I started out selling on Ebay about 6 months ago knowing nothing.  It was relatively easy to start out using ebay's selling format.  However, I was not prepared completely for a few comments that I received once I sold a few items.  It was very nice in the beginning, and people were polite.  I had no bad comments and overall people were really happy with my product. 

Later on however, I ran into a few people that it seemed I could just not please.  They did not read the information completely and I ended up reselling my items.  I took the bullet for that.  When you make something by hand you would think that people would realize that it is not store quality necessarily.  After all it is good but it is handmade...  I made my products for fun after my toddler went to bed.  It gave me something to do while I waited for my husband to come home from work and make a little extra money. 

I learned for instance that people do not understand the concept of handling in shipping and handling unless you completely spell it out for them.   Several people wondered why it was a couple bucks more then what it said on the shipping slip.  Finally, I figured out that you have to put in plain letters that you have to pass on the expense of the ebay fees, paypal fees, and the materials that you use.  After all, people do not make things for nothing.  I was not going to put out money for materials and not get it back. 

I start things out at a penny for bidding because I figure if I get anyone to bid it up then that is my money I actually make on the product.  So if someone only bids it to a penny, then I get a penny out of it for my time.  But at least I had fun making the product and my materials and fees are covered in the handling. 

People are willing to pay for the fees etc.  as long as you clearly state what the costs are. 

So If you are starting out, figure out exactly what costs you have into your product, and how much it is going to cost to ship it.  Put that as the shipping and handling and then start out your product at a penny because people love a bargain, and no one can go lower then a penny on ebay.  People will always look at your item first before an item of the same thing for $5.00.

Also, an important thing to do is always follow through.  Make sure after a person buys your item., you contact them right away, thanking them for there business.  Get the package out as soon as possible.  And package the item nicely.  Always make sure that when everything is done you give them a wonderful feedback and usually you will get one in return.  There have been a few times where no matter what it seems that a particular person never gave good feedback to anyone. 

And last but not least, make sure that you have fun doing business, dont get stressed after all, it's just money.  Thank you for your time.