Some Basics About eBay

eBay was created in September 1995 by a man named Pierre Omidyar, who lived in San José. He wanted his site, then called ‘AuctionWeb’, to be an online marketplace and wrote the first code in a weekend.

It was one of the first websites of its kind in the world. The name ‘eBay’ comes from the domain that Omidyar used for his site.

His company name was Echo Bay, and ‘eBay AuctionWeb’ was originally just a part of the Echo Bay website at ebay.com. The first thing sold on the site was Omidyar’s broken laser pointer, for which he received $14.

The site quickly became hugely popular, as sellers began listing all sorts of weird things and buyers actually bought them. Relying on trust seemed to work remarkably well, and meant the site could almost run itself.

The site had been designed from the start to charge a small fee for each sale, and it was this money that Omidyar used to pay for AuctionWeb’s expansion.

The fees quickly added up to more than his current salary, so he decided to quit his job and work on the site full time. It was at this point, in 1996, that he added the feedback features, to allow buyers and sellers to rate each other and make buying and selling safer.

In 1997, Omidyar changed the name of AuctionWeb, and his company, to ‘eBay’, which is what people had long called the site. He started spending a lot of money on advertising and had the eBay logo designed. It was in this year that the millionth item was sold (it was a toy version of Big Bird from Sesame Street).

Then, in 1998, the height of the dot-com boom, eBay became big business, and investment in Internet businesses at the time enabled it to attract senior managers and business strategists, who went public on the stock market. .

It started to encourage people to sell more than just collectibles and quickly grew into a huge site where you could sell anything big or small. However, unlike other sites, eBay survived the end of the boom and is still going strong today.

In 1999, eBay expanded worldwide, opening sites in the United Kingdom, Australia, and Germany. eBay bought half.com, an Amazon-like online retailer, in 2000, the same year it introduced Buy it Now, and bought PayPal, an online payment service, in 2002.

Pierre Omidyar has now earned an estimated $3 billion from eBay and still serves as chairman of the board. Oddly enough, he maintains a personal weblog at http://pierre.typepad.com.

There are now literally millions of items bought and sold every day on eBay, all over the world. For every $100 spent online worldwide, an estimated $14 is spent on eBay; that’s a lot of laser pointers.

Now that you know the history of eBay, you might want to know how it could work for you. Our next email will give you an idea of the possibilities.

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EBay income possibilities.

If you’ve ever read an article about eBay, you’ve seen the types of income people make; It’s not unusual to hear of people making thousands of dollars a month on eBay.

Next time you’re on eBay, take a look at how many PowerSellers there are – you’ll find quite a few. Now consider that each of them must be earning at least $1,000 per month, since that is eBay’s requirement to become a PowerSeller.

Silver PowerSellers earn at least $3,000 each month, while Gold PowerSellers earn over $10,000 and the Platinum level is $25,000. The highest ranking is Titanium PowerSeller, and to qualify you must make at least $150,000 in sales each month!

The fact that these people exist gives you an idea of the earning possibilities here. Most of them didn’t even set out to set up an eBay business – they just started selling a few things and then moved on. There are plenty of people whose full-time job is selling things on eBay, and some of them have been doing it for years.

Can you believe it? Once they’ve bought the shares, everything else is pretty much pure profit for these people: they don’t need to pay for any business, personal, or anything else. There are multi-million dollar businesses that make less real profit than eBay PowerSellers.

Even if you don’t want to quit your job and you really want to, you can still use eBay to earn a significant second income.

You can pack orders during the week and take them to the post office for delivery every Saturday. There are few other things you could be doing with your free time that have anywhere near that kind of earning potential.

Also, eBay doesn’t care who you are, where you live or what you look like – some PowerSellers are very old or very young.

Some live in the middle of nowhere, where selling on eBay is one of the few alternatives to farming or being very poor. eBay breaks down the barriers to earning that the real world constantly puts up. There’s no job interview or commuting involved – if you can post stuff, you can.

Let’s put it this way: If you know where to get something reasonably cheap that you can sell, then you can sell it on eBay, and since you can always get wholesale volume discounts, that’s not exactly difficult. Buy a working batch of something in-demand cheaply, sell it on eBay, and you’re already making money, with no setup costs.

