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Buying and Selling on Ebay
Buying and Selling on Ebay
• Create effective eBay listings to sell your own items quickly and at a profit
What’s eBay? Best Offer This feature allows a seller to solicit offers from buyers and accept
or reject them at his or her choosing. Sellers may choose to include
The first and largest auction website, eBay is known as the “world’s online marketplace.” the Best Offer option in Fixed Price or Store Inventory listings.
By eliminating the middleman it has revolutionized the way people can buy and sell almost
anything. eBay has more than 275 million registered users and offers millions of items at any Store Inventory Store Inventory is similar to Fixed Price. A seller who chooses this
given time—over two billion auction listings per year. These auctions offer: option sells his or her item at a certain price. Buyers don’t bid:
they buy by paying the fixed price. Store Inventory listings are less
• New and used everyday products (from garage sale-type items to brand new HDTVs) visible than Online Auction and Fixed Price listings. They also
• Services (expert advice, graphic design, printing, and contract work of all kinds) last for longer: either 30 days or indefinitely, with automatic fees
• Real estate, boats, cars, and trucks charged every month until the seller takes down the listing.
Classified Ad A seller lists an item and may respond to any potential buyers he
You can browse any of these listings for free anytime on eBay’s website, www.ebay.com. or she likes. Buyers may talk to sellers without being required to
Though eBay organizes items by category, most buyers use eBay’s powerful search tools buy the item listed. Classified Ad listings last either for 30 days or
to scan the site’s inventory quickly. eBay never touches any of the auction merchandise; indefinitely.
sellers ship items directly to buyers.
eBay Membership
What’s an Online Auction? To buy or sell on eBay, you need to register (it’s free). To register, look for the Register link
An auction is a public sale in which merchandise is sold to the highest bidder. Online auc- at the top of every eBay web page. When you register, eBay asks for the following:
tions are auctions in which buyers and sellers are connected “virtually” via the internet.
Once an auctioned item is sold, the seller delivers it via mail to the highest bidder. A typical • Contact information: eBay will ask for your address, email address, and so on.
online auction works as follows: • User ID: You’ll be asked to choose a User ID for yourself. When selecting an ID, it’s a
good idea to use words related to your hobbies or the items you intend to buy or sell
1. The seller posts a listing of the item that includes a description and, often, photos. on eBay. Avoid using your full name in order to protect your privacy. If you decide later
2. Bidding opens at a price that the seller sets and continues for 1–10 days. to change your user ID, eBay will let you do so, but will impose some restrictions to
3. Buyers view the listing and either bid or contact the seller via email if they have prevent fraud that could result from frequent user ID modifications.
questions about the item before bidding. • Password: Choose a password to ensure no one but you uses your account.
4. When the listing ends, the buyer with the highest bid wins the item. • Credit card number: Depending on the type of email address you use to register, you
5. Once payment is received, the seller ships the item to the winning bidder. may be asked to place a credit card number on file. Your card won’t be charged.
Types of eBay Listings and Auctions When you finish registering, eBay will email you instructions for confirming your registration.
Though eBay allows its users to buy and sell using standard auctions, it also provides a Once you’re a member, you’ll have to log in to your eBay account to buy and sell.
number of variations beyond the traditional auction-style listing. Some of these options are
variations on a typical auction; others aren’t auctions at all. The following table lists com- eBay Costs
mon ways to buy and sell on eBay. Registering, browsing, bidding, and buying are all free on eBay. Buyers pay sellers directly
for the items they win, as well as for shipping charges. Sellers, in turn, pay eBay a variety of
Type of Listing Description fees for the opportunity to offer and sell their wares on eBay (see Seller Fees).
Online Auction A sellers lists an item, and buyers make bids on it. Seller decides
eBay Help
how long the auction will run. When the auction ends, the highest
If you need help while using eBay, the best place to look for the information you need is the
bidder wins. Seller may choose to add Buy It Now, a feature that
eBay help page, located at http://pages.ebay.com/help/index.html. Just click the Help link
allows him or her to name a price at which a buyer may purchase
the item without having to bid. A buyer can end the auction early in the top right corner of any eBay page.
by paying the Buy It Now price.
