ebay business plan pdf

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eBay Business Plan Template [Highly Actionable]

There are over 25 million sellers on eBay.

No matter what you sell, with competition like that, you need to have a plan. Fortunately, with around 182 million users, there’s plenty of opportunity to grow and thrive.

The purpose of an eBay business plan is to articulate your idea and figure out how to make it feasible.

To do this, you will need to explore the different aspects of your business which define what it is and how it will operate. Once you have a handle on the crux of your business, you will be able to determine the resources you’ll need to succeed and which areas you can automate.

In this eBay guide, we will cover the following bases:

• 10 benefits of an eBay business plan
• How to start your plan
• Your eBay business plan template
• Business plans and the bigger picture
• Plan to save time and money with A2X accounting

10 Benefits of an eBay Business Plan

Why bother with a business plan for your eBay store in the first place? Let’s see.

• Cash flow will be managed better: Meaning, quite simply, a better chance of survival.
• Stick to your strategy: You can more easily avoid getting caught up in routine and interruptions as life takes over.
• Measurable objectives are easy to track: See your progress, plan for and celebrate it! You can decide ahead of time what you do next at each stage of your growth.
• Your instincts and educated guesses will be more accurate: You’ll have the data as well as the experience to back them up.
• You’ll better manage interdependencies: When one thing relies on another, you will be able to plan for that and ensure you are prepared for multiple scenarios.
• Delegation and automation will be easier: You’ll be able to see where it slots into the bigger picture, as will any employees you might take on.
• You can be proactive rather than reactive: Basing your decisions on evidence and data means you can take more calculated risks and push forward.
• Never base decisions on assumptions: With solid records and information about your business, you won’t risk making baseless assumptions ever again. You know what they say about assumptions…
• Easy to correct your course: If you are tracking your journey and its projections aren’t matching your goals, you can act early with less fallout.
• Provides solid foundations for investment or sale: If you want others to invest in your business or even buy it, giving them this level of detail and records could prove invaluable and get you a higher price.

That’s a pretty strong argument for making a business plan. And remember, at this stage, you don’t need all the answers for how you will make millions. Growth strategy comes next.

For now, we want to focus on articulating the spine of your business and its vital organs - what does it need to exist and function efficiently?

Starting a Business Plan: eBay Guide

Feel free to play along with us. Here are some questions for you to start thinking about in preparation for writing your eBay seller business plan. This should help you get into the zone and start covering off the basics.

After we explore these, we will move onto an example eBay business plan template which you can bookmark and use for your own business.

Who are you?

Your store came into being for a reason. Why? What was the problem, and how are you attempting to solve it for customers? This should become your value proposition.

Do you have a brand identity yet? This is an important part of growing an ecommerce store. If you want to earn customer loyalty and build awareness, you will need to consider this.

What is your brand positioning? What do you want customers to think and feel about you?

Discover strategies for building your ecommerce brand .

Where are you going?

What are your short and long-term goals? Ensure that most of them are SMART goals , i.e., measurable. This way, you can use them to make informed decisions about your business, make realistic predictions and forecasts, and grow in an intentional, proactive way.

How to set business goals and strategies to achieve them .

What will help you get there?

What tools and resources might you need to help you achieve your goals? What will they cost? How will you measure the return they should give you? Will you set parameters for when to invest in them, and when to pull back?

You don’t need too much detail on these in your initial plan, but it’s good to have an idea of your dream ecommerce toolkit.

By thinking through any future commitments you might make to software or human resources, you can ensure you get the maximum output from calculated input, with profit at the end.

How and why you should be planning for your ecommerce technology development .

eBay Business Plan Template

Now that you’ve had a chance to lay the foundations of your eBay business plan, let’s get to work!

Just as every business is unique, there will be a multitude of business plan options out there to match. Some fit on one page, some spread across one hundred pages.

This is our eBay business plan sample based on the critical elements every ecommerce seller should consider in the early stages, made simple and easy to digest. Anyone should be able to pick up your plan and understand it.

If you’re more of a visual learner, scroll down for an infographic that shows how each element of your plan relates to the others and the bigger picture.

Remember, as you grow and develop, so can your eBay business plan. Get good at prioritizing!

____________________________________________________________________________

Executive Summary

A one or two-line summary of your business idea.

An overview of your product - what is it? Where are you sourcing it from? How much are you paying for it? Does this change based on volume?

Value Proposition

Keep it short and simple: how will your product beat the rest. What makes it unique?

How to build a value proposition .

Target Market and Competition

Who is your target demographic and who else is selling to them? How will you cut through the rest and stand out to that audience? You could also do a SWOT analysis for inspiration.

How to define your target market .

Marketing Strategy

Where does your audience spend time and how will you reach them there? How much will you spend on marketing efforts?

Guide to ecommerce marketing in 2021 .

Fulfilment Model

How will you ship your products? What will this cost you? Will you explore dropshipping? Will you start out one way and evolve as you grow? What will be your parameters for this?

eBay shipping options and advice for sellers .

Budget and Sales

Forecast your sales and outgoings. What should your profit margins be? What volume of sales do you need to survive and thrive? Is your business financially viable?

How to forecast sales for your ecommerce business .

Ecommerce demand forecasting: what it is and why you should care .

Break down your goals into bite sized chunks. Set a timeline, what you want to achieve by then and what you’ll need to make that happen. Be realistic!

Examples of milestones for small businesses .

Team and Resources

What roles exist within your team, or may exist in the future? What will they need to succeed? What roles can be outsourced or automated?

Funding and/or Investment

Identify how much you need or have raised, from whom, and when you plan to pay it back. Alternatively, you might look for this at certain milestones. The more information you can offer potential stakeholders, the better.

Tips to fund your ecommerce business .

Business Plans and the Bigger Picture

This helpful infographic offers a way to visualize some of the elements of a business plan and how they relate to each other:

Image source .

Save Time and Money with Automated Accounts

Money will be the lifeblood of your business.

No matter how strong and in depth your eBay business plan is, without efficient accounting, your business won’t survive.

Luckily, accounting is a critical element of your ecommerce gig that you can automate.

Repetitive number crunching is what software is designed for, so why not leave it up to the mechanical experts?

See what A2X can do for your business:

Try A2X for eBay for free today! Sign up here .

Also on the Blog:

• Ecommerce Accounting and What Makes It So Different
• Ecommerce Accounting Principles
• Find an Ecommerce Accountant
• The Best eBay Accounting Software for Sellers
• eBay Managed Payments: Everything You Need to Know

Learn how to manage your eBay accounting the right way

Accounting for eBay sales comes with a unique set of challanges and opportunities. Discover the key challenges sellers face, the taxes and fees, and a free setup checklist.

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How to Start an Ebay Business

Candice Landau

16 min. read

Updated March 18, 2024

Free Download:  Sample Retail and eCommerce Business Plan Templates

If you’re researching how to start an eBay business, you’ve come to the right place.

