With an estimated 547,000 eBay stores worldwide as of March 2008, you too could make a profitable habit out of buying and selling items online.

There's nothing worse than looking around your already compact living quarters and seeing a closet full of has-been trends, shoeboxes of conquered video games, and stacks of textbooks the bookstore wouldn't buy back. Since the creation of eBay, you can quickly sell your stuff -- no garage sale required. Who knows? With an estimated 547,000 eBay stores worldwide as of March 2008, you too could make a profitable habit out of it.

eBay acts as an online auctioneer for buyers and sellers of new and used goods. As of December 2007, there were 276 million registered users on eBay. Anyone 18 and older looking to sell can simply list an item and let the bidding begin. To set a price, find similar items being sold on eBay and check out other websites to find the current market value of your item. eBay charges a listing fee to your account for each item, as well as a fee when you sell your item. When using the auction format, set the starting bid lower than what you expect to get for the item. Buyers won't bid if you start too high, but you can always set a reserve price (that bidders can't see) to ensure your item won't sell for less than that amount.

The "Buy It Now" feature gives buyers an option to purchase the item at a set price before bidding has begun. However, once the first bid is made, the item becomes auction-only and the "Buy It Now" option is automatically removed.

List as much valuable information about the item as possible, and always add a few pictures to help make your item attractive to buyers.

PayPal is the preferred payment method on eBay -- it's a safe and easy way to pay and get paid through online transactions. It's reliable for both parties and confidential information stays safe. Sellers have the option to accept other payment methods, including credit and debit cards or checks and money orders.

You can include a zip code search for buyers to find out the cost of shipping the item to their location. Be sure to pack and weigh the item before listing it to give an accurate shipping quote. If your item is heavy or large, you can list it as "pick-up only," but this could eliminate potential customers.

If you develop a knack for selling on eBay, consider selling items for other people. Have them sign a consignment agreement to cover your back. You can draft your own contract from samples on sites like extension.missouri.edu or purchase one at allbusiness.com for $25. Set your commission at a percentage of the final sale -- 30 percent is reasonable for items under $500. Don't forget to advertise. Get the word out with cross-promotion by making sure buyers bidding on your item will see a display promoting other items you are selling.

If business is good, you might consider opening an eBay "store." As long as you have a seller's account with your credit card on file and good feedback, you can create a store at one of three levels of store subscriptions. The basic subscription is beneficial to people selling around 10 items (or $100 worth) per month. Creating this store costs around $16 a month and three cents for 30-day listings.

You can open a specialty store or have several product lines. After designing a virtual storefront with a personalized logo and color scheme, you can build your inventory. Advertise your business using a link on your MySpace or Facebook page.

Visit the U.S. Small Business Administration at sba.gov to find more information about obtaining a business license. If you decide to set up an eBay business, you should also look into local regulations before becoming too involved. You may be responsible for sales tax, personal property tax or use tax, any of which can create a liability for penalties if not paid and filed on time.

Now that you've had a crash course in becoming a successful eBay seller, it's time to dig up all that stuff you don't need anymore and start auctioning away!
 

Sources:

sba.gov; allbusiness.com; ebay.com; entrepreneur.com; nytimes.com