Introduction to Profit in Starting an e-Bay Business in India (Cost to Start)
E-bay is an online marketing company where both old and new products can be sold and bought. E-bay designed an e-commerce website for this provision wherein bidding is done. The practice of buying and selling products on e-bay started in the year 1995. E-bay was known as the ‘Auction Web’ during 1995. After 2 years it was changed to eco-bay i.e. e-bay. It became famous in India in the year 2006. Around this time around 40,000 sellers could sell their products through e-bay and the number of Indian sellers was gradually increasing.
A step by step guide to starting an e-bay business in India for profit
The process of buying and selling products on e-bay is somewhat separate as compared to other e-commerce websites. Sometimes buyers get the advantage and sometimes sellers get benefits. E-bay serves as a platform to bridge buyers and sellers. Business on e-bay is similar to an auction, if you want to purchase a product here then you should place a bid. You can determine the price for a product you want to purchase but the price you set must be higher than the lowest price quoted by the seller.
For instance, if a seller has stated that the price for its product as Rs. 300 then you can bid at least 301 or more. This market is open for every user so anyone can place a bid greater than you and purchase the product. Whichever customer places the highest bid will have the product. E-bay even started selling fixed-price items besides the biddings later.
Tips to start e-bay business for profit
- Create a list of products: Before starting selling on e-bay you must determine what products you plan to sell online. Try and sell a similar category of products in the beginning so that buyers will not get confused about your products.
- Contact with right dealer: If you don’t want to have your own stock then you can purchase products from dealers directly and start selling them on e-bay. You must be very careful while doing this as there are possibilities to acquire defected goods by suppliers to customers, for example, we are aware of the news about cases of receiving fake i-phones by customers through e-bay. So you must first check the product yourself and then dispatch it to customers. This will aid you to maintain good ratings on e-bay and your business will sustain.
- Giving price tags for items: The most important aspect is the costing of your items. You should know well how you must keep the price of your products. You must understand a little marketing as well for this and also know the scenario of the market to your product. This will determine your profits on e-bay by selling various products.
- Start selling things you already have: If you wish to begin your business through e-bay then primarily you have to start selling the products you have already. If you can spend money then keep a stock the products from starting which you plan to sell or start selling old products that you previously have so that you can get an idea of marketing on e-bay. After this, if you will understand that you can gain well on e-bay then you will get a firm idea and confidence to invest your money.
- Think creatively: e-bay is such a platform where you can sell anything and gain money. For example, 50 years old notes and coins are even sold for several lakhs on e-bay. No doubt you can gain lots of money from e-bay, but you are needed to have inventive marketing skills for that.
Make e-bay business as a part-time or full-time opportunity to make a profit
Part-time work can be done easily on e-bay as you must upload the product only one time. When you receive an order for any product then you will; get 7 days to deliver that product for which you can easily approach a courier company and send the product to the customer. You do not require an entire day for this business. So if you work at some other place or have another business the option of part-time e-bay business is descent for you to gain extra income. For the full time, you could start your store on e-bay. You can also have products which you wish to sell, for full time. Registration is important for all types of businessman.
How to make e-bay as home business for profit
You can operate this business even from home that will not incur any cost. You must have an e-bay account and a PayPal account for it. Then you can easily upload available products in your area on the account. Keep a smartphone or laptop that will aid to operate the business easily. You can also avail of the products from your nearby shop or dealers and start to sell them via e-bay.
To start the business on e-bay you should have an account first, whether you are a seller or buyer and below you can see the process to register.
Procedure to register the e-bay account
To create an account on e-bay you must visit the official website. You will have two options ‘sign in’ and ‘register’.
First step- If you have previously created an account then use that e-mail id and password to sign in. But if you are new to e-bay then you must register yourself.
Second step- Then you should update your mobile number and address in your e-bay account. You will receive an OTP on your number for verifying your mobile number. Your account would be activated post verification.
The last step- In the final step, you will get an option asking you for selling products. If you choose that then you will be shown about the product type.
Another page will be seen for adding information regarding the product details and name i.e. what type of product you want to sell and you can upload around 12 photos for the item.
Policies of e-bay business
To conduct business through e-bay you must abide by 3 policies which are highlighted below:
- Payment policies: You must decide about the payment process whether you want our customers to follow i.e. how do you want your customers to pay you for the item they purchase, whether it is by PayPal account or any other mode.
- Postage policies: Whenever a customer will buy a product from you, you should decide some policies keeping in mind about how you send that item to the customer and in the duration of delivery.
- Return policy: Return policy is very essential. You must clearly state whether yes or no. If you plan to accept the return the item then how the return is done and in what all conditions. How much amount is refunded and when there is no refund.