Ebay is an online shopping and auction venue that allows people to buy and sell used or new products, either as a business or as a way to clear out clutter and make a bit of extra cash.

While the site is free to use, eBay does charge some seller fees . There’s a per-item insertion fee and a final value fee, as well as fees for any additional but optional features used. We’ll go into this in more depth later.

• 1. Decide what to sell

Pick a product that works for you

One of the first things to consider when you want to start a business on eBay is what you’re selling.

Figuring out what to sell isn’t something only aspiring eBay entrepreneurs need to do; it’s key for anyone starting a business . What service or product is a good fit for you, for your location, over the long-term, or just for the moment because it’s selling like hot cakes?

Factor in shipping and storage

As you work through the process of deciding what to sell, remember to keep things like shipping and storage costs in mind. Mailing a USB drive is a whole lot easier than a billiards table. If you’re thinking of selling fragile items, consider the extra packaging costs and the potential for breakage.

Be aware of restrictions

That said, you’re free to sell pretty much anything—well, almost anything. Ebay does have a list of things you cannot sell, or that have restrictions. It’s worth reviewing the list as it does include things like art, event tickets, and gift cards.

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Start with what you know

If you’re not sure what to sell, it’s a good idea to think of what you love and what you know. Do you have a hobby ? Perhaps you’re an avid collector of Polaroid cameras and you know everything there is to know about how the products have developed over time.

We suggest picking something you know because an important part of selling on eBay is knowing what the market for these items looks like.

Ask yourself:

• Is it in demand?
• What do people looking for it consider before buying?
• What does it typically sell for?
• How should you describe it?
• Where should you list it (category)?
• Do you know where to get ahold of it at an affordable price so that you can resell for a profit?

Of course, this doesn’t mean you can’t pick something you’re less familiar with. If you’re a great researcher and are looking for a new hobby, perhaps now is the time to branch out.

Research popular products

Ebay has a great section on “what to sell”  on their site. Electronics, fashion, and collectibles are consistently listed among the most popular categories.

Popular selling items in electronics in 2018 include:

• Game consoles
• Mobile phone accessories
• Bluetooth speakers

A word of warning regarding electronics: If you’re just getting started, it might be good to stay away from them for a while, especially if you’re selling second-hand electronics. Figure out how the site works before you have to deal with complaints and returns, regarding faulty monitors, keyboards, or hard drives.

Popular selling items in fashion in 2018 include:

• Athletic shoes
• Accessories like belts and sunglasses
• Replacement bands for smartwatches
• Hair accessories

Popular selling items in collectibles in 2018 include:

• Trading cards
• Gaming sets like Magic the Gathering and YuGiOh
• 2. Set up your eBay store account

If you’re going to be listing a lot of items each month, an eBay store is a good idea, if for no other reason than because it will save you money.

Normally, when you list items on eBay, you are doing so as a member of the general public and you do not need to commit to any monthly fees. With an eBay store, however, you are required to pay a monthly fee. You can decide on a package that best suits your needs and keeps costs relatively low.

At present, eBay offers five store packages with varying discount structures:

• Starter: 100 free fixed-price listings/month and costs $4.95 per month (billed annually)
• B asic:  250 free fixed-price listings/month and costs $21.95 per month (billed annually)
• Premium: 1,000 fixed-price listings/month and cost about $59.95 per month (billed annually).
• Anchor: 10,000 fixed-price listings/month and costs $299.95 per month (billed annually).
• Enterprise: 100,000 fix-priced listings/ month and $2,999.95 per month (billed annually)

A store is a good idea if you don’t have an ecommerce website and you want a more personalized place to direct people to. It’s also a good idea if you sell a lot of similar products. People may want to browse and see what else you have.

Africa Direct’s eBay store is a great example of a store that operates as a website in micro. Given that it’s so easy to purchase on eBay—many people already have their card details saved and linked with PayPal—it’s more likely that someone will buy from your eBay store than from an eCommerce website they may not trust, or that requires them to get up and find their credit card.

• 3. Make your Ebay business official and legal

What you need to know about starting a business

Use this free downloadable business startup checklist to help you stay organized as you get closer to launching your eBay store. Operating an online store, especially one that’s so easy to set up, does not mean you are exempt from all of the legal requirements a “normal” business has to meet.

In fact, as soon as you start selling a lot on eBay, or turning a regular profit, the IRS will classify you as a business, and you will need to meet all the requirements a normal business has to meet. If you do intend to run a business, even if you’re not yet making regular sales, it may be worth formally registering your business. It costs very little and will keep you in the clear.

This will include:

• Registering your business name
• Obtaining a Federal Tax ID number
• Obtaining any federal and state licenses or permits
• Deciding on a legal business structure

Business structures

Broadly speaking, there are four legal structures or business formats. For some people, picking a form of business is straightforward; for others, a consultation with a lawyer is necessary.

If you’re relatively comfortable handling these processes yourself, you can go through a company like LegalZoom, which helps hundreds of small business owners prepare legal documents for business incorporation and the likes. However, if you’re at all unsure about which one will best suit your needs, we strongly advise consulting with a legal professional .

If you can, look for someone that’s a member of your local Chamber of Commerce. Here’s a brief overview of each business formation, with a little bit of information regarding their suitability to your eBay business, as well as things you may want to consider.

Sole proprietorship

A sole proprietorship is the preferred type of business for many individuals running either a part-time or full-time business on their own. It’s the simplest form of business and is incredibly easy and affordable to set up. You can run a sole proprietorship from your personal checking account and can deduct many of the expenses related to the running from your state and federal taxes.

The risk associated with a sole proprietorship is that all business liabilities are linked to you personally. If you default on loans or have outstanding debts, you could lose your personal assets.

Partnership

Forming an eBay partnership with one or more people can be a very productive way of making money on this platform. It may start out with an oral agreement, but a formal written agreement should always be created; consider all duties, possible disputes, restrictions, and provision for worst-case scenarios—i.e., “What happens if…”

The partnership itself must file Form 1065 to the IRS, and the profits are taxed based on individual returns (established by terms stated in the written agreement, or by percentage of ownership). Legally, each partner is responsible for themselves and each other. Any lawsuits that occur can potentially involve all or both of you, so be sure that partners are aware of their duties and any legalities that may surround them.

A word to the wise: Ebay states in its User Agreement that you may not “transfer your eBay account (including Feedback) and user ID to another party without our consent.”

So, if your partner decides to back out, or you go separate ways and want to start separate businesses, if you haven’t made it clear from the start who gets the account, you may be looking at starting from scratch or undergoing a heavy legal dispute. This is one agreement you should probably read.  

