehensive plan. With ClickUp's Business Plan Template for eBay, you can:

• Define your vision, mission, and objectives for your eBay business
• Develop a clear understanding of your target market and competition
• Create a roadmap for success with a detailed marketing and sales strategy
• Set realistic financial projections and track your progress

Don't waste time reinventing the wheel. Get started on your eBay business journey with ClickUp's Business Plan Template and take the guesswork out of your success!

Business Plan Template for Ebay Benefits

When using the Business Plan Template for eBay, you can enjoy the following benefits:

• Clearly define your business goals and objectives for your eBay venture
• Develop a solid strategy to stand out from competitors and attract customers
• Create a detailed financial projection to ensure profitability and sustainability
• Conduct a thorough market analysis to understand your target audience and identify growth opportunities
• Stay organized and focused on your business plan, making it easier to track progress and make adjustments as needed

Main Elements of Ebay Business Plan Template

ClickUp's Business Plan Template for eBay provides all the essential elements you need to create a comprehensive plan for your online business:

• Custom Statuses: Track the progress of each section of your business plan with statuses like Complete, In Progress, Needs Revision, and To Do.
• Custom Fields: Use custom fields like Reference, Approved, and Section to add specific details and categorize different sections of your business plan.
• Custom Views: Access different views like Topics, Status, Timeline, Business Plan, and Getting Started Guide to organize and visualize your business plan from different perspectives.
• Collaboration and Communication: Collaborate with your team by assigning tasks, setting due dates, and leaving comments to ensure everyone is on the same page.
• Document Management: Keep all your business plan files, financial projections, and market analysis documents stored and organized in Docs, making it easy to access and update your plan as needed.

How To Use Business Plan Template for Ebay

If you're looking to start an eBay business and need a solid plan to guide you, the Business Plan Template for eBay in ClickUp is here to help. Follow these six steps to create an effective business plan and set yourself up for success:

1. Define your business concept

Start by clearly defining your business concept. What products or services will you offer on eBay? Identify your target market and understand their needs and preferences. This will help you position your business and differentiate yourself from competitors.

Use the Docs feature in ClickUp to brainstorm and outline your business concept.

2. Conduct market research

Next, conduct thorough market research to understand the eBay marketplace. Analyze the competition, identify trends, and determine pricing strategies. This will help you identify opportunities and make informed decisions for your business.

Utilize the Table view in ClickUp to organize and analyze market research data.

3. Set financial goals

Establish realistic financial goals for your eBay business. Determine your desired revenue, profit margins, and expenses. Consider factors such as sourcing costs, eBay fees, shipping expenses, and marketing investments. This will help you track your progress and make necessary adjustments along the way.

Create custom fields in ClickUp to track your financial goals and monitor your progress.

4. Develop a marketing strategy

Craft a comprehensive marketing strategy to promote your eBay business and attract customers. Identify the most effective channels to reach your target audience, such as social media, email marketing, or influencer partnerships. Develop compelling product descriptions and optimize your eBay listings for maximum visibility.

Use the Automations feature in ClickUp to streamline your marketing efforts and automate repetitive tasks.

5. Plan your operations

Outline your operational processes and logistics. Determine how you will source products, manage inventory, handle shipping and returns, and provide customer support. Develop efficient workflows to ensure smooth operations and customer satisfaction.

Utilize the Gantt chart feature in ClickUp to visualize and plan your operational processes.

6. Monitor and evaluate

Regularly monitor and evaluate the performance of your eBay business. Track key metrics such as sales, customer satisfaction, and feedback ratings. Analyze the data to identify areas for improvement and implement necessary adjustments to achieve your business goals.

Use the Dashboards feature in ClickUp to create visualizations and monitor your eBay business metrics in real-time.

By following these steps and leveraging the Business Plan Template for eBay in ClickUp, you'll have a comprehensive plan in place to launch and grow your successful eBay business. Happy selling!

Get Started with ClickUp’s Business Plan Template for Ebay

Entrepreneurs or individuals starting an online business on eBay can use the Business Plan Template to create a comprehensive plan and roadmap for their success on the platform.

First, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a solid business plan:

• Use the Topics View to outline different sections of your business plan, such as market analysis, marketing strategies, financial projections, and more
• The Status View will help you keep track of the progress of each section, with statuses like Complete, In Progress, Needs Revision, and To Do
• The Timeline View will allow you to set deadlines and milestones for each section of your business plan
• Use the Business Plan View to get a holistic view of your entire plan, with all the sections and details in one place
• The Getting Started Guide View will provide you with step-by-step instructions and tips to help you navigate through the template and create your business plan
• Customize the template by adding custom fields like Reference, Approved, and Section to provide additional context and organization to your plan
• Update statuses, custom fields, and other details as you progress through your business plan to keep track of your progress and ensure a successful launch on eBay.
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How to Start a Profitable Ebay Business [11 Steps]

By Nick Cotter Updated Feb 02, 2024

Business Steps:

1. perform market analysis., 2. draft a ebay business plan., 3. develop a ebay brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for ebay., 6. open a business bank account and secure funding as needed., 7. set pricing for ebay services., 8. acquire ebay equipment and supplies., 9. obtain business insurance for ebay, if required., 10. begin marketing your ebay services., 11. expand your ebay business..

Starting an eBay business requires a keen understanding of the current market landscape. A thorough market analysis will provide valuable insights into consumer trends, competition, and potential niche markets. Here are some key steps to guide you through the process:

• Research current trends: Look at eBay's trending page and utilize tools like Google Trends to identify popular products and categories.
• Analyze competition: Study other eBay sellers who offer similar products. Note their pricing strategies, marketing tactics, and customer feedback.
• Identify your niche: Find a sector that is underserved or where you can offer something unique, balancing demand with competition levels.
• Review completed listings: Investigate completed eBay listings to understand which items sell well and at what price points.
• Understand fees and costs: Familiarize yourself with eBay's fee structure and calculate the potential costs to ensure profitability.
• Assess supply chain: Ensure you have reliable sources for products and consider the logistics of shipping and inventory management.
• Engage with the community: Join eBay forums and groups to gain insights from experienced sellers and stay informed about the platform's changes.

Are ebay businesses profitable?

Yes, many businesses are profitable through eBay. While there is no guarantee of success, some sellers have successfully built multi-million dollar businesses by selling goods on eBay. To increase the chances of success, sellers need to understand the marketplace, create effective marketing and listing strategies, and offer great customer service.

Starting an eBay business requires careful planning to ensure success. A well-thought-out business plan can help you define your business goals, identify your target market, and lay out the strategies you'll use to achieve your objectives. Consider the following key components when drafting your eBay business plan:

• Business Model: Decide whether you'll be selling products you acquire from suppliers, drop shipping, or selling your own creations.
• Market Research: Identify your target market and analyze the competition. Understand customer needs and preferences to tailor your offerings.
• Product Selection: Determine what products you will sell and whether they cater to a niche or a wider audience.
• Pricing Strategy: Establish your pricing model based on market research, costs, and competitor pricing, while considering eBay's fees.
• Inventory Management: Plan for how you will manage inventory, including storage, tracking, and turnover.
• Marketing and Sales: Develop a strategy for how you will attract customers to your eBay listings, including SEO, paid advertising, and social media.
• Customer Service: Outline how you will handle customer inquiries, feedback, and returns to maintain high satisfaction and repeat business.
• Financial Projections: Create realistic sales forecasts, budget for expenses, and anticipate profits to keep your business financially healthy.

How does a ebay business make money?

Ebay business owners make money through fees that are charged for listing items and additional fees for successful sales. The ability to reach a global audience makes it a great way to increase awareness and sales. For an 11 Steps to Starting a Successful Spice Business, a target audience could be food bloggers, cooking enthusiasts, or restaurants which use spices as ingredients in their recipes. Furthermore, the eBay marketplace allows businesses to reach a wider customer base which would not typically be available in their local area.

