The Ultimate Guide to Selling on eBay for Beginners (2024)

The Ultimate Guide to Selling on eBay for Beginners (2024)

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Thinking about ways to declutter your home? Need a side hustle to make some extra cash? Maybe you dream of escaping your 9 to 5 and starting your own online business? If any of these apply to you, then you should consider selling on eBay.

You’ve most likely heard of eBay and may even have a general understanding of what it’s all about—it’s a place where you can buy or sell just about anything, new or used. And it’s still incredibly popular: as of Q4 2023, eBay had 132 million active buyers worldwide, with more than 78% located in the U.S.

Since its founding in 1995, just a year after Amazon, eBay has maintained its status as an ecommerce authority. What began as an auction-based marketplace for used items and collectibles has slowly transitioned into a platform where 79% of all products sold are brand-new.

eBay presents a wealth of diverse options to sellers—you can list items at fixed prices or auction-style, use your own photography and descriptions, and sell (almost) anything. There are very few restrictions on what you can list, and anyone can create an account and start selling, often within the same day.

Let’s dive into how to sell on eBay, whether you’re a complete beginner or an ecommerce veteran.

Table of Contents

Do People Still Use eBay in 2024?

The short answer is yes—people still buy stuff on eBay. A lot of stuff.

While Amazon boasts roughly 10 million seller accounts worldwide, eBay dwarfs that number with nearly 17 million sellers. In fact, 23% of current Amazon sellers also sell on eBay, and 33% of Amazon sellers plan to expand to eBay in 2024.

Here’s a snapshot of eBay’s impressive reach:

  • Active Buyers: As of Q4 2023, eBay had 132 million active buyers worldwide.
  • U.S. Dominance: More than 78% of eBay’s traffic originates from the U.S.
  • Market Share: 17% of U.S. consumers shopped on eBay in 2023.

Is Selling on eBay Worth It?

Anyone can easily set up an eBay seller account and start selling—which is a major reason why there are almost 17 million eBay sellers! The platform is incredibly accessible, allowing you to create an account, list a product, and potentially make a sale all in the same day.

If you have old stuff lying around your house, selling it on eBay can be an easy way to declutter while making extra cash. But eBay offers far more potential than simply cleaning out your basement. What starts as a decluttering project could easily transform into a consistent side hustle, or even replace your current income entirely. Ultimately, your level of success on eBay is up to you.

Selling on eBay vs. Amazon

If you already sell on Amazon, you’ll want to take note of some key differences between the two platforms:

  • The Buy Box: On Amazon, sellers compete for the Buy Box on a single product listing. eBay, however, allows each seller to create their own unique listing for the same product.
  • Listing Optimization: eBay offers sellers more robust listing optimization options compared to Amazon.

While buyers can still purchase the product in new or used condition, they’ll need to browse individual listings to find their preferred option.

Step 1: What to Sell on eBay

If you’re new to eBay, start small. If you’re looking to build a full-fledged business, learning product research is crucial. But first, it helps to brainstorm potential products.

eBay is famous for its vast and diverse product selection. While it was once known as the place to find weird and unusual items, it has evolved into a robust marketplace where 79% of products sold are brand new.

Here are some of the best things to sell on eBay:

Used Items: You name it, it’s probably listed on eBay. Sell your old electronics, video games, shoes, clothing, furniture, toys, books, loose Legos, board games, sporting goods—the possibilities are endless.

Collectibles: Items such as rare coins, watches, and vintage toys are highly sought-after on eBay.

Cars: Yes, you can even sell cars on eBay!

Vintage and Antique Items: This broad category includes treasures like records, furniture, plates, memorabilia, toys, clocks, china, silverware, trinkets, obsolete media (VHS tapes, cassette tapes), stuffed animals, and more.

New Items: Many brands—both big and small—sell their products on eBay, which boasts a loyal customer base despite fierce competition from Amazon and Walmart.com. If you’re familiar with Amazon business models, these will also work on eBay:

* **Private Label:** Launch your own brand and sell unique products.
* **Wholesale:**  Purchase products in bulk from other brands and resell them at a profit.
* **Arbitrage:**  Source discounted products from in-store or online retailers and resell them on eBay.
* **Dropshipping:** Sell products directly from a manufacturer who handles fulfillment and shipping.

Random Items: Don’t be afraid to get creative! One surprisingly popular category? Pine cones. People use them for crafts and home décor. Other random items include wine corks, empty toilet paper rolls, egg cartons, mugs, old board game pieces, and just about anything else you can imagine.