Limited Liability Company (LLC)

As the name suggests, the liabilities of Limited Liability Companies are generally not passed on to the owners. This means that the owner or owners’ liability does not extend beyond the amount they invested in the company.

In terms of taxation, however, the owners or members are all liable. When taxes are due, profits and losses are calculated for individuals based on their percentage ownership or investment. The Form 1065 must still be filed to confirm proper income reporting by members. The LLC itself can reduce the tax paid by members by paying as a corporation and keeping some profits in-house.

Corporation

A corporation is a legal entity operating entirely in its own right. As an employee-owner you cannot take money from the company bank account for your own pleasure. It must be for an officially accountable purpose.

There are two types of corporation you can set up: S or C. The former allows profits to be passed to your own tax return, and the latter files its own tax returns, and you are officially an employee. The state in which you set up your corporation will determine how much tax you pay and the rules you must follow.

You should make yourself aware of tax rates in your state, and never set up a corporation before you’re totally aware of exactly what it means, and the implications for you as an individual owner and employee.

• 4. Start listing your items

Understand the fees

If you haven’t already, take a moment to familiarize yourself with eBay’s selling fees .

Be proactive about your policies

Think through how you’ll answer buyers’ questions. Don’t skip laying out clear customer service and return policies.

Determine the payment methods you’ll accept from buyers

Ebay offers a few different payment options for sellers : Paypal, credit and debit cards, as well as checks and money orders, payment on pickup, or bank transfers.

Create your seller account

Before you can list any of your items, you’ll need to set up a seller account. First thing, you’ll have to decide whether to set up a “personal account” or a “business” account .

If you’re starting an eBay business and plan to sell a good volume of items each month, you’re going to want to pick the business account—the personal option is for casual sellers. The process is simple and straightforward and eBay will guide you through it all. Once you’re set up, take some time to familiarize yourself with your seller dashboard.

Create your listings

To create your first listing, log into your eBay account. Click the “sell” link in the top right-hand corner. This will take you to your Summary page.

Once you’re on this page, you will see a vertical navigation on the left side of your account. Click the blue “Sell an Item” button. Ebay will guide you through the rest of the process.

One of the first choices you’ll have to make is whether to create a template for your listing. If you know that you’re going to sell a lot of the same type of category, setting this up from the beginning can save you a lot of time. Don’t underestimate how important your product description wording is in helping your item be seen and sold.

In order to sell your items and maximize your chances of getting seen, you will need to include:

• A strong title and description (pick something people will be searching for)
• Additional information about specific aspects of the item (some categories allow for this)
• The condition of the item
• Pictures of your item (the higher the quality, the better)
• A selling format (auction-style or fixed price)
• A listing duration
• A starting price (see our tips above on pricing your items)
• The payment methods you’ll accept (see our explanation above)
• Your shipping costs and locations
• Your return policy
• 5. Price your items

Fortunately, there’s a lot of information available on how to price your items . Performing a simple eBay search for the specific item you’re looking to list should give you a good idea of the right ballpark figure.

However, sometimes prices may vary wildly—some sellers prefer to list items with fixed prices while others prefer to start with a much lower price and run their sale as an auction.

Tip: Use eBay’s Advanced Search feature to find out how much an item you want to list has sold for in the past.

Don’t forget that eBay’s default search method is “Best Match,” which takes into account both the item’s shipping price and its list price.

The combined price is what really matters

As with a real-life store, you’ve got to make sure your products are easy to find. The best way to do this is to balance your shipping and list price to ensure it’s fair, and to keep your seller rating high through good customer service. A fair price will make it more likely that your results come up higher when people look for items like yours.

Tip: If you want to increase your search visibility, you can experiment with eBay’s “ reserve price ” settings.

Basically, you’ll be able to set a low price but at the same time, set a lower price limit, so that if your reserve price is not met when people bid on your item, it will not sell. To set a reserve price you will need to pay a small fee per item . Be sure to look closely at your item listing preview so you can catch any errors or things you missed before it goes live

• 6. Ebay legalese and stuff you ought to know

Running a business isn’t supposed to just be hard work; you’re supposed to enjoy it too. One of the things that can get in the way of this is not knowing the rules you should be playing by.  

To keep problems to a minimum, you’ll want to familiarize yourself with eBay’s values, understand what you can and cannot sell on the site, know what to do when your competition doesn’t play fair, and of course, what to do about a “difficult bidder” or a buyer who doesn’t pay.

Each of these problems has been covered in depth by eBay, so we’ll include the most important links to each one here:

• Know eBay’s values and honor them
• A list of prohibited and restricted items
• Ebay’s profanity policy
• What to do when you can’t follow through on a sale
• 7. Set up your offline eBay headquarters

While you’re still in the beginning stages of building your eBay business, spend a little time thinking about how it will function offline. Meaning—where do you store your inventory? Do you have a dedicated workstation for packaging up your shipments?

Especially when you’re first starting out, just make it work for you. You can get started in your spare room or garage.

Don’t over complicate it. But do think ahead, especially if you’re looking at growing your business and inventory quickly. Start with putting together a good record-keeping system so you know what you’ve got on hand in terms of inventory, and you can find it easily.

Decide how to store your eBay stock

Depending on what you sell, some good items to stock up on that will make storing goods easier include:.

• Plastic or steel shelves
• Clear plastic boxes (if you’ve got a lot of stock) with clear labels
• Plastic Ziploc/snack bags (good for smaller items)

We recommend clear storage boxes so that it’s easy to see what you’ve got on hand.

Keep track of your inventory

Whether you prefer to use a paper notebook or a software program, there’s no doubt about it—keeping a record of all your inventory is important, especially as your business grows and as it becomes more important to keep good records in case the IRS ever looks into things. The best way to keep track of a lot of inventory is to invest in a good bookkeeping system.

Set up your packing supplies and workstation

An essential part of your HQ is “the shipping department.” In order to ensure a smooth-running operation, you’ll want to make sure you’ve got everything you need readily available, especially if you’ve promised to ship items fast.

Items you should always have on hand:

• Something to clean up packaging with—a sticker removal product like Goo Gone or un-du, or simply WD-40
• Bubble wrap
• Shipping tape
• Styrofoam packing peanuts
• Plastic bags and trash bags (good for wrapping larger items and for waterproofing)
• A variety of envelopes (including the handy bubble mailer envelopes that keep items safe)
• Boxes (check out your local USPS store for more info)
• Now go and master selling!

You’ll learn a lot as you go—test your prices, listing language and processes often so you can be sure you’re being as efficient as possible.

Also, put together an ecommerce or online business plan. You can use this free downloadable business plan template to get started, and you can take a look at some example eCommerce business plans in our library to help you think through the process.

Why build your own business plan? Think of it as a framework to help you think through what you need to do to be successful. Do you have financial goals for your business? Your business plan should be a tool to help you meet those milestones and become the most successful eBay business you can be.