Developing a brand on eBay is crucial for standing out in a competitive marketplace and building customer loyalty. Your eBay brand should reflect your unique value proposition and connect with your target audience. Here are some key steps to help you create a strong brand presence on eBay:

• Define Your Brand Identity: Choose a memorable name, logo, and color scheme that align with your products and appeal to your target customers.
• Create Consistent Listings: Ensure all your product listings have a consistent format, style, and tone that reinforces your brand identity.
• Offer Exceptional Customer Service: Build a positive reputation by providing excellent customer service, which includes prompt responses to inquiries and addressing issues swiftly.
• Utilize eBay Store Features: If eligible, set up an eBay Store to further customize your storefront and take advantage of marketing tools provided by eBay.
• Collect Customer Feedback: Encourage satisfied customers to leave positive feedback and use their testimonials to promote your brand's reliability and quality of service.
• Engage with Your Community: Use social media and eBay's own community features to connect with customers and create a loyal following for your brand.

How to come up with a name for your ebay business?

Naming an eBay business can be a difficult task, as it not only needs to communicate what is being sold but also create a brand and an identity. One way to come up with a name is to take some time to brainstorm and find words that relate to the products or services being sold. It can also be helpful to think of a name that’s easy to remember, as this makes it easier for customers to access the eBay store. Additionally, it’s important to ensure the name is not already in use, so use resources like the USPTO database before settling on one. Finally, don’t forget that the name should reflect the personality behind the shop and encourage customers to stay for more than just a single purchase.

Formalizing your business registration is a crucial step in establishing your eBay business as it lays the legal foundation for your operations. This process varies depending on your location, but generally involves registering your business with the appropriate government agencies. Consider the following key steps:

• Choose your business structure (e.g., sole proprietorship, LLC, corporation) based on your business needs and consult with a legal professional if necessary.
• Register your business name with your local or state government to ensure it's unique and not already in use.
• Obtain an Employer Identification Number (EIN) from the IRS for tax purposes, especially if you plan to hire employees.
• Check with your local government for any specific licenses or permits required to operate an online business in your area.
• Register for state and local taxes to ensure you comply with sales tax regulations, which may vary depending on your location and where you sell your products.

Resources to help get you started:

Explore vital resources specifically compiled for eBay entrepreneurs aiming to stay ahead with the latest market trends, operational efficiencies, and strategic business growth tactics:

• eBay Seller Center: A comprehensive hub offering best practices, selling tips, and updates on eBay policies. https://www.ebay.com/sellercenter
• eBay for Business Podcast: Offers insights, stories, and expert advice on growing your eBay business. https://podcasts.apple.com/us/podcast/ebay-for-business/id1437320633
• Terapeak Product Research: An eBay tool that provides data on what's selling, when, and for how much to assist in market trend analysis. Accessible via eBay's Seller Hub under "Research."
• eCommerceBytes: An independent trade publication for online merchants, covering news and providing analysis on eBay among other marketplaces. https://www.ecommercebytes.com/
• The eBay Community: Forums for networking, advice, and sharing best practices with other sellers. https://community.ebay.com/
• SaleHoo Market Research Lab: A tool offering insights into profitable products, it's particularly useful for eBay sellers looking to expand their inventory with high-demand items. https://www.salehoo.com/lab

Starting an eBay business requires not only a keen sense of the market but also ensuring that all legal requirements are met. Acquiring the necessary licenses and permits is crucial to operate within the law and to establish your business as a legitimate entity. Below is a guide to help you navigate this process:

• Check with your local city or county clerk's office for a business license, as requirements can vary depending on your location.
• If you are selling niche items, verify if any special permits are needed for those products (e.g., antiques, food items, or health-related goods).
• Obtain a sales tax permit from your state's department of revenue if you are required to collect sales tax on the goods you sell.
• Consider if your business structure requires additional licensing, for instance, if you've formed an LLC or Corporation.
• Research if any federal licenses or permits are applicable to your products, especially if you trade in federally regulated items like alcohol, tobacco, or firearms.
• Maintain good records and renew licenses and permits as needed to ensure ongoing compliance with all regulations.

What licenses and permits are needed to run a ebay business?

The exact licensing and permitting requirements for running an eBay business vary by location. Generally, you will need a business license and any other permits required by your state or local government. Depending on the nature of your business, you may also need to obtain special licenses or permits from federal agencies. For example, certain types of businesses dealing with food products, firearms or chemicals may require special licensing. Before starting an eBay business, it is recommended that you consult with a local government agency or small business development center for specific licensing requirements in your area.

When starting an eBay business, a crucial step is to separate your personal finances from your business transactions. Opening a business bank account and securing the necessary funding are key components to establish a solid financial foundation for your venture. Follow these steps to ensure your business is financially prepared:

• Research Banks: Look for a bank that offers business accounts with low fees and good customer service. Consider banks that are familiar with e-commerce businesses.
• Prepare Documents: Gather required documents such as your business license, EIN, and incorporation papers (if applicable) to open your business bank account.
• Open Your Account: Visit your chosen bank to open your account. Opt for an account that offers online banking tools to easily manage your eBay transactions.
• Explore Funding Options: Determine if you need additional funding to start your eBay business. Options could include a business loan, line of credit, or investment from partners.
• Develop a Budget: Create a detailed budget that includes your startup costs, inventory, shipping, and any loan repayments to keep your finances on track.
• Monitor Cash Flow: Regularly review your business bank account to monitor cash flow and ensure you can cover operational costs and make strategic decisions.

When starting your eBay business, setting the right pricing for your services is crucial to attract buyers and ensure profitability. Consider the following tips to effectively price your eBay services:

• Research the Market: Look at similar services on eBay to understand the going rates. Adjust your prices competitively based on your service quality and unique value proposition.
• Factor in Fees: eBay charges various fees for listing and selling items. Ensure your pricing covers these costs, as well as shipping, packaging, and any other direct expenses.
• Calculate Your Time: If you’re providing a service, such as sourcing products for clients or offering customization, make sure to factor in the time you spend as part of your pricing.
• Consider Discounts and Promotions: Offering introductory prices or discounts for bulk services can entice new customers and build your client base.
• Adjust as Needed: Regularly review and adjust your prices based on feedback, sales performance, and changes in the market or eBay policies.

What does it cost to start a ebay business?

Initiating a ebay business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $$2450+ (depending on eBay fees) for launching such an business. Please note, not all of these costs may be necessary to start up your ebay business.

Starting an eBay business requires not only a good strategy but also the right set of tools and supplies. Before diving into the world of online selling, it's important to equip yourself with the necessary items to ensure smooth operations and customer satisfaction. Below is a list of essential equipment and supplies to acquire:

• Packaging Materials: Invest in various sizes of boxes, bubble wrap, packing peanuts, and padded envelopes to safely ship different types of items.
• Shipping Labels: Purchase shipping label printers and label paper to efficiently print out addresses and postage for your packages.
• Photography Setup: Obtain a decent camera or smartphone, a tripod, and lighting equipment to take clear, well-lit photos of your products.
• Inventory Management Software: Consider software or apps that help track your inventory levels, sales, and expenses.
• Measuring Tools: Keep a tape measure and a scale handy to accurately measure and weigh your items for shipping.
• Office Supplies: Stock up on pens, paper, notebooks, and scissors for taking notes and opening packages.
• Cleaning Supplies: Maintain a supply of cleaning products to ensure your items are presentable before listing them.
• Storage Solutions: Use shelving units, bins, and organizers to keep your inventory neatly stored and easily accessible.

