eBay: how to sell 4
| eBay: how to sell 4 | |
07 February 2006
Before we can hit the global marketplace that is eBay, first we have to register and set up the systems. Admittedly, all this is a bit dry but vitally important all the same. So, let’s get stuck in. By now, you should have registered with eBay to do research on your target market, to figure out how eBay works and carry out test purchases. Preferably, though, register a user name that’s related to your company name or the goods that you sell. Note, too, that to sell on eBay you need to create a Seller’s account. To do so, and to register if you haven’t already, click on the bold Sell link that appears in the main menu at the head of each page of the eBay site. [ Actually, that’s not literally true. You only need to click one Sell link once…] The eBay seller’s account sign up is integrated into that of PayPal, the e-money transfer company, a sister eBay company. As an estimated 90 per cent of purchases on eBay are paid for via PayPal, it makes business sense to accept PayPal. However, it’s not compulsory but not having it could, at best, make the payment process slower and less efficient than the instant payment system offered by PayPal. By way of illustration, of the total sales made by yours truly hawking old Saab 900 parts, all bar two were paid by PayPal. Of the two non-PayPal payments, one was a personal cheque and the other, at the buyer’s behest, cash sent by Royal Mail. Currently there are 71 million registered PayPal users and having an account enables sellers to accept payment in six currencies. To be able to accept payments via PayPal – and debit and credit cards – users need two things: an email address and a bank account. Both are verified by PayPal before an account is activated as the email address and bank account are directly linked for transactions. For business users, there are two types of PayPal accounts; the Premier Account and the Business Account, which you choose depends on the type of business. The Premier Account is designed for people trading under their own name and the Business Account for companies. Both enable the debit and credit cards to be accepted, while the latter is more fully featured and geared, as its name suggest, to business. As with eBay and listing fees, PayPal isn’t entirely free either. Opening an account and sending money is free; PayPal makes its money by charging users a fee to receive funds into their bank account. The Standard Rate for UK credits is 3.4 per cent plus £0.20 for payments received. A better rate can be obtained if users qualify for merchant rates, which range from 2.9 per cent to 1.9 per cent dependent on sales volume. Unlike a typical credit card accepting merchant account via a payment gateway, PayPal does not charge set up fees, monthly or gateway fees or charge for security measures. As a means of accepting low to medium volumes of online payments, PayPal has many attractions for small to micro-sized business, especially as it can be used to accept payments in a whole range of circumstances not just for eBay auctions. Fees-wise, the only other major thing to watch out for is a charge if you withdraw less than £50 from your PayPal account. Keeping track of all the incomings and outgoings is done via a secure login at PayPal. An account can be managed entirely online, with accounts viewed in a multitude of different ways, or the entire transaction history downloaded in various formats for offline scrutiny. Premier and Business Account holders also have access to a number of merchant tools to streamline, automate and simplify sales and the entire payment process from the moment an auction ends. Throw in PayPal’s seller protection against fraud and chargebacks and it’s difficult to think of reasons not to take the plunge with eBay trading. Next time: Getting your auction underway plus more first-hand selling tips | |