Fixed Price In Fixed Price listings, the seller names the price, which allows a eBay Feedback
buyer to purchase the product immediately. The buyer doesn’t bid; The eBay feedback system is crucial to your success as a buyer and seller. Feedback allows
rather, he or she buys the item at the price named by the seller. eBay members you’ve sold to and bought from to comment on your reliability as a buyer or
Sellers can also add a Best Offer option so that buyers may make seller. The feedback you receive establishes your reputation on eBay, which affects other
them an offer. members’ willingness to buy from or sell to you. Sellers like to sell to buyers with high feed-
back ratings, and buyers prefer to buy from sellers with high feedback ratings.
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The information contained in this and every Quamut guide is intended only for the general interest of
its readers and should not be used as a basis for making medical, investment, legal or other important
decisions. Though Quamut makes efforts to create accurate guides, editorial and research mistakes can
occur. Quamut cannot, therefore, guarantee the accuracy of its guides. We disclaim all warranties, including
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warranties of merchantability or fitness for a particular purpose, and must advise you to use our guides at Copyright © 2007 Quamut
your own risk. Quamut and its employees are not liable for loss of any nature resulting from the use of or
All rights reserved.
reliance upon our charts and the information found therein.
Quamut is a registered trademark of
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eBay Acronyms
eBay sellers use a variety of common acronyms to com-
press the language in their listing titles, including some of
the following. seller’s
seller’s
feedback
where feedback
Acronym Meaning percentage
photo of description of to place score
BIN Buy It Now the item click to see item up for bid time a bid
up for bid who else has remaining
GU Gently used
bid so far until auction ends
LE Limited edition
www.quamut.com Buying & Selling on eBay
An eBay Auction Example The use of sniping software often results in auctions in address. You then send payment directly to the seller.
The best way to clarify eBay’s proxy bidding system is which the high bid jumps dramatically in the final seconds. Email the seller to request confirmation that he or she
through an example: in this case, a vintage Pez dispenser Many newcomers to eBay are disappointed when an auction has received your payment.
listed with a starting bid of $30 and no reserve price. they thought they were about to win suddenly is won by 5. Request tracking info: Ask the seller to provide
someone else using sniping software. To beat sniping soft- tracking info when the item ships. If tracking info is
1. Bob bids: Bob sees the listing and bids a maximum ware, you usually have to use sniping software yourself. unavailable, request email notification of shipment.
of $50 for the item. eBay sends Bob an email notifying
him that he’s the high bidder, and the Pez dispenser’s Types of Sniping Software Paying with PayPal
listing page updates to show that Bob is the high bidder Though dozens of websites offer cheap sniping software PayPal is eBay’s proprietary account-based payment sys-
and the current bid amount is $30. eBay knows that that runs off your local computer, the best services are web tem. PayPal allows you to send and receive payments
Bob is willing to go as high as $50 to win the item, based. Web-based sniping services are fast and reliable; if instantly using your credit card or bank account information.
but because there are currently no other bids, if the you use computer-based sniping software, your snipe may It is free for buyers and simple to use.
auction ended now Bob would win for just $30. not always get in before the auction ends. Two of the most To use PayPal you need to set up a PayPal account,
2. Coco bids: A few hours before the auction ends, Coco popular online sniping services are the websites www. even if you’re already an eBay registered user. The PayPal
decides she would like to buy the Pez dispenser. She esnipe.com and www.auctionsniper.com. account links your email address to your credit card and
sees Bob’s bid for $30 and bids $40. When she clicks checking account information. To set up a PayPal account:
to confirm the bid, eBay immediately tells her that she
isn’t the high bidder (because Bob’s initial bid was $50). After the Auction Ends 1. Go to www.paypal.com.
On the listing page, Bob’s high bid jumps to $41— Only one person can win the auction for each listed item. 2. Click the Sign Up link at the top of the page and follow
rising to match Coco’s bid, plus the $1 bid increment. Here’s what to do when you win and when you lose. the instructions.