List of software, tools and supplies needed to start a ebay business:

• Computer - $400-$1,000
• High-speed internet connection - $20-$50 per month
• eBay account - Free
• Listing software - Free to $200+ depending on the features you need
• Payment processing service such as PayPal - Free to $30+ per month depending on the volume of sales
• Inventory management software - Free to $100+ depending on your needs
• Product photography equipment and materials - $100-$500 depending on the type of product and the quality of the photographs you want to take
• Marketing materials such as business cards, flyers, banners, etc. - $50-$500 depending on what materials you choose to use for promotion
• Shipping supplies such as boxes, envelopes, packing peanuts, bubble wrap, etc. - $50-$200 depending on how much volume you plan to ship each month and how often you will need to replenish your supplies
• Accounting software or services - Free to several hundred dollars a month again depending on your needs.

As an eBay business owner, protecting your venture with the right insurance is crucial to safeguard against potential risks and liabilities. Insurance can provide a safety net for various unforeseen events, from product liability issues to customer disputes. Here are key steps to consider when obtaining business insurance for your eBay store:

• Identify the types of insurance relevant to your eBay business, such as general liability insurance, product liability insurance, or business interruption insurance.
• Assess the level of coverage you need based on the size and nature of your eBay business, including inventory value and shipping volume.
• Research insurance providers that specialize in e-commerce businesses and compare quotes to find the best coverage options tailored to your specific needs.
• Consider bundling different types of insurance policies for potential discounts and broader coverage, if applicable to your business model.
• Review the insurance policies carefully, paying attention to exclusions, deductibles, and coverage limits, to ensure they align with your business risks.
• Contact an insurance agent or broker for professional advice and to clarify any doubts or questions about the policies you are considering.
• Once you've chosen a policy, complete the application process, and keep your insurance documents readily accessible for future reference.

Marketing your eBay services is crucial to attract potential customers and grow your business. By strategically promoting your offerings, you can differentiate yourself from the competition and highlight the unique benefits of your services. Here are some effective ways to kickstart your marketing efforts:

• Utilize Social Media: Create business profiles on platforms like Facebook, Instagram, and Twitter to engage with your audience and share listings, promotions, and customer testimonials.
• Optimize for Search Engines: Use search engine optimization (SEO) techniques for your eBay listings and any external websites or blogs to improve visibility in search results.
• Email Marketing: Build an email list and send out newsletters with updates on new listings, special offers, and useful content related to your niche.
• Partnerships and Collaborations: Partner with bloggers, influencers, or other businesses to reach a wider audience and gain credibility through association.
• Pay-Per-Click Advertising: Invest in PPC campaigns on platforms like Google AdWords to drive targeted traffic to your eBay store.
• Content Marketing: Create valuable content such as buying guides, product reviews, and how-to articles that can attract potential customers to your listings.

Once you've laid the groundwork for your eBay business and are seeing some success, it's time to think about growth. Expanding your business can mean exploring new product lines, reaching more customers, or streamlining your operations. Here are some strategies to consider:

• Diversify your inventory: Start by adding new products that complement your existing items. Look for trends and demands in the market to guide your choices.
• Optimize your listings: Use eBay's promotional tools and SEO best practices to improve the visibility of your listings and attract more buyers.
• Enhance customer service: Build a loyal customer base by providing exceptional customer service. Consider offering free shipping, easy returns, or expedited shipping options.
• Utilize eBay stores: Upgrade to an eBay Store subscription to get more free listings, better fee structures, and additional tools for branding and marketing your business.
• Expand internationally: eBay's Global Shipping Program can help you reach international buyers without the complexities of international shipping and customs.
• Automate processes: Invest in automation tools for inventory management, shipping, and customer communication to increase efficiency and reduce errors.
• Monitor performance: Regularly review your sales data and customer feedback to make informed decisions about inventory, pricing, and marketing strategies.

• Help & Contact
• Recently Viewed
• Bids/Offers
• Purchase History
• Saved Searches
• Saved Sellers
• Notification

Start an eBay Business by following these 10 steps:

• Plan your eBay Business
• Form your eBay Business into a Legal Entity
• Register your eBay Business for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your eBay Business
• Get the Necessary Permits & Licenses for your eBay Business
• Get eBay Business Insurance
• Define your eBay Business Brand
• Create your eBay Business Website
• Set up your Business Phone System

We have put together this simple guide to starting your eBay Business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our eBay Business Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your eBay Business?

Business name generator, what are the costs involved in opening an ebay business.

Perhaps the most attractive part of selling on eBay full-time is that it involves virtually no start-up costs. You must pay, of course, for any of the products that you plan to sell (assuming that you don’t have a steady stream of products online), and you must be prepared to pay the aforementioned fees to eBay upon successfully selling a product. eBay also charges a per-item listing fee, or, if you sell more than 50 items per month, you can opt to pay for a subscription. The subscription will cost from $19.95 per month for a yearly subscription ($24.95 for month-to-month) up to $299.95 per month for a yearly subscription ($349.95 for month-to-month). However, because the business is run directly from your home, it requires no additional start-up costs.

What are the ongoing expenses for an eBay Business?

The most significant expense for this type of business are fees paid to Ebay, as outlined in a previous section.

Who is the target market?

The nature of this business means there is little to no personal interaction with customers. Rather, all of the interaction happens online. As such, the most basic example of a preferred client is someone who pays for products promptly and offers honest, positive feedback. More broadly speaking, the best clients are ones who are up front about questions regarding your products so they are not surprised at what they get and leave poor online feedback based on expectations that did not match the reality of what you were selling.

How does an eBay Business make money?

At the heart of every eBay sale, the seller is making money by receiving a certain amount from the buyer (either a fixed “Buy it Now” amount or the final result of a successful auction), with a certain percentage of each sale being owed to eBay itself.

The amount that is owed to eBay varies based on whether the seller is a “basic” seller or pays for either a monthly or yearly subscription to eBay.

• A basic seller can offer up to 50 items for sale per month without paying any fee to list them and simply pays ten percent of the final price up to $750. Beyond that, the seller pays $.30 per item listing but pays no additional amount per sale. Paying $24.95 per month allows the seller up to 250 free listings per month and discounted prices on listings beyond that much ($.20 for fixed prices instead of $.30).
• A $74.95 per month payment allows up to 1,000 free listings per month and $.15 per additional listing whereas $349.95 per month allows up to 10,000 free listings per month and $.05 per additional listing. All of the subscription options offer enhanced sales options including a customized homepage, store address, featured items, and enhanced branding.

The very nature of eBay means that determining how much to charge customers is more art than science. For instance, the best auction prices are typically lower for items than what customers can find in a store—this is part of their incentive to shop online. However, the price must be competitive with other eBay sellers while also insuring that you make a profit. A final component of this equation is that many auctions offer a “buy it now” price. This allows sellers to skip the traditional auction process and immediately buy the product. This price, too, should be lower than the MSRP of an item while still competitive with what you think a final auction price may end up being.

How much profit can an eBay Business make?

The amount of profit an eBay business can make is entirely contingent on how much the seller is able to sell each year. One way of calculating profit potential, though, is to be aware of the various fees that eat into profits.

• In addition to paying an average of ten percent to ebay, you will be paying 2.9 percent to Paypal in addition to a blanket $.30 fee.
• Most sellers will want insurance for their products, which requires $2.00 for coverage of up to $50 dollars.
• Finally, there is the cost of packaging and shipping the item.

The end result of all of this is that a sale of $40, and assuming a $4.99 charge to the buyer for shipping, the seller must still pay $8.46. This means that each sale can have twenty percent or more of its profits eaten up by shipping and fees, so sellers may have to sell additional products to meet the profit margin they desire.

How can you make your business more profitable?

Effective item descriptions and relentless marketing help ensure that buyers are attracted to your store while honest communication and quick shipping ensure that they trust your services and return to your store. It is important to maintain marketing efforts within and without eBay, including newsletter, social media advertising, and even networking within online bulletin boards and forums that are interested in any niche products that you sell. Above all, be diligent in how you set prices so you can continue to straddle the fine line between offering customers a solid deal and making yourself a solid profit.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your eBay Business is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state business permits or licenses may be needed to go into business as an Ebay entrepreneur. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits .

