Starting a Business on eBay

eBay does something that our economy hasn't - create jobs. Many people, myself included, create businesses using eBay. I started mine in September 2004 and have been making money every month.

When I was growing up, my dad owned a Dunkin Donuts franchise. Franchises provided a way for an average person to learn how to and create a business. Today, you need to be a millionaire to own a franchise.

In many ways, eBay is like a franchise. It provides you the tools to create your business. Your business can be collectibles, books, coffee beans, candles, whatever it doesn't matter. eBay provides the tools and the user community to assist you with your business.

You will learn a lot running an eBay business. You will learn how to:1. price items2. write product descriptions3. scan products4. photograph products5. determine shipping costs6. ship products

Selling ItemsThere are three ways to sell items:1. auction2. fixed price3. buy it now

AuctionsAn auction contains a starting price (bid) and an optional reserve price. The starting price is the minimum you want for the item you are selling. A reserve price is a price that a bid must meet otherwise the item is not sold. These two examples illustrate the difference.

I have a candle that I want to sell. I set the minimum bid at $5.00. The auction ends and Sara placed the highest bid of $10.00. Her bid wins the candle.

I have a beautiful glass candleholder that I want to sell. I don't want to sell it for less than $75.00 but feel that may be to steep of a starting bid. Therefore, I set the starting bid at $50.00 and set a reserve price of $75.00. This item will sell if one or more bid meets the reserve price ($75.00). If not, the item is not sold.

Be careful using this option. If you use it too often, people will not visit your auctions. They want to buy items. If they continuously receive "reserve price not met" messages, they will stop visiting your auctions.

Fixed PriceYou can sell items at a fixed or set price. I have a candle to sell. I set a fixed price of $7.50. This is the same as buying a product in a store. If Sara wants the candle she pays $7.50.