Starting out on Ebay

[paulnic]

Hello,

I am hoping to get some advice on starting a very small business on Ebay. I am very new to business and e-commerce so i have decided to start at the very bottom and sell a few itmes on Ebay and hopefully grow into an ebay shop and then upward from there.
Is there anyone out there who has gone down this route, that could give me some advice? My questions are as follows:
Should i register as a sole trader with the inland rev if i am only selling a few items and dont even have an ebay shop?
Will suppliers\wholesellers deliver to a residential address?
Do you have to be a registered business to get deliveries from wholesellers\suppliers or will they deliver to anyone who meets there min order requiremnts?
I have more but dont want to put people off with a huge post!

Thanks in advance

Paul

 

[QueenL]

I started out initially selling a few bits n bobs on ebay - if you are just testing the water you can delay registering as a business seller - Many so-called business sellers on ebay arent even registered - unfair to the rest of us but no-one begrudges you having a go and testing the water. As far as the inland rev. are concerned - if you buy something new to re-sell it then you should declare it but millions dont when its on a small scale/part time. Your suppliers will supply you no problem - you dont need business premises, many dont need them if they are an online 'virtual' shop anyway and suppliers understand this. Depending on what you want to sell storing your goods may become a problem the bigger your business grows but theres always lock-up premises to be had on a cheap rental basis.
Best advice I can give you for ebay - never be tempted to sell offline (in order to avoid paying ebay seller fees) they have moles everywhere and if you're caught out you will lose your ebay business so its not worth it for a few pounds.
Hope this has helped!

 

[dingbat]

And to add to QueenL's post - make sure your listings abide by Ebay's rules to the letter. If a competitor sees your ad there's a good chance they will grass you up on the smallest technicality and have your listings removed. This will also affect your account and your search ranking in ebay.

 

[paulnic]

I started out initially selling a few bits n bobs on ebay - if you are just testing the water you can delay registering as a business seller - Many so-called business sellers on ebay arent even registered - unfair to the rest of us but no-one begrudges you having a go and testing the water. As far as the inland rev. are concerned - if you buy something new to re-sell it then you should declare it but millions dont when its on a small scale/part time. Your suppliers will supply you no problem - you dont need business premises, many dont need them if they are an online 'virtual' shop anyway and suppliers understand this. Depending on what you want to sell storing your goods may become a problem the bigger your business grows but theres always lock-up premises to be had on a cheap rental basis.
Best advice I can give you for ebay - never be tempted to sell offline (in order to avoid paying ebay seller fees) they have moles everywhere and if you're caught out you will lose your ebay business so its not worth it for a few pounds.
Hope this has helped!

thanks, thats a good help.

Paul

 

[paulnic]

And to add to QueenL's post - make sure your listings abide by Ebay's rules to the letter. If a competitor sees your ad there's a good chance they will grass you up on the smallest technicality and have your listings removed. This will also affect your account and your search ranking in ebay.

ah, i wasnt aware of this? when you say abide by the listings rules do you mean basically describe the item to be exactly what it is?? i had heard of competitors buying from you with the sole intention of leaving neg feedback but thats all.... sneaky bu**ers

 

[dingbat]

ah, i wasnt aware of this? when you say abide by the listings rules do you mean basically describe the item to be exactly what it is?? i had heard of competitors buying from you with the sole intention of leaving neg feedback but thats all.... sneaky bu**ers

For instance your heading title can get done for trademarks, or using names unrelated to your item etc.

Then stuff like saying 'I also have x,x and x...please contact me'. The inference to ebay being that you're trying to trade outside of their system. So, you'll see ebayers say '...please contact me and I will place up a new listing'.

Of course there are tons of ebayers violating all this stuff but nothing will done unless a competitor or just someone who has time on their hands grasses you up. Then, depending on what you sell, you've got VERO members objecting to listings.

There are many other things but unless you're into some niche market I wouldn't worry too much.

As for competitors buying off you to leave negative feedback - this is a possibility. I did once start selling certain items under a new account in the hope it would take off. There was already another established seller doing good trade in this and they actually bought off me. Then I got an email from them saying they were very happy with their purchase and could I leave them feedback. Yet, they had not left any for me. It did seem a bit strange - I just responded saying positive feedback would be left once received but they never did. This was in the time when sellers could leave negative feedback. Obviously it's even easier now to do this.

 

[paulnic]

do any of you with Ebay shops also have websites of your own selling the same products as u have on ebay and do you make any mention of them on your ebay shops?? i'm sure i have seen this on some ebay shops and was just wondering whether it was within the rules?

