eBay trader
Introduction
So you've decided you want to start in business as an eBay trader. Maybe you're already involved in retailing or ecommerce, or perhaps you want a business you can run from home. Whatever the reason, this guide will take you through the issues you need to consider and give you practical pointers on getting started.
Note: this guide focuses on eBay, which is by far the largest online auction site. However, many of the concepts and principles also apply to other online auctions.
Sector trends
For many people, eBay has become more than just an online auction house. The 'eBay phenomenon' has seen it become a central part of many people's lives, both at work and at play.
eBay, the first major online auction website, was launched in 1995. As internet usage grew and the internet itself became more commercial, sophisticated software enabled websites to look better and do more, while secure technology enabled people to make payments safely online and faster connections made surfing more pleasurable. These conditions enabled eBay to grow into the global giant that it is today, with millions of items live on the site at any one time.
As the eBay community grew and the number of transactions increased, a range of special tools and services was added to the site. Features available to buyers and sellers include the PayPal online payment service, online dispute resolution, escrow services to prevent fraud, customisable eBay 'Shops' and special software to help sellers to list multiple items and manage their auctions. eBay continues to add new features to its website to meet the needs of its community.
1.1 The 'eBay economy'
Although eBay was originally designed as a way for private sellers and collectors to sell their unwanted items to private buyers, it didn't take the business world long to spot the potential of online auctions. Existing businesses realised that, by selling on eBay, they increased their potential market to millions of users. eBay claims that 75 per cent of eBay Shop sellers that were surveyed said that opening an eBay shop had increased their sales. Others spotted opportunities to find bargains at car boot sales, surplus outlets and wholesalers and make a profit by reselling them on eBay. Still others realised that they could run a traditional retail business but without premises, enabling them to attract buyers by undercutting the high street shops. Even some major businesses such as Argos, Zavvi, Comet and Tesco now use eBay to get rid of their old stock and surplus inventory.
More and more people now make their living from their eBay business, enjoying the benefits of being their own boss, working from home and choosing their own working hours while still being 'open for business' 24 hours every day.
The eBay boom has even created its own dedicated industry as people have written numerous books on how to buy and sell and produced a range of third party software to help users get the most out of eBay.
1.2 Other online auctions
Although eBay is the biggest and best-known online auction site, it is by no means the only one. Other online auctions serving buyers and sellers in the UK include eBid and CQOut. Some, such as eBid, offer free listings.
1.3 Keeping up with developments
Once you've got to grips with eBay and the way it works you'll want to stay up to date with new developments. The eBay website has a thriving 'Community' section. It includes chatboards and forums, news and information about events and education.