If you want to dip your toe in the water before committing to buy something, then you can sell the things you have around the house.

Search through that closet of stuff you never use, and you’ll probably find that you have a few hundred dollars’ worth of stuff lying around!

That’s the power of eBay: there’s always someone who wants what you’re selling, whatever it is, and since they’ve come looking for you, you don’t even need to do anything to get them to buy it from you.

So do you want to get started on eBay? Well that’s great! There are only a few things you need to learn to get started. Our next email will give you the lowdown.

What you need to know BEFORE you start using eBay.

So you’ve decided you want to get started as a seller on eBay. There are a few things you really need to know before you dive deep.

what to sell

First of all, you must know what you are going to sell: what is your specialty? You’ll do much better on eBay if you become a great source for certain types of products, as people who are interested in those products will come back to you again and again. You won’t get real loyalty or reputation if you just sell random junk.

When you think about what to sell, there are a few things to consider. The most important of them is to always sell what you know. If you’re trying to sell something you just don’t know anything about, you’ll never write a good description and sell it for a good price.

You may think that you are not particularly interested in anything, but if you think about what kinds of things you usually buy and what websites you visit most often, you will surely discover some type of interest.

If all else fails, mention it to your friends and family – they’ll almost certainly say “Oh well, why don’t you sell…” and slap you on the forehead.

Of the things you know enough about, you need to consider what things you could get for a good enough price to resell and how suitable they would be for publishing. If you can think of something you’re knowledgeable about and it’s small and light enough that postage is relatively cheap, then that’s great!

Don’t worry if you think what you’re selling is too obscure, it’s not. There’s a market for just about everything on eBay, even things that wouldn’t sell once a year if you stocked them in a store. You’ll probably be better off filling a niche than selling something common.

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Tax and Legal Affairs.

If you earn enough money, you should be aware that you will have to start paying taxes; this will not be done for you. If you decide to sell on eBay full time, you should probably register as a business.

Get ready.

There will be ups and downs when selling on eBay. Don’t hold it back if something goes a little wrong on your first few sales – sellers who are successful on eBay are the ones who enjoy themselves and stick with it no matter what.

Anyone can sell on eBay, if you believe in yourself, and if you decide it’s not for you, then the start-up costs are so low that you really haven’t lost anything.

If you’re ready to start selling, the next thing you need to know are the different auction types, so you can decide which ones you’ll use to sell your items. Our next email will give you a guide.

A beginner’s guide to the different types of eBay auctions.

Over the years, eBay has introduced all sorts of different auction types, in an effort to give people more options when buying and selling their stuff on eBay.

For every seller who doesn’t like the idea of their item selling for much less than they’re claiming, there’s another who wants to sell hundreds of the same item fast.

eBay tries to satisfy all tastes. This email gives you an overview of the different types of auctions and their benefits to you.

Normal auctions.

These are the bread and butter of eBay, the auctions everyone knows: buyers bid, others outbid them, they bid again, and the winner gets the item. Simple.

Reserve auctions.

Reserve auctions are for sellers who don’t want their items to sell for less than a certain price, a concept you’ll be familiar with if you’re familiar with real auctions.

They work just like regular auctions on eBay, except the buyer will be notified if their bid doesn’t reach the reserve price you set, and they’ll have to bid again if they want the item. If no one is willing to pay your price, the auction is canceled and you keep the item.

Fixed-price auctions (‘Buy It Now’).

Auctions Buy it now! they can work in two ways. You can add a Buy It Now button. to a normal auction, which means that buyers can choose to bid normally or simply pay the asking price and skip the entire bidding process.

However, some sellers now do away with the auction process altogether and simply list all of their items at a fixed price. This allows you to avoid all the complications of the auction format and simply list your items for how much you want them to sell for.

eBay recently added a twist to fixed-price auctions: the ‘best deal’. This means that buyers may contact you to negotiate a price, which could be a good way to sell some extra stock at a small discount.

