Building an eBay business is in many ways similar to building any business. To be successful everything has to work: Marketing, Sales, Quality, Pricing, and Customer Service. Selling on eBay, however, has some unique features that differ from traditional retail businesses.

On eBay, a seller’s customer service reputation (Feedback Rating) is out in the open for everyone to see. Imagine, if every store in the shopping mall had a sign outside where customers wrote comments about their products and service. Would you stop to read the comments before entering the store? Negative feedback is the number one reason eBay sellers fail. A negative feedback rating, however, usually has its roots in other problems.

Here are the top five reasons why eBay businesses fail:

1. Poor Feedback Rating

New eBay sellers typically underrate the importance of quickly building a great feedback rating. I am amazed when I click on an auction description and see a seller with a feedback rating under “10.” How could this person know anything about selling on eBay.? Experienced eBay bidders are cautious of sellers with a feedback rating under 25 - 50. Admittedly, getting your first twenty-five feedback comments as a seller can be a long process. Don’t forget, feedback comments as a buyer count as well (although eBay does show the difference). Before you rush into selling on eBay, you need to get some experience buying. There is nothing better than putting yourself in your customer’s shoes. Read the rest…

by: Skip McGrath

I get this question a lot and it has three answers: “Yes,” “no” and “maybe.” Let’s see which one applies to you.

There is no doubt that it is much harder for the individual operating out of their home to make money on eBay today than it was even a couple of years ago. When I started on eBay in 1999, eBay was a license to print money. A little guy (or gal) like your or me could sell almost anything and make money. As far as finding merchandise to sell you could source garage sales or buy surplus and overstocked products from hundreds of dealers. Today, however, many of those same dealers that use to sell to me, are now selling the same items on eBay at the same price they used to sell to me.

There are still some overstock dealers who can supply product, but they are fewer. There is also much more competition on eBay today than in past years. Today there are over 1000 large companies with employees, warehouses and sophisticated distribution systems competing for the eBay bidder. In addition to the independent large power sellers there are companies such as Disney, Lands End, Bloomingdales Department Store and many others who either list directly on eBay or have hired companies to sell their merchandise for them under another name.

Three Strategies to Make Money on eBay

So what is the little guy to do? There are three basic strategies to succeeding on eBay today. There may be more –but I know these three work, because I have done them and in fact still do them.

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By: Skip McGrath

I probably receive more emails on this subject than any other. Buyers read our Basic Seller’s Manual; they want to start selling but just can’t figure out what to sell or how to get started.

If you are a new seller, my first piece of advice is to clean out your garage or attic. You need to gain some experience selling before you go off and purchase a large lot of wholesale merchandise.

Start by selling used goods, small appliances, wedding gifts you never use, old books (non-fiction one are best), used sporting goods, clothing items (that great leather jacket that doesn’t fit you any more or that pair of cowboy boots you bought on your business trip to Dallas, but never wear). The experience you gain will be invaluable, you will not risk any capital or make any investment beyond some small eBay fees.

Virtually everything is for sale on eBay. One night while watching the sport of Curling during the Winter Olympics, I though a curling stone would make an attractive doorstop and conversation piece for my office. During the commercial I went on line to eBay and found dozens of curling stones for sale. One of them now holds the door open to our billiard room.

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