Candice Landau is a marketing consultant with a background in web design and copywriting. She specializes in content strategy, copywriting, website design, and digital marketing for a wide-range of clients including digital marketing agencies and nonprofits.

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How to Start an eBay Business: 15 Things to Know

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If you're an aspiring e-commerce merchant, you may have wondered what it takes to start a successful business on eBay. After all, eBay is one of the oldest and most recognizable e-commerce platforms. The site had 182 million active buyers in the second quarter of 2019 and averages 1.8 billion site visits per month — second only to Amazon. In other words, it's a great place to launch your e-commerce career.

However, selling on eBay isn't a walk in the park. It takes skill, dedication and more than a little insider knowledge to turn your online store into a respectable operation. Below you'll find some key tips that can bolster your chances of success as an eBay seller.

How to start an eBay business: The basics

The process of starting an eBay business is actually fairly simple. But before you dive in, we recommend doing a little planning. Namely, consider what you will be selling, what payment methods you'll accept, customer service policies and shipping methods. Also, have a look at the eBay seller policies and rules to make sure eBay can support your e-commerce business idea . Once you feel ready, here's what you do:

1. Choose your account type

To get started with eBay, select the "Register" button on the homepage. You'll be directed to a page where you can create an account. eBay allows you to choose between a personal account and a business account. A personal account is for casual selling, while a business account allows you to sell large quantities of products. You can also register a legal business name and customize your store with your business's branding. While it’s free to create an eBay business account; you will have to pay seller fees associated with the listing and selling of your products.

2. Register your account

To register your account, you’ll need to provide your legal business name, email and phone number, and create a password. Next, you’ll be prompted to create a username. Then, eBay will ask for your legally registered business address and phone number in order to verify your credentials. Once you provide all this information and click "Register," you should have immediate access to your account.

3. Set account preferences

The first thing you want to do when you log into your account is adjust your account preferences. To do so, click “Account settings" on the menu bar. From here you will be able to update shipping information, buyer requirements, communication preferences and addresses associated with your account.

The most important thing to update here is your payment method, as this will be how you pay for your selling fees. You can choose among PayPal, direct debit or credit card. This card or account will be charged automatically based on your seller invoice.

4. Add inventory

Now comes the fun part — adding products to your store. Start by clicking the “sell” link in the upper right-hand corner of your account page. eBay offers two methods for adding inventory: A quick listing form and an advanced listing form. The quick listing tool expedites the process of adding products by allowing you to enter keywords to describe your item. eBay will place you into one of their product categories and offer listing suggestions based on your descriptions.

The advanced listing tool allows you to go more in-depth with the information you provide. You can input a product title, product categories, photos, item description, selling details and shipping information, among other criteria. With both the quick listing and advanced listing methods, eBay calculates your seller fees based on the product information you provided. Therefore, it's important to pay close attention to the information you enter.

The most important elements include your selling information (auction vs. fixed-price), payment information (PayPal, eBay Managed Payments , offline credit card payments or pay upon pickup), return information and shipping details (flat-rate vs. calculated).

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

How to start an eBay business: 15 tips

Now that your business is off the ground, let's talk about some tips that will help you navigate the marketplace and take your eBay store from ordinary to extraordinary.

1. Start small

Don't invest a large sum of money into inventory when first learning how to start an eBay business. Instead, start small. Find a few items to sell, and get some experience taking photos, writing listings, testing pricing options and interacting with buyers. Make sure you can handle the core functions of maintaining an e-commerce business (filling orders, handling returns etc.) before you start to scale up with more products. Even if your eBay business is a side hustle, you need to dedicate time to it every day if you want to see real results.

2. eBay's free — up to a point

You can list 50 items per month for free. You’ll pay a small fee for each listing beyond that allotment. This is known as an insertion fee. These fees are charged per listing, per category. For most categories, the fee is 35 cents per listing.

You also pay a final value fee (a small percentage of the sale price) once an item sells. This is called the final value fee, which is a percentage of the total amount paid by the buyer, including shipping and handling. For most categories, the final value fee is 10% of the total sale amount with a maximum fee of $750. Also, don't forget about payment processing fees. If you use Managed Payments, the fees will come directly from eBay

You can also ramp up to a more robust eBay store by paying for a subscription (known as eBay Stores). Starting at $19.95 a month (for an annual subscription), this option gives you hundreds or thousands of free listings per month.

Visit eBay Fees for details about fees, including a fee calculator and a tool to help you pick the right eBay store option.

3. It helps to have a niche

One of the keys when figuring out how to start an eBay business is to identify a niche. Your eBay business is simply more likely to succeed if you develop a specialty. For example, if you sell only collectibles, buyers are more likely to come back to you again and again than if you sell collectibles along with used smartphones, video games, handbags and cookware. Better yet, specialize in niche collectibles, such as 1960s Disney collectibles or Bakelite bracelets.

Check out what's hot on eBay right now, to pick up product ideas.

4. You can’t get away with amateur photos

As with any e-commerce site, you need good product shots. Use well-lit, high-resolution photos on a plain background that show products from multiple angles. Include close-ups, and indicate scale. Use eBay's picture service tool to ensure that photos render properly on mobile devices.

5. The more detail, the better

A picture may be worth 1,000 words, but detailed product descriptions help items sell too.

Start by choosing a category for your item. Then write a listing title using keywords such as brand name, size, color or model number — any term people might use when searching for this product. In the description, include plenty of product details and more keywords.

You should also try to optimize your product listings for SEO and take advantage of eBay’s Best Match algorithm. In the same way that Google sorts search results, the eBay Best Match considers factors like listing title, item popularity, price, listing quality and more to determine what customer's see first when they search the eBay site.

6. You’ve got to price it right

While eBay is best known for auction-style listings, you can also set a fixed price for an item to help it sell faster. eBay's quick listing tool suggests the best pricing options to attract buyers based on how similar products sold in the past.

7. It’s not over when the item sells

Once you make a sale, it’s important to complete that sale quickly and accurately. To do so, make sure you send out the correct product through the shipping method you’ve indicated as quickly as possible, as this creates a good customer experience. eBay has tools you can use to calculate postage, print shipping labels and pay for shipping right from home. Plus, you can get free shipping supplies from the U.S. Postal Service, UPS and FedEx.

Learn about eBay shipping options .

To check the status of a payment on a sale you've made, go to "My eBay" on your account home page, navigate to “Sold” items and select “Awaiting payment.” If you find that there seems to be an issue with receiving payment, contact eBay customer service or reach out to the buyer directly.

8. Be ready for some returns

To compete with other e-commerce sites, your eBay business should offer returns. It's best to deal with returns as quickly as possible so as not to upset the customer. You can customize return options and choose whether you or the buyer pay for return shipping via your account settings.

