The Internet is a wonderful invention. Not only is it a great source of information, but it’s also a great place to earn a living too! There are thousands of online entrepreneurs that sell various products and services on the World Wide Web.
One common place to sell your wares is on the popular auction website eBay. With millions of regular users around the world, eBay is a great marketplace for selling new and used items. If you want to work for yourself, setting up an eBay business is one of the best ways of earning a living.
Credit / gwankho
In today’s blog post, I will show you how you can set up a successful eBay business.
Decide what you want to sell
The first thing you need to think about is what you want to sell! On eBay, you can sell pretty much anything – within reason. As long as you don’t fall afoul of eBay’s terms and conditions, you can sell any weird and wonderful items on their website.
I recommend that you invest in a Terapeak subscription. Terapeak is a service that lets you determine which items trend on eBay at any given time. It also helps you to price your goods competitively. After all; you want to make a profit, not a loss!
You can research some things yourself for free on eBay itself. But because of the time and effort involved, you would be better off using Terapeak to do the legwork for you.
Work out how you’re going to supply your customers
Once you have decided what you want to sell, the next stage is to think about how you’re going to supply those items to your punters.
Most people will usually buy the stock and send it out themselves. Whereas others might use a drop-shipping service. With drop-shipping, you buy the goods you need as and when you need them, and have them ship to your customers direct.
The beauty of doing that is you don’t need to store or buy any physical stock. But the downside is that drop-shippers can sometimes run out of stock.
If you are going to buy stock to keep yourself, consider buying in large volumes. That way, for products that sell like hot cakes, stock levels won’t be an issue. Some entrepreneurs use freight forwarding companies to buy volume items direct from overseas manufacturers. Others might buy from middlemen – distributors.
Get your tax affairs in order
Before you begin trading, you must first tell HMRC of your intention to do so. Most eBay sellers start off as sole traders. When you earn good money, you could then set up a limited company for tax-saving purposes.
If you’re not any good with bookkeeping or accounts, consider hiring someone like an accountant to help you.
The final point to consider is insurance. You should make sure you have professional indemnity insurance! Such insurance covers you in case someone wants to sue you over something you’ve done wrong. It’s an extra expense but well worth the money.