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

eBay Restrictions

It’s important to familiarize yourself with types products that might not be illegal to sell, but violate ebay’s user terms. Such items include counterfeits of a brand name product or vending pirated copies of movies/music.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your eBay Business needs and how much it will cost you by reading our guide Business Insurance for eBay Business.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market an eBay Business

Some of the marketing of your eBay store begins with your listings. For instance, the header of each listing should include things like the colors, logo, and branding of your store. Item descriptions should include links to your store’s home page as well as to different categories within your store, meaning that everyone who stumbles onto one of your listings is just a click away from your entire online store. Monthly or annual eBay subscribers can take advantage of marketing tools that eBay provides, which includes email marketing, flyers, and cross-promotional opportunities. You can also develop a robust description of your business within your profile and link to your store or profile when engaging in discussions on eBay discussion boards.

Outside of eBay itself, make sure to include your store name, address, and logo in communication with buyers and other interested parties, and don’t forget to use Search Engine Optimization so that people searching the internet for something particular will find your store.

How to keep customers coming back

Generally speaking, you attract customers by using the marketing techniques mentioned above: basically, a matter of conscious branding, meticulous communication, and deliberate Search Engine Optimization. Retaining customers primarily involves a combination of honest descriptions, fair pricing, and open communication. Even veteran eBay users are wary of running into instances of scams and fraud, so presenting yourself as an honest and fair seller can help set you apart among the competition.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

This job is primarily successful for those who already use eBay extensively. At the end of the day, eBay is like any other market, and success requires being competitive in a market filled with other sellers. As such, being familiar with how other sellers price and describe similar products to your own merchandise will help you hit the ground running when you begin selling. The business is also ideal for those who enjoy a flexible schedule and are motivated self-starters.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at an eBay Business?

Part of the attraction of being an eBay entrepreneur is that your daily activities will vary and do not need to be conducted in any particular order. However, a typical day often involves a great degree of research about what you intend to sell, including how other sellers describe the product, how much they charge for it, and how much it will cost to ship it. This research helps you creatively describe and competitively price your product in order to stand out from the competition.

Other daily activities include verifying payments that have completed, answering seller questions, and shipping products within the specified time frame of your listing. Finally, it is important to maintain a steady stock of things to sell. This may entail attending local auctions and garage sales as well as buying wholesale products so you can "buy low, sell high."

What are some skills and experiences that will help you build a successful eBay Business?

Among the best skills to help someone build their eBay business include existing marketing skills. Everything from choosing a sensible username to writing evocative descriptions of products being sold involve the same skills that go into traditional advertising and marketing.

Extensive experience using eBay as both a buyer and a seller can help someone make the transition to entrepreneur. Similarly, a familiarity with Paypal (particularly familiarity with having a business account) can help new sellers understand how to receive and process payments via the most popular eBay payment method.

Finally, experience in advertising your services via social media as well as more traditional methods (such as sending newsletters to previous buyers) can help ensure that you have a steady stream of both new and returning business.

What is the growth potential for an eBay Business?

Ultimately, the growth potential of an eBay business is limited only by the time and scope of the seller. Most sellers begin by selling in their spare-time and transition to a full-time business after building considerable part-time success. Growing the business typically involves finding some kind of niche in which the seller both has special familiarity and in which they can easily obtain items to sell online. Nothing keeps the particularly successful eBay seller from finding a partner to help the business grow, but the nature of said business (typically being run from people’s homes) precludes having a large staff housed in a standing office.

Not sure if an eBay Business is right for you? Try our free Business Idea Generator and find your perfect idea.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

How and when to build a team

The vast majority of eBay entrepreneurs operate on their own. This is because, as mentioned previously, most sellers operate from their own homes, and conducting business entirely on their own means that there is no requirement to split profits. In general, then, finding a partner or building a team of sellers is contingent on you conducting more business than you can reasonably conduct on your own. At that point, it may make sense to find a partner or build a team with special roles. While it is much more common to simply find a partner and both of you operate under the same banner, it is possible to build a team in which members specialize in certain roles, such as procuring new items to sell, writing promotional copy, or shipping items to customers. Again, though, short of a major online operation, such subdivision of roles is very rare.

Useful Links

Industry opportunities.

• Learn about more Online Business Ideas

Real World Examples

• Success profiles for individuals that use ebay to

Further Reading

• Guide to become an ebay “powerseller”
• Advice on becoming an ebay salesperson
• How to make an ebay Business
• Definition of arbitrage
• Profit margins of an ebay business
• How to be successful on ebay

Have a Question? Leave a Comment!

How to Start an eBay Business

Starting an eBay business can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful eBay business.

Importantly, a critical step in starting an eBay business is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .

Download our Ultimate Business Plan Template here

14 Steps To Start an eBay Business :

• Choose the Name for Your eBay Business
• Develop Your eBay Business Plan
• Choose the Legal Structure for Your eBay Business
• Secure Startup Funding for Your eBay Business (If Needed)
• Secure a Location for Your Business
• Register Your eBay Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your eBay Business
• Buy or Lease the Right eBay Business Equipment
• Develop Your eBay Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your eBay Business
• Open for Business

1. Choose the Name for Your eBay Business

The first step to starting an eBay business is to choose your business’ name.  

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your eBay store:

• Make sure the name is available . Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple . The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing . Come up with a name that reflects the desired brand and/or focus of your eBay business.

2. Develop Your eBay Business Plan

One of the most important steps in opening an eBay business is to develop your business plan. The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

Your business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your eBay business.
• Company Overview – this section tells the reader about the history of your eBay business and what type of eBay business you operate. For example, are you a trading, dropshipping, or affiliate marketing business. 
• Industry Analysis – here you will document key information about the eBay industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing products like the ones you will offer?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
• Product : Determine and document what products/services you will offer 
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your eBay business? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the financial plan answers questions including the following:
• What startup costs will you incur?
• How will your eBay business make money?
• What are your projected eBay sales and expenses for the next five years?
• Do you need to secure funding to launch your business?

Finish Your Business Plan Today!

3. choose the legal structure for your ebay business.

Next you need to choose a legal structure for your eBay business and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a business entity in which the owner/eBay seller and the business are the same legal entity. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start an eBay business together. The partners share in the profits and losses of the business. 

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for an eBay business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for an eBay business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your eBay business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

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4. Secure Startup Funding for Your eBay Business (If Needed)

In developing your eBay business plan, you might have determined that you need to raise funding to launch your business. 

If so, the main sources of funding for an eBay business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in an eBay account that they believe has high potential for growth.

5. Secure a Location for Your Business

When starting an eBay business account, you’ll need to find a location for your inventory. Here are a few tips on how to find the perfect spot:

• Decide what you need: before you start looking for a location, decide what you need in terms of space and storage. Do you need a lot of room to store inventory? Or would a small garage work for you?
• Consider your budget: when it comes to finding a location, remember that you’ll need to factor in both rent and utilities. Make sure you have enough money saved up to cover these costs.
• Think about your commute: one of the most important things to consider when choosing a location is how far it is from your home or your physical storefront. You don’t want to have to drive too far, so keep this in mind while you search.
• Get creative: while you may think you need a lot of space for your business, consider options other than renting an entire warehouse. For example, could you use storage units? Maybe someone’s garage? Could you rent space in a larger warehouse? Think outside the box and you may find a solution that’s better than renting an entire building.
• Consider your home: while some people choose to start their business in their homes, it can be difficult to manage both at once. If you have enough room, however, it could be an excellent idea. Just make sure your family is aware of what you’re doing; you don’t want them to be surprised if they find customers in your house.
• Be patient: finding the perfect location takes time, so it’s best not to rush into anything. Keep an eye out for spaces that fit your needs and make sure that none of them slip away before you can act.