You can also reduce the likelihood of a return by using clear photos and detailed descriptions in your listings and clearly stating your return policy.

9. Face issues head on

Aside from returns, you're likely to face a situation where the product you shipped out got lost in the mail, or a customer had an issue with a problem they received. The best way to handle these situations is promptly and professionally. You should refer to eBay's policies on dealing with these kinds of customer concerns so that you approach them in the best way possible.

10. Use the eBay seller hub

With this free seller tool, you can access a dashboard to see how your listings are performing, quickly list new items, and see the status of orders and returns. Viewing this data regularly helps you improve your listings for better results.

If you’re an eBay Stores subscriber, you can use eBay Seller Hub to create promotions, discounts and other marketing messages.

11. Improve your seller profile

Consider your Seller profile as your eBay reputation. When you receive positive reviews and ratings, you’ll add clout to your seller account — which is why it is extremely important to prioritize good service. Positive reviews make your business more appealing to customers and can also help your products rank in eBay. Furthermore, having a good Seller profile will give you more leverage with eBay. For instance, you may be able to get an increase in listing limits if you're known as a highly reputable merchant.

12. Solicit feedback

Because positive reviews are so important for the success of your business, you need to be proactive about seeking them out. If you delivered excellent service to a customer and they were pleased with their experience, ask them to leave a review. If you receive a negative review, you can reply to the feedback, request a revision from the seller or contact eBay and ask for it to be removed.

13. Download the eBay app

Downloading the eBay mobile app allows you to manage your business on-the-go. The app is free and available for Android, iPhone and iPad devices.

Using the eBay mobile app, you can create, edit and monitor your listings, relist items, provide tracking information and respond to questions from customers.

14. Connect eBay to your own store

If you already operated your own e-commerce store before launching a store within the eBay marketplace, be sure to connect your store to your eBay account. This is a great way to filter traffic from eBay onto your own website and allow customers to learn more about your brand.

Note that many e-commerce platforms come with a free eBay integration — including Shopify and BigCommerce.

15. Network with other sellers

Hundreds of thousands of merchants sell on eBay — why not get to know them? The eBay Community was designed to teach merchants how to start an eBay business. On the eBay Community webpage, merchants share information on growing their business, marketing strategies, buying inventory and more. For those new to e-commerce, this is a great place to learn more about selling on eBay.

Start Your Dream Business

Frequently asked questions

Can i sell on ebay without a store.

Yes, you can sell on eBay without opening an eBay store. You can also ramp up to a more robust eBay store by paying for a subscription (known as eBay stores).

Do I need a tax ID to sell on eBay?

No, a tax ID number is not a requirement to sell on eBay, although income earned from eBay sales may still count as taxable revenue. Those looking to turn their eBay shop into a business should obtain a tax ID.

How many things can you sell on eBay for free?

You can list 50 items per month for free on eBay. You’ll pay a small fee for each listing beyond that allotment. This is known as an insertion fee. These fees are charged per listing, per category. For most categories, the fee is $0.35 per listing.

How much is an eBay store per month?

Starting at $19.95 a month (for an annual subscription), an eBay store gives you hundreds or thousands of free listings per month. Visit eBay Fees for details about fees, including a fee calculator and a tool to help you pick the right eBay store option.

On a similar note...

Ebay Business Plan Template & Guidebook

Starting an online business can be a daunting task, especially when trying to find the right resources and strategies to set yourself up for success. Fortunately, with the #1 Ebay Business Plan Template & Guidebook, aspiring entrepreneurs can quickly access a comprehensive and easy-to-follow plan that covers every step of the process, from setting up an account to launching a successful business. This guide contains invaluable tips and insights that are essential for anyone wanting to launch their own online business.

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Ebay Business [11 Steps]
• 10+ Best & Profitable Ebay Business Ideas [2023]

How to Write a Ebay Business Plan in 7 Steps:

1. describe the purpose of your ebay business..

The first step to writing your business plan is to describe the purpose of your ebay business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a ebay business:

Our mission at Ebay is to provide an exceptional online marketplace that empowers buyers and sellers to establish successful, mutually beneficial relationships through the trust and convenience of our platform.

2. Products & Services Offered by Your Ebay Business.

The next step is to outline your products and services for your ebay business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your ebay business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your ebay business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your ebay business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

Form an LLC in your state!

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a ebay business?

In order to run a successful eBay business, you will need the following equipment, supplies, and permits:

• Computer: You will need a computer with an internet connection to list and manage items.
• eBay Seller Account: You will need to create an eBay seller account in order to list and manage items.
• Camera: A digital camera is necessary to take photos of your items that you list.
• Storage Space: You will need a safe place to store your items until they are sold.
• Payment Processor: You will need a payment processor (such as PayPal) for customers to pay for their purchases.
• Shipping Supplies: You will need boxes, packing materials, and shipping labels in order to ship items out when they are sold.
• Business Permits & Licenses: Depending on the state or country that you live in, you may need certain permits and licenses in order to operate an eBay business. Be sure to research what your local laws require.

5. Management & Organization of Your Ebay Business.

The second part of your ebay business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your ebay business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Ebay Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a ebay business varies based on many different variables, but below are a few different types of startup costs for a ebay business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your ebay business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your ebay business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your ebay business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Ebay Business Plans:

Why do you need a business plan for a ebay business.

A business plan for an eBay business is an important tool for outlining the direction of a business and for capturing attention from potential investors. A well-developed business plan can help entrepreneurs assess their current business as well as create strategies to grow their eBay business. Additionally, a business plan can be used to define the mission and objectives of a business, establish financial goals, and communicate the potential of the eBay business to potential partners or investors.

Who should you ask for help with your ebay business plan?

It would be best to speak with a business professional or a mentor with experience in creating business plans for e-commerce businesses. Additionally, there are resources available online that can provide guidance on creating an effective ebay business plan.

Can you write a ebay business plan yourself?

Yes, it is possible to write a business plan for eBay yourself. You will need to create a detailed plan that outlines the business objectives, target market, competitors, marketing strategy and financial goals for your eBay business. You will also need to consider any potential risks and develop strategies for mitigating them. Additionally, you should conduct research into how other successful eBay businesses have operated in your industry and use that information as a guide when creating your own business plan.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

Business Plan Template for Ebay

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

Starting an online business on eBay is an exciting venture, but without a solid plan, it can quickly become overwhelming. That's where ClickUp's Business Plan Template for eBay comes in handy!

This template is specifically designed to help entrepreneurs and individuals outline their goals, strategies, financial projections, and market analysis in one comprehensive plan. With ClickUp's Business Plan Template for eBay, you can:

• Define your vision, mission, and objectives for your eBay business
• Develop a clear understanding of your target market and competition
• Create a roadmap for success with a detailed marketing and sales strategy
• Set realistic financial projections and track your progress

Don't waste time reinventing the wheel. Get started on your eBay business journey with ClickUp's Business Plan Template and take the guesswork out of your success!

