Ebay has grown to be one of
the largest outlets for online sales. Could this primarily be due to
the companies’ ability to obtain around 1 million customers every
day? This is definitely good for eBay, but it is also great news
for those currently selling or looking to sell on eBay.

Whether you are simply getting
rid of old and unwanted things around the house or establishing a profitable
ecommerce business on eBay, one of the most important goals is to earn
the most money for every item you are selling. I would like to provide
some tips from my own experience of selling on eBay on how to reduce
costs and maximize profits.

Avoid paying for unnecessary
listing “enhancements”

-Initial cost(s) will reduce
your margin for profit!

Every time you create an auction
on eBay, you may be enticed by all the options and “enhancements”
that are available to improve the appearance of your particular listing.
Some may prove to be valuable while others will turn out to be unnecessary
and expensive. One example is ‘gallery plus’ or ‘supersize picture’
which may seem like a good option at first but is not likely to increase
sales as much as you think assuming that your customers already have
a general idea of what they are looking for. The one thing you do need
is a good, clear description of the item you are selling. Be sure to
make your listing as descriptive as possible and emphasize the positives.
Try not to over exaggerate. Honesty is your most valuable selling point!

TIP: Use a free site to host
your pictures. There are sites such as http://www.Photobucket.com where you can register for free and
upload your auction pictures. This way you can add an unlimited amount
of pictures to your eBay listing for free. That’s right; you don’t
have to pay additional fees to eBay to list extra pictures. The process
is simple even for beginners. http://www.photobucket.com will provide you with an HTML link
to where each picture is located. Copy this link. As you begin creating
your eBay listing, in the description section select ‘HTML.’ In
this window paste your link from http://www.photobucket.com. Once this is complete, you can switch
back to the normal description. You should now see your picture in the
‘preview’ section.

On eBay’s first page, choose the blue “register” link in the upper lefthand corner.
• eBay: Become a registered eBay user today.
1. On the Registration page, fill in your personal information.
   • Choose an email address that you check regularly, as any eBay alerts or questions from buyers will go to that inbox.

2. Choose a username and password.
   • To protect your privacy, do not choose a username that reveals too much personal information. For example, do not use your email address or first and last names.

3. Make sure to read through the terms of service, then check the box if you agree to them.
   
4. Click continue.
   
5. eBay will send a confirmation email to the address you provided.
   
6. When this email arrives, open it and click on the link “Activate Your eBay Membership.”
   

Create a Payment Account

1. Sellers registering after January 17, 2007 are required to offer either PayPal or credit card payment options.
   
2. The easiest and most secure option is to set up a PayPal account. PayPal payments offer an extra layer of protection for buyers and sellers alike, as well as some free auction tools for eBay sellers.
   • To accept credit cards without PayPal you need to set up a merchant account. Depending on what types of cards you accept, your credit, and where you set up your account fees can vary, but they are usually higher than PayPal.

3. To set up your first PayPal account:
   • Go to PayPal registration.
   • Choose a Personal account, Premier account (for casual eBay sellers) or Business account (for larger amounts of sales and transactions).
   • Click here for a description of the fees associated with each type of account.
   • PayPal’s transaction fees overview explains the fees you will owe, based on your volume of sales.
   • If you are unsure what type of account to choose, don’t worry! You can upgrade at any time.
   1. If this is your first listing, you will need to verify your identity by submitting a credit or debit card number before you can offer your item on eBay. You may also need to submit a checking account number.
      
   2. Click here to create a seller’s account.

   3. You will also need to select a method for paying your eBay selling fees. You have multiple options, including:
      • PayPal: You can make a one-time payment or have the fees automatically deducted from your PayPal account.
      • Credit card: eBay will keep a card on file and automatically charge your account each month.
      • Direct Pay: eBay will automatically deduct your fees from your checking account (only for sales in U.S. dollars and U.S. accounts).
      • Check: An option only available for business retailers.

