Starting an Ebay business. Need advice.

wageslave

CAGiversary!
Myself and my parents are going to start a small ebay business. I'm going to handle the technical stuff like taking pictures and posting items, and since they're retired they are going to handle shipping, billing and logistics. I have a general idea of how paypal and ebay works, but I've never sold anything on ebay before (gasp!). I'm most worried about being screwed by paypal and I'm having my folks open a seperate bank account just for paypal, so that we can take the money out of it as it comes in. I guess we should start by selling less expensive items and work our way up as we get feedback. I have a bunch of complete SNES rpgs that I am going to sell but probably need to wait for at least 10 feedback (Chrono Trigger, Secret of Mana, Earthbound, Super Mario RPG, Etc.)

Anyway, does anybody have advice for ebay noobs like us getting started? How do we not get screwed!
 
Ship everything with Delivery Confirmation is my best advice.

And yes, definitely sell something small to start. I'd suggest picking something that has some value (so it will sell), say something that goes in the $10 range typically and just put it up with a 3, 5, or 7 day listing with a $0.01 starting bid and a reasonable shipping charge. It will sell and barring a (rare) non-paying bidder you'll have your first sale under your belt and get valuable experience with a real listing.

PayPal won't go into your linked bank account to take funds w/o authorization any longer, but a seperate account certainly doesn't hurt. They will go to a collection agency in some situations from what I've heard.
 
I always offer insurance as an option.

Make a special notation about your shipping options to Alaska/Hawaii/Guam/Virgin Islands, etc (just in case) as shipping to those locations can be a bit more expensive than a $1.73 mailer.

I also don't explicitly state a return policy, but I take everything on a case-by-case basis. I don't return/refund on items due to buyer's remorse (meaning they no longer wanted it.)
 
[quote name='wubb']Ship everything with Delivery Confirmation is my best advice.[/quote]

Paypal offers "free" Delivery Confirmation (14 cents) when you print the shipping label through them, which is pretty convienent.

If you ship internationally make Postal Insurance Required. If you ship internationally through USPS there is no way to track the package. All the receipitent has to due is file a claim with Paypal saying that they didn't receive anything and can be issued a refund from your paypal. It's happened to the Ebay Store I work for a couple times.

Boxes can be acquired for free through Liqour stores and USPS offers free boxes and shipping material for Priority Mail only.

Oh, and be sure to use Turbo Lister, it's a lot easier to use.
 
Good luck! I think setting up the separate account is a good idea (I did that too). Also, make sure you ship everything with delivery confirmation or else you open yourself up to people claiming it was never delivered. Also, if you are located in the continental US I'd start out only shipping to those 48 states - it just avoids hassles with international shipping.

The only problem I've ever had on eBay are lazy DBs who can't take 5 seconds and give you feedback. I have a 43 rating but it should be over 50 by now. I'm surprised how many people just don't give feedback.
 
[quote name='javeryh']

The only problem I've ever had on eBay are lazy DBs who can't take 5 seconds and give you feedback. I have a 43 rating but it should be over 50 by now. I'm surprised how many people just don't give feedback.[/quote]

I'd be over 200, with zero negative feedback. And I was a buyer on all of them! I hate when I send payment for something within minutes of an auctions end, and don't get a lick of feedback, even when I leave positive feedback first as the buyer after getting the item weeks later. I'm sorry but shouldn't the seller leave feedback first as soon as payment is received?

My advice is don't try to make all your profit with shipping charges I hate is as the buyer when I pay $6.00 for shipping, but when I get the item, see it only cost $2.00 to ship. (It's doesn't cost $4.00 for materials, if it does you're doing something wrong. Use the free boxes at the post office!). It will affect your repeat buyer business.
 
[quote name='Number83']I'd be over 200, with zero negative feedback. And I was a buyer on all of them! I hate when I send payment for something within minutes of an auctions end, and don't get a lick of feedback, even when I leave positive feedback first as the buyer after getting the item weeks later. I'm sorry but shouldn't the seller leave feedback first as soon as payment is received? [/quote]

I agree. I leave feedback for every transaction and it makes me mental when I pay for something instantly and leave feedback as soon as the item arrives but the Seller can't be bothered.
 
