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   Buying & Selling on eBay found in Computers & Technology  :  The Internet A   A   A
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How to Sell on eBay

Imagine if 275 million people showed up to your next garage sale. That’s what happens when you sell an item on eBay: your merchandise is offered to a global audience.

How to Establish a Seller’s Account

To sell on eBay, you need to have a free seller’s account. The seller’s account is essentially an “upgraded” buyer’s account—you can use the same user ID to buy and sell. Whether you already have a buyer’s account or not, you can sign up for a seller’s account by rolling over the Sell link at the top of any eBay page and selecting Sell an Item from the drop-down menu.

When you apply for a seller’s account, you’ll be asked to provide credit or debit card information and, in some cases, checking account details. This information is used to verify your identity, to ensure that you’ll pay your seller’s fees, and to help prevent fraud. If you don’t have a credit card or don’t want to place your card on file, you can establish proof of identity with eBay’s ID Verify service. Verification costs $5 and is valid until your name, home address, or phone number changes.

Seller Fees

eBay makes most of its money through fees it assesses to people who sell items on its site. As an eBay seller, you must pay two mandatory fees:
  • Insertion fee: A fee for the opportunity to list your item on the eBay site. The insertion fee depends on the starting or reserve price you set for the item.
  • Final value fee: A fee that is a percentage of the winning bid or Buy It Now price of your item. If you do not sell your item, no final value fee is charged.
eBay changes its fees periodically. To check the current fees, check the eBay Help page and click on eBay.com Fees under Selling.

Rather than deduct these seller fees directly each time a buyer pays a seller, eBay keeps a running tab for each seller and then charges his or her credit card for the balance due each month.

Optional Listing Fees

eBay offers a number of optional features and several listing upgrades you can use to offer buyers more payment options or to enhance the appearance and placement of your listings. Some of the most commonly used options include:
  • Buy It Now: Lets buyers buy your item at a fixed price
  • Gallery: Adds a thumbnail-sized photo next to your listing that buyers see on search results pages
  • Bold, Border, or Highlight: Adds visual enhancements to make your listings stand out on search results pages
  • eBay Picture Services: Allows you to store photos on eBay to include in your listings
Fees for these features are in the $3–5 range.

eBay and Taxes

Income from eBay sales is subject to income tax. If you sell to a buyer within your home state, you may also be required to pay state sales tax. Consult your tax advisor regarding your eBay sales transactions.

PayPal Fees

Only premier and business accounts on eBay are charged a per-transaction fee to receive payments from buyers using PayPal. Personal accounts can receive PayPal payments free of charge. Most eBay sellers accept PayPal because it’s so convenient, but some refuse PayPal payments because of the fees.
 
 
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