3. Coco bids again: Coco now bids $60. The listing page
updates to make Coco the high bidder at $51. eBay If You Lose the Auction When you use PayPal to pay on eBay, you’ll be directed
sends Coco an email notifying her of her high-bidder When a listing ends, eBay sends an email to all losing bid- to log in to your PayPal account on the PayPal website to
status and Bob an email telling him he’s been outbid. ders to inform them that they didn’t win the item. It also review your purchase. Once you’ve paid, PayPal updates
4. Bob rebids: Bob sees that the new high bid is $51 and provides a list of active auctions offering items similar to your payment status information on eBay and notifies your
bids $60. Because his bid doesn’t exceed Coco’s bid by the one they lost. seller of your payment. You’ll then receive an email receipt
the necessary $1 bid increment, eBay immediately tells In some cases, a seller can make a Second Chance Offer for the transaction. The details of your PayPal payment are
Bob that he has still been outbid. On the listing page, to a losing bidder. A Second Chance Offer lets you use Buy always viewable on your My eBay page.
Coco’s high bid jumps to $60 because that’s the bid It Now to purchase an item you didn’t win with your original
needed to beat Bob’s most recent bid. Bob gives up. bid. The seller may make this offer if: How to Leave Feedback for Sellers
5. Amy snipes: All this time, Amy has watched the When you receive the item in the mail, inspect it to confirm
bidding develop but has not bid herself. Then in the last • The winning bidder in an auction fails to buy the item that it matches the description in the auction. If you’re hap-
minute before the auction closes, she snipes (places a • An auction ends without meeting the reserve price py with the item and the other aspects of the transaction,
last-second bid) for $100. She becomes high bidder at • The seller has a duplicate item for sale it’s good eBay etiquette to give the seller positive feedback.
$61 ($1 higher than Coco’s max bid). The auction ends To leave feedback for your seller:
before Coco can respond. Amy wins the Pez dispenser If You Win
for $61, an amount far less than her maximum bid. If you’re the highest bidder of a completed auction, you will 1. Click on My eBay, a button that appears at the top of all
receive an email confirmation of your victory from eBay, as eBay pages. (You may need to sign in.)
Before You Bid on an Item well as an auto-generated invoice on behalf of the seller. 2. Click on Feedback, which appears under My Account
Before you bid, there are a few issues to consider: Both the confirmation email and the invoice will contain the on the left side of the My eBay page.
seller’s contact information and a Pay Now button. 3. Click on Leave Feedback.
1. What you’re willing to pay: Consider how much you Once you receive these emails, you should contact the
want the item, how difficult it might be to find another seller to confirm details on shipping and any other fees. These steps will take you to a page where you can leave
one, and how soon you need it. eBay rules state that buyers and sellers should contact feedback for any transactions that have occurred in the
2. If it’s the item you want: Don’t bid on similar items each other within three business days after a listing ends. last 90 days. If you have a dispute with a seller, first try to
from different sellers unless you intend to purchase all When those details are squared away, it’s time to pay. resolve it with the seller via email or phone. Leave negative
of the items you might win. The seller won’t ship the item until you’ve paid for it. feedback only as a last resort.
3. Buy It Now: If your auction includes a Buy It Now
option, consider paying the Buy It Now price. That will How to Pay for an Item You’ve Won
guarantee that you win the item and also means you There are four main ways to pay for items on eBay: How to Sell on eBay
won’t have to wait for the auction to end. Imagine if 275 million people showed up to your next garage
• PayPal sale. That’s what happens when you sell an item on eBay:
How to Make Your Bid • Credit card your merchandise is offered to a global audience.
