With a gross market value (GMV) of $30 billion, eBay is the world's third leading online marketplace in the U.S. Launched in 1995 as AuctionWeb, eBay originally sold only collectibles but rapidly expanded its product categories to include everything from furniture, vehicles, and exotic foods to real estate property and memorabilia. The marketplace went public as eBay in 1998 and later acquired StubHub, PayPal, and other similar digital wallets.
Why Sell On eBay?
With instant access to hundreds of millions of potential buyers globally, many eBay sellers make an average of $22 an hour. Long-term sellers who rely on eBay as their primary income report earning as much as $50 or more per hour. In addition to eBay's flexibility to be a passive or active income, other benefits of selling on eBay include:
- Diverse customer base looking to buy niche and mainstream items.
- Easy setup process and low upfront costs to start selling on the platform.
- Option to sell items at fixed prices or auctions where customers bid to purchase.
- Allows sellers to use multiple payment portals, such as PayPal, Venmo, and credit/debit cards.
- A mobile-friendly website that helps sellers not to worry about creating an e-commerce website.
eBay sellers can monitor inventory, track sales, and develop customizable stores to enhance brand awareness. Visible buyer feedback and customer reviews help sellers build and maintain an excellent reputation that attracts many first-time eBay buyers.
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Running Sales on eBay – Most Successful Examples
eBay has hosted some incredibly high-value sales and is one of the most lucrative online platforms for rare and extravagant items. Beyond the sale of a $168 million gigayacht in 2006, which remains the most expensive item sold on the site, there are other noteworthy examples of high-ticket items sold on eBay:
- A Gulfstream II private jet was sold for $4.9 million.
- A 2019 charity Glide Foundation auction “sold” a lunch with Warren Buffett for over $4.5 million.
- A rare Action Comics #1, featuring the first appearance of Superman, was auctioned for $3.2 million.
- A private island in the Bahamas changed hands on eBay for $6.5 million, demonstrating that the platform can facilitate even real estate.
- A rare baseball card featuring Honus Wagner sold for $3.12 million.
- An original Apple 1 computer fetched $905,000.
- Batmobile from the 1960s TV series was sold for $4.2 million.
How to Sell on eBay for Beginners: Creating Your Seller Account
Here's our guide on how to start selling on eBay for beginners.
1. Go to eBay.com and create an account by signing up as a business or individual.
2. Set up a seller profile by going to "My eBay", and clicking "Selling” or “Seller Preferences". You will need to provide your SSN if you are an individual seller or an Employer Identification Number (EIN) if you are selling as a business.
3. Customize your seller's profile with information you want customers to know about your business or selling experience. For example, you can input the name of your store, logo, and sales description.
4. Specify your shipping costs and options (USPS, UPS, FedEx, etc). You can offer free shipping or charge for shipping. Research shipping rates before publishing your shipping costs on your account.
5. Choose at least three payment methods customers can use to purchase your items. Popular methods are PayPal, Apple Pay, Google Pay, and Venmo.
6. Go to "Sell" and select "Create a listing". Prompts will explain how to enter information about items you want to sell, such as titles, categories, descriptions, condition of items, and prices. You'll also be asked to upload images of your items for sale.
7. Determine if you want to list items at fixed prices or sell them in auction-style bidding wars. Remember to include the end date — three days, four days, or another number of days.
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Fixed Prices or Auctions – How Do You Sell on eBay?
Fixed pricing and auctions have both advantages and disadvantages. Selling items via auction may generate interest and higher prices among potential buyers, while fixed prices are simpler to manage and let you set the price you are willing to accept.
Both methods offer distinct benefits depending on the type of item you’re selling and your business strategy.
Auctions – Pros and Cons
Pros
- Increased Buyer Interest. Auctions can create excitement, encouraging competitive bidding. Your item could sell for more than you initially expected.
- Indication of Demand. An auction provides a direct measure of demand via the number of bids and overall activity on your listing.
- Potential for Higher Prices. For rare or unique items, auctions can lead to prices far exceeding the expected value.
Cons
- Unpredictable Outcome. The final selling price can be lower than anticipated. You have to accept a price below what you’d get with a fixed price.
- Time-Consuming. Auctions require time to run their course. This delays your sales, especially if you need quick cash flow.
- Higher Risk for Common Items. Auctions are less effective for mass-market items and there is a limited chance for a bidding war.
Fixed Pricing – Pros and Cons
Pros
- Price Control. With fixed pricing, you set a price you’re comfortable with, controlling your margins and eliminating the risk of underselling.
- Simplicity and Convenience. You don't need to monitor bids or extend the listing period.
- Faster Sales. Items listed at a fixed price can sell quickly if priced correctly, leading to more consistent and predictable revenue.
Cons
- No Competitive Bidding. Fixed prices do not encourage competition, meaning you may miss out on potential buyers who would have been willing to bid more than your listed price.
- Risk of Overpricing. If your fixed price is set too high, it may deter buyers, leaving your item unsold for an extended period. This is particularly risky if market demand fluctuates.