6. Register Your eBay Business with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

7. Open a Business Bank Account

It is important to establish a bank account in your eBay business’ name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your eBay business to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

9. Get the Required Business Licenses and Permits

The licenses and permits you may need to start an eBay shop depend on the nature of your business. For example, if you are going to be selling goods, you will need a seller’s permit from your state. If you are going to be running a business from your home, you may need a zoning permit from your local government. To find out what licenses and permits you need, contact your local business licensing office or small business development center.

10. Get Business Insurance for Your eBay Business

You need business insurance to operate an eBay business. This will protect you in the event of any legal issues that may arise, as well as any property damage or theft that may occur. Make sure to research the different types of insurance available and find one that fits your needs.

Other business insurance policies that you should consider for your eBay business include:

• General liability insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or advertising cliams.
• Product liability insurance: This helps protect online stores from third-party claims of bodily injury or property damage caused by a product that it made or sold. This type of policy will cover physical or property damage as a result of manufacturing defects; design flaws; and any shortfalls in instructions, labels, or warnings.
• Auto insurance : If a vehicle is used in your business, this type of insurance will cover if a vehicle is damaged or stolen.
• Workers’ compensation insurance : If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages
• Cybersecurity insurance : If your ebay account is hacked, and your customers’ information is leaked, this covers the cost of notifying your customers, investigating the incident and providing credit monitoring services.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs. 

11. Buy or Lease the Right eBay Business Equipment

Most sellers on eBay don’t need much equipment. To start an eBay business, you only need a computer, phone and internet access.

12. Develop Your eBay Business Marketing Materials

Marketing materials will be required to attract and retain customers to your eBay business.

The key marketing materials you will need are as follows:

• Logo : Spend some time developing a good logo for your eBay business. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
• Website : Likewise, a professional eBay page provides potential customers with information about the products and/or services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
• Social Media Accounts : establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your online store.

13. Purchase and Setup the Software Needed to Run Your eBay Business

To run an eBay business, you’ll need to use software that can help you create listings, manage your orders, and track your sales. There are a few different software options that are available, and each one has its own set of features. The software you use depends on the size of your business and what features you need to manage your business effectively.

There are comprehensive software options that allow you to create and manage your listings, track your sales, and manage your finances, along with customer management. There are options that also encompass all the facets of marketing your listings. Affordable options are available, and work well for smaller businesses.

Whatever software option you choose, it’s important that you understand how to use it before getting started with an eBay business. You should also be aware that many software packages are monthly subscription-based services; so while they are affordable, you’ll need to pay a monthly fee to use them.

14. Open for Business

You are now ready to open your eBay business. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

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How to Start an eBay Business FAQs

Is it hard to start an ebay business.

Starting an eBay business can be hard because it takes a lot of time and effort to build up a successful business. However, if you are motivated and have the drive to succeed, then it is definitely possible. There are many resources available to help you get started, so don't be afraid to ask for help when needed.

How can I start an eBay business with no experience?

One option for starting an eBay business with no experience is to join an existing eBay business. This can give you the opportunity to learn from someone who has already been a successful eBay seller . Another option is to do some research on how to start an eBay business and then follow the steps that are outlined. Regardless of which option you choose, be sure to take your time in order to learn as much as possible about running an e-commerce business before diving in.

What type of eBay business is most profitable?

The types of eBay stores that are most profitable are the ones that offer a unique product or service. This could be a business that specializes in selling rare or vintage items, or it could be a business that offers a specialized service, such as personalized gift-wrapping.

How much does it cost to start an eBay business?

Launching a business on eBay is free. The expenses an eBay startup incur include any domain name registration, product inventory and shipping supplies needed. The great thing about starting an eBay store is that there are no expensive overhead costs to worry about. For this reason, it is often called "Retail without the Rents."

What are the ongoing expenses for an eBay business?

There are a few main ongoing expenses for an eBay business:

• Seller fees associated with eBay and PayPal (which can be waived if you reach a certain sales volume)
• Shipping supplies (boxes, packing material, postage stamps, labels, etc.)
• Postage fees
• Supplies for your business (business cards, stationery, brochures, inventory storage/display boxes, etc.)
• Marketing and promotional materials (if your own business has a physical location or storefront)

How does an eBay business make money?

eBay sellers make money by listing items for sale, and completing a transaction. The seller then keeps a large percentage of the final sale price, and pays a commission to eBay. The amount of the commission varies depending on the category of item being sold. For most items, eBay takes 10% of the final fixed price.

Is owning an eBay business profitable?

eBay is a platform where people can buy and sell products, so it's a great place to start a business if you're looking for something that has the potential to be profitable. In addition, there are a number of ways to make money with an eBay business, including selling products, or providing services. And since eBay is such a large platform with millions of users, you'll have plenty of opportunity to reach new customers and grow your business.

Why do eBay businesses fail?

There are a number of reasons why many eBay sellers can fail. One reason is that it can be difficult to stand out from the competition. Another reason is that it can be challenging to generate traffic and online sales. Additionally, it's important to have a solid marketing strategy in order to attract buyers and create a brand that people will trust. Without a plan, it can be difficult to succeed on eBay.

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Seller stories

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Grow your business with eBay

Expand your selling horizon.

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Comprehensive seller protection

You’re protected by policies, monitoring, and a customer support team created to keep you and our community safe.

A community of sellers

Connect with other sellers through hosted meetups, community forums, seller events, and more.

It's easy to get started on eBay

Create a business selling account.

This step requires you to have your bank account and company information.

Set up your account policies

Pick your postage, return and payment policy preferences that will then be used for your listings.

Upload your inventory

Use our suite of tools to onboard your inventory and start selling!

We’re where the world shops

A car part is purchased every, a cosmetic is purchased every, a video game is purchased every, a trading card is purchased every, a watch is purchased every.

Based on eBay 2020 data

Get inspiration from other sellers. Here are some of our favourites.

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Love me afro hair, sustain furniture, everything you need to run your online business.

From uploading inventory to fulfilling orders, we’ve got the tools you need. We also support integration with tools you already use.

Inventory management

You'll gain access to a variety of tools that help you list, bulk upload, and integrate with APIs. You can also use third-party tools.

Manage orders

Our sellers receive discounted postage labels from major carriers. You can also set up international delivery with intermediated postage options.

Research & Insights

Terapeak is a tool exclusive to eBay. It shows you how other sellers are pricing their listings, so you can monitor your competition. It also gives you data about supply and demand for different categories.

Marketing tools

Use our suite of marketing tools to create promotions and make your inventory stand out. Sponsor your listings with Promoted Listings to help boost your visibility.

Brand-building tools

Get an eBay Shop subscription to unlock a customisable shopfront where you can showcase your brand and inventory to buyers.

The eBay app

Manage your business on the go with our app. Control listings, fulfil orders, respond to buyers and more - anytime, anywhere.

Open your shop on eBay

Pick a shopfront plan that works best for your business needs to start building out your brand on eBay.

Build your brand with an eBay shop

Shops give buyers a destination to browse whilst learning more about your brand. There are a variety of options if you want to have your very own shopfront on the eBay site. From basic to anchor, to a featured shop, we have a shop plan to suit your business strategy.

Fees for selling on eBay

Insertion fees.

Insertions fees vary from a fixed price per listing, to reduced or no fees with shop subscriptions.

Final value fees

When your item sells, you pay a final value fee. How much you pay varies by category and is calculated as a percentage of the total amount of the sale.

Got questions? We’re here to help

Here are some resources that sellers new to eBay find helpful.

Seller Centre

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Customer service

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A single dad who started reselling phones after losing his job and is now financially independent explains how to start an eBay business in 3 steps with zero upfront capital

• Richard S. started reselling electronics on eBay in 2008 after being laid off.
• He says that anyone can make money on eBay — and launching a store doesn't require upfront capital.
• Step one is to list items around your house to learn the process of reselling on the platform.

When Richard S. started selling electronics on eBay in 2008 , he didn't have much cash.

The single dad, who prefers not to share his last name for privacy reasons, had just been laid off when his employer went bankrupt.

"In 2008, you weren't getting laid off and getting hired immediately," he told Business Insider.

