EBay Trading

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From it’s humble beginnings in 1995, where one of it’s first auctions was the sale of a broken printer, eBay is one of the dot.com’s success stories.

Trading on EBay has exploded in recent years and many people use an eBay shop as their sole online outlet.

The Advantages of Selling on eBay

• It’s easy to set up an eBay account or shop and an accompanying PayPal account (also owned by eBay)
• There is little upfront cost/investment required, as the interface and payment facilities are already set up and items show up in search engines.
• Possibility of creating a “branded” presence on eBay.
• It’s low risk particularly, if you start slowly.
• Positive feedback ratings can improve buyer confidence.
• There are payment protection policies in place for both buyers and sellers.
• Items do not have to be in perfect condition, as long as they are realistically described, it can be a great place for selling “distressed stock”.
• it’s easy to exit.

The Disadvantages of Selling on eBay

• Sellers must play by eBay’s rules (which are weighted towards buyers, to improve buyer confidence).  The number of rules and regulations have increased over the years and are beyond both buyer and seller’s control.
• Feedback is a “double-edged sword” – there is a risk of “feedback extortion” (where buyers give / or threaten to give negative feedback maliciously or spitefully to sellers)
• Unless the items are unusual or rare, it can be very competitive, and many items go unsold or for pennies.

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