Business Plan Template for Ebay Benefits

When using the Business Plan Template for eBay, you can enjoy the following benefits:

• Clearly define your business goals and objectives for your eBay venture
• Develop a solid strategy to stand out from competitors and attract customers
• Create a detailed financial projection to ensure profitability and sustainability
• Conduct a thorough market analysis to understand your target audience and identify growth opportunities
• Stay organized and focused on your business plan, making it easier to track progress and make adjustments as needed

Main Elements of Ebay Business Plan Template

ClickUp's Business Plan Template for eBay provides all the essential elements you need to create a comprehensive plan for your online business:

• Custom Statuses: Track the progress of each section of your business plan with statuses like Complete, In Progress, Needs Revision, and To Do.
• Custom Fields: Use custom fields like Reference, Approved, and Section to add specific details and categorize different sections of your business plan.
• Custom Views: Access different views like Topics, Status, Timeline, Business Plan, and Getting Started Guide to organize and visualize your business plan from different perspectives.
• Collaboration and Communication: Collaborate with your team by assigning tasks, setting due dates, and leaving comments to ensure everyone is on the same page.
• Document Management: Keep all your business plan files, financial projections, and market analysis documents stored and organized in Docs, making it easy to access and update your plan as needed.

How To Use Business Plan Template for Ebay

If you're looking to start an eBay business and need a solid plan to guide you, the Business Plan Template for eBay in ClickUp is here to help. Follow these six steps to create an effective business plan and set yourself up for success:

1. Define your business concept

Start by clearly defining your business concept. What products or services will you offer on eBay? Identify your target market and understand their needs and preferences. This will help you position your business and differentiate yourself from competitors.

Use the Docs feature in ClickUp to brainstorm and outline your business concept.

2. Conduct market research

Next, conduct thorough market research to understand the eBay marketplace. Analyze the competition, identify trends, and determine pricing strategies. This will help you identify opportunities and make informed decisions for your business.

Utilize the Table view in ClickUp to organize and analyze market research data.

3. Set financial goals

Establish realistic financial goals for your eBay business. Determine your desired revenue, profit margins, and expenses. Consider factors such as sourcing costs, eBay fees, shipping expenses, and marketing investments. This will help you track your progress and make necessary adjustments along the way.

Create custom fields in ClickUp to track your financial goals and monitor your progress.

4. Develop a marketing strategy

Craft a comprehensive marketing strategy to promote your eBay business and attract customers. Identify the most effective channels to reach your target audience, such as social media, email marketing, or influencer partnerships. Develop compelling product descriptions and optimize your eBay listings for maximum visibility.

Use the Automations feature in ClickUp to streamline your marketing efforts and automate repetitive tasks.

5. Plan your operations

Outline your operational processes and logistics. Determine how you will source products, manage inventory, handle shipping and returns, and provide customer support. Develop efficient workflows to ensure smooth operations and customer satisfaction.

Utilize the Gantt chart feature in ClickUp to visualize and plan your operational processes.

6. Monitor and evaluate

Regularly monitor and evaluate the performance of your eBay business. Track key metrics such as sales, customer satisfaction, and feedback ratings. Analyze the data to identify areas for improvement and implement necessary adjustments to achieve your business goals.

Use the Dashboards feature in ClickUp to create visualizations and monitor your eBay business metrics in real-time.

By following these steps and leveraging the Business Plan Template for eBay in ClickUp, you'll have a comprehensive plan in place to launch and grow your successful eBay business. Happy selling!

Get Started with ClickUp’s Business Plan Template for Ebay

Entrepreneurs or individuals starting an online business on eBay can use the Business Plan Template to create a comprehensive plan and roadmap for their success on the platform.

First, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a solid business plan:

• Use the Topics View to outline different sections of your business plan, such as market analysis, marketing strategies, financial projections, and more
• The Status View will help you keep track of the progress of each section, with statuses like Complete, In Progress, Needs Revision, and To Do
• The Timeline View will allow you to set deadlines and milestones for each section of your business plan
• Use the Business Plan View to get a holistic view of your entire plan, with all the sections and details in one place
• The Getting Started Guide View will provide you with step-by-step instructions and tips to help you navigate through the template and create your business plan
• Customize the template by adding custom fields like Reference, Approved, and Section to provide additional context and organization to your plan
• Update statuses, custom fields, and other details as you progress through your business plan to keep track of your progress and ensure a successful launch on eBay.
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How to Start an eBay Business

Starting an eBay business can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful eBay business.

Importantly, a critical step in starting an eBay business is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .

Download our Ultimate Business Plan Template here

14 Steps To Start an eBay Business :

• Choose the Name for Your eBay Business
• Develop Your eBay Business Plan
• Choose the Legal Structure for Your eBay Business
• Secure Startup Funding for Your eBay Business (If Needed)
• Secure a Location for Your Business
• Register Your eBay Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your eBay Business
• Buy or Lease the Right eBay Business Equipment
• Develop Your eBay Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your eBay Business
• Open for Business

1. Choose the Name for Your eBay Business

The first step to starting an eBay business is to choose your business’ name.  

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your eBay store:

• Make sure the name is available . Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple . The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing . Come up with a name that reflects the desired brand and/or focus of your eBay business.

2. Develop Your eBay Business Plan

One of the most important steps in opening an eBay business is to develop your business plan. The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

Your business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your eBay business.
• Company Overview – this section tells the reader about the history of your eBay business and what type of eBay business you operate. For example, are you a trading, dropshipping, or affiliate marketing business. 
• Industry Analysis – here you will document key information about the eBay industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing products like the ones you will offer?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
• Product : Determine and document what products/services you will offer 
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your eBay business? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the financial plan answers questions including the following:
• What startup costs will you incur?
• How will your eBay business make money?
• What are your projected eBay sales and expenses for the next five years?
• Do you need to secure funding to launch your business?

Finish Your Business Plan Today!

3. choose the legal structure for your ebay business.

Next you need to choose a legal structure for your eBay business and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a business entity in which the owner/eBay seller and the business are the same legal entity. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start an eBay business together. The partners share in the profits and losses of the business. 

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for an eBay business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for an eBay business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your eBay business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

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4. Secure Startup Funding for Your eBay Business (If Needed)

In developing your eBay business plan, you might have determined that you need to raise funding to launch your business. 

If so, the main sources of funding for an eBay business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in an eBay account that they believe has high potential for growth.