The idea to flip items on eBay came from a broken cellphone. Needing to replace his T-Mobile Sidekick, he was looking at options online and noticed a price disparity between Craigslist and eBay.

"I started buying T-Mobile Sidekicks on Craigslist for 35, selling them on eBay for 70, and I was doing that like a madman. Then iPhones came out and I started doing the same thing," said Richard, who eventually pivoted to reselling pre-owned clothing.

In the last 15 years, he says he's grown the hustle from a one-man operation to a full-fledged business that, at its peak, had five employees and was bringing in seven figures annually. BI viewed a screenshot of his eBay dashboard showing $472,493 in sales during a three-month period in 2022.

His eBay store Technsports ranked No. 1 by gross market value in highly competitive categories on the site, including used T-shirts and used polo shirts. That's according to eBay's 2021 Listing Quality Report, which provides sellers a performance overview of their biggest 10 categories.

Richard, 40, is scaling back his online store in 2024 to prepare for an early retirement. He says he has enough in savings and investments to live on and plans to travel the world and "see stuff that I missed out on when I was working 18, 20 hours a day."

He believes that anyone can make a living selling on eBay , no matter their financial situation, and provided three steps for getting started with zero money upfront.

1. Collect and list items from around your house

"Don't go out and spend a bunch of money and hope stuff will sell," said Richard. "Start around your house. Evaluate the stuff that you don't need. Maybe your kid went off to college and left a bunch of video games. Maybe you lost a bunch of weight and have a bunch of clothes in your closet."

When he switched from reselling electronics to apparel, the first clothing item he listed was a vintage Buffalo Bills jersey that he pulled out of his closet.

Related stories

"There's no reason at all to reach inside your pocket and start an eBay business when we can turn these items that we have inside our house into cash," said Richard.

Plus, you want to make sure you enjoy the process of selling on eBay before investing a lot of your time and money. Use this step to "learn the platform, learn the mechanics of doing a listing, learn the scheduling involved in listing an item and taking it to the post office," he advised.

2. Use your profit to start buying items to resell

If you turn a profit from the preowned items you listed in step one, "that can be your working capital that you use to go out and source for yourself," said Richard, who sourced clothing at Goodwill, Salvation Army, and his local thrift stores and flea markets.

His sweet spot was finding an item for about $5 that he could sell for $30. After shipping and eBay fees, that would leave him with about $20 per item, he said: "If you do that 14 times a day, that's $280 in profit a day. You can make $100,000 a year selling 14 items a day on eBay."

That's not to say you can't run a profitable business with lower price points, he added. If you find an item for $1 that you can list for $10, "you can run a great business — however, it's going to involve more processing, more listing, and more photos."

When you start sourcing products, avoid what he calls the "death pile," which is when you accumulate items but don't actually sell them.

"The listing portion is the bulk of the work. It can be tedious, it can be a process, but that's the work," he said. "A lot of people look at sourcing — going to flea markets or going to thrift stores as fun — but if you just source and don't list, you could be in a world of problems."

3. Figure out your niche and study the comps

After experimenting with reselling electronics and clothing, Richard preferred clothing and niched down.

"It's not going to break in the mail. You don't need instructions to put on a shirt. At worst, if it doesn't fit, they can send it back for a full refund," he said. Plus, "we all have a closet full of clothes we don't wear." Of course, that makes it a competitive niche.

To succeed in any category, it's important to study the market. He advises browsing the "sold items" section of your niche on eBay to figure out what is selling well and what isn't. If you want to sell sneakers, what other types of shoes sell? What are the best-selling sizes?

In the reselling business, "it doesn't matter what I think is cool," said Richard. "It matters what the customer thinks is cool."

Selling on eBay looks a lot different today than it did when Richard started in 2008. Thanks to smartphones, you can look up what an item is selling for on eBay before you source it. If you found an item for $5 at a thrift store but it's selling on eBay for $4, pass. If you find something for $5 and it's selling on eBay for $10, you might consider listing it — or, you may decide the profit isn't big enough to be worth your time.

"In 2024, there is no excuse to speculate on an item and there is no excuse to lose money on an item because we have this luxury," he said.

It's also "never been easier" to make money on eBay, he added. "There is no hurdle, there is zero barrier to entry, not in 2024 when you can list an item on your phone."

• Main content

Online Marketplace EBay to Drop American Express, Citing Fees, and Says Customers Have Other Options

Online marketplace behemoth eBay said it plans to no longer accept American Express, citing what the company says are “unacceptably high fees” and that customers have other payment options to shop online

Wilfredo Lee

FILE - An eBay app is shown on a mobile phone, July 11, 2019, in Miami. Online marketplace behemoth eBay said it plans to no longer accept American Express, Wednesday, June 5, 2024, citing what the company says are “unacceptably high fees” and that customers have other payment options to shop online. I(AP Photo/Wilfredo Lee, File)

NEW YORK (AP) — Online marketplace behemoth eBay said it plans to no longer accept American Express, citing what the company says are “unacceptably high fees” and that customers have other payment options to shop online.

It's a notable blow to American Express, whose customers are often the most attractive among merchants and spend the most money per month on their cards. But it's not the first time merchants have voiced opposition to AmEx's business practices by walking away, most notably the warehouse chain Costco nearly a decade ago.

“After careful consideration, eBay has decided to no longer accept American Express globally effective Aug. 17 due to the unacceptably high fees American Express charges for processing credit card transactions," said eBay spokesman Scott Overland, in a statement.

Overland said that eBay customers have become aware of new ways to pay for items, making payments more competitive than ever before, and AmEx was no longer a necessary partner for eBay. eBay has increasingly been offering customers buy now, pay later options on purchases through Apple Pay, PayPal and other companies like Klarna and Affirm as well.

“We know that the vast majority of eBay customers are willing to use alternative payment options to continue enjoying buying and selling on our marketplace,” Overland said.

Online merchants have become increasingly combative with payment processors in recent years over the fees they charge to accept payments. Amazon had a similar fight with Visa in the U.K. roughly two years ago, where Amazon threatened to drop Visa as a payment acceptance type over what it also called high fees.

Visa and Amazon eventually resolved their differences , and there was no disruption of service.

Like other payment processors, AmEx takes a percentage of each transaction a merchant processes on their network. The fee varies by industry, and the fees that the largest merchants pay are typically a closely guarded trade secret. The National Retail Federation says the average fee to accept a credit card is roughly 2% but can be as high as 4% on premium rewards credit cards like AmEx.

In a statement, American Express says that eBay's cost to accept AmEx cards is “comparable to what eBay pays for similar cards on other networks" and that AmEx cardmembers typically spend double at eBay what is spent on other networks.

“We find eBay’s decision to drop American Express as a payment choice for consumers to be inconsistent with their stated desire to increase competition at the point of sale,” said Adam Isserlis, a spokesman for AmEx.

AmEx has been on an aggressive campaign, under its current CEO Steve Squeri, to be a more universally accepted payment option across all merchants in an effort to combat the negative image that AmEx is less accepted and only available for its cardmembers for travel, dining, high-end shops or in dense urban areas. AmEx says its cards are now accepted at 99% of the places that Visa and Mastercard are accepted in the U.S., a metric it achieved in 2019.

But there have been setbacks along the way.

When Costco announced it would drop American Express in 2015, it was a major blow to AmEx since Costco represented roughly 10% of cardmember loans and roughly $80 billion in network volumes. It was also one of AmEx's most prominent partnerships.

Analysts at Keefe, Bruyette & Woods estimate that eBay may represent roughly 0.5% of AmEx's worldwide network volume and it's unlikely that AmEx will budge much on pricing with eBay.

Copyright 2024 The  Associated Press . All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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Walmart offers new perks for workers, from a new bonus plan to opportunities in skilled trade jobs

Walmart is offering new perks for its hourly workers

NEW YORK -- Walmart is offering new perks for its hourly U.S. workers, ranging from a new bonus plan to opportunities to move into skilled trade jobs within the company.

