The eBay Business Start-Up Kit

With 100s of Live Links to All the Information & Tools You Need

Publication Date June 2008

Edition 1

ISBN 9781413308655

Pages 336 pp

Forms 9 forms

Book w/CD

Your Price: $15.99 Reg. $24.99 You Save: $9.00

eBook (HTML - 7.77 MB)

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Description

Start an eBay business today!

The eBay Business Start-Up Kit is packed with in-depth information and practical advice to help you get your eBay business up and running quickly and easily. Best of all, it features an interactive CD-ROM that makes setting up shop on the web's leading commerce site a cinch.

No more trolling the Internet, or digging through millions of web-sites. You can turn to either the book or the disk to quickly look up how to:

list items and become a "PowerSeller"
find auction-management tools
pick a business structure
keep essential records
ship items, handle returns and issue refunds
obtain business licenses and permits
pay (and minimize) taxes
and much more

It gets even easier: The disk provides links to hundreds of resources on eBay and other sites. One click and you are there!

Plenty of books promise readers a shortcut to success on eBay -- but only the eBay Business Start-Up Kit provides an all-in-one resource you can use to get a successful operation up and running, quickly and easily.

Forms

Is eBay your hobby or business?
What Will You Sell?
Listing an Item
Before You Bid
Should you open an eBay store?
Selling a Car on eBay Motors
How to Determine What Software Tools You May Need
What eBay Functionality Do You Need?
Tax Deductions

What’s So Special About This Book?

1. Welcome to eBay

The eBay Community
Your eBay Business Is an Extension of You
About This Start-Up Kit

2. Getting Started

What You Need to Start Selling
Check It Out: The eBay Home Page
Register as an eBay Member
Get Started Now!
I Want to Buy Something
I Want to Sell Something
eBay Selling Methods
Use a Tabbed Browser
My eBay
eBay Help
eBay Help Resources
Other eBay Companies

3. Is eBay Your Hobby or Your Business?

What’s the Difference Between a Hobby and a Business?
If the IRS Audits You
You Have a Business If…
Use Depreciation to Show a Profit

4. What Will You Sell?

What Are People Buying on eBay?
Keep Track of Costs
Selling Strategies

5. List an Item for Sale

I’m New to eBay
Completing the Sell Your Item Form
The Fastest Way to List an Item for Sale
List an Item Using "Customize Your Listing"
Categories Matter
Using "Create Your Listing" (All Options)
Titles: The Rule of 55
What Condition Is Your Item In?
Getting It Picture Perfect
Tip: Photo Hosting Services
The Description: Use Words That Sell
Pricing
Choosing Your Price at eBay
Tech Tip: eBay Marketplace Research
Quantity
Timing and Duration
Keeping Track of Fees
Tech Tip: Fee Calculators
Additional Information (Terms and Conditions)
Shipping Costs
Payment
Review and Submit
Revising or Terminating an Auction

6. Buy an Item

I’m New to eBay
Buying on eBay Motors
Tech Tools: The eBay Toolbar
Watch Before Bidding
Want It Now Listings
Tech Tip: eBay Marketplace Research
Quicklist: Before You Bid
Bidding

7. Open an eBay Store

What is an eBay Store?
What’s It Cost to Create and Run a Store?
How to Open a Store
eBay Basic Store Information Intake
Just So You Know
ProStores: Beyond eBay Stores

8. PayPal Basics

What Is PayPal?
Getting Started With PayPal
PayPal Fees
Billing With PayPal
PayPal Auction Tools and Integration

9. Rules, Disputes, and Feedback

eBay Rules
Common eBay Frauds
Avoiding Auction Frauds
Resolving Common Disputes
Small Claims Court Usually Won’t Work
Feedback
A Final Warning About Feedback

10. eBay Motors

What Is eBay Motors?
Selling on eBay Motors
Buying a Car on eBay Motors
Quicklist: Selling a Car on eBay Motors

11. Auction Management Tools

Desktop or Web-Based Tools
What Do Auction Management Tools Do?
What Software Tools Do You Need?
Quicklist: Software Tools
Popular Auction Management Programs
eBay
Vendio
Auction Hawk
Marketworks
Auctiva
InkFrog
More Information…If You Want It
Yes, There Are More eBay Tools