   4. If you prefer, you can register for your seller’s account as you create your first listing.
      

Create an eBay Seller’s Account

Establish a Good Reputation on eBay

1. Buyers are less likely to buy from sellers with no eBay history.
   
2. You will get positive or negative feedback on your eBay transactions, both buying and selling.
   
3. eBay also now offers detailed seller ratings. Buyers can give sellers 1 to 5 stars on four criteria: item description, communication, shipping time, and shipping & handling charges.

4. Having a high (4.6+) score in these categories makes you eligible for listing discounts and better listing placements, both of which can make a big difference to your bottom line.
   • Sellers have found it particularly difficult to get high ratings in the shipping category.

5. You can start creating a positive eBay history by purchasing items from other sellers and paying promptly and selling small items that you describe accurately and ship promptly.
   
6. Buyers often pay higher prices to sellers with more positive feedback.

7. Establish a reputation as a reliable eBay seller before offering a high-value item. Most eBayers will be reluctant to offer a high bid to an untested seller.
   

Check What Can’t You Sell on eBay

• Review eBay’s list of prohibited and restricted items to learn what you cannot sell on eBay. For example, the only live animals you can sell on eBay are tropical fish and domestic aquatic snails. You don’t want to set up an eBay listing only to learn that your item is prohibited or restricted.

Research the Price of Your eBay Item

1. Before you go to list your item, you should check what similar items have sold for. You may not want to sell your prized Spider-Man action figure if others have only sold for $4.

2. To find sale prices for earlier auctions on eBay, click on eBay’s advanced search option and check the option to search “Completed Listings Only.”
   

   eBay Advanced Search.

3. Enter the name of the item you’re planning to sell on eBay. You can also select a category to search in.
   
4. Sort the results by price. This lets you approximate the going rate on eBay for similar items.
   
5. Also check sites like Amazon.com to see what their prices are.
   
6. If the prices you see are lower than what you want to accept, perhaps because there are multiple similar products selling, consider holding off on selling the item or reducing your price.

7. If your item is seasonal, you may want to create a listing when it is most in demand.
   • For example, baseball merchandise sells for more during the season and coats fetch higher prices during cold weather.

8. Also consider what it will cost to ship your item. A large item, like a chair may cost so much in shipping that you get fewer auction bids.
   

Take Photos of Your eBay Item

Take clear, well-lit photos. (Photo by Daniel Wildman)

1. Every item you list on eBay should have photos to attract, and inform, potential buyers.
   
2. Basic items, like CDs and DVDs, may only need one photo.
   
3. Most of the time you should take multiple shots of your item, from different angles and showing different sides.
   
4. Show any flaws, dings, or dents in your items; do not angle your photos to hide them.
   
5. Make your photos as clear and well-lit as you possibly can.
   
6. Clean your item before photographing it.
   
7. Only have one item in your photograph, unless the items are all selling together. You do not want to confuse potential buyers.

8. Try to shoot your photos in a bright area, preferably in natural light. A blurry, shadowy photo takes time for you to upload, but does not help any potential buyer with useful information.
   
9. If you are unsure how to stage the photos, look at similar items already listed on eBay. Emulate the style and framing of the photos that are most appealing to you.
   
10. eBay recommends uploading photos that are 1024 x 768 pixels. Your photos will be re-sized to the standard 400 x 300 pixels, so you can re-size them yourself before uploading them to see how well your item is represented.
    
11. You can re-size a photo with the program Photoshop, with an online service like Snipshot, or with any other image re-sizing tool.
    
12. It’s also good to sharpen your photo. This can be done with the adjust menu on Snipshot, or by accessing the sharpen submenu of the filter menu in Photoshop.

13. Save your photo as a high-quality JPEG (.jpg). This will maintain photo quality after it’s on eBay.
    
14. For a fee, you can also add a Gallery photo to your listing, which places a thumbnail photo to the left of your listing when it comes up in search results.
    • Gallery photos are 96 x 96 pixels; at that size you may want to take a separate photo to use instead of cropping your auction photo.

