How to sell on eBay
Last updated: 24.01.2024
Selling on eBay for the first time? Learn how to set up your eBay store and attract customers
Key takeaways
- eBay’s global reach connects sellers to over 190 countries, offering local Australian businesses a chance to expand internationally
- With eBay’s established trust, secure payment options and solid feedback system, new sellers can build credibility and attract more customers
- Starting with high-demand products, competitive pricing and focusing on niche markets can boost profits and sales on eBay.
- WorldFirst lets eBay sellers collect payments in 15+ currencies, offering competitive exchange rates and zero hidden fees
Introduction
eBay is one of the major marketplaces in Australia. In 2021, over 12 million Australians used the marketplace every month to shop and sell goods. In 2023, eBay was reported to have 18 million active sellers worldwide, with 4% based in Australia – meaning approximately 680,000 active sellers in Australia.
In January 2024, eBay’s mobile app recorded 72.83 thousand downloads in Australia–the highest number of downloads since May 2020.
Whether you’re a seasoned seller or just getting started, understanding what to sell and how to sell on eBay can make all the difference. This article takes a look at how to sell on eBay and how selling on eBay works.
Table of Contents
What is eBay?
eBay is an online e-commerce marketplace where businesses and individuals can sell a wide variety of products. As an eBay seller, you can list brand new, refurbished and previously used products on the platform.
Why sell on eBay?
Global reach with a local focus
eBay has more than 12 million active visitors, which opens up the opportunity to reach a vast international audience while catering to the local Australian customer base. eBay’s platform is designed to connect sellers with buyers across the globe.
With eBay’s presence in over 190 countries, you can easily tap into new markets and grow your business internationally without needing a significant upfront investment in marketing or logistics.
Established trust and credibility
eBay is a well-established marketplace with a solid reputation.
Listing your products on eBay means catering to customers already looking for the kind of products you offer. This can be especially helpful if you are new to online selling or expanding into new markets.
eBay’s buyer protection policies, secure payment options and solid feedback system further enhance credibility, making it easier for retailers to build a loyal customer base. Leveraging eBay’s trusted brand can reduce the barriers to entry for businesses, leading to faster growth and higher conversion rates.
Comprehensive seller tools
eBay provides a suite of powerful tools designed to help you manage your business efficiently. These tools include detailed analytics, international shipping support and marketing options that can be customised to suit your specific needs.
Moreover, eBay’s integration with various shipping and payment solutions simplifies the fulfilment process for domestic and international orders.
For example, eBay integrates with shipping providers like DHL, FedEx and LexShip, allowing sellers to print labels directly from their eBay account, track shipments and get assistance with customs clearances.
Easy to set up
You can quickly set up your eBay store without needing extensive technical knowledge or resources. eBay provides a streamlined onboarding process with step-by-step guides, making it accessible even for those new to selling.
This ease of setup is particularly advantageous for small businesses, importers and retailers who want to test new markets or products with minimal hassle. With eBay, you can start selling almost immediately.
Who can sell on eBay?
eBay has something for everyone, regardless of size or type of business–Whether you’re an individual looking to clear out some space at home or a small business eager to reach more customers. eBay can be ideal for local retailers, global businesses, artisans with handmade goods, or even dropshippers.
For larger businesses and well-known brands, eBay offers advanced features like branded storefronts and bulk listing tools. You can easily manage large inventories while maintaining your brand’s identity. Importers and exporters can also take advantage of eBay’s global reach and logistical support to explore new markets and streamline their distribution.
How does selling on eBay work?
There are two ways to list products on eBay:
1. Auctions: Sellers set a starting price for their items and potential buyers can place bids. The auction typically runs for a set number of days and at the end of the auction, the highest bidder wins the item. This option is ideal for rare, collectible, or high-demand products, as it creates competition among buyers, potentially driving the price higher than expected.
2. Buy it now: This option allows you to set a fixed price for your item. Buyers can purchase the item immediately without going through the bidding process. This is perfect for businesses that have high inventory and want quicker sales with more control over the final sale price.
- Open 15+ local currency accounts with local account details
- Direct CNH payments to 1688.com
- Pay suppliers, partners and staff in 40+ currencies and 130+ destinations
- Collect secure payments from 100+ marketplaces and payment gateways, including Amazon, AliExpress, Paypal and Shopify
- Lock in currency conversion rates for up to 24 months
Steps to sell on eBay
Here is a step-by-step guide on how to sell on eBay:
1. Product sourcing
The first step in selling on eBay is to decide what products you want to sell. This could be items you already own, wholesale goods, or products sourced from manufacturers. If you’re an importer or retailer, you might already have a supplier network in place.
