eBay Facts

Online Auction Facts

Below you'll find the answers to many of the most commonly asked questions we receive regarding Selling on Online Auctions like eBay & Amazon. The answers to these questions will give you a new understanding of how the Selling on eBay and Amazon process works, which will help you become a well informed eBay & Amazon Seller.

We also want you to know that you may notice that there are a lot of examples of eBay and Amazon in our facts. We mention eBay and Amazon because they are the largest online auction sites in the world. And most people are familiar with eBay and Amazon. We also mention other online auction sites, but eBay and Amazon are the most popular and recognized.

You can either scroll down through each question below, or you can jump ahead to a section of interest by clicking on the question in the table of contents.

How to find out what products sell for?

There are tons of ways to find out what your products are selling for. One quick way to find out what your item is worth is to do a quick Google search. See what your item is currently selling for on sites like Amazon, Bidz.com or Ubid.com. If you are working with eBay, one of the best ways to find out what products sell for, is to just do a "Completed Listings Search". If you're not familiar with this, basically how you do it is, type your item into the search bar on eBay. Then pull a search. Then, you want to scroll down on the left hand side and click on "Completed Listings". What that search is going to give you, is a list of all the auctions involving your item that have been completed in the past 2 weeks. If the item did sell, it will show up in green. If it didn't sell, it will show up in red. The coolest part is it will tell you exactly what it sold for.

What is the best auction site to sell on?

There are all different online auction sites out there on the web. Some of the most famous or most popular are either Ubid.com, Bidz.com and of course eBay.com Amazon.com. If you were to compare them in revenue size, Ubid.com has done about 2 Billion Dollars in revenue since it's inception. Bidz.com did just 11.5 million last year. Both of these are in no comparison to eBay, which did just over 11 Billion last year. Amazon is also a global powerhouse. They did over $74.5 Billion in sales last year. And they are not going away. In my opinion eBay and Amazon are two of the easiest ways to sell your products fast. There are more visitors to eBay & Amazon every day than all the other auction sites put together.

What prices do I sell my products at?

A question that I get from students all the time, is how do you price your product. How do you know what to sell your item for, how do you know what to list it for so that you don't lose out and then sell it for way less than you want. There is not one simple answer for this question. I could spend a decent amount of time on giving you all different ideas as to how to maximize your profit. But to give you a very simple answer quickly, I'd say this, if you're looking to find out what other people are listing their products for, definitely check out your competition. Don't just look on eBay. Look on Amazon. Look on Quibids.com. Look on uBid.com. See what the market is paying for your product. As for eBay, you get to choose the price that you would like to start your bidding at. A lot of people start the bidding really low, as to increase more interest in the product. Think about it, if you think you're going to get a steal at an 80% discount, you are more likely to bid on something. And the more bids people place, the higher the auction price gets. The only problem with this strategy, is that sometimes the interest can fade and the product can sell at a significant discount. If you don't have a strong presence on eBay and you haven't been selling for a while, I would recommend starting your auction at about 80% of the average sale price. This will get the general public to start bidding on your auction and in turn, your price will slowly be raised. As far as Amazon goes... First thing you need to know is that Amazon is a Fixed Price Auction. You set the price and then people either buy or don't buy. You just need to fall in line with the Market Place. The best part about Amazon is, is that you let the marketplace dictate the price. Just list your product for the price that others are selling theirs for, and your item will sell.

When I run out of stuff where do I find more products to sell?

Here's the thing that we tell everyone we train on online auctions....you can sell the stuff you have lying around your house or garage, but you're going to run out of stuff. You need to find a viable source of products that you can consistently get. There are all types of places you can find great deals for pennies and sell them for huge dollars. Just to name a few off of the top of my head, you can find deals at Thrift Shops, Garage Sales, Yard Sales. You can find great deals on online sites like Craigslist.com, Kijiji.com and Gumtree.com. The only issue with these sites is that you are finding 1's and 2's. The goal is to find an easy source where you can find discounted products, which you can sell on eBay for bigger profits.

What if my auction doesn't sell?

The dreaded question, what if my auction doesn't sell. I've heard it before. Let's get one thing straight right off the bat. I need you to accept the fact that sometime your auction won't sell. Sometimes things don't always work out the way we had hoped. Am I right? The same rules apply to eBay, uBid and other auction sites. Sometimes your items may not sell. For any number of reasons...there wasn't enough traffic that day...there were other items similar to your selling for cheaper prices...I could list a dozen of them. All you need to know is that if you re-list it, it will sell. It may not sell the first time or the second time, but everything sells. There's a reason that eBay is in business. There's a reason that they have grown every year. And there's a reason that 300 million people are on eBay right at this moment looking to do business. You may have an item up for sale on Amazon for a couple days before it sells. It may take a little while. But as long as you have the product listed at the correct price (the same or around the same price as your competition), the item will sell.