The perks program announced Wednesday comes as the nation's largest private employer says it's seeing a decline in worker turnover. But Walmart, like other employers, faces a still-competitive labor market and increasing demands from its employees .

Walmart's new bonus plan for eligible part-time and full-time U.S. store workers — including those in its pharmacy and Vision Centers — is based on their store's performance, with the maximum bonus potential also tied to years of experience.

For example, a full-time worker who’s been with Walmart between one year and almost five years can earn a maximum bonus of $350 per year, while a 20-year full-time worker can earn a maximum bonus of $1,000, Walmart said. The plan will be available to 700,000 U.S. workers, the company said.

In January, Walmart announced its U.S. store managers would receive up to $20,000 in Walmart stock grants every year.

The company, based in Bentonville, Arkansas, is also launching a training program for hourly workers in its U.S. stores and supply networks that will give them an opportunity to move into roles in facilities maintenance, refrigeration, heating, ventilation and air conditioning, and automation. Walmart said it is looking to increase these skilled trades workers from 450 to roughly 2,000 in the next two years.

The jobs pay between $19 and $45 per hour, and workers will be paid during the training, the company said. Walmart's average hourly wage is close to $18, an increase of 30% over the past five years. Walmart's starting wages for U.S. workers range between $14 and $19 an hour.

The training program is expected to start with 100 workers in the Dallas-Fort Worth area. It is part of the Walmart Academy, one of the largest skill-development programs in the country.

Last month, Walmart reported another quarter of strong results as its low prices pull in shoppers scouring for discounts amid stubbornly high inflation .

Households with incomes exceeding $100,000 have been drawn to the retailer as it upgrades the quality of its items and focuses on providing more convenient ways to shop. Two-thirds of Walmart’s market share gains across the aisles are coming from that group, Walmart said.

Walmart said the skilled trades initiative is similar to a program it announced two years ago that gave employees who work in its distribution and fulfillment centers a chance to become certified Walmart truck drivers through a 12-week program taught by the company’s established drivers.

At the time, it said it was raising pay for its 12,000 truck drivers. The starting range for new drivers is now between $95,000 and $110,000 a year. The retailer said that $87,500 had been the average that new truck drivers could make in their first year.

Walmart spokeswoman Anne Hatfield said the trucker program has produced more than 500 new drivers since launching in the spring of 2022. That’s helped the company navigate an industrywide shortage of truck drivers.

Walmart has similar training and development programs for pharmacy tech and opticians.

Meanwhile, Walmart said Wednesday it is expanded the number of skills certificates available to help fast-track front-line workers into about 100,000 jobs that are higher paying and in demand at the company over the next three years.

In 2020, the company offered five skilled certificates. Now, there are 50. They include topics such as front-line manager leadership, people and business leadership, data science, software development and project management.

Employees can earn the certificates in four months, according to Lo Stomski, Walmart’s senior vice president and chief talent officer.

Walmart highlighted its worker training efforts as it prepares to hold two big events this week. A virtual shareholders' meeting is set for Wednesday. On Friday, the company is holding a celebration of its workers at Bud Walton Arena in Fayetteville, Arkansas, to recognize Walmart’s employees from around the world as well as shareholders.

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Money blog: Victorian island forts - complete with helipads and nightclubs - up for sale

Two Victorian island forts that were used to defend the Portsmouth dockyards during the Second World War have been listed for auction for £1m each. Read this and the rest of today's consumer news in the Money blog.

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Ever wanted to own your own Victorian island fort?

Well now you can - with two being listed with a guide price of £1m.

Spitbank Fort in Hampshire and No Man's Land Fort off the Isle of Wight have been listed for auction and can be bought separately - or as a pair if you can't pick between the two.  

During the Second World War, the forts were used to defend the Portsmouth dockyards. 

No Man's Fort is substantially bigger and probably presents itself more as a business opportunity, but Spitbank offers nine large bedroom suites across three floors and could potentially work as a private home to the right buyer. 

No Man's Fort has its own traditional English pub, a nightclub, and a helipad, while Spitbank Fort naturally boasts a wine cave plus a swimming pool and spa complex.

"Throughout my career as an auctioneer I've seen several sea forts hit the market that have achieved impressive prices as buyers have sought to pursue these trophy assets," said Robin Howeson, head of Savills Auctions.

"Having been carefully restored by the current owners, No Man's and Spitbank Fort represent exceptional market value, each guided at £1m. 

"Both offer an opportunity like no other; a waterfront location, up to 99,000sq ft of space and a chance to champion the heritage and legacy of these iconic maritime structures."

The auction takes place on 18 June. 

The BBC's content arm is among the suitors vying to buy the television production company which owns the rights to The Gruffalo.

Sky News has learnt that BBC Studios is participating in a sale process for Magic Light Pictures, which has won three BAFTAs and secured a quartet of Oscar nominations.

The auction is being run by Gotham Street, a specialist media deals boutique.

A number of other bidders are also said to be involved in the process given the quality of Magic Light's content library, which includes a number of works by The Gruffalo's creators, Julia Donaldson and Axel Scheffler.

The Gruffalo has become one of Britain's best-known children's characters, telling the story of an adventurous mouse that fends off a series of would-be predators by telling them about a supposedly imaginary creature called a gruffalo.

In the 2011 sequel, The Gruffalo's Child, the mouse then scares off a young gruffalo by using shadows to project a giant version of itself.

The two films have been distributed internationally by Magic Light, and along with the original Gruffalo books have sparked substantial merchandising revenues as well as a theme park attraction at Chessington World of Adventures.

The woman alleged to be the inspiration for the stalker in hit Netflix series Baby Reindeer is suing the streaming platform for $170m (£133m).

The show is said to be based on the real-life experiences of writer Richard Gadd, who plays himself as he copes with stalker Martha Scott.

Fiona Harvey, 58, claims she is the inspiration for Martha, who begins stalking Gadd after he serves her a free cup of tea in the pub where he works.

In the lawsuit, Ms Harvey has accused Netflix of spreading "brutal lies", including that she is a "twice convicted stalker who was sentenced to five years in prison".

"Defendants told these lies, and never stopped, because it was a better story than the truth, and better stories made money," it states.

"As a result of defendants' lies, malfeasance and utterly reckless misconduct, Harvey's life had been ruined."

Sky News's US partner network NBC News reports the lawsuit described the show's claim "this is a true story" as "the biggest lie in television history".

"Netflix destroyed a woman, claiming, among many allegations, that she was a convicted woman," Richard Roth, a lawyer for Ms Harvey, wrote in an email.

"It never contacted her. It never checked the facts. It never made any effort to understand the truth of its 'true story!'"

The lawsuit seeks actual damages and compensatory damages at $50m (£39m) each, punitive damages at $20m (£16m); as well as "all profits" from Baby Reindeer at $50m (£39m).

A Netflix spokesperson told Sky News: "We intend to defend this matter vigorously and to stand by Richard Gadd's right to tell his story."

Administrators to The Body Shop are aiming to clinch a sale of the stricken cosmetics retailer by the end of the month, even as its former owner veers away from making an offer for it.

Sky News' city editor Mark Kleinman has learnt that FRP Advisory, which was appointed to handle the chain's insolvency in January, has asked for indicative bids by next Tuesday.

British entrepreneur Mike Lynch has been cleared of all charges by a US jury in the high-profile fraud case related to the sale of his software company Autonomy to Hewlett-Packard (HP) in 2011.

Dr Lynch, who was extradited to the US to face trial just over a year ago, was acquitted alongside a former finance executive Stephen Chamberlain who had faced the same charges.

They were accused of conspiracy and attempted fraud over the £8.3bn sale to HP - a deal that has been the subject of costly legal action since.

Labour is promising to get more young people on the housing ladder as it announces its "freedom to buy" scheme on Friday.

