Some people may think that selling on eBay part or full time is an “easy” gig. In reality selling is much more complicated than many new sellers expect. Here are seven things to know before you start selling on eBay.
1. You WILL make mistakes
Strive for excellence and accuracy, but understand you will make mistakes along the way, especially early in your selling career. You could misidentify the part. You might even ship the wrong item! Fix mistakes quickly and exceed the buyer’s expectations. Then figure out what caused the mistake and see if you can prevent making a similar mistake in the future.
2. Selling is a marathon not a sprint
Building up your inventory, your brand and customer base takes time. Don’t expect to achieve success overnight. Forming a profitable company takes: strategizing, constant learning, hard work and even a little luck.
3. One percent of buyers will demand 99% of your time
If you ship items quickly and accurately, the vast majority of orders will arrive safely and you’ll never hear from the buyer again. Great! Every now and then a buyer (or prospective buyer) will flood your inbox with questions and price haggling. Occasional high maintenance buyers come along with the selling territory. Treat everyone with patience and respect even when you secretly feel like pulling your hair out.
4. Selling IS harder than it looks
As the saying goes, “If it were that easy, then everyone would be doing it.” Many individual orders will be smooth and easy. More difficult and time consuming tasks include: research, customer service, problem solving, strategizing, etc. Whether you’re a hobbyist, selling off spare parts to fund your LEGO projects or a serious full time seller,
5. Selling internationally IS harder than selling domestically (but may be worth the effort and risk)
Selling internationally is harder than selling just domestically many reasons including: longer delivery times, customs clearance fees and delays, language barriers, etc. For a more comprehensive list of the difficulties related to shipping internationally see 8 Reasons NOT to Ship Internationally. Difficulties aside, shipping internationally also drastically expands a seller’s customer pool and boosts earning potential.
6. You will have to pay estimated taxes (both Federal and State) and sales tax (in many states)
Your eBay income is not tax free. Employers typically withhold earnings for their employees, but as an eBay seller you will need to pay the IRS yourself. If you expect to owe more than $1000 in a year to the IRS, then you’re required to send in estimated quarterly payments otherwise you will face stiff penalties. For more information see Income Tax for eBay Sellers: Paying Your Estimated Taxes Accurately and On Time. Refer to your state’s website for procedures for paying estimated state income tax and state sales tax.
7. Full time eBay sellers: You must buy health insurance and save for retirement yourself
A big perk of traditional employment is the health insurance and retirement package. If you become a full time eBay seller, then you will have to buy health insurance (or join your spouse’s plan) and save for retirement yourself. For more information about self employed retirement planning, refer to: Self Employment Retirement Accounts for eBay sellers: An Overview of SEP IRA, SIMPLE IRA and Solo 401(k) Plans.