12. Become a PowerSeller

The Elite World of PowerSellers
Ten Things PowerSellers Have in Common
Driving Traffic to Your eBay Store or Website
Borrowing Money to Grow
Warning: Don’t Become a Power Debtor

13. Should You Quit Your Day Job?

Two Tips If You Decide to Quit
Avoid Problems With Your Current Employer

14. Business Entities: What Kind of Business Should Your eBay Business Be?

How Do You Know What Kind of Business Entity You Have?
What Is Limited Liability?
LLC or Corporation?
How to Create an LLC
Converting to an LLC
Why Choose a Corporation Instead of an LLC?
If Your eBay Business Is a Partnership
Odd Ducks: Limited Partnerships and S Corporations
Ways to Organize Your Business

15. Insurance

Basic Insurance Terminology
Basic Coverage
Coverage Through Your Homeowners’ Policy
If Your Business Needs More Coverage
Lower Your eBay Insurance Costs

16. Recordkeeping

What Records Should You Keep?
eBay Accounting Software
Accounting Resources
Choose an Accounting Method
Keep Your Business and Personal Finances Separate
What Records Do You Need If You’re Audited?
How Long Should You Keep Records?

17. Shipping and Returns

Shipping Tips
Shipping Solutions
Stay Away From Drop-Shipping
Shipping and Delays: The Legal Rules
Returns and Refunds
Terms and Conditions

18. Working from Home

Zoning, Lease, and Homeowners’ Association Restrictions
Warning: Don’t Let Your eBay Home Business Disturb the Neighbors
Can You Get the Insurance You Need?
Can You Separate Your Work From Your Home Life?
Tips for Maximum Home Office Efficiency
Leasing Space
Welcome Home

19. Hiring Help

What’s the Difference Between an Employee and an Independent Contractor?
Misclassifying Workers
How Does the IRS Decide Who Is an IC?
Before You Hire a Friend or Family Member for Your eBay Business
Finding the Right Person for the Job
Employment Resources
Legal and Paperwork Requirements: ICs
Getting Started as an Employer
Legal and Paperwork Requirements: Employees
Set Up a Payroll System

20. Financial Forecasting

Break-Even Analysis
Profit and Loss Forecast
Cash Flow Projection

21. Business Licenses and Permits

EIN: IRS Form SS-4, Application for Employer Identification Number
Local Business License
DBA: Register Your Fictitious Business Name
Get a Seller’s Permit
Make Sure You Meet Local Zoning Requirements

22. Paying Your Taxes

This Does Apply to You
What Taxes Your eBay Business Will Have to Pay
What About Sales Outside the U.S.?
How Business Income Is Taxed
Paying Estimated Taxes

23. Tax Deductions

What’s a Tax Deduction Worth?
Basic Categories of Tax Deductions
Operating Expense: Deducting Home Office Costs
Additional Tips: Home Office Deduction
Operating Expense: Deducting Vehicle Costs
Operating Expense: Deducting Travel Costs
Operating Expense: Deducting Meals and Entertainment Costs
Capital Assets: Deducting the Costs of Long-Term Assets
Section 179
Depreciation
Special Rules for Computers, Cell Phones, and Other Potential Toys
Inventory Expense: Deducting the Cost of Goods Sold
Commonly Overlooked eBay Deductions
Quicklist: Tax Deductions

Appendix: How to Use the CD-ROM

Installing the Files Onto Your Computer
Using the HTML Version of This Book
Using the Word Processing Files to Create Documents
Using the Spreadsheets
Files on the CD-ROM

Index

Sample Content

1: Welcome to eBay

Introduction

Chances are good that you’ve bought or sold something on eBay. After all, at any given moment, there are 100 million listings on the eBay site, and the company receives 6 to 7 million listings a day. No wonder eBay averages over a billion dollars a quarter in profits.

But just as eBay profits, so do hundreds of thousands of entrepreneurs who have grown from occasional eBay users into eBay businesses. In fact, at least 724,000 people in the U.S. rely on eBay for either their primary or secondary source of income. An estimated 14% of eBay sellers have retired from their jobs to work full time on eBay (and an additional 12% were considering doing so).

This start-up kit is designed to help you move from being an occasional eBay user to starting and operating an eBay business, with the goals of increasing your income and providing you with more independence.

eBay offers you a great chance to achieve both goals, but there’s a lot of work involved. As chief cook and bottle washer of your eBay business, you’ll have many other tasks besides buying and selling. Additionally, working from home can also become a challenge—especially when you’ve filled up the closets and bathrooms with excess inventory.

