How would you analyze an eBay entrepreneurial opportunity? Would you consider pursuing eBay? Why or why not?

 

Fledgling entrepreneurs are flocking to eBay because of the ease with which users can start a business. In the first quarter of 2018,171$2018,171$ million global active users conducted business on eBay, contributing to nearly $22.5$22\mathrm{.}5$ billion of gross merchandise volume through eBays online platforms. Taking the following steps will get you well on your way to starting a successful eBay business.

Research the market. Selling on eBay does not excuse anyone from the usual legwork involved in starting a business. To determine the right market, research should be conducted on how many items in a given category are selling on eBay as well as elsewhere. Marketplace Research is a subscription−$-$based tool available through eBay that allows you to view historical pricing information for products.

Develop a specialty. The more specialized your business becomes; the more confidence your customers will have in your offerings and the less time you will spend addressing questions about the random products you found in your basement. Most sellers start by selling used items, but eventually, the successful eBay seller will develop a niche to allow for greater economies of scale.

Access assistance. You will certainly make mistakes as you build your eBay business, but many of your questions can be answered by accessing eBays help files or by reading the discussion boards, through which successful sellers provide feedback and advice.

Invest in your business. If you plan to start your eBay business by selling off old items lying around your home, you will not need to invest much, if any, upfront capital; however, as your business grows, a few items will come in handy. First, designating a computer to be used solely for your eBay transactions will allow you to fully deduct it from your taxes. Second, a regulated postal scale will save you several hours waiting in line at the post office. Finally, a decent camera is a must. Posting poor−$-$quality photos of your merchandise will lead your customers to wonder about the quality of the rest of your business.

Develop a system. As with any business, policies, and procedures become increasingly important the larger your business becomes. Standardizing your templates or buying some through eBays Seller Tools section will help streamline the process. In addition, establishing a routine for corresponding with your customers regarding their questions and concerns will enable you to prevent any minor issues from escalating into major problems.

Offer PayPal. As an accepted form of payment, approximately 95$95$ percent of buyers prefer to pay online. Although less popular, some customers might prefer to pay with personal checks and money orders, so allowing these forms of payment can make those customers less familiar with online shopping more comfortable.

Know your numbers. eBay charges listing and final value fees, which can add up if you have to post your merchandise multiple times; however, the cost of gaining access to eBays customer base is insignificant when compared to the cost of using traditional advertising channels. If you expect your product to take several auctions to sell, cover your costs by charging higher seller fees.

Manage customer expectations. Make sure to under−$-$promise and over−$-$deliver to guarantee that your customers will not be disappointed when your product is described as new but arrives with a mild scratch. Be as forthright as possible. If you notice an imperfection, your customer surely will as well. Offering an unconditional guarantee puts the buyer at ease and avoids any complications due to damage during shipping or the customer claiming product misrepresentation.