5. Secure a Location for Your Business

When starting an eBay business account, you’ll need to find a location for your inventory. Here are a few tips on how to find the perfect spot:

• Decide what you need: before you start looking for a location, decide what you need in terms of space and storage. Do you need a lot of room to store inventory? Or would a small garage work for you?
• Consider your budget: when it comes to finding a location, remember that you’ll need to factor in both rent and utilities. Make sure you have enough money saved up to cover these costs.
• Think about your commute: one of the most important things to consider when choosing a location is how far it is from your home or your physical storefront. You don’t want to have to drive too far, so keep this in mind while you search.
• Get creative: while you may think you need a lot of space for your business, consider options other than renting an entire warehouse. For example, could you use storage units? Maybe someone’s garage? Could you rent space in a larger warehouse? Think outside the box and you may find a solution that’s better than renting an entire building.
• Consider your home: while some people choose to start their business in their homes, it can be difficult to manage both at once. If you have enough room, however, it could be an excellent idea. Just make sure your family is aware of what you’re doing; you don’t want them to be surprised if they find customers in your house.
• Be patient: finding the perfect location takes time, so it’s best not to rush into anything. Keep an eye out for spaces that fit your needs and make sure that none of them slip away before you can act.

6. Register Your eBay Business with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

7. Open a Business Bank Account

It is important to establish a bank account in your eBay business’ name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your eBay business to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

9. Get the Required Business Licenses and Permits

The licenses and permits you may need to start an eBay shop depend on the nature of your business. For example, if you are going to be selling goods, you will need a seller’s permit from your state. If you are going to be running a business from your home, you may need a zoning permit from your local government. To find out what licenses and permits you need, contact your local business licensing office or small business development center.

10. Get Business Insurance for Your eBay Business

You need business insurance to operate an eBay business. This will protect you in the event of any legal issues that may arise, as well as any property damage or theft that may occur. Make sure to research the different types of insurance available and find one that fits your needs.

Other business insurance policies that you should consider for your eBay business include:

• General liability insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or advertising cliams.
• Product liability insurance: This helps protect online stores from third-party claims of bodily injury or property damage caused by a product that it made or sold. This type of policy will cover physical or property damage as a result of manufacturing defects; design flaws; and any shortfalls in instructions, labels, or warnings.
• Auto insurance : If a vehicle is used in your business, this type of insurance will cover if a vehicle is damaged or stolen.
• Workers’ compensation insurance : If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages
• Cybersecurity insurance : If your ebay account is hacked, and your customers’ information is leaked, this covers the cost of notifying your customers, investigating the incident and providing credit monitoring services.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs. 

11. Buy or Lease the Right eBay Business Equipment

Most sellers on eBay don’t need much equipment. To start an eBay business, you only need a computer, phone and internet access.

12. Develop Your eBay Business Marketing Materials

Marketing materials will be required to attract and retain customers to your eBay business.

The key marketing materials you will need are as follows:

• Logo : Spend some time developing a good logo for your eBay business. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
• Website : Likewise, a professional eBay page provides potential customers with information about the products and/or services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
• Social Media Accounts : establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your online store.

13. Purchase and Setup the Software Needed to Run Your eBay Business

To run an eBay business, you’ll need to use software that can help you create listings, manage your orders, and track your sales. There are a few different software options that are available, and each one has its own set of features. The software you use depends on the size of your business and what features you need to manage your business effectively.

There are comprehensive software options that allow you to create and manage your listings, track your sales, and manage your finances, along with customer management. There are options that also encompass all the facets of marketing your listings. Affordable options are available, and work well for smaller businesses.

Whatever software option you choose, it’s important that you understand how to use it before getting started with an eBay business. You should also be aware that many software packages are monthly subscription-based services; so while they are affordable, you’ll need to pay a monthly fee to use them.

14. Open for Business

You are now ready to open your eBay business. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

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How to Start an eBay Business FAQs

Is it hard to start an ebay business.

Starting an eBay business can be hard because it takes a lot of time and effort to build up a successful business. However, if you are motivated and have the drive to succeed, then it is definitely possible. There are many resources available to help you get started, so don't be afraid to ask for help when needed.

How can I start an eBay business with no experience?

One option for starting an eBay business with no experience is to join an existing eBay business. This can give you the opportunity to learn from someone who has already been a successful eBay seller . Another option is to do some research on how to start an eBay business and then follow the steps that are outlined. Regardless of which option you choose, be sure to take your time in order to learn as much as possible about running an e-commerce business before diving in.

What type of eBay business is most profitable?

The types of eBay stores that are most profitable are the ones that offer a unique product or service. This could be a business that specializes in selling rare or vintage items, or it could be a business that offers a specialized service, such as personalized gift-wrapping.

How much does it cost to start an eBay business?

Launching a business on eBay is free. The expenses an eBay startup incur include any domain name registration, product inventory and shipping supplies needed. The great thing about starting an eBay store is that there are no expensive overhead costs to worry about. For this reason, it is often called "Retail without the Rents."

What are the ongoing expenses for an eBay business?

There are a few main ongoing expenses for an eBay business:

• Seller fees associated with eBay and PayPal (which can be waived if you reach a certain sales volume)
• Shipping supplies (boxes, packing material, postage stamps, labels, etc.)
• Postage fees
• Supplies for your business (business cards, stationery, brochures, inventory storage/display boxes, etc.)
• Marketing and promotional materials (if your own business has a physical location or storefront)

How does an eBay business make money?

eBay sellers make money by listing items for sale, and completing a transaction. The seller then keeps a large percentage of the final sale price, and pays a commission to eBay. The amount of the commission varies depending on the category of item being sold. For most items, eBay takes 10% of the final fixed price.

Is owning an eBay business profitable?

eBay is a platform where people can buy and sell products, so it's a great place to start a business if you're looking for something that has the potential to be profitable. In addition, there are a number of ways to make money with an eBay business, including selling products, or providing services. And since eBay is such a large platform with millions of users, you'll have plenty of opportunity to reach new customers and grow your business.

Why do eBay businesses fail?

There are a number of reasons why many eBay sellers can fail. One reason is that it can be difficult to stand out from the competition. Another reason is that it can be challenging to generate traffic and online sales. Additionally, it's important to have a solid marketing strategy in order to attract buyers and create a brand that people will trust. Without a plan, it can be difficult to succeed on eBay.

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Seller Hub offers everything you need to build and grow your business on eBay. With it, you have access to a variety of tools that will help you manage your orders, downloaded detailed reports, and more.

Great Price badge

A Great Price badge helps eBay shoppers quickly and easily discover high quality inventory at highly competitive prices. When a Great Price badge appears with your qualified listing, your item will get buyers’ attention because they know they’ve found a great product at a great price.

Verified Rights Owner Program

The Verified Rights Owner (VeRO) Program allows owners of intellectual property (IP) rights and their authorized representatives to report eBay listings that may infringe on those rights. VeRO embodies our commitment to provide a safe place to buy and sell, which respects property owners’ rights.

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Third Party Providers on eBay offer services like inventory management and eCommerce platforms to help you run your eBay business more efficiently. Their services complement the existing functionality on eBay and can be used to unlock more potential for your business.