How much money do I need to start?

The best part about online auctions are that they are a great place to start if you don't have any capital or money to invest. Think about it for a second...you can create an account on eBay and sell those old things that are lying around your house collecting dust. And eBay makes a profit by taking a piece of what you are selling your item for. It used to be that sites like eBay would charge you a listing fee to auction off your product. Well, recently they decided to eliminate the listing fee for the first 50 items that you list every single month. This is a great incentive for everyday people to start generating some income into their lives. Of course I recommend that as you grow in this business that you start locating products that you can buy and resell, but until you're there....start reaping the rewards of a free business!

How safe are online auctions?

Amazon is probably the number 1 most trusted site on the internet right now. Think about it, have you purchased from Amazon before? Odds are you have. Now is the time you start selling. And as far as eBay goes...eBay alone has now been around for nearly 20 years. And in that time they have gotten better and better about protecting their clients. In today's online marketplace, it couldn't be easier, safer and more profitable to do business. As for eBay, when you buy and sell, you are sending and receiving money through Paypal. Paypal is the largest and safest money transfer site in the world. The best part about using Paypal on eBay is the fact that Paypal insures anything you sell up to $50,000. That means that if you sell an item for anything under $20,000 and the buyer pays paypal, you can feel safe and secure in sending that money out. Paypal guarantees you'll get it! And with Amazon it's the same thing. That money goes right into your bank account.

Can I sell online without dealing with a garage full of stuff?

One of the things we teach throughout our processes, is how to connect with drop shipping companies all over the world. Companies that we have researched, located, tested and profited with. If you're not familiar with drop-shipping, the process is simply this...you list a product for sale, once you've sold your item, you notify the company and they handle the rest. The drop-shipping company will handle the delivery to your end buyer. Your buyer pays you for the product, you pay the drop-ship company and everyone wins. The largest drop-shipping company in the world is Doba.com. I do not endorse Doba but people around the world have been using them for years. We educate our clients on how to find the drop-ship companies that we know, use and trust to deliver good quality products. Drop-shipping allows you to not have to deal with inventory and a garage full of products.

How to succeed against the competition?

Whether you are new at online auctions or you've been doing it for years, your going to have success selling your items. Sure, the more that you sell on sites like eBay, uBid and Amazon, the more money you will get for your products. As I've said a million times, people buy from people they know, like and trust. The more that you sell on eBay and Amazon, the more people will trust you. And the more that they will pay for their items. Ie. Someone will pay more for their product from you over someone else that hasn't been doing business online. They are going to feel more comfortable buying from someone that has a positive reputation. However I want you to rest assured that everything sells on eBay and Amazon. It doesn't matter if there are 300 other items exactly like yours selling on eBay and Amazon. That just means that more people are looking for those items. Your item will sell just as easily as someone else's.

What are the best products to sell?

There are over 64,000 different categories on eBay right now. There are more different types of categories than I can name. And hot products are changing all the time. But the some of the most popular items that have been on eBay's top 10 list over the past 18 or so years have been Electronics, Clothing and Niche products. One of the biggest selling categories are Collectibles and Antiques. eBay reported that 1 in ever 5 items sold on eBay are either a Collectible or Antique. These are the products that command top dollar and allow you the seller to make huge profits.

With Amazon it's even easier. You can look at the "Amazon Sales Rank" to see just how popular your item is. You can see exactly what it ranks overall on Amazon and you can dive deeper to see where it ranks in it's own category. For example, the Iphone 4 32gb White phone may be ranked 1,000 through all of Amazon, but it may be #1 or #2 Overall in phones. So it's important to know the rank. But the work is already done for you.

How much does it cost to setup an account
and start selling on eBay and Amazon?

eBay is unlike any other online retail business because it doesn't cost money to create an account; which is what makes eBay so unique! You don't need to pay for a web designer to create a fancy website. You don?t have to overspend on a high price marketing campaign.

You don't have to be an SEO guru or pay per clicks on Google. You simply can go to eBay.com enter in your personal information and can start listing products immediately, It's as easy as that.

With Amazon they are going to charge you a monthly fee of $79.99 to have a Seller's Account. Believe me, it's worth the cost. You will sell your items 5x faster on Amazon than you will on eBay. So you recoup that initial investment back in no time.

Do I need computer experience?

