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Ebay Business the Smart Way eBay Business the Smart Way Second Edition Other Books by Joseph T. Sinclair eBay the Smart Way eBay Motors the Smart Way eBay Global the Smart Way Building Your eBay Traffic the Smart Way eBay Business the Smart Way Maximize Your Profits on the Web’s #1 Auction Site Second Edition Joseph T. Sinclair American Management Association New York • Atlanta • Brussels • Chicago • Mexico City • San Francisco Shanghai • Tokyo • Toronto • Washington, D.C. Special discounts on bulk quantities of AMACOM books are avail- able to corporations, professional associations, and other organiza- tions. For details, contact Special Sales Department, AMACOM, a division of American Management Association, 1601 Broadway, New York, NY 10019. Tel.: 212-903-8316. Fax: 212-903-8083. Web site: www.amacombooks.org This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent pro- fessional person should be sought. Library of Congress Cataloging-in-Publication Data Sinclair, Joseph T. eBay business the smart way : maximize your profits on the web’s #1 auc- tion site / Joseph T. Sinclair.-- 2nd ed. p. cm. Includes index. ISBN 0-8144-7267-2 1. eBay (Firm) 2. Internet auctions. I. Title. HF5478.S4735 2004 658.8’7--dc22 2004016614 CIP © 2004 Joseph T. Sinclair. All rights reserved. Printed in the United States of America. This publication may not be reproduced, stored in a retrieval system, or transmitted in whole or in part, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of AMACOM, a division of American Management Association, 1601 Broadway, New York, NY 10019. Printing number 10987654321 To my grandfather, Albert L. Hoener, Jr., and grandmother, Margaret Zoe Lorene Fellabaum Hoener, together the light of my life in my early years in Michigan Contents Acknowledgments ..........................................................................xvii I. Introducing eBay Business . 1 1. Introduction ................................................................................... 3 Who Should Read This Book? ......................................................... 6 eBay’s Place ........................................................................................ 9 You’re in Business Now .................................................................. 11 Customer Service ............................................................................. 11 Find Your Niche .............................................................................. 12 Work .................................................................................................. 12 State of Retail .................................................................................... 14 Call to Action .................................................................................... 15 VII VIII CONTENTS II. Getting Started . .23 2. Setting Yourself Up Legally .........................................................25 Sole Proprietorship ...........................................................................26 Partnership ........................................................................................30 Corporations .....................................................................................34 Hybrid Business Forms ...................................................................38 Virtual Businesses ............................................................................38 And Then You Grow .......................................................................39 Taxation ............................................................................................40 Resources ...........................................................................................41 Conclusion ........................................................................................42 3. Business Details ..........................................................................43 Sales Tax License .............................................................................43 Business License ...............................................................................49 Regulations .......................................................................................50 Employees .........................................................................................50 Independent Contractors .................................................................51 Insurance ...........................................................................................55 Bank Accounts ..................................................................................56 Tax Number .....................................................................................57 Merchant Credit Card Account ......................................................57 Trademarks .......................................................................................58 Accounting ........................................................................................58 Branding ...........................................................................................60 Inspiration .........................................................................................67 Resources ...........................................................................................69 4. Equipment, Supplies, and Space .................................................71 Hardware ..........................................................................................72 CONTENTS IX Software ............................................................................................ 74 Internet Access .................................................................................. 76 Home Router .................................................................................... 77 Long Distance Service ..................................................................... 78 Business Machines ........................................................................... 79 Office Furniture ............................................................................... 80 Office Supplies ................................................................................. 81 Office Premises ................................................................................. 82 Storage, Packing, and Shipping ...................................................... 82 Home Office Tax Deduction .......................................................... 83 Inexpensive Home Office ................................................................ 84 On the Road ...................................................................................... 86 5. Finding Inventory ........................................................................ 89 Basics ................................................................................................. 90 The List ............................................................................................. 92 Go for It! ......................................................................................... 126 6. Borrowing Money ...................................................................... 127 Business Plan .................................................................................. 128 Savings ............................................................................................ 130 Credit Cards ................................................................................... 131 Relatives .......................................................................................... 132 Angels .............................................................................................. 133 Banks ............................................................................................... 133 Other Lending Sources ................................................................. 139 Lenders for eBay Businesses ......................................................... 142 Resources ......................................................................................... 143 III. Business As Usual . 145 X CONTENTS 7. Selling on eBay ..........................................................................147 Types of Auctions ...........................................................................147 Listing an Auction ..........................................................................151 Taboo Items ....................................................................................159 Illicit Practices ................................................................................164 Your Marketplace ...........................................................................164 Passive Endeavor ............................................................................165 Text-Box and Banner Advertising on eBay .................................166 Power Sellers ..................................................................................167 The Heart of the Matter ................................................................167 8. Auction Details ..........................................................................169 Advertising ......................................................................................169
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