I’m sure these questions have been asked here before (every question seems to have been asked here before), but I have a few questions about eBay that I thought some of you eBayers could answer. I would ask on the eBay boards, but I think the opinion here would be a little more impartial.
I’ve heard that many make money selling on eBay, yet every time I look at the auctions (the pages with auctions about ready to close) I see few items with bids. Does that mean that few things actually sell? Or does it mean that most things sell at a fixed price which wouldn’t really show up on the auction pages?
There are plenty of pro- and anti-eBay opinions out there. I suspect the truth is in the middle. Really, how many of you (particularly high-volume) sellers have had trouble either with scams, or with eBay/PayPal?
Outside of diligence regarding scam attempts (eg, phishing), what’s the best way to protect onesself from scams (the kind you can’t control, like someone breaking into eBay)? Obviously, maintaining separate eBay-only financial accounts helps. Would it help to incorporate, keeping personal finances separate frrom the business? Any other ideas would be welcome.
Most people won’t bid on something until the very last second (sniping), so looking at an auction in progress doesn’t tell much. Check the auction after it completes to get a more accurate representation of what sells and what doesn’t.
I’m not a high-volume seller, but I’ve had no problems with eBay or Paypal in any capacity.
I am not aware of any security problems with eBay. But for general safety purposes, I’d recommend sticking with PayPal, money orders, or personal checks for payment, and not to send out anything until the check clears.
Yes, many auctions don’t see any activity until the last few minutes (try searching for closed auctions of items similar to the one you wish to sell - this will give you a fair idea of the kind of final price you might get).
Paypal is good for buyers (mostly, although I’m struggling to get a refund at the moment on a DVD that turned out to be fake), but the fees are unpleasant for the seller; I think a lot of the PayPal customer service problems you hear about are the result of it having got too big too fast - in any case, the vast majority of Paypal transactions happen smoothly.
If you’re buying a high-price item, check the seller’s feedback and click on some of the item links - if the seller has only ever sold LED flashlights and paperweights, but is suddenly selling plasma screens and home cinema systems, it may be a hijacked account.
When selling, don’t send anything out until payment clears (although if the buyer has a good feedback rating, I will often risk it).
Don’t allow yourself to be pushed around by potential buyers; it’s all very well them politely enquiring whether you will sell it outside of the posted geographical region, but they shouldn’t be too surprised or disappointed if and when you say no.
I’ve blocked bidders in the past simply because they were too aggressive in their emails - one guy kept badgering me about the postage (which was fully disclosed in the listing and, although it seemed high, the item was heavy and the postage amount was strictly cost) - I’d prefer not to enter into a transaction with someone that is predisposed to be dissatisfied.
I make a buttload of money selling on eBay and, pulling a number right out of my ass, I’d say more than 70% of my auctions go down the wire on bids. I’ve had no bids on an item for literally 6 days and 23 hours, then had that same item end with 20 bids. As a seller, it helps to have an imagination and the ability to write decently, particularly if you’re selling something that’s not terribly unique or hard-to-find. I sell a good bit of vintage clothing, for example, and I throw in all kinds of history, potential costume ideas for that item and so on.
I’ve received, in my three years as a seller, 5 or 6 “spoof” emails - email that appears to come from eBay, but is actually an attempt to get my account information. Common sense can help you avoid pitfalls there. As a buyer, I’ve had two sellers skunk me (out of something like 400 transactions). As a seller, I’ve had maybe 8-10 bad bidders - it’s a pain in the neck to deal with them, but they make up such a small percentage of my buyers that it’s worth it to me. I imagine retail sales would turn up a higher percentage of nincompoops.
I’ve not had ANY problems with Paypal. A lot of people complain about the fees but I do not find them out-of-bounds. I do have a fairly high profit margin in general, so the fees are small potatoes to me, and the convenience PayPal affords is well worth it.
I do keep my eBay records separate from my personal records, but other than that I’m not really concerned about security. One thing that niggles at the back of my mind - when I signed up for eBay a few years back, I distinctly remember there being something in the user agreement about taxes - that if your sales exceeded x number of dollars per quarter, you’d be responsible for paying tax on the income and that eBay would be sending out a tax form. In three years, I’ve never received such a form, and I’m certain my sales have exceeded whatever number that was. I keep waiting for the IRS to show up and demand an audit of my sales and back taxes, but so far, nothing. (If they do show up, I HAVE kept my records well, so I’m not facing tax-evasion charges or anything like that, it’s just a nagging concern of mine.)
eBay is an important source of income for me, especially in the winter time when there are no outdoor flea markets / antique shows for me to set up at. About 75% of what I list on eBay sells the first time I list it. But like LifeOnWry, I have watched many of my auctions sit until the last few hours before the bids pour in and send the price up. This is a lot more common now than it was a few years ago - more people than ever wait until the last minute to place their bid in hopes of sniping the item.
I’ve never been fooled by a spoofed email yet: I know what the correct URLs are for real eBay pages, and all you have to do is put your mouse cursor on a link to reveal the destination URL of that link. If they don’t point to a real eBay page, I don’t go there. I’ve never had a problem with either eBay or PayPal anyway; when the occasional problem crops up, though, it seems to receive really widespread coverage.
eBay is a business to me, not a hobby; I consider it a segment of my overall sideline of antiques and collectibles sales. As such, I have always kept careful records of my eBay sales both by printing out my eBay account records at the end of the year and by tracking sales/inventory with auction software I bought a few years ago. Because eBay keeps records, I’m sure that if the IRS really wanted to they could examine them. And so, from Day 1 of my eBay career, I have reported my income and paid taxes on it. In addition, I have resale licenses from the three New England states in which I do flea markets, and if I sell to residents of those three states I collect sales tax, filing returns and paying the sales tax collections to those states annually as well.