How to Start an eBay Business

[kkpilchers]

The first rule of starting an eBay business is: Don't do it.  It will be a big mistake.

I've been selling since 2016 and sell about $65K/yr.  I remember seeing disgruntled seller rants on these forums and thinking something along the lines of "...malcontents, what's the problem?  Just follow the rules and everything will be OK."  eBay has since disabused me of this notion.

The irony is now I am posting a rant just like they did!  In a dispute between buyer and seller, you can always count on eBay to do the best thing.  For eBay.

I'm closing my business at the end of this year.  I'm no longer going to partner with these people.  You kind of wade into eBay.  It is fun and exciting at the beginning. Then you slowly, ineluctably become eBay's b**ch.  eBay sets your business rules.  You don't.  You will be treated as a supplier.  eBay will spec an item to be sold.  The seller will be required to meet that spec.  eBay will charge you additional fees if your business model does not comport to what they think it should be.  Think of eBay as the special-needs equivalent of the company that begins with "A".

As your business grows you will have to have business liability insurance, you will pay quarterly state sales and use tax.  You will need a business license.  You will need to hire a CPA for your federal tax.    You will be doing end-of-year inventories.  Then as you find yourself spending more and more time listing items, shipping items, buying items and selling items, you will deal with your first difficult customer.  When they file a case/dispute, you will undoubtedly come out on the losing end of the deal.  This is how it will be.  This is how it will always be.  

You will of course appeal to eBay because you are "right", but you will quickly find out that it doesn't matter that you are right.  It matters that the outcome will keep eBay in good graces with buyers.   That's how it works.  Get used to it.  Embrace it.  

Wait until you call eBay customer support!  They are looong on empathy, but have little power to affect anything.  CS: "Yes, you are totally right Mr. Smith and it is perfectly understandable that you would feel that way. I would too in the same situation....."  Seller: "Are you going to do something about it?" CS: "No!"

It will only be a matter of time before you get bent over by eBay and then you will be enlightened...just like I was!  I know what your thinking.  You are thinking, but eBay has seller protection!! HAHAHAHAAHAH!!! Let me know how that works out for you 🙂

Listen, you have probably had some initial successes selling on eBay and will more than likely disregard this post.  I know because that is what I did with posts like these.  I can only suggest that when eBay throws you under the bus for the first of many times, please think back to this post you read and dismissed.  Remember: I told you so!

[powell-memorabilia]

@kkpilchers 

Hey, no issues if you don't want to sell on eBay - that is a choice that all of us make, every day.  To call anyone "eBay's b***h isn't nice, and isn't close to being fair. 

Many of us look at eBay for what they are - a tool to realize some goals, and that is it.  We're not fooled into thinking that eBay is a partner, and we're not confused as to whether a corporation has "feelings," can hate anyone, or even care about the welfare of others.  Thing is, when you don't realize that, you get confused and angry about eBay actions, and end up losing your temper on a phone call with customer service.

Me, I like selling on eBay.  I make a nice profit (for a part time gig), I make a lot of customers very happy, and I spend a lot of money with one particular supplier (I've dramatically increased his economic security).  All good stuff - a great win-win-win, even if I have to give a big chunk of my profits to eBay, have to deal with buyer-friendly policies, and put a lot of trust in buyers that I don't know.  

[kkpilchers]

Yes, u r right.  I am sorry for the b**tch comment.

Best Regards,

Keith

[autopartaccess]

same boat here... back to over 1 percent return rate so called high by ebay. 6 returns of 392 transactions. 2 were supposedly damaged items by usps where buyers didnt even reply to our offers for replacements that couldve been sent.  both of those actually closed by ebay due to no response or return of item. a third just got closed due to no return of item that supposedly didnt match their cars interior color so it was not as described. all of these still penalizing us with a high return rate.  our so called peers are only averaging a .095 return rate according to ebay metrics. customer service told us they cannot comment on who we are being compared to as far as peers. wow. highly doubt majority of people selling on ebay in higher volume are having less than 1 percent return rate. if this is ebays attempt to curb returns which are probably pretty steady all around this wont fix it. seems like its just their excuse to raise selling fees. customer service told us we were paying an additional 5 percent penalty fees which is on top of 12 percent ebay motors fees. a whopping 17 percent on what we sell is pretty darn high. not easy spending hours daily hunting items to get cheap enough to turn a reasonable profit. along with cleaning and testing  them. takes up a lot of time. also went through the whole llc, tax id and everything else that goes with it many years ago when the business was started. was told it was needed to continue selling goods as a business online and in my state. expensive process.  currently attempting to stop selling certain items that actually sell well due to constant shipping damages and many often purchased incorrectly then returned. hoping ebay relaxes some of these penalties in the future but most likely wont happen now that they found the loop to raise fees on sellers.  enjoyed your post though. good luck with everything.

