Starting Right With eBay
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by Tim Swike
Category: Business/General Nonfiction
Description: Chances are pretty good that you almost clicked away as soon as you say the word "eBay!" Be glad you hung in with us! This is definitely the last eBay Guide you will ever need. Shocking but true, the majority of marketers using eBay to create their online wealth rarely make enough money to cover their ad placement. You see, most of them have fallen prey to the enormous number of "get rich quick with eBay schemes" that are prevalent online. Most of these cite outrageous claims telling you that all you need to do is list your item on eBay and people will flock to your offer throwing you fists full of money. Ridiculous? Yes, but still, many people want so badly to believe that they jump at anything! All these outlandish claims do is sour the pot for legitimate eBay marketers. Yes, there is still money to be made using the eBay model. What's important, however, is that you need to know the right way to get started! "Starting Right with eBay" cuts straight through all the hype and ridiculous claims and earns the right to be a "coveted" online publication. Tim Swike gets right to the point in easy to understand language and blows away all the mystique leaving you with nothing but great ideas that you can put to work immediately!
eBook Publisher: MH Publishing, 2007
eBookwise Release Date: August 2008
Available eBook Formats: OEBFF Format (IMP) [91 KB]
Reading time: 55-78 min.
eBay: The Beginning
Yes, you read that correctly: Ten years. eBay was created in September 1995, by a man called Pierre Omidyar, who was living in San Jose.
He wanted his site--then called 'AuctionWeb'--to be an online marketplace, and wrote the first code for it in one weekend.
It was one of the first websites of its kind in the world. The name 'eBay' comes from the domain Omidyar used for his site. His company's name was Echo Bay, and the 'eBay AuctionWeb' was originally just one part of Echo Bay's website at ebay.com. The first thing ever sold on the site was Omidyar's broken laser pointer, which he got $14 for.
The site quickly became massively popular, as sellers came to list all sorts of odd things and buyers actually bought them. Relying on trust seemed to work remarkably well, and meant that the site could almost be left alone to run itself. The site had been designed from the start to collect a small fee on each sale, and it was this money that Omidyar used to pay for AuctionWeb's expansion. The fees quickly added up to more than his current salary, and so he decided to quit his job and work on the site full-time.
It was at this point, in 1996, that he added the feedback facilities, to let buyers and sellers rate each other and make buying and selling safer.
In 1997, Omidyar changed AuctionWeb's--and his company's--name to 'eBay', which is what people had been calling the site for a long time. He began to spend a lot of money on advertising, and had the eBay logo designed. It was in this year that the one-millionth item was sold (it was a toy version of Big Bird from Sesame Street).
Then, in 1998--the peak of the dotcom boom--eBay became big business, and the investment in Internet businesses at the time allowed it to bring in senior managers and business strategists, who took it public on the stock market.
It started to encourage people to sell more than just collectibles, and quickly became a massive site where you could sell anything, large or small. Unlike other sites, though, eBay survived the end of the boom, and is still going strong today.
1999 saw eBay go worldwide, launching sites in the UK, Australia and Germany. eBay bought half.com, an Amazon-like online retailer, in the year 2000--the same year it introduced Buy it Now--and bought PayPal, an online payment service, in 2002.
Pierre Omidyar has now earned an estimated $3 billion from eBay, and still serves as Chairman of the Board. Oddly enough, he keeps a personal weblog at pierre.typepad.com.
There are now literally millions of items bought and sold every day on eBay, all over the world. For every $100 spent online worldwide, it is estimated that $14 is spent on eBay--that's a lot of laser pointers.
Now that you know the history of eBay, perhaps you'd like to know how it could work for you?
If you've ever read an article about eBay, you will have seen the kinds of incomes people make--it isn't unusual to hear of people making thousands of dollars per month on eBay.
Next time you're on eBay, take a look at how many PowerSellers there are: you'll find quite a few. Now consider that every single one of one of them must be making at least $1,000 per month, as that's eBay's requirement for becoming a PowerSeller.
Silver PowerSellers make at least $3,000 each month, while Gold PowerSellers make more than $10,000, and the Platinum level is $25,000. The top ranking is Titanium PowerSeller, and to qualify you must make at least $150,000 in sales every month!
The fact that these people exist gives you some idea of the income possibilities here. Most of them never set out to even set up a business on eBay--they simply started selling a few things, and then kept going. There are plenty of people whose full-time job is selling things on eBay, and some of them have been doing it for years now.
Can you imagine that? Once they've bought the stock, everything else is pretty much pure profit for these people--they don't need to pay for any business premises, staff, or anything else. There are multi-million dollar businesses making less in actual profit than eBay PowerSellers do.
Even if you don't want to quit your job and really go for it, you can still use eBay to make a significant second income. You can pack up orders during the week and take them down to the post office for delivery each Saturday. There are few other things you could be doing with your spare time that have anywhere near that kind of earning potential.
What's more, eBay doesn't care who you are, where you live, or what you look like: Some PowerSellers are very old, or very young. Some live out in the middle of nowhere where selling on eBay is one of the few alternatives to farming or being very poor. eBay tears down the barriers to earning that the real world constantly puts up. There's no job interview and no commuting involved--if you can post things, you can do it.
Put it this way: if you know where to get something reasonably cheaply that you could sell, then you can sell it on eBay--and since you can always get discounts for bulk at wholesale, that's not exactly difficult. Buy a job lot of something in-demand cheaply, sell it on eBay, and you're making money already, with no set-up costs.
If you want to dip your toe in the water before you commit to actually buying anything, then you can just sell things that you've got lying around the house. Search through that cupboard of stuff you never use, and you'll probably find you've got a few hundred dollars worth of stuff lying around in there!