 

[J-Wholesale]

Will suppliers\wholesellers deliver to a residential address?
Do you have to be a registered business to get deliveries from wholesellers\suppliers or will they deliver to anyone who meets there min order requiremnts?

It really depends on the wholesaler. We deliver to residential addresses all the time, as a number of our customers are small businesses (jewellery party planners/market traders, etc.), but not all wholesalers do. The same goes for the registered business part of your query.

The only thing I would say is that small start up businesses, operating from home, don't always have the best reputation amongst wholesalers. They often fail to understand the difference between a Retailer and a Consumer. As a business, you're a Retailer (capital R), not a consumer, which means you don't have the same rights, and shouldn't have the same expectations, as a consumer. It's always the smallest businesses operating from home and placing the smallest orders who cause the most problems for wholesalers. This is one of the reasons why many wholesalers prefer to deal with established businesses and insist on business addresses and documentation.

Be professional from the start, and you shouldn't have too many problems.

 

[GM Wholesale]

I offer free dropship accounts if you are interested to be honest i wouldnt register if youre just starting out the tax wouldn't be worth it you would have to declare all profits and if profits is £100 your taxed 18% for selfemployment that leaves you with £82 not worth it when its a full time job then it would be in your interest hope this helps

gm-wholesale.com

 

[paulnic]

I offer free dropship accounts if you are interested to be honest i wouldnt register if youre just starting out the tax wouldn't be worth it you would have to declare all profits and if profits is £100 your taxed 18% for selfemployment that leaves you with £82 not worth it when its a full time job then it would be in your interest hope this helps

gm-wholesale.com

ok cool thanks, do you stock any sports equipment?

 

[GM Wholesale]

ok cool thanks, do you stock any sports equipment?

no i dont the credit crunch isnt good for selling that kind most brands is suffering
i have unbranded phones which is exactly the same as uk but without the expensive logo hope this helps have a look

gm-wholesale.com

 

[DragonWraith]

do any of you with Ebay shops also have websites of your own selling the same products as u have on ebay and do you make any mention of them on your ebay shops?? i'm sure i have seen this on some ebay shops and was just wondering whether it was within the rules?

To be honest they don't like it. We used to put a link to our legal information and got all the listing removed for that. They say that you should not premote your business from ebay. We get away with part of it because our user name is our business name.
Have a look at http://pages.ebay.co.uk/help/index/P.html under policys, Some little bedtime reading
We have been doing eBay for over a year and are just starting to set up our online store.

 

[ginantonic]

I have been buying and selling on eBay for 7 years, and only recently have decided that it isn't that viable anymore because of the fees, especially for business sellers. Now looking into an e-commerce shop instead.
One thing I don't like is having listings for larger items (like cars or items of high value) removed because I have put "is being advertised elsewhere, so I reserve the right to remove this listing at any time if there are no bids on it" - which has been used by sellers for years - eBay is becoming too big, with too many rules now, it will end up eating itself eventually.

 

[Idontbuy]

I would thing Amazon is a better bet than ebay at the minute i know it is for us we are doing 2000% more on Amzon than ebay, but then it depends on what you are selling as to the charges that you may incurr on either site.

 

[ginantonic]

I've not really looked at selling on Amazon - how does it differ from eBay? I sell catering supplies (e.g.disposable bowls etc). Think I'll go take a look now!

 

[vzaar]

Crikey....where to start? Here, as an ex eBay employee of 7 years, are my tips

1. Test, refine and then scale. By that I mean, test some items, see what works, what doesn't and then scale from there. Don't attempt to boss a category or line of sales from the start. It won't work.

2. Buy from your competitors. Understand what they do well and what they don't do well. Learn from that.

3. Abide by the policies. Just because others break them it doesn't mean you should.

4. Don't get hung up on feedback. Yes, the quality scores are important but don't waste time chasing positives or fighting negatives. If your feedback is down take a look at your service and where it could be improved.

5. Use tools to save time. Selling Manager and Turbo Lister are free, simple to use and can help you save time over the mundane, repeatable tasks.

6. Create a brand. Use it in your username, in your emails, in your logos etc.

7. Don't link to your website from your listings.

8. Understand the fees and how they work and what your margin will be. Don't get a shock when you open your first statement email.

9. If you are a business register your details for lower fees.

10. Use PayPal. It is the defacto payment method and you'll be penalised in search for not offering it. After a number of sales, contact PayPal for a reduced rate on comission of sales.