The party is pledging to make the existing mortgage guarantee scheme - which sees the government act as a guarantor for people unable to save big deposits - into a permanent fixture if it wins the election on 4 July.

Meanwhile, the Tories are promising a tax cut for parents by raising the threshold for when families have to pay a levy on their child benefit.

The current system means if either parents or a parent's partner earns more than £60,000, they begin paying the high income child benefit tax charge, and lose the benefit altogether when a salary hits £80,000.

But if the Tories win the election on 4 July, they have promised to increase the threshold to £120,000 before any tax is paid, and to £160,000 before the benefit is withdrawn, as well as base it on a household income, rather than an individual.

If you missed out on the general sales but want to bag yourself a last-minute ticket to Taylor Swift's show in Edinburgh tonight , it could set you back a whopping £4,000. 

Not to fear, however, as it is currently possible to land yourself a ticket for as little as £271 - if you settle for a somewhat restricted view. 

We've checked resale giant Viagogo for the latest prices, accurate as of 10.30am. 

As is often the case with popular tours listed on resale sites, many of the tickets are sold individually - so if you're happy to go alone tonight, you're more likely to get a ticket. 

For context, a ticket at general sale cost somewhere between £80-£160 depending on where you sit/stand. 

As it stands, the cheapest seat with an unrestricted view of the stage is currently up for sale at £323.

Just one ticket is up for £271, but has a "restricted view". 

Bringing a crowd

If you're looking to take someone with you, the cheapest pair of tickets without any restricted view will cost you a combined £1,706.

However, if you're happy with a restricted or limited view, you can pay the cheaper price of £538 for the pair (£269 each). 

You can buy up to four tickets in the same area for £303 each (£1,212 together) for a restricted view, or £555 each (£2,220 together) for an unobstructed view of the stage. 

Getting closer to the action 

Standing tickets are much sought after given their proximity to the stage. 

As alluded to at the top of this post, one frankly optimistic reseller has listed four general admission tickets for a staggering £4,256 each (in the "floor" section shown in the map below). 

However, you can get even closer - with one ticket remaining in the separate section to the left of the stage at £651 and another to the right at £559. 

A word of caution

Ticket resale sites, including Viagogo, have previously been accused of "ripping off" consumers amid concerns customers could be turned away at venues because of restrictions on some resold tickets.

The company was told in 2019 that it was required to make a number of changes to the way it collects and presents information about tickets on its site.

It has since pledged to be compliant with UK watchdogs and now offers a "100% order guarantee [which] covers both buyers and sellers".

If you're happy paying over the odds for last-minute tickets, make sure you're buying through a site with such a guarantee and always beware of scams!

House prices in the UK dropped by 0.1% between April and May, data from mortgage lender Halifax shows.

Analysts had expected a drop of around 0.2%, while last week, rival lender Nationwide said its measure of house prices rose in May after falling in the previous two months.

In the 12 months to May, prices rose by 1.5%, Halifax said - faster than the median forecast in a Reuters news agency poll for an annual increase of 1.2%.

"Market activity remained resilient throughout the spring months, supported by strong nominal wage growth and some evidence of an improvement in confidence about the economic outlook," Halifax's head of mortgages, Amanda Bryden, said.

The stable picture for property prices over the last three months was likely to give more confidence to buyers and sellers, she added. 

Sir Keir Starmer will shortly promise to get more young people on the housing ladder as Labour announces its "freedom to buy" policy. 

We've now got some reaction from business leaders, who've been speaking to Newspage.

Justin Moy, managing director at EHF Mortgages, was not impressed. 

"Freedom to buy looks great on the first read, but then you realise it’s actually been in place since 2021 and many lenders don't use it anyway," he said. 

"Labour are effectively promoting something that already exists and isn't used," he added. 

Andrew Montlake, managing director at Coreco, disagreed, saying it marked a "promising" first offering from Labour. 

"This can allow lenders to take a longer-term approach in their offerings and ensure that competitive products are continually available for those with lower deposits. 

"Whilst it doesn't solve the long-term housing issues overnight, Labour have at least shown they understand them and have already shown they are willing to speak and engage with those on the front lines, which is more promising for the housing market as a whole should the next government be a red one."

However, many more had a negative outlook. 

Lewis Shaw, owner of Shaw Financial Services, was scathing in his assessment, saying: "This policy is about as useful as a chocolate teapot. 

"Prior to the pandemic, 95% loan-to-value mortgage lending was the norm. 

"It happened without any political interference or putting the taxpayer on the hook - has everyone forgotten that? 

"If Labour really wants to help young people buy a home, then do the things that we all know are needed: Tax the super-rich, reduce wealth inequality and build more houses. It's not rocket science."

Katy Eatenton, mortgage and protection specialist at Lifetime Wealth Management, said it was "yet another scheme with no real substance", which was echoed by Stephen Perkins, managing director at Yellow Brick Mortgages.

"This policy will not hugely impact the property market," he said. 

Shortly, we're expecting Sir Keir Starmer to promise to get more young people on the housing ladder as Labour announces its "freedom to buy".

He's set to speak in the coming hours. 

The party will pledge to make the existing mortgage guarantee scheme - which sees the government act as a guarantor for people unable to save big deposits - into a permanent fixture if it wins the election on 4 July.

Sir Keir will also commit to an overhaul of the planning system, including reintroducing housing targets, claiming his measures will see 1.5 million more homes built over the next five years.

Among the planning changes, the party will promise to tax foreign buyers "pricing out young people" from the housing market in order to pay for new planning officers, which it claims will help increase projects being signed off.

It will bring back house-build targets - scrapped by the Tories in 2022 - as well as fast-track permissions to build on brownfield sites, and reform compulsory purchase orders to "stop speculators frustrating housebuilding".

They will also promise to offer "first dibs" on new developments to local people looking for a home and reiterate their pledge to create "the next generation" of new towns.

Read more in our dedicated Politics Hub :

GAME are set to end their long-running rewards programme on 31 July and have urged customers to use their remaining credit whilst they still can.

Both the company's standard GAME Reward scheme and their Elite membership tier will cease to exist, while no further reward points will be earned from purchases made in store or online after July 15.

You can currently redeem 400 reward points for £1 off of a purchase. The end of GAME Elite will mean the end of its monthly offers and prize draws. Any outstanding paid Elite membership months will be eligible for a refund.

"We would strongly urge you to redeem your GAME reward points prior to the closure date on purchases in store or online to avoid disappointment," said GAME.

"After the closure date, GAME reward points will be reset to zero and the GAME reward account will be closed, you will no longer be able to access it and you will no longer be able to redeem your GAME reward points."

The end of GAME's reward programme is the latest move from the company to make changes to their business model.

The chain has already closed several of their own bespoke high street stores and instead taken up residence within Sports Direct and other Fraser Group outlets.

By Sarah Taaffe-Maguire , business reporter

We've now had the first interest rate cut in the UK, US and EU for years. 

Yesterday the European Central Bank (ECB) brought down the cost of borrowing in the countries using the euro - the first reduction since 2019.

Sterling stayed roughly where it has been against the euro for the last two weeks - one pound buys more euro than it has done for most of the last year, €1.1740. 

Oil prices have ticked up through the week but are still just below $80 a barrel for Brent crude, the benchmark price. 

That's cheaper than the vast majority of this year and good news for motorists.  

Signs of stabilisation can be seen in the housing market with the news that house prices fell just 0.1% in May, equivalent to a £170 drop in the average house, according to mortgage lender Halifax. 

But renting is still becoming more expensive, just at a slightly slower rate than before, according to property portal Zoopla.

The average rent costs £80 more a month compared with a year earlier.

Higher housing costs have also shown through in a market update from British homebuilder Bellway, which said it expects to sell houses at a higher price point than it previously thought.

The company is a constituent of the Financial Times Stock Exchange (FTSE) 250 index of 101st to 350th most valuable companies on the London Stock Exchange which is down 0.22% this morning. 

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