Not sure what to sell yet? No worries. In Step 3, we’ll cover product research techniques to help you evaluate profitability, demand, and competition, enabling you to make data-driven decisions for maximum profit.

eBay Seller Fees

Starting on eBay is incredibly affordable. You have access to a free seller account with no monthly fees. As your business grows, you can upgrade to an eBay Store, a paid monthly subscription that offers traffic- and sales-boosting benefits. Upgrading isn’t required, but it can significantly accelerate your business growth. We’ll cover eBay Stores in more detail in Step 6.

While eBay doesn’t charge monthly fees for free accounts, it does charge all sellers small fees to list and sell products. These fees are very manageable and are a standard part of doing business on the platform. We’ll dive into the specifics of eBay fees in Step 3.

Fulfilling Orders

Once you know what to sell, you’ll need to determine your fulfillment method—how you’ll get orders to your customers.

Fulfillment involves packaging the item, entering package details, purchasing a shipping label, attaching the label to your package, and then getting that package to the shipping carrier (USPS, FedEx, UPS), who will deliver it to the customer.

Fortunately, eBay makes fulfillment fairly straightforward. We’ll provide a detailed breakdown of the fulfillment process in a later step.

Step 2: How to Set Up a Seller Account on eBay

Signing up to sell on eBay is incredibly easy. You can be up and running in about an hour!

Step 1: Create Your Account

  • Navigate to the Create an Account page on eBay.
  • Enter your name and email address.
  • Create a secure password for your account.

You’ll have the option to open a personal account or a business account. Choose a business account if you have a legally registered business and plan to sell a large volume of goods.

If you’re just starting out or want to sell casually, a personal account is perfect. You can always upgrade to a business account later.

For this guide, we’ll proceed with a personal account.

Click Create Account. You’ll be redirected to the eBay homepage, signed in to your new account. eBay automatically generates a username for you, but you can easily change it in the “My eBay” section under “eBay Vault.”

Before accessing your account dashboard, you’ll need to enter your contact information.

Step 2: Add a Payment Method

Add your bank account to receive payments from customer purchases on your preferred payout schedule.

  • In the top-right corner of the eBay homepage, click the My eBay dropdown menu.
  • Select Selling.
  • Click on Account.
  • Under the “Payments” section, click Payment options.
  • Enter the information for the bank account where you want to receive payments.

Note: eBay previously used PayPal for seller payments, but transitioned to its own system called Managed Payments in 2020. Managed Payments sends payments directly to sellers’ bank accounts and automatically deducts selling fees from your earnings before payout.

Step 3: Start Selling!

That’s it! You’re now ready to list your items for sale on eBay. To create your first listing, go to the “My eBay” tab and click “Selling”.

Step 3: eBay Product Research

While you can sell almost anything on eBay, conducting product research before listing is crucial for maximizing your profits. Whether you’re selling items from your garage or launching a private label product, you need to evaluate potential products for profitability, demand, and competition.

1. Profitability

When investing money in sourcing products, you need to ensure you’ll make a return on your investment. Factor in eBay’s seller fees when calculating potential profits. Here’s a breakdown:

  • Insertion Fees: Charged when you initially list an item, relist an item, duplicate a listing for auction-style bidding, or list the item in a different category. While non-refundable, eBay offers each seller up to 250 free listings per month (more for eBay Store subscribers). Listings exceeding the free limit typically cost $0.35 per listing.
  • Final Value Fees: Charged after each sale as a percentage of the total sale amount (including shipping) plus $0.30 per order. Here’s a breakdown by category:
    • Most Categories: 13.25%
    • Books, DVDs & Movies, Music: 14.95%
    • Coins & Paper Money > Bullion: 13.25%
    • Clothing, Shoes & Accessories > Women’s Bags & Handbags: 15%
    • Jewelry & Watches (except Watches, Parts & Accessories > Watches): 12.55%
    • Jewelry & Watches > Watches, Parts & Accessories > Watches: 15%
    • Art > Art NFTs: 5%
    • Select Business & Industrial Categories: 3% ($20 insertion fee)
    • Musical Instruments & Gear > Guitars & Basses: 6.35%
    • Select Clothing, Shoes & Accessories categories: 8%
    Note: Fee rates for some categories decrease after reaching certain price thresholds.
  • Other Costs: Factor in product costs (what you paid for the item) and shipping costs.

2. Demand

Before listing, you need to know if anyone actually wants what you’re selling. Fortunately, eBay makes this easy.

  • eBay Search Bar: Start by typing your product idea into the eBay search bar. Take note of the number of results and the “sold” listings. A high volume of sold listings indicates strong demand.
  • Completed Listings: When browsing search results, click “Show Only” and select “Sold Items.” This filters results to show only items that have recently sold. Analyze these listings to gauge demand and average selling prices.

3. Competition

Understanding your competition is crucial for success on eBay.