When you’re ready to bid, follow these steps: • Check (personal or cashier’s)
• Money order How to Establish a Seller’s Account
1. Enter your maximum bid in the space provided and To sell on eBay, you need to have a free seller’s account.
click the Place Bid button. The seller may not accept all of these forms of payment. The seller’s account is essentially an “upgraded” buyer’s
2. You’ll be asked to confirm your bid: this is a great time (The payment forms the seller does accept should be noted account—you can use the same user ID to buy and sell.
to check for misplaced decimals. in the item listing.) Regardless of which payment method Whether you already have a buyer’s account or not, you
3. If all is well, click the Confirm Bid button. You’ve now you use, the Pay Now button is the fastest way to pay. The can sign up for a seller’s account by rolling over the Sell link
placed a bid. Pay Now button can be found in the confirmation email and at the top of any eBay page and selecting Sell an Item from
invoice, as well as in the following locations: the drop-down menu.
How to Bid with Sniping Software When you apply for a seller’s account, you’ll be asked to
All bids placed before an eBay listing ends are valid—even if • On the listing page, which remains active for 90 days provide credit or debit card information and, in some cases,
placed by software seconds before the listing ends. Sniping • In My eBay, under Items I’ve Won checking account details. This information is used to verify
software allows eBay bidders to snipe even more effec- your identity, to ensure that you’ll pay your seller’s fees,
tively. Sniping software provides: Here’s what you should do after you click Pay Now: 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
1. Convenience: If you’ve set sniping software to bid for 1. Get payment details: They are calculated of identity with eBay’s ID Verify service. Verification costs
you, you’re not going to have to sit at your computer automatically using the information in the item listing. $5 and is valid until your name, home address, or phone
monitoring every auction you’re interested in. 2. Review your purchase details: Include shipping, number changes.
2. Precision: Sniping software sends in your bid so close insurance, and taxes in your review.
to the wire that if your bid ends up being the high bid, 3. Select your payment method: usually PayPal, Seller Fees
no one else will have time to try to outbid you. personal check, cashier’s check, or money order. eBay makes most of its money through fees it assesses to
4. If you’re paying by a method other than PayPal: people who sell items on its site. As an eBay seller, you must
eBay sends you an email with the seller’s mailing pay two mandatory fees:
www.quamut.com Buying & Selling on eBay
• Insertion fee: A fee for the opportunity to list your Survey the Competition 4. Item description: Use short, simple sentences.
item on the eBay site. The insertion fee depends on the To sell your items as effectively as possible, it’s helpful to do Include the details buyers will want to know about the
starting or reserve price you set for the item. some research of the competition. item: condition, color, brand, model, size, and so on.
• Final value fee: A fee that is a percentage of the 5. Start price, listing duration, and shipping details:
winning bid or Buy It Now price of your item. If you do • Find similar items that have sold on eBay: Get a Choose the starting price for the bidding of your item.
not sell your item, no final value fee is charged. sense of the value of your item by doing an advanced Also choose how many days you want your auction
search for Completed Items. Look for the items to go for. Choices include 3, 5, 7, or 10 days. Longer
eBay changes its fees periodically. To check the current that attracted the most bids and sold for the highest durations often lead to higher bids since more potential
fees, check the eBay Help page and click on eBay.com Fees amounts and note how they were presented. buyers have the chance to see your listing. Additionally,
under Selling. • Watch some eBay auctions: If you intend to sell many specify the locations you will ship to. Choices include
Rather than deduct these seller fees directly each time a similar items, determine which category you plan to list U.S. addresses only and worldwide. Finally, choose
buyer pays a seller, eBay keeps a running tab for each seller them in and use the Watch This Item feature to track the shipping service that you want to use. Note that
and then charges his or her credit card for the balance due some auctions in that category. if you’re using FedEx or UPS to ship, you cannot ship
each month. • Do a web search: Search regular online retail stores to P.O. boxes. If you’re shipping with UPS or U.S. mail,
for pricing information on your item. offer Calculated Shipping Rates to minimize potential
Optional Listing Fees • If you’re selling collectibles: Consult current print buyers’ inquiries regarding shipping costs.
eBay offers a number of optional features and several list- or online price guides or talk to a dealer, store, or 6. Payment methods: Specify whether you will accept
ing upgrades you can use to offer buyers more payment collector to inquire about items similar to the one you PayPal, and decide whether you will accept bids from
options or to enhance the appearance and placement of your intend to sell. Ask for an estimate of the current price. buyers using other payment options.
listings. Some of the most commonly used options include:
Consider the Weight of Your Items
• Buy It Now: Lets buyers buy your item at a fixed price Don’t overlook shipping costs when deciding whether it
• Gallery: Adds a thumbnail-sized photo next to your makes sense to sell particular items on eBay. You may have
listing that buyers see on search results pages a set of free weights that you’d like to unload, but since
• Bold, Border, or Highlight: Adds visual enhancements shipping them will likely cost more than the sale price they’d
to make your listings stand out on search results pages fetch, it’s unlikely that anyone on eBay will buy them.
