6 Key Tips to Help Explode Home Business and EBay Auctions
Tip 1
Your product sourcing needs will be determined by your business. That may be obvious, but many people miss that point. The product you sell follows from your business plan, and your product, to some degree, will determine the logistics of supply. For example, if you selling mass market auto parts, then you will probably be relying on a conventional wholesale supplier who may or may not provide drop shipping for you. In that sense, your sourcing problem is handled, and if the supplier drop ships, your means of delivery is handled as well. However, if you are selling items produced by local artisans, then the logistics of supply and deliver will be a bit different. There really isn’t a one-size-fits-all solution to product sourcing.
Tip 2
Before selling anything on eBay it is important to study the additional eBay costs so that you’ll know how much you need to make to make a profit. Some of the extra costs include: (1) listing fees, (2) final value fees, (3) image hosting fees (can be optional),(4) fees for extras such as bold type, extra space for your listing, larger picture size (optional), (5) “Buy it Now” fees (optional), (6) fixed price fees (optional), (7) PayPal or other payment processor fees.
Tip 3
The fact of the matter is that on eBay you can sell virtually any product. And although you could probably find someone who would buy your fingernails, that’s not really the issue. You don’t want to sell just any product; you want to sell what you can consistently earn a profit. Many people starting out on eBay want to sell cool items such as DVDs or the latest electronic gadget, but this is not generally the best way to break into eBay if you are starting from scratch.
Tip 4
If you are just starting out, the first thing you must know is that legitimate wholesale DVDs–even though they are wholesale–are expensive. That means, for example, that you really can’t buy brand new releases–non counterfeit releases–of box office hits for $2, $3, or even $5. I know that this contradicts the low cost that you see on eBay and with Amazon merchants. $2 and $5 and far less may be accurate for lower demand older movies, or liquidated stock you buy in bulk quantities.
Tip 5
It is vital to understand that the purchase of goods from a licensed wholesaler also requires a sales tax permit. Even if you don’t sell products to residents of your state, if you plan on using true wholesalers, your permit allows you legal right to buy wholesale products without paying sales tax. Wholesalers, in turn, are required by the terms of their license to have on file proof of your sales tax permit. Keep in mind that if a business does not demand your tax permit, it is not a true wholesaler. If you are a new eBay seller, you need to be aware of the kind of product supplier you are doing business with. Your supplier should be open about their business and inform you up front if they are a wholesaler or some other kind of product supplier. Your job as a retailer will include charging sales the tax to those buyers who are residents of your state and then to pay it back to your state treasury department at tax designated tax times. Right now, the issue of how to handle sales taxes when selling to residents of other states is an open question
Tip 6
Another secret source of collectibles is eBay itself and other auction sites. Yes, the power of leveraging eBay is in fact a secret of many eBay sellers. Many items for sale on auction sites can be purchased and then resold on the same or another site. This is actually a common practice. The main difference in your auction is that you will target it to a specific audience. For example, you might find post cards featuring scenes of San Francisco’s North Beach neighborhood for sale on Yahoo Groups. You purchase the cards and then put them up for sale individually on eBay. One other thing to be aware of is that many people sell good stuff that they know is good but are not concerned with making a huge profit. If you make such folks a decent offer, you can come away with items you can profit handsomely from on eBay.
Want to know more about where to get products to sell on eBay? Start learning more about eBay product sourcing!