  • Analyze Listings: Analyze competitor listings to understand their pricing strategies, shipping options, product descriptions, and overall listing quality.
  • Identify Opportunities: Look for gaps in the market or areas where you can differentiate yourself from competitors. Can you offer faster shipping, better product photos, or a more compelling product description?

Step 4: Where to Source Products to Sell on eBay

Once you’ve identified profitable products with high demand and manageable competition, it’s time to source your inventory. Here are some popular options:

  • Your Own Home: Decluttering is a fantastic way to start selling on eBay. Look for unwanted clothing, electronics, books, toys, and other gently used items in good condition.
  • Thrift Stores & Garage Sales: These treasure troves offer amazing deals on used items. Develop an eye for valuable products and learn to spot hidden gems.
  • Wholesale Suppliers: If you’re pursuing a private label or wholesale strategy, source products directly from manufacturers or wholesalers. This often involves buying in bulk to access lower prices.
  • Online Arbitrage: Discover discounted products from online retailers and resell them on eBay for a profit. This strategy requires careful monitoring of sales and clearance sections.
  • Dropshipping: Partner with a dropshipping supplier who handles inventory storage, order fulfillment, and shipping directly to your customers. This allows you to sell products without holding any inventory yourself.

Step 5: How to List and Ship Your Items

Now comes the exciting part—listing your products and making those sales!

1. Creating a Compelling Listing

Your listing is your product’s first impression, so make it count. Here’s how to create a listing that converts:

  • High-Quality Photos: Use clear, well-lit photos that accurately represent your product. Multiple images from different angles are ideal.
  • Detailed Product Description: Provide a thorough description that highlights your product’s features, benefits, and condition. Be honest and transparent about any flaws.
  • Competitive Pricing: Research similar listings to determine a competitive price point.
  • Shipping Options: Offer a variety of shipping options to cater to different customer preferences.
  • Excellent Customer Service: Respond to customer inquiries promptly and professionally.

2. Shipping Your Products

Once you make a sale, it’s time to ship that product to your happy customer.

  • Packaging: Package your items securely to prevent damage during transit. Use appropriate boxes, packing materials, and tape.
  • Shipping Labels: Purchase and print shipping labels through eBay to streamline the process.
  • Shipping Carriers: Choose a reliable shipping carrier that aligns with your budget and shipping timeframe. Popular options include USPS, FedEx, and UPS.

Step 6: Tips & Advanced Strategies for Selling on eBay

Ready to take your eBay business to the next level? Implement these advanced strategies:

1. Upgrade to an eBay Store

An eBay Store offers several benefits, including:

  • Increased Visibility: Gain access to dedicated merchandising tools and promotional placements to enhance your store’s visibility.
  • Branding Opportunities: Create a customized storefront that reflects your brand identity.
  • Lower Fees: Benefit from discounted final value fees on certain items.

2. Master eBay SEO

Optimize your listings for eBay’s search algorithm to reach more buyers:

  • Keyword Research: Identify relevant keywords that shoppers use to find products like yours. Include these keywords in your product titles, descriptions, and item specifics.
  • Optimize Product Titles: Create clear, concise, and keyword-rich product titles.
  • Utilize Item Specifics: Complete all relevant item specifics to ensure your listings appear in relevant search results.

3. Leverage eBay Promotions

Take advantage of eBay’s promotional tools to drive sales:

  • Sales & Discounts: Offer enticing discounts to attract bargain hunters.
  • Shipping Promotions: Offer free or discounted shipping to incentivize purchases.

4. Provide Exceptional Customer Service

Positive customer experiences lead to repeat buyers and glowing reviews. Respond to inquiries promptly, address issues professionally, and strive to exceed expectations.

5. Analyze Your Performance

Regularly review your eBay sales data to identify areas for improvement:

  • Track Key Metrics: Monitor your sales, traffic, conversion rates, and customer feedback.
  • Identify Trends: Spot emerging trends to inform your product selection and pricing strategies.

FAQ

Q: How much money can I make selling on eBay?

A: Earnings vary widely depending on factors like the products you sell, your pricing strategy, your marketing efforts, and the time you invest. Some sellers earn a few hundred dollars per month, while others generate six-figure incomes.

Q: What are the most common mistakes new eBay sellers make?

A: Common mistakes include: poor-quality product photos, inadequate product descriptions, unrealistic pricing, slow shipping, and poor customer service.

Q: How do I deal with returns on eBay?

A: Familiarize yourself with eBay’s return policy. Clearly state your return policy in your listings. Handle returns promptly and professionally to maintain positive customer relationships.

Conclusion

Selling on eBay presents an incredible opportunity to declutter your home, earn extra income, or even launch a thriving ecommerce business. By following the steps outlined in this guide and implementing the advanced strategies, you can set yourself up for success in the exciting world of online selling.