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The Complete Idiot's Guide to Starting an Ebay Business, Second Edition Starting an eBay Business Second Edition by Barbara Weltman and Malcolm Katt A member of Penguin Group (USA) Inc. Starting an eBay Business Second Edition by Barbara Weltman and Malcolm Katt A member of Penguin Group (USA) Inc. This book is dedicated to all the eBay sellers, present and future, who prove that the entrepreneurial spirit is indomitable. ALPHA BOOKS Published by the Penguin Group Penguin Group (USA) Inc., 375 Hudson Street, New York, New York 10014, USA Penguin Group (Canada), 90 Eglinton Avenue East, Suite 700, Toronto, Ontario M4P 2Y3, Canada (a division of Pearson Penguin Canada Inc.) Penguin Books Ltd, 80 Strand, London WC2R 0RL, England Penguin Ireland, 25 St. Stephen’s Green, Dublin 2, Ireland (a division of Penguin Books Ltd.) Penguin Group (Australia), 250 Camberwell Road, Camberwell, Victoria 3124, Australia (a division of Pearson Australia Group Pty. Ltd.) Penguin Books India Pvt. Ltd., 11 Community Centre, Panchsheel Park, New Delhi—110 017, India Penguin Group (NZ), 67 Apollo Drive, Rosedale, North Shore, Auckland 1311, New Zealand (a division of Pearson New Zealand Ltd.) Penguin Books (South Africa) (Pty.) Ltd, 24 Sturdee Avenue, Rosebank, Johannesburg 2196, South Africa Penguin Books Ltd., Registered Offices: 80 Strand, London WC2R 0RL, England Copyright © 2008 by Barbara Weltman and Malcolm Katt All rights reserved. No part of this book shall be reproduced, stored in a retrieval system, or transmitted by any means, electronic, mechanical, photocopying, recording, or otherwise, without written permission from the pub- lisher. No patent liability is assumed with respect to the use of the information contained herein. Although every precaution has been taken in the preparation of this book, the publisher and authors assume no responsibility for errors or omissions. Neither is any liability assumed for damages resulting from the use of information contained herein. For information, address Alpha Books, 800 East 96th Street, Indianapolis, IN 46240. THE COMPLETE IDIOT’S GUIDE TO and Design are registered trademarks of Penguin Group (USA) Inc. International Standard Book Number: 1-4362-1243-X Library of Congress Catalog Card Number: 2007935862 Interpretation of the printing code: The rightmost number of the first series of numbers is the year of the book’s printing; the rightmost number of the second series of numbers is the number of the book’s printing. For example, a printing code of 08-1 shows that the first printing occurred in 2008. Note: This publication contains the opinions and ideas of its authors. It is intended to provide helpful and informa- tive material on the subject matter covered. It is sold with the understanding that the authors and publisher are not engaged in rendering professional services in the book. If the reader requires personal assistance or advice, a compe- tent professional should be consulted. The authors and publisher specifically disclaim any responsibility for any liability, loss, or risk, personal or other- wise, which is incurred as a consequence, directly or indirectly, of the use and application of any of the contents of this book. For details, write: Special Markets, Alpha Books, 375 Hudson Street, New York, NY 10014. Publisher: Marie Butler-Knight Cartoonist: Steve Barr Editorial Director: Mike Sanders Book Designer: Trina Wurst Managing Editor: Billy Fields Indexer: Brad Herriman Acquisitions Editor: Michele Wells Layout: Brian Massey Development Editor: Julie Bess Proofreader: Aaron Black Production Editor: Megan Douglass Copy Editor: Ross Patty Contents at a Glance Part 1: There’s No Business Like eBay Business 1 1 Why Start an eBay Business? 3 See why the eBay culture presents such great opportunities. 2 Barebones Startup 17 Set up your space and get connected so you’re good to go. 3 The ABCs of eBay 27 Register to sell and learn the basics of a sale, from start to finish. Part 2: Your Stock in Trade 49 4 Deciding What to Sell 51 Choose what you’ll sell by doing market research and exploring your options. 5 Valuing Your Items 59 Price your items right to attract sellers and make money. 6 Where to Find Inventory 69 Explore your sourcing options. Part 3: Making It Work 81 7 Running Auctions 83 Learn how to make your listings effective and manage multiple sales simultaneously. 8 Getting Paid 101 Use PayPal and other payment methods to collect your money. 9 Packing and Shipping 119 Handle your shipping responsibility easily and efficiently. 10 Marketing Miracles 131 Use ads and promotions to expand your eBay audience. 11 International Sales 145 Go global with as little hassle as possible. Part 4: So Now Your eBay Business Is Growing! 155 12 Keeping Books, Records, and Inventory 157 Keep count and do your paperwork to know how you’re doing. 