Many potential eBay sellers wonder whether selling on eBay will be a gold mine or a graveyard for their business. Millions of sellers try their hand at making money online via eBay, and while some float to the top of eBay’s seller ranks, many sink straight to the bottom.
Selling on eBay is worth it when trying to get rid of items around the house, as any profit from obsolete items is a win. However, it’s not easy to determine whether selling new or handmade items will be worth it since the investment in these items can quickly outpace eBay earnings.
The pros and cons of selling on eBay are numerous, and knowing them will help you determine whether selling on eBay will be worth it. Continue reading to learn about the pros and cons of selling on eBay and other information you don’t want to miss!
Also see: Can you Make Money Online Without a Bank Account?
Selling on eBay Could Be Worth It
When you list an item on eBay, you are essentially conducting an experiment. There is no telling whether anyone will be interested in your item at all. So, selling on eBay is a toss-up.
There are tons of scenarios that we could get into on the topic of eBay sales. But one thing is for sure: there’s only one case where selling on eBay will always be worth it, and that’s when you are selling stuff that you wouldn’t otherwise use. Selling old jeans or electronics on eBay and getting something for your items is a huge plus.
To help you decide if selling on eBay will be worth it, we will go through all of the pros and cons of selling on the platform.
Also see: How Much Can You Actually Make with Online Arbitrage?
Pros of Selling on eBay
eBay has been around for decades for good reason. There are a ton of advantages to selling your items on the platform, and the following sections will illuminate the most important ones.
You Can Easily Find Customers
There are millions of buyers searching for products on eBay’s website. By selling on eBay, you gain instant access to over 180 million potential customers. More eyes on your products could mean more sales for you. There is no guarantee that they will buy your items, but the exposure you get by simply listing an item is nearly unmatched by any other platform.
Make More Money Than You Thought
If you use the auction-style format that eBay is known for, you may make more money than you thought you would. You set a starting price and then wait for bids to roll in.
Before your auction is over, you may check your listing and see that you made more than you imagined. This does not happen all the time, but it’s not uncommon!
The Process to Become a Seller is Easy
Creating an eBay store is so easy that anyone can do it. You can do it through:
- Your personal email
The steps for setting up your seller account are below for your reference:
- Go to the eBay website and click on “Sign up for an eBay account.”
- Verify your account with eBay- eBay will send step by step instructions for how to do this to your email.
- Create your account with one click.
- Choose whether you want a business or personal account.
- Fill out the information about your business.
- List your first item!
All of the steps are thoroughly explained on the eBay website, and the platform is user-friendly. If you want to see the sign-up steps in detail, you can read this page about signing up for an eBay account.
Sell Just About Anything You Want to Get Rid of
eBay is a marketplace where you can find just about anything that is legal. So, if you’re having trouble finding the right way to sell your item, eBay is a good option.
For sellers who have come up with a totally new item that is difficult to sell commercially, you may be able to find the perfect home for your product at eBay.
You can also sell your old gym shorts, your old headphones, vintage baby clothes, or anything else that you can think of- almost.
Keep in mind, though, that there are restrictions on what can be sold. On the item listing page, you will be able to review information about restrictions. You can also review restricted items here.
Sellers are Protected
Ebay’s seller protection is extensive. They have policies and procedures in place to protect you in the following situations:
- When buyers are abusive, they will remove unfavorable feedback. They will also take action against the buyer to discourage further abuse.
- In uncontrollable circumstances, eBay will remove bad or neutral feedback. This protection applied when you shipped an item on time, but it got to the buyer late.
- If you’re top-rated and a buyer submits a fraudulent claim stating that an item was not as described, you are protected from negative feedback and costs associated with return shipping.
These are only a few of the protections offered by eBay to sellers. If you want to know more, read here about eBay seller protections.
Cons to Selling on eBay
The advantages of selling on eBay are plenty, but there are also some cons to consider before opening an eBay store. The following section will explore the most important cons.
Fees are Hefty
While eBay offers sellers free listings, once those run-out, you’ll have to pay insertion fees for each item you list. On top of that, you have to pay a Final Value fee, which is a percentage of the sale price. Fees vary based on the type of item sold and your status as a seller.
Also, if you choose to open a store with enhanced selling capabilities, there is also a monthly fee for that. Other fees may apply in other situations. You can find out more about Ebay’s seller fees on this page.
After all of the fees that eBay gets, your profit may be much lower than you imagined.
eBay is King
eBay is all about eBay. Their ultimate goal is not to promote your brand. They are in the business of helping you sell your items so that they can make money from your seller fees. Moreover, eBay controls all aspects of your selling endeavors and may:
- Require that you remove your logo from images.
- Restrict your selling capabilities at any time.
- Cancel any of your listings at random.
If you’re not okay with that, you’d be better off creating your own store and selling your items that way.
Competition is Fierce
eBay is extremely popular amongst both sellers and buyers, and there are at least 25 million sellers on eBay. So, you can be 100% sure that there will be a ton of competition for customers on the platform. You will have to differentiate your product from competitors, lower your prices, offer discounts, or take other steps to make your products stand out.
If you have a business and you want to sell your products on eBay, you’ll need to be diligent in figuring out your target customer, what they like, and other important information. If you don’t, competitors who do differentiate will pass you up.
As you can see, eBay is not a perfect platform. It’s up to you to decide whether the pros outweigh the cons for you. If they do, you’ll feel like selling on eBay is worth it. We hope that this article was helpful to you in your selling endeavors.