Decision-Making Considerations
- Item Type – For rare or collectible items, auctions can help gauge demand and potentially drive up prices. Fixed pricing works well for common, commodity-type items where competitive bidding is unlikely.
- Market Research – Always research the prices of similar items before listing, whether choosing an auction or fixed price. You might be surprised by how much more you can get for an item you didn't think would garner much interest., suggesting an auction could be more lucrative.
- Sales Strategy – Consider how quickly you need to sell and your tolerance for risk. If you need fast cash flow, fixed pricing may be the better option. If you're willing to take a risk for higher potential rewards, an auction could be the way to go.
Ultimately, choosing between fixed pricing and auctions depends on your sales objectives, the nature of your product, and your appetite for risk.
What to Sell on eBay?
People frequently visit eBay because they are looking for something particular to buy – a certain collectible, vintage clothing, gently used iPads, laptops, or sports memorabilia. Checking eBay's Trends and Deals page will give you an idea of what is currently popular and selling. Items that consistently sell without trending or going on sale include:
- Smartphones
- Gaming consoles/game CDs
- Home Decor
- Vintage toys/action figures
- Antiques
- Car accessories/automotive parts
- Jewelry
- DVDs and Blu-rays
- Sporting/outdoor gear
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What to Sell on eBay to Make Money
Although eBay does not publicly release recent search terms, you can get a sense of what people are searching for by using eBay's "Search Suggestions" feature when you type "electronics," "collectibles," or other terms into eBay's search bar.
Also, you can use eBay-specific tools such as Terapeak, SellerEngine, or the eBay seller hub to gain insight into search terms, listings, and sales data.
Is There Anything You Can't Sell on eBay?
Yes, eBay prohibits the following items from being listed for sale:
- Weapons
- Drugs (illegal and prescription)
- Fake/counterfeit goods
- Dangerous/hazardous materials
- Wildlife products (ivory, skin)
- Alcohol and tobacco products
If you are caught selling one of these items, your account could be deactivated. In addition, eBay may refer you to the proper authorities depending on what prohibited items you are selling,
Product Sourcing: Finding Inventory for eBay
Once you've decided what to sell on eBay, the next question is how and where to get it. There are several options of product sourcing:
Domestic Sources
By exploring local resources, such as thrift stores, estate sales, and garage sales, you might discover various items to sell on eBay at reasonable prices. Online resources, such as Goodwill or Facebook Marketplace, can also help build an inventory you can sell on eBay.
Wholesalers
Another way to find the best things to sell on eBay is through wholesalers, who sell products in bulk rather than individually. A wholesaler buys items in large quantities from manufacturers at discounted prices. Retailers buy from wholesalers because they can purchase products at lower costs than if they bought them from manufacturers.
International Sources
International platforms like Alibaba can benefit eBay sellers wanting to expand their inventory beyond domestic thrift stores and garage sales. An enormous online marketplace connecting buyers with suppliers globally, Alibaba offers a diverse selection of reasonably priced items often unavailable domestically.
How to Sell Something on eBay: Crafting the Perfect eBay Listing
Creating a compelling listing on eBay is half the sale! Here are some best practices to help you show your products in the best possible light.
How to Take High-Quality Photos
- Capture images of items from different angles to enhance the dimensions and features of larger products.
- Backgrounds should be clean and solidly shaded with colors that subtly contrast with the item.
- Bright or natural lighting works best to highlight products.
- Publish close-up images of product details that would help sell the item.
- Take pictures of imperfections or flaws to build your reputation as an honest seller and to ensure customer satisfaction.
Write Compelling Product Descriptions
To rank for eBay searches, insert keywords associated with your items, such as "vintage toy robot" or "1960s Baseball Cards." The more detailed the keywords, the better your listing's chance of being seen by potential buyers.
Include honest descriptions of the product's condition. Glossing over imperfections will only result in dissatisfied buyers who leave negative feedback and want their money back. If applicable, include the item's color, size, and model type in the description.
Here is an example of a good product description:
This 1960 Topps Mickey Mantle baseball card features Mantle in his prime as the star centerfielder for the New York Yankees. A valuable collectible for Mantle, Yankees, and baseball buffs, this 1960 Topps card is in great condition except for a small crease in the bottom right corner. Any collector would be thrilled to add this to their collection of vintage Topps baseball cards!
Setting the Right Price
Find the exact or similar items you are selling, note the different prices, and find the average for those prices. This will give you an idea of what price to put on your product. To find out how much items sold for in the past, go to Advanced Search, enter descriptive keywords to locate your item, choose "complete listings", and then select "search"
If you are selling antiques or collectibles, research what they are selling for in general and find communities on Facebook interested in buying and selling antiques and vintage items. They will often provide valuable insights into appropriately pricing your items.
Factor in the costs of packaging materials and your shipping method. Items that require special packaging materials and shipping processes could be priced slightly higher than average to make the sale profitable.
State Return Policies
Clearly inform visitors to your eBay listing that the return window is a certain time frame (ex., 30 days, 90 days). This should tell buyers how long they have to return something from the date they purchased it for a full refund.