Duration of Your eBay Listing

1. You also want to think about the best time for your auction to start (and therefore end). You can choose the number of days your listing will be on eBay. But, unless you pay an additional fee, your auction will end at the same time of day you begin it.
   
2. The highest bids often come in during an auction’s final moments, so you do not want your auction to end when most people are asleep.
   
3. People disagree over the best time to end an auction. Some feel weekend mornings are the best end times, but remember that many people go out during the day and leave their computers. Others believe that between 6 and 11am Eastern time is a better end time, but that excludes many people on the West Coast.
   
4. Sometimes ending an auction during peak hours is less likely to result in a sale, because the market is crowded with too many auctions.
   
5. To pick an optimal end time, consider what you are selling:
   • Laptop computer: end the auction at night, when most people are not at work.
   • Video games: end the auction in the afternoon, when kids are out of school.

6. Also think about where your primary market is. If you sell internationally and find that most of your items go overseas, choose an auction end time when people in your target time zone are awake.
   
7. You can experiment with different auction end times and see what works best for you.
   

• Remember eBay charges fees for listings; look at eBay’s page of fees to see what those are.
• If at any time you don’t see an option described here, click on “Add or remove options.”

Choose Your eBay Category

1. On any eBay page, click on the sell tab in the top right corner.

2. Type in the name of your item. eBay will then suggest a category for the listing.
   
3. Think carefully about the category you place your listing in; buyers often shop by category, so if your listing is in the wrong category, fewer people will see it.
   
4. You can browse categories to find the right one for your item. To do this click on the “Browse for categories” tab on the left.
   
5. Check if there is a less-crowded category where your listing still fits but will stand out more.
   
6. When you find the proper category, click “Save and Continue.”
   • For an additional fee, you can place your item in a second category, which can bring more people to your listing.

Write Your eBay Listing Title

Make sure to accurately and honestly describe what you’re selling. (Photo by Vangelis Thomaidis)

1. Enter a listing title that accurately describes what you are selling.
   
2. Put yourself in the buyer’s position: what search term would you use to find this item? That’s your title!
   
3. Stuck for ideas? Search the completed listings again for similar items. The keywords that appear in high-selling items are good ones to include in your own listing.
   
4. When you write the title for your listing, make sure it’s spelled correctly: you don’t want buyers to miss it!
   • Misspelled items receive lower sale prices because fewer people see the listing.

5. For an extra fee, you can add a subtitle to further describe your item.
   

Photos of Your eBay Item

1. Now it’s time to upload the photo(s) of your eBay item.
   
2. Photos are very important on eBay; buyers want to see what they might get!
   
3. Check the previous step for more tips on creating great photos.
   
4. Click “Add Pictures” to upload your photo(s).
   
5. You may choose to upgrade your picture display. But remember that the most important thing is to upload great photos; paying more for design upgrades will not improve your photo quality!
   
6. Adding a gallery photo may be the best upgrade you can make; it lets buyers see a thumbnail shot of your item as they search listings.
   
7. Keep in mind that eBay charges for hosting photos after the first photo, although it is not a large fee.
   
8. You can use a free hosting service like Photobucket or TinyPic to avoid paying eBay fees.
   • Click on the “Self-hosting” tab to upload the URL for your hosting service.

Write Your eBay Item Description

1. Take time to write a clear description of your item.
   
2. Be honest in your description. You do not want to be penalized with negative feedback for faulty information.
   • “Excellent condition” can mean many things to different people.

3. If there are problems or flaws with your item, be forthright about them. This will help you avoid any disputes after the sale.
   
4. If you have a rare item, give sources and background to explain how it is genuine; certificates of authenticity are too easily duplicated by unscrupulous sellers and therefore do not suffice.

5. Remember, you want the winning bidder to feel they got the exact item they were expecting from your description!
   
6. Do not write an overlong description, however, as it is more likely to turn buyers off. Just write a clear and concise description, without typos.
   

