There are few online marketplaces as well-known and trusted as eBay. Millions of people use the platform to sell their unwanted items and find great deals on new things all in one place. But is it right for your business? Here’s what you need to know to decide whether or not opening an eBay account will benefit your company. If you’re thinking about selling your products or services on eBay, there are some pros and cons you should consider first. The marketplace is saturated with sellers of every product category, which means competition is fierce.
However, this also means that there are millions of potential customers looking for exactly what your company has to offer. Read on to learn more about selling on eBay, so you can make the best decision for your business.
What is eBay?
eBay is an online marketplace where people around the world can buy and sell goods. eBay is one of the world’s largest and most diverse marketplaces, with more than 1 billion people visiting the platform each year and more than 80 million active buyers as of 2019. Considered one of the first peer-to-peer (or P2P) marketplaces, eBay was founded in 1995 by Stanford University students Pierre Omidyar, Benjamin imaginer, and Jeff Fluhr. It was one of the first internet businesses to become profitable and has since become a household name.
Today, eBay operates in 19 countries, with marketplaces in 14 languages, and is home to millions of sellers of goods across a wide range of categories. eBay’s target audience is people looking to buy or sell new and used goods, but the platform also welcomes sellers who are re-selling inventory they’ve purchased in bulk.
Who uses eBay?
The words “crowdfunding” or “peer-to-peer” might come to mind when you think of eBay, but they’re not the only type of seller you’ll find on the platform. EBay is home to millions of sellers of every product category imaginable.
The majority of eBay’s buyers and sellers are individuals — i.e. people who are buying and selling goods for personal use. But some sellers are businesses of all sizes, including large chains like Target and Walmart, who use the platform to sell excess inventory.
Pros of Selling on eBay
The advantages of selling on eBay are many, including A large, diverse customer base. eBay attracts buyers from around the world, meaning your business could expand its client base to new countries. Depending on your item, you could also reach more niche customers, like collectors or crafters, who may have a significant online presence. High visibility. Your products will automatically be listed in eBay’s search engine, meaning your items will show up in product searches, sorted by relevancy.
This is hugely beneficial to your sales, as it immediately places your products in front of millions of potential customers in one click. Competitive pricing. eBay’s fiercely competitive marketplace keeps prices low. This can be advantageous for your business, as your prices will be forced down to remain competitive.
Cons of Selling on eBay
The cons of selling on eBay are also worth considering before you jump into the platform. Competition is fierce, especially in highly saturated product categories like fashion, electronics, and beauty. This can make it challenging to stand out from the crowd, but you can maximize your chances of success by following the tips below. Deep competition can drive down prices. This may be good for shoppers, but it can also drive down your profits.
You can offset this by partnering with a manufacturer who can give you private label rights, or by sourcing from suppliers who offer wholesale. Finding your footing on eBay is difficult. You can’t just open an account and start selling — there are strict rules and policies to adhere to, and it can take time to build your reputation and earn a positive feedback score.
How to Succeed on eBay
eBay is an excellent platform to sell your products worldwide, but you’ll need to put in some work to succeed. Here are some tips to help you get started on eBay and maximize your chances of success: Do your research. Before you open an account, make sure your product will sell on eBay. There are plenty of resources to help you decide if selling a product on eBay is right for your business, including eBay’s product research tool.
Find the best price. Once you’ve determined which products you want to sell on eBay, search for the items on the marketplace to see what other sellers are listing them for. This will give you an idea of how competitive the products are, as well as their pricing.
Follow all of eBay’s rules. eBay is a strict marketplace, and they have a long list of rules to follow. This means you have to be very careful to abide by all their policies and procedures, or you could risk getting banned.
eBay has been a trusted marketplace for decades, and millions of people use it to buy and sell every day. If you’re looking to expand your business, or want to make some extra cash by selling your products on the platform, eBay is a great place to start. That said, it is a competitive space, and you need to be prepared to put in the work required to succeed on the platform.
Follow these tips to get started on eBay, and you could soon be benefitting from the millions of potential customers browsing the marketplace every day.