I have mentioned before that I have recently sold quite a few items on EBay to help make ends meet in this tough time. Although I do not regret my decision, I would like to impart some of the wisdom I have gained in the last month of working with EBay and PayPal:
1. Start at the lowest possible price you would be willing to sell for.
Several items I originally listed at the price I hoped to get, and they didn't sell, but when I relisted them (on a hope and a prayer) at $.99, they sold for more than I had listed them for originally. The competition aspect of EBay entices people into bidding wars and, as a seller, you win.
2. Do not list an item lower than what you would accept for it.
I know this seems to counter the first point, but if you list something at $.99, and only one person bids, you will HAVE to sell at that price. So only list something on the cheap if you can afford to lose it at that price.
3. Make sure you build in enough cushion to pay for shipping.
I do not mean pad the shipping costs. But remember that you will have to buy shipping materials, travel to the post office or UPS, and pay for an item to go wherever the buyer lives. This can add up. I have sold almost 70 items on EBay this month and my shipping costs have been more than $250 (and way more when you add in packaging). Mis-estimating shipping costs has cost me money.
4. EBay takes a fee, billed monthly.
I don't exactly know what the calculation is, but for my sales it has equaled out to more than 10% of my items. If you get the buyer's money and don't realize this, you may not be prepared to pay EBay when they bill you for their services a month later. Also, I believe you can start an auction at less than $1 and not be charged if the item does not sell. However, if the item does sell, EBay is taking a percentage. Also, if you start the auction at more than $1 and the item does not sell, EBay is still going to take a percentage. Just a warning.
5. PayPal takes a fee out of every transaction.
I know, isn't PayPal owned by EBay? And yet you have to pay twice. PayPal will take a portion of every sale you make. Again, I do not know what calculation they use to determine their fee, but mine has equaled around 10% of my sales (so this, combined with EBay's fees will put you out around 20% of your sales).
6. PayPal will hold your money.
If you are new to selling through EBay, or have any negative feedback, or for any other reason PayPal deems sufficient, they will hold your incoming money for up to 28 days. Nope, there is no getting around this because you agree to it when you use PayPal. And you still have to send the item even if the money is held (i.e. pay for shipping out of pocket). However, you can get them to release money earlier if you (1) get positive feedback from the buyer or (2) can prove that the item was delivered 3 or more days earlier and the buyer has not complained.
7. Spend the extra money for delivery confirmation.
For the reason stated above, pay a little extra for delivery confirmation. It can be entered into every seller transaction on PayPal, and provide proof that an item was delivered. This will allow you to ask PayPal to release your money before the allotted 28 days. This is important because many buyers don't or forget to leave feedback. Delivery confirmation is usually $.75 or $.85 and can also help you out if you end up dealing with a sketchy buyer.
8. Call PayPal to release your money.
If you know that you sold something and it was delivered, or you received positive feedback, and PayPal has not released that money, call them. Releasing funds after either one of those is satisfied is supposed to be automatic, but it sometimes isn't. So if you want your money, call them (don't waste your time through their "forums" or automated customer support) and they can release the money while you are still on the phone.
9. PayPal takes 3-4 days to transfer money to your bank account
Even though they can take it out immediately. Just so you know if you are really in a tight spot and need the money asap. And it takes longer to get a check.
That's all I can think of right this moment, but will add on if any other thoughts hit me. Hope this helps & have fun selling!