Most eBay sellers pay for return shipping if dissatisfied buyers want their money back. Stating that buyers must pay for returned items will typically reduce confidence in your ability to provide what the buyer expects to receive.
Respond Promptly to Customer Questions and Comments
eBay sellers who take an indifferent approach to their listings give potential buyers the sense that the seller doesn't care about building trust, increasing sales, or maintaining a positive seller rating. Customers may also worry about doing business with someone who seems unprofessional and dodgy. Accumulating bad feedback from irritated buyers will sink your eBay sales fast.
Does It Cost Money to Sell on eBay – eBay Fees Explained
How much does eBay take from a sale? Selling on eBay involves several fees, with the main ones being insertion fees and final value fees.
- Insertion Fees. You have up to 250 listings free each month. Once these are used up, you'll pay for additional listings. If your item is listed in multiple categories, you'll be charged an insertion fee for each extra category. For example, if your item is listed in three categories, you will pay insertion fees for the second and third categories.
- Final Value Fees. Once your item sells, eBay charges a final value fee, which is a percentage of the total sale amount, including shipping, handling, and sales tax. This percentage varies by category. For instance, sellers of men's and women's athletic shoes with sales over $150 pay 7%, while sales under $150 incur a 12% fee. Other categories, like books or electronics, have different rates. A $0.30 processing fee is added per order.
- Additional Fees. You may also encounter fees for listing upgrades (like bold fonts or subtitles) and a 1.65% international fee if you sell to buyers abroad. Moreover, eBay imposes a performance penalty of 6% on final value fees if your seller rating falls below standard.
Learn more about eBay's selling fees here.
Managing Returns and Refunds on eBay
eBay has specific return policy guidelines and refund options to help resolve buyer issues. These include:
- Providing a 30-day or 60-day return window from the purchase date for buyers.
- Promptly process refunds for customers (sellers can either refund the purchase price or deduct a restocking fee from the total price).
- Contact eBay's customer support when an issue cannot be resolved.
You can also create rules to automatically handle returns or refunds, simplifying the process. For example, you can automate returns when the cost to ship the item back exceeds its value or immediately refund a buyer and let them keep the item in certain cases.
eBay also offers an eBay Money Back Guarantee, which protects buyers if an item isn’t as described or doesn’t arrive, but sellers may be responsible for reimbursing eBay for the refund.
Automation Tools for Selling on eBay
Once you start making consistent sales on eBay, using automation tools to manage multiple listings efficiently will help you scale your business and reduce the need to complete manual tasks. Some of the top automation tools for managing eBay sales include:
- Brightpearl. A robust retail management platform that integrates with eBay to provide features like automated order fulfillment, inventory management, and financial reporting. It's ideal for managing multi-channel operations and offers automation tools that streamline repetitive tasks.
- Cin7. This tool focuses on inventory management and order fulfillment, making it easier to manage your eBay listings. It syncs stock levels across multiple sales channels, preventing overselling, and automates restocking to ensure optimal inventory levels.
- PriceBlink. A repricing tool that monitors market trends and competitor pricing, automatically adjusting your eBay prices to stay competitive. This is particularly useful for sellers aiming to maximize profit margins while staying ahead of competitors.
- 3Dsellers. An all-in-one eBay management solution that simplifies bulk editing, inventory management, and email marketing. It allows users to manage multiple listings simultaneously, making it easier to scale their eBay business while keeping track of stock and order statuses.
- Seller Active. This multi-channel management tool synchronizes inventory across various platforms and offers features like repricing automation and bundle management. It’s well-suited for sellers managing large inventories and multiple sales channels.
- ExportYourStore. A helpful tool for sellers who operate across multiple platforms like Amazon and Shopify, enabling dynamic repricing and seamless inventory synchronization between eBay and other marketplaces.
These tools offer varying pricing plans and feature sets, so selecting one that fits your business's specific needs—such as inventory size, multi-channel requirements, or integration needs—can provide significant time savings and help your business scale effectively.
3 Best Practices for eBay Sellers
Your performance and conduct as a seller contribute to the amount of insertion and final value fees on eBay. That’s why you should strive to abide by the best practices for selling on eBay:
- Promptly Respond to Buyer Inquiries. Prioritize fast and clear communication. Answer customer questions about products or shipping details as soon as possible to build trust and avoid potential issues.
- Accurate Listings. Ensure that product descriptions and images match the actual condition of the items. Avoid misleading listings that can lead to disputes and negative feedback.
- Timely and Safe Shipments. Use secure packaging and reliable shipping methods to ensure items arrive in good condition and within the promised time frame. Buyers are more likely to leave positive feedback when their orders arrive as expected.
The end goal of learning how to sell on eBay and make money focuses on garnering and maintaining positive buyer feedback and building high customer retention rates.
Is Selling On eBay Worth it? The Bottom Line
Being an established eBay seller means dedicating hours to sourcing profitable items, continuously refining your sales techniques, and managing the demands of challenging customers.
After reading this guide to selling on eBay, why not create an account and start earning money? It's easy, fun, and could even lead to a successful side hustle or a new career!