Design Upgrades for Your eBay Listing

1. eBay’s Listing Designer offers extra design options for your listing, like bold or italicized fonts. These can help your item stand out, especially if there are many similar items.
   • These upgrades incur extra fees.

2. Keep in mind the time it takes to add these extra touches to your page. It may be better to spend the time putting together a clear description and uploading good photos.
   

Choose a Selling Format for Your eBay Listing

1. Most eBay listings are auctions in which you accept bids for your item during a set length of time. The highest bidder when the auction ends wins the item.
   
2. You can vary the auction format, or bypass auctions altogether, with one or a combination of the following options:
   

• Fixed Price and Best Offer on eBay

1. A Fixed Price listing is a non-auction selling format, wherein your item shows up in categories and searches, but the only purchase option is the price you decide to accept.
   
2. Best Offer lets you accept bids at your discretion; you choose the winning price.
   

• Multiple Item Listings on eBay

1. Dutch Auctions let you sell multiple items in one listing.
   
2. You can list your identical items:
   • In an auction listing (people bid on price and the number of items they would like).
   • In a fixed price listing (there is a set price for each individual item).
   • In a lot listing (all the items are sold as one lot to one buyer).

• Private Listings on eBay
• Private Listings allow you to keep buyers’ identities hidden.

Enter Your eBay Selling Price

1. Set a low opening price for your auction. It will attract more bids and buyers flock to auctions with more bids.
   • Set a low opening price that is reasonable. You do not want to discourage buyers by making them think your item is of low quality or that the price is too good to be true.
   • Be prepared; either set a reserve price or be prepared to sell your item at the low initial price in case more bidders do not arrive.

2. The one exception for the low starting price rule is if you are selling an idiosyncratic item that will not generate much general interest.
   
3. If you have many of the same type of item to sell, spacing out auctions instead of selling the items right after each other will net you a higher price.
   

• Reserve Prices on eBay

1. A reserve price lets you set a minimum amount that you are willing to sell your item for.
   • For example, you want to sell a painting on eBay. You set the opening price at $1, and the reserve at $25. If the highest bid is $20, no one wins the auction.

2. Setting a reserve price requires a small additional fee.
   
3. eBay does not refund listing fees if your item does not sell, so set a reasonable reserve price.
   
4. Keep in mind that buyers avoid auctions with secret reserve prices, although auctions for higher-priced items (over the $25 – $50 range) may benefit from a reserve price.
   

• Buy It Now on eBay

1. Buy It Now sets a price at which the listing ends and the item is sold. You can use Buy It Now in an auction format, as well as in a fixed price format.
   • Buy It Now can be a great option if you want to sell your item right away.
   • If you need the money straightaway, asking for immediate payment via PayPal is a prudent option to make sure you get paid quickly.

2. Some sellers feel that the Buy It Now price is often lower than what a bidding war can generate.
   
3. In fact, should someone bid over the Buy It Now price, the option is voided and the sale proceeds as a normal eBay auction.
   

• Combination eBay Selling Options

1. You can also combine formats and pricing options.
   
2. For example, in the Fixed Price category, you could combine a high Buy It Now price with the Best Offer option.

3. The higher Buy It Now price may encourage sellers to make a Best Offer bid which is good enough that you accept it and end the auction.
   

Enter Duration of Your eBay Listing

1. You can choose the number of days your listing will be available.
   
2. Research has shown that longer auctions generate higher prices. If you have the time to wait, 10-day auctions receive 42% higher prices on average.
   • 10-day listings incur an additional fee.

3. You can start your listing immediately, or schedule the start time for an additional fee.
   

Contact Options

• eBay now lets sellers place listings with their Skype contact information. Please note that you’ll need to download Skype and create an account (both the download and account creation are free).

Enter Payment Methods for Your eBay Listing

1. As noted above, you need to accept credit cards or PayPal for your listing.
   
2. You can also accept checks or money orders.
   
3. You may require immediate payment if someone uses the “Buy It Now” option.
   • This is especially prudent if you are selling an expensive item; this assures you will be paid quickly!