[quote name='Lobsterjohnson']
If you ship internationally make Postal Insurance Required. If you ship internationally through USPS there is no way to track the package. All the receipitent has to due is file a claim with Paypal saying that they didn't receive anything and can be issued a refund from your paypal. It's happened to the Ebay Store I work for a couple times.[/quote]
[quote name='Number83']I'm sorry but shouldn't the seller leave feedback first as soon as payment is received?
[/quote]
Seems like having the seller leave feedback first wouldn't be the best idea (especially when dealing with international buyers). Many things can come up after payment like buyer's remorse, switching items & false SNAD, bounced checks, fake money orders, feedback extortion... all of these things don't exactly make sellers want to give positive feedback. Besides, having buyers craving feedback is pretty weird, considering they don't really need it and can just make new IDs without much repercussions. Sellers are the ones who really need feedback since their sales are likely dependent on it.
 
What are you selling? I have ordered quite a bit and I always liked getting repeat buyer coupons even if its a small percentage.. This wouldnt be the best if you are not selling a predertimined item. I mean I can see it not helping if you are selling all sorts of different games etc.

Otherwise someone should link the paypal shipping label info as thats a good bit of info (I have never used it myself but with free DC it might be worth it). Does it take it out of your paypal balance then?
 
[quote name='Snake2715']What are you selling? I have ordered quite a bit and I always liked getting repeat buyer coupons even if its a small percentage.. This wouldnt be the best if you are not selling a predertimined item. I mean I can see it not helping if you are selling all sorts of different games etc.

Otherwise someone should link the paypal shipping label info as thats a good bit of info (I have never used it myself but with free DC it might be worth it). Does it take it out of your paypal balance then?[/quote]

I'll be selling videogames, movies and collectibles that nerds would like (atari activision patches and stuff like that) and small knick knacks. My folks will probably be selling mostly knick knacks, old books etc. Basically anything we find kicking around at yardsales or thrift stores that we think would move, plus the videogame crap I want to unload (there's a lot of it).

Thanks for the advice everyone! Keep it coming.
 
[quote name='Snake2715']Otherwise someone should link the paypal shipping label info as thats a good bit of info (I have never used it myself but with free DC it might be worth it). Does it take it out of your paypal balance then?[/QUOTE]

Link in my sig. And yes, they do take the amount out of your PayPal balance unless you don't have enough to cover the postage. It's actually the electronic DC rate, which is $0.14 (a lot less than normal) and free for Priority Mail no matter which service you use (Pitney Bowes, PayPal shipping, etc.) A great extra benefit of using PP shipping is that it automatically e-mails your buyer that the package has shipped w/ the DC #. Buyers love that.

I wish the USPS would expand Click-N-Ship to 1st class mail, but that's somewhat OT.

http://www.cheapassgamer.com/forums/faq.php?faq=cag_guide_shipping#faq_make_your_own_usps_labels
 
It's been said and I can't repeat it enough: delivery confirmation. I'll add two though, a copy of your receipt, and a picture of the box with shipping labels attached. Some people on eBay really do want to screw you over just to save a few dollars. And if you ship internationally: INSURANCE and CERTIFICATE OF MAILING. Charge extra so you can cover it, because you're going to need it.

Second of all, move your money as quickly as you can, don't keep it in paypal: paypal holds your money for 6 months if you lose your account or you become restricted or suspended. The second you can move the money to a bank account, DO IT. Paypal has been known to STEAL people's money when closing down an account, and eBay/paypal sometimes closes accounts for NO REASON WHATSOEVER.

Watch out for scams, lots of people buy an item and never pay, then file an item not received dispute, saying they paid by money order. KEEP EVERY SINGLE EMAIL YOU GET, take screen shots if you have to, always have proof to back up what you're saying.

Other than that, it's pretty easy and you can make a lot of money, when I was on eBay I could make $1000 in 4 days easy, just off clearanced merchandise. I miss those days.