The good news is that many people have already paved the way with their eBay businesses, and this start-up kit summarizes much of the advice about the challenges involved. Whether you are starting a new business from scratch or are seeking to expand your retail operation to the Web, The eBay Business Start-Up Kit will help answer many of the questions that arise in the process. You should find this start-up kit easy to use; it’s designed like a website with links to many other helpful resources (therefore, it will help if you’re connected to the Internet while using it).

Before embarking on your journey, though, please keep this in mind: eBay success is based on two underlying factors—community and personality.

As you’ll see below, the key to eBay member loyalty is the site’s rich sense of community. And as you explore eBay, you will also discover that the eBay entrepreneurs who invest their personality into their business often have the best chance for success and longevity.

The eBay Community

[Ebay Menu Graphic] omitted for online sample chapter

Several companies have unsuccessfully challenged eBay’s dominance in the online auction market. The uniquely distinguishing aspect of eBay—and, some might argue, the key to eBay’s continuing success—is that eBay operates as a community of members, not as a store, franchise, or company.

eBay is a self-policing, self-helping, and, to some extent, self-governing sales universe. The eBay community, which includes eBay members and eBay staff, abides by certain community values, including simple principles such as "We believe people are basically good" and "We encourage you to treat others the way you want to be treated." This sense of community should never be taken lightly by users, because the power of eBay community opinion is substantial. Failing to abide by community rules can get you suspended or banned from eBay. Conversely, the eBay community is also supportive—eBay and its members offer a lot of free advice and help to those getting started, which in turn engenders more loyalty to the site. To get a sense of this support, review some of eBay’s rich collection of resources and help, including the following:

eBay Community Resources
Announcement Boards	Look here for general announcements.
Answer Center	Look here for answers to eBay questions.
Discussion Boards	Look here for posted discussions on hundreds of eBay topics.
Community Help Boards	Look here for help from other eBay members.
Chat Rooms	Look here for live discussions among eBay members.
Reviews and Guides	Look here for community-created handbooks on hundreds of eBay topics—for example, collecting Harry Potter books.
eBay Groups	Look here to exchange information with like-minded eBay members.

Your eBay Business Is an Extension of You

The other underlying factor that contributes to the success of an eBay business is a strong sense of personality. As most brick-and-mortar retailers quickly learn when they try to move their businesses online, eBay is a whole different ballgame. While it may seem counterintuitive, sales transactions on eBay tend to be more personal, and customers expect a heightened level of service and attention. However, the rewards from these personal interactions can be great, because those interactions lead to trust—and trust leads to increased business.

As you peruse eBay stores and online auctions, you will see this personal touch over and over. Keep in mind that eBay is a global marketplace where many sellers have access to similar merchandise. When prices are similar, buyers rely on personal and sometimes intangible factors to distinguish among sellers.

As you will see, many of the decisions you make when setting up your eBay business require a personal touch—for example, the name of your eBay store, the colors you choose for the background of a particular auction, the type of merchandise you sell, the size of the lettering in your listings, the quality of your images, and even your choice of username. From top to bottom, each eBay business is a unique mix of branding and personal identity. When in doubt as to what course to take with your eBay business, it’s always best to choose the route that’s most comfortable for your personality. Your choices may not always lead to short-term profits, but letting your business reflect who you are is more likely to provide personal satisfaction, steady income, and longevity as a business.

About This Start-Up Kit

The start-up kit includes this book and a disc. With the exception of some of the forms and introductory material, the disc includes all of the material in the book. The difference is that the disc operates as a website. When you insert it in your CD-ROM drive it will install on your computer. Once installed, you’ll be able to use it to learn about eBay as if you were on the Web, clicking live links that give you direct access to hundreds of eBay, government, and related auction resources.

Internet connection needed. Ideally, you should be connected to the Internet while using the disc. If you are not connected, you can still use the program on your computer, but ultimately you will need the Internet connection if you want to use eBay.

Getting around. You can get around the program as you would on any website. You can access links to additional resources by clicking on any underlined term. Additionally, there are drop-down menus on each Web page as well as a navigation bar on the left side of each page.

Legal Updates

Here are summaries of important legal or procedural changes that affect the latest edition of this product.

Legal Solutions for You, Your Family & Your Business