• eBay Picture Services: Allows you to store photos on If you do want to sell a heavy item on eBay, consider
eBay to include in your listings offering the item for local pickup only. Buyers bidding on
items for local pickup only agree to pick up your merchan-
Fees for these features are in the $3–5 range. dise at your home or a mutually convenient location.
If you want to customize your listing and choose from more 1. eBay Picture Services: In the Bring Your Item to How to Leave Feedback for Your Buyer
options, such as different selling formats and the ability Life section of the Create Your Listing form, choose If your buyer paid you promptly and in full according to your
to have your listing go live at a later date, you can use the eBay’s Picture Services to host your images. eBay expectations, leave the buyer positive feedback (see eBay
Sell Your Items Form. Get to this form by scrolling to the will store and display your pictures (up to 12 photos, 2 Feedback).
bottom of the Create Your Listing page and clicking the megabytes or less each; the first is free, the rest cost
Sell Your Item Form link. You can also access this form by a small fee). If Your Item Doesn’t Sell
selecting the Customize Your Listing option instead of the 2. Photos from your own website: Include links in your If your listing ends without a winning buyer (or with a non-
Keep It Simple option when you first get started with listing listing description directly to photos on your website. paying bidder), you may relist the item. If the item sells the
your item. The photos will appear wherever you include links to second time, eBay will refund the Insertion Fee charged
them in your item description. This option is free, but for relisting.
How to Set Starting Prices and Reserves you’ll have to pay for your own website hosting and
When you list an item, you have a number of pricing options: know how to upload photos to your personal website.
3. Image hosting services: Sellers who conduct a How to Ship What You Sell on eBay
• Set no limits: You can set no limits on bidding and just high volume of business may need a larger amount Typically, the buyer is responsible for shipping costs.
wait to see what develops (every auction on eBay has of storage space for photos. There are a number of Shipping costs typically include shipping fees and packing
an automatic starting price of $0.99). Though setting image hosting services that allow you to store images materials. As a seller, you can calculate your shipping costs
no limits may result in a winning bid that is much exclusively for eBay listings. Some are free, though the based on where the winner of the auction lives. You should
lower than what you expected, many people feel that more reputable ones charge monthly service fees. Find not inflate shipping costs or add handling charges to make
a low starting price encourages more bids—possibly them by doing a web search for “eBay photo hosting.” an additional profit.
resulting in a higher final price. Low starting prices also
reduce your insertion fees. Packing and Shipping Tips
• Set a starting price or reserve: A starting price is a What to Do After Your Item Sells The feedback you receive as a seller will be affected by the
stated limit on the lowest bid you would accept as a After your item sells, you should do the following: condition in which your item gets to the buyer. It’s therefore
winner. A reserve is an unstated limit on the lowest bid important to ship your items responsibly.
you will accept. While these options reduce the risk of • Contact your buyer.
a low winning bid, they raise insertion fees and tend to • Arrange to receive payment. • Cushion the item with packing material on all sides.
limit the numbers of bidders you can attract. • Leave feedback for the buyer. For fragile items, use bubble wrap, peanuts, foam, or
• Pack and ship the item. paper. For less fragile items, use newspaper.
In general, it’s best to list your item with a low starting price • Seal the box and reinforce its seams with packing tape.
and no reserve in order to attract as many bids as you can. How to Contact Your Buyer • Properly label the package, including a return address.