[gracieallen01]

Well, you needn't worry, you aren't alone.  There are others of us still hanging around/lurking that have given a pass to continuing with ebay, as it stands.  Some of us hope it changes, with little expectation of it happening, but perhaps in another incarnation, somewhere on down the line, things will be different.  I've heard that miracles do happen.

[kkpilchers]

In a macabre way, I found your post comforting.  I guess it is easier to accept if it happens to others too.  That said, I am sorry you are having to go through this.  I'm still getting out at the end of this year and boy am I glad.  Here is the problem.  Your return rate of 6/392 might be perfectly acceptable to your business model.  You might even make more money if you curtailed some of your testing and had a return rate of 12/392.   But see, you don't get to set your business rules/parameters.  eBay does and 6/392 is too high.  Which means as one person stated in a reply, it is not really your business.  It is eBay's business.  They set the rules; you don't.  Although I am a top-rated seller, I do not off a 30-day free return (I do give a 90-day functional warranty on everything I sell).  If you read eBay's seller protection rules, they will not protect you if you don't give a 30-day free return period or if you have a "very high" return rate.  So I don't qualify.  I fully expect that ebay will require all sellers at some point to offer free returns.  So here I am having to do it all: purchase, repair, list, ship all the items, handle any returns, do state taxes each quarter, etc.   I can't have things coming and going each month not knowing that when I sell something it is going to stay sold due to buyer remorse.  Walmart can do that; I can't.  And eBay is "helping" me by charging me a premium fee based on an illegitimate comparison to the category average.  Calling Customer Service, to try to get them to understand that, is an excellent  alternative to capital punishment.  Oh, my overall return rate is about half of the ebay seller average even with the very high rate in "Computers and networking equipment."  That said, I am not going to stand for this seller abuse.  I realize I am fortunate that I don't need the income at all and that most people trying to make a go of it on ebay will just have to bend over.  I'm not bending over.  I'm leaving this abusive relationship just like you would expect a battered wife to do.  eBay sucks.  I'm sorry I ever got involved with it.

[darwen8]

Agree totally .. Selling on E Bay since 1999 , my goal is to end my relationship by the end of the year as well  ... Customer Service reminds me of an psychiatrist .. You have every right to feel that way .. I started when I was 51 now I am 73 .. They have zero RESPECT , the forced move into seller hub , managed payments , Good till canceled , that actually devalues most Antiques and art ( that I sell ) .. Pathetic management would be an understatement ..

[darwen8]

Thanks , saved me the time to write the same comments , end of year bye bye ... 

[heypayattention]

I have entered the phase of ebay selling when you start to realize in order to do what sellers are told they can do.......sell, you begin to realize there are no rules you are just providing merchandise for EBAY to sell. The rules arent the rules, or maybe they are, your policies that you set for your eBay business are irrelevant. Ebay can give your money away without your approval and there is no way to get any real assistance when there is an issue of any kind. Ebay just refunded a customer for 2 items, aprox $700. I don't except returns eBay said they couldn't return them because they were abusing the return policy since they were exactly as described then they said the person could return the items without telling me and gave them a refund before I even got the items back .I'm I'm beyond confused I need to figure out how to take my eBay business to a website where I can actually have a business not just work for eBay as a merchandiser and a buyer. I have no interest in working as a retail associate for eBay.

[kensgiftshop]

Set up your own site where you only accept cash and you can make the rules.

[rugerskick]

I belleve its well more than one incident.  I think you actually do too.  

[ckimodog]

@heypayattention 

This is an old thread from 2021.  The OP obviously must have got their answer as they are still selling,  so I doubt they'll reply.

Should you have any questions or concerns it is always a good idea to start your own thread to get the help and advice for your specific issue. 

[kh-shakhib]

Hi everyone,

Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread if you wish to continue to discuss this topic.

Thank you for understanding.