The only downside to reserve and fixed price auctions is that you pay a small additional fee to use these formats. In general, it’s more worth using Reserve Auctions for higher priced items and Fixed Price Auctions for lower priced items, but remember that you can mix and match the two formats.

Multiple item auctions (‘Dutch’).

These are auctions where you can sell more than one of a certain item. Dutch auctions can be held by bid. Buyers bid a price and say how many items they want, and then everyone pays the lowest price offered by one of the winning bidders.

If you’re having trouble understanding that, don’t worry, everyone else is too! These auctions are very rare.

What is more common is when a seller has a lot of an item and lists it using a combination of two auction types: a multi-item fixed price auction.

This just means that you can say how many items you have and offer them at a fixed price per unit. Buyers can enter how many they want and then simply click Buy Now to get them.

Now that you know about the different types of auctions, you need to make sure that the items you plan to sell don’t violate eBay’s listing policies. The following email will tell you what is allowed and what is a big no-no.

Don’t get in trouble with eBay’s listing policies.

While you can sell most things on eBay, some things are prohibited. If you try to sell any of these things, eBay will remove your auction and all bids will be void.

Here is the full list of eBay Prohibited or Questionable Items:

Academic software

Airline and public transportation related items

Alcohol (see also wine)

Animals and wildlife products

Anti-circumvention policy

Artifacts

Authenticity disclaimers

Autographed items

Batteries

Beta software Pirated

recordings

Brand name Misuse

Catalog sales

Catalytic converters and tubes test

material Celebrity material

Charity or fundraising listings Media and

comparison policy compilation Contracts and tickets Counterfeit currency and stamps Counterfeit items

Credit cards

Downloadable media

Drugs and drug paraphernalia

Electronic equipment Embargoed

goods and prohibited countries

Encouraging Infringement Policy

Event tickets

Faces, names and signatures

Firearms, ammunition, replicas and military items

Fireworks

Food

Freon and other refrigerants

Gift Cards

Government Identification and Licensing

Dangerous, Restricted, and Perishable Items

Human Parts and Remains

Importing Merchandise into the United States

International Trade: Buyers

International Trade: Sellers

Opening Devices

Locks Lottery Tickets

Mailing Lists and Personal Information

Manufacturer Coupons

Mature Audiences

Medical Devices

Misleading Titles

Modified Chips, Game Boosters and Boot Disks Movie

Impressions

Multi-Level Marketing, Pyramid and Matrix Programs

OEM Software

Offensive Materials

Pesticides

Plants and Seeds

Articles related to Police

Political Memorabilia

Postage Meters Presale

Listings

Prescription Drugs and Devices

Promotional Items

Real Estate

Recalled

Items Recordable Media

Replicas and counterfeit items

Cable and satellite TV Set-top

boxes Slot machines

Stocks and other securities

Stolen property

Surveillance equipment

Tobacco

Travel

Unauthorized copies

Used clothing

Warranties

Guns and knives

Wine (see also Alcohol)

Most of this is pretty obvious: Of course, you can’t sell illegal things like drugs, pyramid schemes, or stolen goods. Almost everything on the list is there because there is a law against selling it. Some of the reasons, however, are a bit strange.

The ‘autographed items’ entry, for example, doesn’t mean you can’t sell anything that has been autographed, it just means you can only sell it if it comes with a certificate of authenticity.

The ‘artifacts’ entry prohibits you from selling Native American graves; ‘celebrity material’ means you may not sell unauthorized images of celebrities; ’embargoed goods’ means you can’t sell anything that comes from Cuba…and it goes on and on, and most of it you never need to know.

However, if your chosen item type appears to be listed and you are concerned that you may not be able to sell it, check the full list at http://pages.ebay.com/help/policies/items-ov.html to see if the item is prohibited completely or if there are only some restrictions.

eBay says it will remove any items it thinks violates copyright law, but they don’t really have that many people to monitor the site. You’ll usually only find your auction removed if someone chooses to report it, and even then, they may not.

Really, buying and selling on eBay can sometimes seem more complicated than it really is, thanks to all the rules that surround it, not to mention the jargon. Our next email is a jargon buster to help you learn the language of eBay.

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