The computer experience that you need to run an eBay or Amazon business is BASIC computer knowledge. If you know how to surf the web, use basic word features and copy and paste then you'll be well equipped to start listing all types of products.

The good news is that you found us and the systems we have put in place allow you to operate this business using the basic functions of any computer.

Where do I find products to sell?

Everywhere and anywhere! Every nick and cranny in your house, your couch, closet, kitchen. Check your garage. Look over your shoulder; you see that over there collecting dust...SELL IT! If you have nothing in your house, sell for your friends and family, they'll be happy you did. Go to a yard sale, a thrift shop, storage units, look on Craigslist.

Find a wholesaler or drop shipper. There's no one place to look, there are products and deals everywhere. Always start in your house and then work your way out from there.

How do I get paid and collect money for items I sell on eBay and Amazon?

PayPal is essential to getting paid on most ecommerce websites; especially eBay. eBay owns PayPal and PayPal is safest money transfer website in the world. It's extremely user friendly and has unbelievable customer support. You can send and receive money with one click of the button. PayPal offers a premier service that is well respected by consumers worldwide, allowing you to accept all types of payment methods including debit and credit cards. Funds can be transfered to your account in seconds and accessing your PayPal funds can be done by a 24 hour transfer to your bank account or withdrawn from an ATM with PayPal's debit card that all members are able to apply for.

With Amazon, the money goes right into your bank account. The way that Amazon works is, they deposit your sales funds every 14 days. So your goal is to sell as much as you can throughout the month... and every 14 days they will disperse a lump sum into your bank account.

How much money can I make?

In the simplest answer, as much as you want. The beautiful thing about eBay is that you determine what you make. The more items you sell the more money you make. There are sellers that are making hundreds of thousands of dollars each year by selling on eBay and it all depends on how much you list and offer to the buyers all over the world because the more products you have up for sale the more money you're going to make.

As far as Amazon goes, their sales last year exceeded $74.5 Billion. A reported $24.5 Billion came from 3rd party sellers just like you and me. So it's up to you on how big of a slice of that $24.5 Billion you would like to take! The possibilities are endless.

How much time is it going to take to build an eBay and Amazon business?

A part-time eBay or Amazon business can be VERY profitable. You can spend as little or as much time as you want at eBay, from a few hours a week to a 20-30 hours. By implementing a system in place you should not have to spend more then 10-12 hours a week operating your business to generate 4-5k per month. One thing to keep in mind is that the more time and energy you spend in the beginning stages, the faster you'll reaping the rewards of eBay and Amazon.

That said, take a look at the lowest possible level of time that you can devote to your business. If you can devote 1-2 hours a day then I can guarantee you will see immediate success.

Will my products sell on eBay and Amazon?

Every product has a buyer; it's just the matter of a buyer finding the product. When it comes to products on eBay, there are those that are more sought after then others. The great thing about Amazon & Ebay is that it's a global marketplace and there are buyers worldwide who are looking for products 24 hours a day, 365 days a year.

If a buyer is looking for a product, there is a very good chance that they are going to search on Amazon & Ebay. Researching through completed listings on Amazon & Ebay will provide you with answers to how hot products are and if they are selling daily!

How do I ship products?

Shipping products is just like sending any other item in the mail. You can use different carriers, the most popular are USPS and UPS, but you also ship DHL or FedEx to name a few.

When shipping you always want to know the weight of the package in order to determine the correct shipping price. The most cost effective shipping service is the USPS and it's important to get familiar with all the services they have to offer. If shipping is something you don't want to do then work with Fulfillment companies or a drop-shipper that will take care of all your orders.

Shipping can be time consuming and that is why I recommend implementing the Drop-ship method.

How to find good suppliers?

There are so many ways to find good suppliers. I would first start by searching locally either online or in a phone book.

If you can find a good supplier in your area you will be able to eliminate added shipping costs thus increasing your profit margin. You want to start searching wholesale directories online for reputable suppliers that provide a wide variety of products.

You may also want to attend a Trade show in your area where you can come across hundreds of suppliers with plenty of products for you to market. Make sure you do your due diligence, you are starting a business relationship and you want to make sure that you have a trusting partner.

Does the buyer pay for shipping?

A buyer should always pay for shipping, whether you include it in the sales price or have it as an added cost is up to you. For example, you sell a pair of headphones for $30 plus $5 for shipping, it's the same as selling a pair of headphones for $35 with free shipping; in the end the buyer is paying for shipping. When selling an item, you always consider shipping and packaging as part of your cost. Buyers expect to pay for shipping so DON'T disappoint them.

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