Interested in how to make money on Ebay? You might have heard that a lot of people make money on eBay and usually this is by selling anything and everything. But, is this still a good way to make money online? The short answer is yes, but you have to know how.
Can You Still Make Money on eBay?
Even though profit margins are tight, you can still make money on eBay. You need to keep a watchful eye on a variety of things to remain profitable, and fees are probably the most important.
There’s no limit to the kind of items you can sell and earn money online with, but it’s important to choose your products wisely. The higher the number of listings, the lower the profit margin. So, it’s important to find a category where there’s enough demand.
How Do You Make Money on eBay?
The simplest way to make money on eBay is to find products for bargain prices and then sell them at a higher price, just like everyday business. But, there are 3 types of fees you’ll have to pay when selling items on eBay:
PayPal Fee - Paid for all transactions the buyer pays via PayPal. It will cost you 3.4% of the transaction, and an additional 20p. Note that this fee comes from PayPal, not eBay.
Insertion Fee - Paid for every listing you create. You will pay an insertion fee for a second category too.
- Since March 2019, every seller can have 1,000 free listings that last 5, 7, or 10 days. But, for shorter listings (1 to 3 days), you will still have to pay an insertion fee of 35p.
- If you have a £19.99 monthly subscription, you will also get 100 free shorter listings in addition to the 1,000 standard listings.
Final Value Fee - Paid when you sell the items. Postage is included in the fee and it applies even if items are listed for free. The cap is currently on £250.
Note: These fees might change based on the price of your items, category, and format you choose for the listing, listing upgrades, and your performance as a seller.
6 Tips for Making Money Successfully on eBay
If you plan to earn money online by selling on eBay, follow these tips that will make your business more profitable:
Have a long-term plan - Make sure you start with small items and a limited number of listings, respond quickly, and ask for a quick review once the sale is completed.
Ship fast - People buy things online because it’s convenient and fast, so make sure you ship the order as soon as you can.
Keep your prices low - But never go below your profit margins. If there’s a lot of listings that are below, wait for the prices to go up first.
Keep the customer happy - Answer any inquiries and solve disputes to your customer’s satisfaction.
Focus on what sells well, not what you like the most - That saying “The customer is always right” actually refers to market demand, so always keep an eye on market trends and what your customers are searching for.
Sell internationally - When your items appear internationally, chances of selling are higher. This feature is available in the US, UK, and Canada at no additional fee.
You can still make money online
by selling on eBay, but it takes some research before you start. As long as you follow the market trends, pay attention to your customers and provide an excellent service you will be able to earn money.