Procedure to start e-bay business and make profit
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Step-1: List and upload your item in e-bay
When you complete your registrations then organize a list of products you plan to sell on the e-bay portal. After preparing the lists post the information and description of your products on e-bay one after another with the pictures. Make sure to give a comprehensive and clear description. You are also required to mark the price of your product and to attract the customers you can provide free shipping in the starting stages at least so that people will know about your products.
Step-2: Sell your item
If you keep a proper description of products including the images then customers are able to understand the advantages of your products when they compare it to others. This enhances the possibility of selling your product and also gaining a good price for it. If any customer asks about your product then a prompt reply is very good for your business. This will develop goodwill among customers and your business will sustain well.
Step-4: Ship your product
Once any customer purchases a product from you then you will get a receipt of payment. But this payment stays with e-bay only. You must deliver that product within 3 days to the customer and you should have the customer’s full shipping address information.
Step-5: The time limit for delivering your product to the customer
After acquiring full address information of the customer’s shipping address you must reach a popular courier company and must send the product to the customer in 7 days. If the customer is nearby then you can take the chance to send the product yourself which will save the courier charges.
Step-6: Receive buyer confirmation
E-bay asks for confirmation of product reception from the buyer and for this the company will wait for 5 days for the response of the customer after it confirms that the customer has received the item.
Ste-7: Get paid
Once e-bay confirms everything, it will transfer the money to your registered account by ‘Remittance member statuses.
E-bay business fees for selling
E-bay straightaway takes money from sellers and then provides its platform. Apart from this, it has made several rules that are separated into the following packages:
Till now e-bay had categorized business subscriptions into ‘basic’, ‘premium’, and ‘anchor’. But stating May 2018 it introduced two new types of subscriptions that are ‘start-ups’ and ‘enterprise’.
Basic subscription for e-bay business
From 1 May 2018, the fees to obtain a basic subscription has been increased from Rs. 1296 to Rs. 1426 monthly. For a monthly basic subscription, you should pay Rs. 1816 now instead of Rs. 1621. This subscription is for those small-scale businessmen who desire to bring their store online and sell their products at a reduced fee of e-bay. From 1 May 2018 if you upload 250 products under this subscription then you must pay Rs. 16 and 25 paise for every product.
- Premium subscription: If you take up a premium monthly subscription then you must pay around Rs. 4871 to e-bay. Whereas if you wish to have this subscription on yearly basis then must pay Rs. 3896. You have the approval to upload 1000 fixed price products without cost.
- Anchor subscription: For monthly subscription a fee of Rs. 22,743 is charged and for yearly subscription Rs. 19,493 per month must be paid. This subscription is taken by the people who are having a large-scale business and want to sell a number of products. Most wholesalers use this subscription. Up to 10,000 products are freely uploaded. For collections and fashion products up to 1000 auctions are not charged.
- Rules for all subscriptions: For guitar and bass category items the auction-style and fixed price upload count is kept unlimited. For these 3 subscriptions, you can form at least 300 product categories for your business. For basic subscription, 5000 business emails are free, for premium 7500 and for anchor 10,000 mails. If your product is sold then you should pay 9% of the price of the product to e-bay but e-bay doesn’t charge above Rs 3242.
New upcoming subscription packages
- As a Starter subscription: For the yearly subscription, you will be charged Rs. 321 per month and Rs. 516 towards monthly subscription.
- For Enterprises subscription: This is for big companies and factories wherein several products are uploaded at low costs and the limit of free uploads is more. To get this subscription it is necessary to submit a fee of Rs. 1, 94,966 to e-bay as annual charges.
- E-bay business profit margin: It is based on the type of product you are selling and even the skills that how much profit you will gain. Past sellers say that around 10% of the product’s price will be gained as profit through it.
E-bay business pros and cons
Pros in e-bay business
- Enhance sale by high traffic market: e-bay stands among the biggest online stores not only in our nation India but also in the entire world which means that you can sell items globally.
- Approach new customers: You can have the reachability to customers globally from this portal.
- Great SEO benefit: e-bay is very effective when it comes to SEO and you are also on the positive side of it. If you begin your own online business then you will have to spend some money on your SEO and even the standard will truly differ from e-bay.
Cons in e-bay business
- Chargeable fees: The biggest risk point is the charges after the product is sold. The visible fee of the product is low on e-bay but the extra fee is added after the product is sold. So you have to check for your profit first which can cause high pricing of your product and eventually encounter a problem while you sell them.
- Sub-domain of e-bay: When you open a store on e-bay, you will be provided with a URL that is in form of a sub-domain. For example, if your store name on e-bay is ‘Magnet’ then your URL would be stores.ebay.com/magnet. But the problem will emerge when you will plan to operate your business other than e-bay.
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