Second note: people here suggest the electronic shipping, I'll be the first to say it's not very reliable. For one thing, you can't first class ship. Now, here's the thing, people like their items quick. With small items like CD's and games, first class mail is 50% cheaper, and gets there just as fast if not faster, and what's wonderful, 9/10 buyers will not tell the difference, they are just happy to get a delivery confirmation number and their game in 2 days. What does this mean? Profit. You charge $4.50 to ship a game with delivery confirmation 2-5 day mailing, you send it first class with DC, they get it in 2-4 days and are able to track it, it only cost you $2.50 at the most: every dollar counts. And at least in my experience, the mail treats me pretty bad when I take things with electronic shipping, they don't want to help AT ALL, they don't even want to give me priority mail tape or sealing, you get much better service actually going to the mail, since most of the time you get your DC slip filled, you get security tape/stickers on priority mail packages, they make sure the address is correct when they type it in, and in general you get service with a smile not just "leave it there, we'll send it"
 
[quote name='rodeojones903']Remember to pay your taxes on everything you sell![/QUOTE]

Well, it depends on how much money is making a year.

Most eBay sellers don't face any risks NOT reporting taxes though, maybe some of the huge powersellers, but most find ways around it. "Taxes" are still a big issue on eBay.

Personally, I don't think you can regulate internet auctions, especially ones open to worldwide buyers. Then you'd have to bring in export/import rulings and what not. It'd be too much redtape for anyone to deal with.

It's like taxing people for yardsales.
 
[quote name='sarausagi']
Second note: people here suggest the electronic shipping, I'll be the first to say it's not very reliable. For one thing, you can't first class ship.[/QUOTE]

You can ship 1st class mail with PayPal Shipping. I print my label at home, attach it, and drop it in a collection box I pass every day. Takes a lot less time than driving to the PO and waiting in line. Of course if you are doing a really high volume you might want to go the PO anyway.

Remember electronic delivery confirmation does not include an acceptance scan which is the main reason (I assume) it is much cheaper than retail DC. An acceptance scan does nothing for you as far as a PayPal claim anyway, it's all about the delivery scan. I noticed that some packages were simply not scanned AT ALL (very bad) but now I outline the DC bar code in green highlighter and haven't noticed one slip through the cracks since. *knock on wood*

[quote name='Circa2113']Great guide wubb. A lot of good info in there.[/QUOTE]

Thanks!
 
[quote name='Number83']I'd be over 200, with zero negative feedback. And I was a buyer on all of them! I hate when I send payment for something within minutes of an auctions end, and don't get a lick of feedback, even when I leave positive feedback first as the buyer after getting the item weeks later. I'm sorry but shouldn't the seller leave feedback first as soon as payment is received?

My advice is don't try to make all your profit with shipping charges I hate is as the buyer when I pay $6.00 for shipping, but when I get the item, see it only cost $2.00 to ship. (It's doesn't cost $4.00 for materials, if it does you're doing something wrong. Use the free boxes at the post office!). It will affect your repeat buyer business.[/quote]

Say a seller leaves feedback after payment. They could be screwed so many ways.

Feedback hostage
Fraudulant funds
Lying Dispute

and many, many more. If I send you a $75 game, you say you didn't authorize the charge, I'm out the money and the game, has that been a positive transaction for me? Should I tell others to deal with you? Feedback is for the whole transaction,.


Materials, gas, time, not everyone ships priority mail, some boxes don't fit the item, etc.
 
[quote name='Yusuke-Urameshi-']Say a seller leaves feedback after payment. They could be screwed so many ways.

Feedback hostage
Fraudulant funds
Lying Dispute

and many, many more. If I send you a $75 game, you say you didn't authorize the charge, I'm out the money and the game, has that been a positive transaction for me? Should I tell others to deal with you? Feedback is for the whole transaction,.


Materials, gas, time, not everyone ships priority mail, some boxes don't fit the item, etc.[/quote]

Yeah. The feedback system, while it has good intentions, is monumentaly flawed. Once you start selling you will realize this. People will leave retaliation negs., negs. for you even though they didn't read the auction, etc...

Sounds harsh but if i were you i wouldn't leave feedback until the buyer leaves it for you. That truly is the only way to protect yourself from Neg. feedback when you didn't deserve it.
 
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