When your listing is over, eBay will send you an email with • Always ship with a tracking number. Email the tracking
How to Present Your Listing Effectively your buyer’s contact information. It’s usually a good idea to number to the buyer when the item ships.
The more professional and reputable your listing looks, the email your buyer directly to confirm:
more likely you are to sell your merchandise consistently Shipping Methods and Costs
and at the highest price possible. To make your listings look • Payment amounts Most eBay sellers ship with one of the “big three”—FedEx,
their best: • Address information UPS, or the United States Postal Service (USPS). Each has
• Shipping and insurance costs advantages and disadvantages.
1. Use HTML tags to style and format your text. • Shipping method you will use
2. Use a template to make your listings appear uniform. • Payment options you accept Shipper Pros Cons
3. Use plenty of detailed, high-quality photos. • Sales tax (if applicable)
FedEx Reliable, convenient Expensive; won’t
• Total price
retail service accept odd-
Using HTML • Your mailing address (for check or money order)
available at FedEx shaped packages;
HTML (hypertext markup language) is a simple coding lan-
Kinko’s locations won’t ship to P.O.
guage used to create web pages. HTML gives your listings How to Arrange Payment nationwide boxes
a professional feel that distinguishes them from those that How you receive payment depends on the payment options
lack any HTML-enhanced style. you allow the buyer to use. UPS Convenient UPS Won’t ship to P.O.
If you aren’t familiar with HTML code, you can use eBay’s Stores nationwide; boxes; UPS stores
HTML Text Editor to edit your item listing when you fill out If You Accept PayPal or Credit Cards will ship most odd- won’t let you
the Sell Your Item form. The HTML Text Editor allows you to If you accept PayPal, you can receive payment instantly and shaped or large pack items in the
specify the style, font, font color, and/or font size you want with very little effort. eBay’s Checkout system will email packages store
as if you were using word processing software. your buyer an invoice requesting payment via your pre-
USPS Less expensive than Often less
ferred method. The buyer simply logs into his or her PayPal
FedEx and UPS; efficient than
Making a Listing Template account and authorizes the transaction. provides free boxes, UPS or FedEx,
If you’re listing many items at once, you can save time and tape, and other sup- especially during
establish a consistent branded feel by using a standard If You Receive Checks or Money Orders plies for premium holidays
template—a set of design and text elements for each of For checks and money orders, always verify the payment services; convenient
your auctions. To create a template: before shipping any items: hold checks until they clear and locations nationwide;
cash money orders to confirm their authenticity. ships to P.O. boxes
1. Use basic HTML in any word processing program. While you wait to verify the payment, it’s a good idea to
2. Save a blank version of the template. send the buyer an email to acknowledge you’ve received eBay allows you to present your shipping charges within
3. Fill in the blanks of the template for each item you sell. the payment and that the item will soon be on its way. the item listing in one of two ways—using either a flat ship-
4. Copy and paste the filled-in template into eBay’s Sell ping rate (a fixed fee) or a calculated shipping rate. If you
Your Item form to list the item. Dealing with Nonpaying Bidders choose to include calculated shipping rates in your listing,
If you don’t hear from your high bidder within three days of eBay will automatically calculate USPS and UPS shipping
For basic HTML tips, see eBay’s Help page. the auction close, you have a number of options: and insurance rates for your buyers, based on item size and
weight, as well as the locations of the buyer and seller. This
Adding Photos • Try to reach him or her by phone if email fails. option won’t work with FedEx or other carriers.
Photos are crucial to successful selling on eBay because • File an Unpaid Item report by clicking on the Dispute
they give the buyer confidence that your product is in the Console on your My eBay page. eBay will give you an Insurance
condition that you describe. Your photos should be clear Insertion Fee Credit that you can use to relist your Insurance protects your package against loss or damage
and brightly lit and should show your item from various item for free. during shipping. As a seller, you can choose whether to offer
angles. There are three main ways to include photos in your • Make a Second Chance Offer to the next highest bidder. shipping insurance. It’s often a good idea to require buyers
eBay listing: to pay for insurance in order to avoid hassles over lost or
damaged packages. Check with your shipper to confirm
insurance rates.