11. Use the advice out there. Plenty of blogs etc but I'd recommend Tamebay.com for starters.

12. Aspire to get an Account Manager and then use that Account Manager to help you grow.

13. If you are niche or have an interesting story or angle to tell, PR yourself. Newspapers love eBay stories on slow days.

14. Try using video in your eBay listings. At vzaar.com, we enable sellers to quickly and easily add video to their listings. A great way to differentiate yourself from the competition.

15. Try Best Offer if you know what you are prepared to accept as your lowest price.

16. Respond to questions quickly and professionally. However dumb you think people are, a sale is a sale.

17. Do your research. Understand what titles and keywords work well and which don't (e.g. Is it Womens or Ladies)

How's that for starters?

 

[paulnic]

Crikey....where to start? Here, as an ex eBay employee of 7 years, are my tips

1. Test, refine and then scale. By that I mean, test some items, see what works, what doesn't and then scale from there. Don't attempt to boss a category or line of sales from the start. It won't work.

2. Buy from your competitors. Understand what they do well and what they don't do well. Learn from that.

3. Abide by the policies. Just because others break them it doesn't mean you should.

4. Don't get hung up on feedback. Yes, the quality scores are important but don't waste time chasing positives or fighting negatives. If your feedback is down take a look at your service and where it could be improved.

5. Use tools to save time. Selling Manager and Turbo Lister are free, simple to use and can help you save time over the mundane, repeatable tasks.

6. Create a brand. Use it in your username, in your emails, in your logos etc.

7. Don't link to your website from your listings.

8. Understand the fees and how they work and what your margin will be. Don't get a shock when you open your first statement email.

9. If you are a business register your details for lower fees.

10. Use PayPal. It is the defacto payment method and you'll be penalised in search for not offering it. After a number of sales, contact PayPal for a reduced rate on comission of sales.

11. Use the advice out there. Plenty of blogs etc but I'd recommend Tamebay.com for starters.

12. Aspire to get an Account Manager and then use that Account Manager to help you grow.

13. If you are niche or have an interesting story or angle to tell, PR yourself. Newspapers love eBay stories on slow days.

14. Try using video in your eBay listings. At vzaar.com, we enable sellers to quickly and easily add video to their listings. A great way to differentiate yourself from the competition.

15. Try Best Offer if you know what you are prepared to accept as your lowest price.

16. Respond to questions quickly and professionally. However dumb you think people are, a sale is a sale.

17. Do your research. Understand what titles and keywords work well and which don't (e.g. Is it Womens or Ladies)

How's that for starters?

great advice in there, thanks a lot. If you think of any more please let me know!

cheers

 

[vzaar]

A few more in fact

18. Look to make friends with other sellers. People are happy to share. eBay MeetUps in London for example is a place to start: http://vzaar.com/blog/2009/02/ebay-meet-ups-a-chance-to-network-with-powersellers

19. Don't put all your eggs in one basket. Consider selling multi channel (e.g. Play, Amazon etc)

20. Use the eBay Forums for various best practice tips but don't get immersed in it to the extent that you take your eye off the ball.

21. When replying to eBay automated customer support emails, be to the point, polite and include all necessary information. Don't rant. It doesn't help one bit. You are 1 of 20 million UK users.

22. Remember you are now a 24/7 business. Look at what tools (e.g. iPhone, Skype etc) you can use to ensure you don't miss a sale, or a question. An unanswered buyer generally has lots of other sellers they can turn to.

23. Lowest price is not always the best. Some buyers like to think they are committing to an item of perceived quality.

24. Avoid, long drawn out item descriptions and T&Cs. No one reads them. Get to the point. Quickly.

25. Don't hide costs (eg postage). Be up front and clear and your buyers will respect that.

26. Enjoy it. It can be fun and rewarding!

 

[MH1]

24. Avoid, long drawn out item descriptions and T&Cs. No one reads them. Get to the point. Quickly.

I disagree, detailed descriptions and T+C's are important, as much to protect the seller as too help the buyer make a decision.

If the buyer doesn't read them that is his problem, if you fail to put something down in the description, ie a small mark, or forget to mention any returns postage is at the buyers expense, then it becomes your problem.

 

[vzaar]

I disagree, detailed descriptions and T+C's are important, as much to protect the seller as too help the buyer make a decision.

If the buyer doesn't read them that is his problem, if you fail to put something down in the description, ie a small mark, or forget to mention any returns postage is at the buyers expense, then it becomes your problem.

Fair point. I should have been clearer. Such T&Cs can be important so put them lower down the page to cover yourself or direct people to your About Me page where you can host them.

 

[paulnic]

great advice again thanks alot