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eBay’s Business Model and How It Makes Money

eBay’s Background

eBay started in the mid-1990s as a platform to connect buyers and sellers. At that time, the concept of the internet and online shopping was unique to most users. The founder, Pierre Omidyar, started the company for his personal transactions. However, it grew to become a household name across the US and several other countries worldwide.

Several factors played a role in eBay’s popularity. Being one of the first few online platforms that facilitated both sellers and buyers added its growth. The company also invested in various other ventures early in its lifetime, increasing its impact significantly. The company has had an active investment portfolio buying companies quite often.

One of eBay’s top acquisitions came in the form of PayPal in 2002. The company purchased PayPal for $1.5 billion at the time and benefited significantly from it. PayPal became the world’s largest online payments and receipts solution, even doing more business compared to eBay. However, both companies have parted ways recently.

eBay is also a highly financially successful company. The company has had growing revenues for several years, except in the last 5 out of 6 years. eBay made total revenues of $10.8 billion, which was an increase of 0.50% from the $10.746 billion it made in 2018. The company also had total assets of $18.174 billion and total equity of $2.87 billion at the end of 2019.

eBay’s Business Model

eBay’s business model has been its primary source of success. It combines the company’s strengths to generate a substantial amount of revenues each year. While most experts believe it was eBay’s timing that allowed it to capitalize on the early online platform, there are several other factors that also played a crucial role in its financial growth.

As mentioned, eBay’s business model has allowed it to expand its services into various other business ventures . These ventures have generated a significant amount of revenue for the company. Through its online platform, the company provides buyers with a great alternative to buying in person. Its platform has a wide selection of products from which buyers can choose.

However, eBay’s business model also attracts high expenses. The company has had variable net incomes throughout the years that don’t reflect growth in its profits. For example, the company made its highest net income of $7.266 billion in 2016, although its net sales were $9.927 billion. The company generated its highest revenue of $14.072 billion in 2012. However, it only made a net income of $2.609 billion.

How Does eBay Make Money?

eBay makes money from several segments and countries. The company’s primary source of revenue comes from its online platform eBay.com. Similarly, its primary market is the US market. However, there are also other markets and segments that produce decent profits and revenues for the company. Therefore, it is necessary to look at its performance through its segments and countries of operations.

eBay’s Segments

eBay generates a significant amount of its revenues from its online marketplace. However, it also makes a decent amount of money from StubHub and classified platforms.

Marketplace

eBay’s online marketplace is a substantial source of income. The company generated almost 80% of its revenues in 2018 and 2019 from its online marketplace. In its marketplace, the company offers two different types of services. The first type of service comes from its transactions between sellers and buyers. The second type of revenue comes from its marketing services and other services from the platform.

From its primary selling activities, the company made total revenues of $7.578 billion in 2019. It was an increase of 2.14% from the $7.416 billion the company generated in 2018. Similarly, these made 70.04% and 69.01% of eBay’s total net sales for 2019 and 2018.

From its marketing and other services, the company generated revenues of $1.060 billion and $1.225 billion for 2019 and 2018. Similarly, the company suffered a decrease of 15.57% in revenues in this category for 2019. These activities accounted for 9.80% and 11.40% of eBay’s total revenues in 2019 and 2018.

Overall, eBay generated $8.638 billion and $8.641 billion in 2019 and 2018, respectively. Overall, there wasn’t a significant increase or decrease in the revenues. It only suffered a drop of 3 billion, attributable to its bad performance in the marketing and other services category. Overall, revenues from the segment amounted to 80.41% and 79.83 of the company’s revenues for both years, respectively.

The second highest source of revenue for eBay is its StubHub segment. StubHub is an online ticket reseller company. eBay acquired StubHub in 2007 for $310 million. However, in 2020, Viagogo acquired the company from eBay for $4.05 billion. However, it contributed to eBay’s income in 2019 and the years before.

eBay won’t make any more money from this segment. However, in 2019, the company generated total revenues of $1.121 billion from the segment. It was an increase of 3.39% from the $1.083 billion the company made from StubHub in 2018. eBay also divided revenues from the segment into the net, and marketing, and other revenues. The segment accounted for 10.36% and 10.08% of the company’s revenues in both years.

Classifieds

eBay also has several classified platforms in various countries. These include a collection of brands such as mobile.de, Marktplaats, eBay Kleinanzeigen, Kijiji, Gumtree, eBay classifieds, and others. It is the company’s third-largest segment in terms of revenues.

The classifieds segment generated revenues of $1.061 billion and $1.022 billion in 2019 and 2018. The revenues increased by 3.68% in 2019. Similarly, they accounted for 9.51% and 9.81% of the company’s total revenues in both years.

Intersegmental revenues

eBay also had $20 million in intersegmental revenues, which the company canceled from its consolidated revenues. However, the company did not specify to which segments these revenues relate.

Given below is a summary of eBay’s total revenues from its various market segments.

eBay’s Markets

eBay operates in several countries around the world. Its primary market has always been the United States. However, it also generates significant revenues from Germany, the United Kingdom, and South Korea. Apart from these countries, the company also operates in various other locations.

eBay generated total revenues of $4.337 billion and $4.373 billion from its US market. The market experienced a 0.83% decline in 2019. However, it also accounted for 40.16% and 40.69% of the company’s total revenues in both years, respectively.

eBay made total revenues of $1.506 billion and $1.591 billion from its German market. It suffered a 5.64% decrease in 2019. It also accounted for 13.94% and 14.81% of the company’s total revenues in both years, respectively.

United Kingdom

eBay made total revenues of $1.441 billion and $1.481 billion from its UK market. Like the above two segments, the UK segment also suffered a drop in 2019. For this segment, the decline was 2.78%. The UK segment accounted for 13.78% and 13.34% of the company’s revenues for both years.

South Korea

The South Korean market experienced an increase of 2.13% in 2019. The market generated revenues of $1.221 billion and $1.195 billion in 2019 and 2018, respectively. Similarly, this segment accounted for 11.31% and 11.12% of eBay’s total revenues in both years.

Rest of the World

eBay classifies all its other markets under the ‘Rest of the World’ category. The company operates in 32 countries. Therefore, all other countries come under this category. From the rest of the world, eBay generated $2.295 billion and $2.106 billion in revenues in 2019 and 2018. It experienced an increase of 8.24% over the year. Similarly, it accounted for 21.95% and 19.60% of the company’s total profits.

Given below is the summary of eBay’s profits from its various markets.

eBay is among the world’s largest online platforms that facilitate interactions between buyers and sellers. The company has had a successful business history. Its growth and expansion have been possible due to its business model. eBay’s primary source of income is from its online marketplace. Similarly, it generates a substantial amount of its revenues from its US market.

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