Why You Should Open An eBay Store – Passive Income Stream One

Why You Should Open An eBay Store – Passive Income Stream One

Posted on 28. Apr, 2013 by in Archived Post

Selling on eBay is one way to earn an income online. Many people are actually doing this, many have already succeeded and more are beginning to reap success. I can vouch for this as I have been successful selling various items on eBay over the years. From handbags to Windows Repair CDs, I was able to generate enough income to cover my monthly living expenses over an extended period of time. Don’t get me wrong, though, I had my fair share of “what in the world was I thinking” moments (two of which caused me to get my account suspended for a year) which I will share in later posts, but all in all, selling on eBay was fun, exciting, and profitable. eBay selling continues to be a traditional avenue for people who want to earn some quick bucks working from home and many have been able to sustain a main source of income this way.

eBay is just one of the many online auction sites that offers business opportunities to people, but it is one of the most popular for some reasons.

Simple Setup Process

Selling on eBay is a simple process if you compared it to the traditional way of doing business where you need to look for a venue, pay rent and work with specific schedules. In a nutshell, starting an eBay business is a “walk in the park”, meaning you work at home and at your own schedule. All you have to do is to register for an eBay account and then list the items that you intend to sell. The whole process is quite simple because eBay has an easy to follow instructional guide to help you through. Now, maintaining an eBay business is a whole different story which I will delve into in a later post.

Sell Almost Anything You Want

Another advantage of eBay business is that you can sell almost anything that you have. There is no need to sell only expensive or fancy items to earn profit. As a matter of fact some eBay sellers put up second-hand items on their listings. Auctioning your old gadgets, toys, or clothes is one way to test if you can do good business with eBay. As they say, one man’s trash can be another man’s treasure. The eBay founder actually started it all when he sold an old laser pointer.

Millions Of Potential Customers

There are about millions of users that visit eBay every day and these are the people that could be your potential clients. With a number as big as that, there is no doubt that you have a big chance of earning good revenues. You goal is to identify your target market and do your best to present your product to that market. If you do this well and provide outstanding customer service, your eBay business will skyrocket.

Trusted Name in Online Auction Business

For a few years now, eBay has been providing people with opportunities to sell and earn, and the company has been able to maintain its good standing because of it is a trusted and solid household name in the online auction industry. All transactions are secured because of the solid and dependable payment method through PayPal.

Different Selling Options

There are many ways that you can use to sell on eBay. You can choose the traditional auction method where people will bid for what you have to offer. The trick here is to evaluate the best starting bid price; too high and people may lose interest or too low may and you may end up not earning much. There is also the Buy It Now option, which means that you create a fix price for your item. There are other ways to sell on eBay, all you need to do is to try which one is going to really work for you.

Mentioned above are just some of the benefits of selling on eBay, there could be more and you need to understand that there are some cons too. One of the drawbacks is the high number of competitors – this number has definitely grown with eBay opening its doors to the China market. If you have a physical product, you will most definitely find several possible competitors from China. Most long time eBay sellers have built good reputations, so in order to compete fairly you also need to develop a reliable reputation. You can start doing that by selling items that are in good condition, good price, and a solid warranty. So don’t get discourage by the competition. Separate yourself by offering excellent customer service (post sale support, follow ups, and, if needed, speedy returns/refunds). Poor customer service will almost always come back to bite you in the butt and leave a lasting negative impression called “Negative Feedback” in eBay terms.

You can also sell via an eBay Store. The primary benefit of selling via an eBay store is that you can leverage their existing infrastructure to create a professional-looking store front which generates a bit of trust and credibility that makes a potential buyer feel at ease. To put it simply, buyers have a tendency to buy from a business as opposed to someone selling as an individual. Think about it, would you rather buy a tablet from Joe down the street or from Best Buy/Frye’s Electronics? My guess is the larger, more polished retailer.

Manageable Costs

An eBay store will cost you around $14.99 per month to start which you will have to factor into your selling price per item so that you can recover that fee. Don’t forget about eBay’s insertion fee, final value fee, and Paypal’s processing fee. All of that must go into your pricing equation. If you decide to use the “Buy It Now” feature as opposed the typical “Auction-style” listing, you will save quite a bit on eBay insertion fees.

All-in-all, selling your products through your eBay store can be very beneficial to you if you have a product that is in demand, market it well, and back that with excellent customer service. I’ll walk you through setting up an eBay store in an upcoming training video.

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18 Responses to “Why You Should Open An eBay Store – Passive Income Stream One”

  1. VaughnD

    08. Jun, 2013

    How do we avoid scams or getting low quality items on Ebay? I found Ebay disappointing before because other users are only scammers out for money.

    Reply to this comment
    • mpibadministrator

      mpibadministrator

      09. Jun, 2013

      Someone raised that question earlier and I would simply say it starts with good research. For example, I recently bought my wife an iPad. I could have purchased it from eBay, but found a refurbished iPad for sell on Apple’s website. The only difference that I could see between the two was the 1-year warranty that Apple provided.