13 Keeping It Legal 173 Get your business licenses and tax IDs, learn about eBay policies, and decide when and how to expand your business. 14 Protecting Your eBay Business from Fraud 187 Learn to spot fraud, and what you can do about it. 15 Preparing for Catastrophe 201 Plan for the worst while hoping for the best. 16 Cutting in Uncle Sam: Taxes 213 Pay as little taxes as required by taking advantage of tax write-offs. Part 5: Taking Your eBay Business to the Next Level 231 17 Power Up to PowerSeller Status 233 How to become a PowerSeller, and benefit from being all that you can be. 18 Multi-Channel Selling 243 Using eBay stores and other venues to boost sales activity. 19 Taking on Help 257 Hire help so you can grow your business. 20 Using Auction-Management Tools 269 Save time and money by using eBay and third-party tools. 21 Raising Money to Grow Your Business 279 Borrow or take in partners to get money needed for busi- ness growth. 22 Social Commerce: Learning, Growing, and Staying Connected 289 Stay up on eBay and business developments and opportunities. Appendixes A eBay and Third-Party Tools 301 B eBay Icons 321 Index 323 Contents Part 1: There’s No Business Like eBay Business 1 1 Why Start an eBay Business? 3 Becoming an Instant Millionaire Takes Time .............................4 eBay Businesses Are Like No Other Businesses ...............................5 Used Versus New Items .................................................................6 Moving from a Hobby to a Real Business ....................................7 Being a Part-Time Seller ..............................................................8 Finding a Space in the Crowd on eBay...........................................9 Making eBay Your Full-Time Business .........................................9 Achieving PowerSeller Status ...................................................... 10 Financial Considerations ............................................................. 11 Setting Up Your Business ............................................................ 11 Working from Home .................................................................. 11 Don’t Quit Your Day Job too Soon .............................................. 12 Selling for Others ......................................................................... 13 Buying a Packaged eBay Business ............................................... 14 Don’t Go There ........................................................................... 16 2 Barebones Startup 17 Space in Your Home .................................................................... 17 Finding a Place for Your Computer and Inventory ...................... 18 Exploring Space-Saving Strategies .............................................. 19 Have Any Connections? ..............................................................20 Phone Lines ................................................................................20 Internet Connections ................................................................... 21 Tools of the Trade ........................................................................22 Desktop or Laptop? .....................................................................23 Picture This ................................................................................24 Other Useful Business Items ........................................................ 25 3 The ABCs of eBay 27 Enlisting in eBay ..........................................................................28 Registering to Buy and Sell .........................................................28 What’s in a Name?.....................................................................29 Completing the Registration Process ............................................ 31 Creating Multiple Accounts .........................................................32 Using My eBay ...........................................................................32 vi The Complete Idiot’s Guide to Starting an eBay Business, Second Edition From Listing to Selling................................................................34 Listing Your Products .................................................................34 Maximizing Browsing Factors ....................................................37 The Auction Process ....................................................................38 Going, Going, Gone .................................................................... 39 Auction Alternatives ................................................................... 39 The Sell Your Item Form ............................................................40 eBay Fees ....................................................................................43 Auction Management ..................................................................
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