Becoming an eBay Entrepreneur: An Introduction

Maybe you’ve been selling some things here and there on eBay and that was ok but…now you want to take the next step and make eBay your business.  Here are some ideas to get you started!

Start thinking like a small business owner rather than a “seller”                                                           

• Get a Federal Employers Identification Number (EIN)
• Contact your local and state government to determine what licenses you need to operate a business in your area. 
• There are many different types of vendor’s licenses.  Be sure to get the one YOU need.  My state, Ohio, has one specifically for internet sales.  Your state may have a small business start up kit that they will send you FREE.
• Open a checking account specifically for your business transactions.  National City Bank has a FREE small business checking account worth looking in to.  Be sure to get an ATM card for the account.  Use it to pay for postage, shipping supplies and inventory.  Some eBay entrepeneurs prefer to use the debit card available from Paypal which provides 1% cash back on purchases.
• Have your Paypal income routed to your new business checking account.
• Consult a CPA, tax professional or educate yourself on the tax laws for your business
• Invest in an electronic accounting program such as Quicken or Quick Books.  Most banks, eBay and Paypal are compatible with these programs and you can download the information you need to keep track of your business
• I would advise you to invest in a tax return software package like Turbo Tax for Small Business when it comes out each year.  Turbo Tax even has a special online eBay edition as well geared specifically for eBay businesses!

Now that you have your Licensing, Tax and Accounting in order think about preparing a Business Plan

• What service or product does your business provide and what needs does it fill?
• Who are the potential customers for your product or service and why will they purchase it from you?
• How will you reach your potential customers?
• Where will you get the financial resources to start your business?

What experience do you want your buyers to have when they click on your store or your listing?

• Unless you are expert at html, hire a professional to design and set up your store with at least one custom template. 
• You are establishing yourself as a serious business man or woman and your store and your listings directly reflect your professionalism or lack there of
• Invest in a good digital camera and learn how to use it.  A good picture sells items
  Learn how to optimize key words in your listing title
• Write a thorough and interesting description of your item and invite potential buyers to email you with questions.  Provide a hyperlink so they can email you easily.
• Take the time to compose clear store policies.  Professional eBay businesses have return policies.  It sets them apart from the casual seller.  Publish these store policies in your store and in your listings
• Take advantage of  eBay resources such as Selling Manager, Sales Reports and Traffic Reports
• KNOW eBay’s rules and policies and follow them
• KNOW Paypal’s rules and policies and follow them

This guide is intended to be an introduction to starting an eBay business.  In future guides I will tackle subjects I merely touched on in this guide such as “Developing and eBay Business Plan” “Effective Store Polices” and “Making eBay Work for You”.

  Plan for Success!

Thank you for taking the time to read my guide.
Kathleen Price
Toy-Xpress