Enter Your eBay Shipping Information

1. You can use Shipping Wizard to outline your shipping options and costs.
   
2. It is not necessary to offer multiple means of transport or insurance, but it can be an easy way to attract more bidders.
   
3. For example, you can offer:
   • Express Mail, Priority Mail, and Ground shipping through the U.S. Post Office.
   • Delivery via FedEx or UPS.

4. If you want to offer different shipping methods, clearly describe how long each method will take.
   
5. It can also help buyers if you explain how often you mail packages.
   • For example, if you can realistically only get to the post office on Saturday, state that you ship packages once a week.

6. Offer your item for sale internationally and you increase the number of potential buyers.
   • Keep in mind the shipping costs to overseas customers. If you live in the U.S. and are selling a large item that will be expensive to ship, it may be smarter to limit shipping to the U.S. and Canada, or even just the U.S.

• Your eBay Shipping Price

1. Buyers are more attracted to low-cost, higher-shipping auctions than to higher-price, free shipping ones.

2. eBay does prohibit excessive shipping fees, and may remove your listing or downgrade your status if members complain that your shipping charges are too high.
   
3. eBay allows you to charge:
   • Actual shipping cost
   • Handling charge
   • Insurance
   • Tax (if applicable)

4. Don’t have shipping fees that are much higher than your competitors or you risk losing bids.

5. And with eBay’s detailed seller ratings, you can be rated negatively on shipping & handling costs, so price accordingly!
   
6. Do not hide your shipping costs. This is called shrouding, and it turns off potential buyers.
   

Who Will You Sell to on eBay?

1. You can block selective levels of buyers, if you want to maintain an extra level of security around your listing.
   
2. For example, you may not want to sell to:
   • Buyers who do not have PayPal accounts.
   • People registered in countries you don’t ship to.
   • Bidders who have negative feedback scores.

3. Exercise caution with this option: you are more certain about the quality of bidders, but you will limit your pool of potential buyers.
   

Your eBay Return Policy

1. A return policy is optional, but buyers often prefer to deal with sellers who have one.
   
2. A clearly stated return policy also protects you should anything go wrong; you will have already detailed what you take responsibility for and what you will not cover.

eBay Rules

Be available if buyers have questions. (Photo by Bruno Neves)

1. In addition to only listing items which are allowed by eBay, you want to follow eBay’s policies and regulations.
   
2. An overview is available here.
   
3. Key rules include:
   • Do not bid on your own items, or have friends or family bid for you.
   • Do not advertise items for sale outside of eBay.
   • Honor all sales contracts.
   • Pay relevant fees and taxes.

Shipping What You Sold on eBay

Pack with care! (Photo by Melanie Kuipers)

1. Ship items in a timely manner. If you laid out a shipping schedule in your policies section, follow this! Buyers want to get their new purchase as soon as possible.
   
2. Pack carefully:
   • Sturdy boxes or crates can ensure the item isn’t damaged during transit.
   • Use newspapers, bubble wrap, packing peanuts, or other packing materials to protect the item inside its box.
   • You can get free boxes and shipping supplies from the Post Office.
   • Move the package to see if the item will shift around inside during transport. No matter how many times you write “Fragile” and “This End Up” on the outside, your package will probably get flipped and turned during its trip.

3. You must ship to the address listed on the transaction details page to be eligible for PayPal protection, should something go awry with your shipment.
   
4. Shipping insurance and delivery confirmation notices cost extra, but they do offer protection should anything go wrong during shipping.
   

Leave Feedback for Your eBay Buyer

1. You already know how important feedback is to the eBay community.
   
2. Make sure to leave feedback for your buyer once she has left feedback for you.
   
3. If your buyer does not leave feedback within a week of receiving her item, write the buyer feedback. This can remind the buyer to leave you feedback on a successful transaction.