      Reply to this comment
  2. Alissa

    10. Jun, 2013

    I’ve had a pretty good experience from eBay so far. I’ve bought a ton of baby and maternity clothes from the site and haven’t had any problems with those yet (knock on wood). Any other potential problems I have had have been resolved quickly and painlessly. I purchased a travel DVD player and it didn’t work when I got it, but my money was refunded… I accidentally ordered a dress for my new daughter from England but a) it was my fault for not seeing I was ordering from England and b) the seller felt bad and threw in an extra cardigan since I had to pay relatively high shipping….

    Reply to this comment
    • mpibadministrator

      mpibadministrator

      11. Jun, 2013

      Glad to hear you’ve experienced good customer service….you’ve been fortunate.

      Reply to this comment
  3. Sky

    16. Jun, 2013

    While I’ve had luck selling on Ebay in the past, I’m curious about your classification of it as “passive income”. To me, all the packaging, shipping, description writing and customer support make it a rather involved way to make some money…

    Reply to this comment
    • Big Dave

      Big Dave

      16. Jun, 2013

      Hi Sky, you a referring to physical/tangible items that one would sell on Ebay…a more passive approach involves selling of services and software. Saying that, and this is one of the reasons I prefer Amazon over Ebay, I can offload the packaging, shipping, and customer support to Amazon using their fulfillment services. Thereby, I only need to setup/write my description(s) and I’m done.

      Reply to this comment
  4. James

    21. Jun, 2013

    Can you bounce back from a negative eBay rating like you can on Amazon? If so, which one is more challenging to bring back up?

    Reply to this comment
    • Big Dave

      Big Dave

      23. Jun, 2013

      Good question….you see, because my Ebay selling volume was high, I was able to overcome any negative feedback in a short period of time due to the high number of positive feedback I would receive. Again, it all of it was tied to a high volume of sales.

      With Amazon, my sales volume is substantially lower, so the one time I did receive negative feedback, it took what seemed as a lifetime to recover. But I did……

      Reply to this comment
      • James

        24. Jun, 2013

        I know that with eBay, if you have a negative rating, it’s pretty difficult to just start another account. Their fraud detection department is always on the look-out for people trying to avoid negative feedback by starting over.

        Reply to this comment
  5. SharonJ

    23. Jun, 2013

    I’m really, really annoyed with eBay right now. I finally decided to list something on there and I just went to check on it (four days later on a seven day posting) and my account was restricted! Apparently, they think it’s a good idea to wait until AFTER you post something for sale to decide to verify your account, so then they restrict it so you’ll call and verify your info. Ugh, not a way to do business!

    Reply to this comment
  6. Mike

    11. Jul, 2013

    What an interesting idea, I’ve never considered opening an eBay store until reading this post!

    Reply to this comment
  7. Sarah Harris

    11. Jul, 2013

    How time consuming do you consider the communicating/posting/updating to be? I always considered the maintenance would be quite time consuming.

    Also what’s the deal with tax?

    Reply to this comment
  8. nomansalehzada

    16. Jul, 2013

    Is there any alternative for Paypal on E bay? Paypal do not have services in some countries like mine

    Reply to this comment
  9. Natalie Thom

    17. Jul, 2013

    Ah SharonJ that sucks. I hate hidden agendas like that. Transparency is really the best option when it comes to running any kind of business.

    Reply to this comment
  10. John

    22. Aug, 2013

    I’m not sure eBay is a great candidate for passive income, but certainly a great way to start a small home business. You have to remember the time that you’ll spend sourcing products, packaging / shipping, and performing customer service duties as well.

    Reply to this comment
  11. Robbe

    13. Sep, 2013

    I want to learn how to create passive income on ebay, any advise

    Reply to this comment
    • Big Dave

      Big Dave

      13. Sep, 2013

      Hi Robbie…now, selling physical products on Ebay doesn’t necessarily qualify as passive income IF you don’t have a “picking, packaging, and shipping” strategy in place that minimizes your involvement in that process. You need to:

      1. Identify a product(s) that you currently own and get accustomed to the selling experience on Ebay….”get your feet wet”.
      2. Start identifying items that fit within your areas of interest….your hobbies. Something you’re familiar with…
      3. From there, you can focus on higher priced items within your areas of interest/hobbies. Find a good wholesaler to work with…

      Before you get deep into it, you need to know if you’re going to be able to make a profit from your venture. Calculate your total cost for an item and see if a consistent profit can be made. This is just a brief synopsis as there is a lot more to it…..hope this helps. If you have any more questions, please let me know.

      Reply to this comment
  12. Raymond

    10. Nov, 2013

    Hi Big Dave, ebay stores does have a lot of potential. Thank you for sharing your insights on the issue.

    Reply to this comment

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