For those just starting, consider market demand and competition when choosing products. You can also explore eBay dropshipping, where you sell products without holding inventory and the supplier ships directly to the customer.
2. Sign up for a seller account
The next step is to create an eBay account. You’ll see this page when doing that.
Once you are registered, navigate to the ‘My eBay’ section and click on the ‘Sell’ link. This is where your seller account will be set up. You will need to verify your identity and link your bank account. After this is done, you need to set up these seller preferences:
- Shipping options: Define your shipping preferences, including your preferred carriers (like USPS, FedEx, UPS, or Australia Post) and delivery times
- Return policies: Set up your return policies, specifying whether you accept returns, the return period and who pays for return shipping
- Payment preferences: Choose the types of payments you accept, typically including credit cards, PayPal and eBay’s Managed Payments
3. Listing your products
The two most important things in your listing are the photos of your product and product descriptions. Use high-quality photos with good lighting, showing the item from multiple angles, including close-ups of any features or flaws.
In the product description, clearly state the item’s condition (new, used, refurbished) and include specific details like brand, model, size, color and any unique features.
Depending on your sales strategy, you also need to choose whether to list the product as an auction or a Buy It Now option. Before you set a price, consider eBay’s fees and shipping costs. Also include keywords in your title and description to improve search visibility.
4. Shipping your products
Sellers are responsible for shipping products to the customers after a sale is made. eBay allows you to specify shipping options during the listing process, including domestic and international shipping.
If you and the customer are both in Australia, you can use local postal services or courier companies to deliver the item. eBay also offers various postage methods, including standard post, express and local pickup. Sellers can set their postage options using eBay’s quick or advanced listing tools, allowing them to calculate shipping costs, set flat rates, or offer local pickup.
For international sales, like shipping to the US, eBay provides tools to estimate costs and print shipping labels. You can also use eBay’s Global Shipping Program, which simplifies international shipping by sending your item to a local eBay shipping centre, which then handles the international delivery. However, this feature is only available for US sellers.
5. Collecting payments
eBay facilitates payments through its managed payments system, which supports multiple payment methods, including credit/debit cards, PayPal and Afterpay. Sellers, however, get paid only through the bank account they connect to their account.
When both you and the customer are in Australia, the payment is typically processed in Australian Dollars. The funds are transferred to your bank account linked to your eBay account. Payouts can be scheduled monthly, fortnightly, daily or weekly.
For international customers, eBay converts the product pricing into the default currency of the customer’s region. When the buyer pays in a different currency, the payment is converted into the seller’s base currency during payouts.
eBay’s transaction exchange rate includes a base exchange rate plus an additional conversion charge. The exchange rate during the time of sale is considered the final rate for the payouts. The same exchange rate applies to refunds.
You can link your eBay account to a business account or PayPal to collect payments.
An alternative is WorldFirst, which allows online businesses to set up a multi-currency account and accept payments from eBay customers in their local currencies.
You can either hold multi-currency funds in your World Account to make further payments or repatriate them to your bank account when the exchange rate is favourable.
→ Take a look at how to sell internationally on eBay from Australia
6. Managing feedback and customer service
After the sale, encourage buyers to leave feedback, which is crucial for building your reputation on eBay. Respond to any inquiries or issues promptly to ensure a positive customer experience. Good customer service can lead to repeat business and help you maintain a high seller rating.
eBay Australia fees: The costs of selling on eBay
Creating and setting up an account on eBay is free. You can choose between getting a store subscription and selling without a store. Selling on eBay with a store subscription incurs a monthly fee but provides lower final value fees and more free product listings.
Without a store, you pay standard fees, including:
- The insertion fee, also known as the listing fee, is charged when you list a product on eBay. However, this fee only applies if you list more than 250 items per month, making it free for casual sellers who list fewer products
- The final value fee is the percentage of the sale that eBay retains when your item sells. This fee ranges from 3% to 15% depending on the product category, plus an additional 30 cents per order.
If you choose to sell an item through a classified advertisement, you’ll need to pay a higher insertion fee. If you want to enhance your standard eBay listing with upgrades, additional fees will be based on the specific upgrade you select.
Moreover, if you decide to use extra services through eBay, like purchasing shipping labels, you’ll be responsible for paying for such related costs.
Take a look at eBay store fees for Australia (As checked in September 2024):
| Fee Type | Amount (incl. GST) |
|---|---|
| eBay Store Subscription Fees | Basic Store: $27.45 / month |
| Featured Store: $82.45 / month | |
| Anchor Store: $604.95 / month | |
| Insertion Fee | Varies by category (e.g., Services: $21.99, Real Estate: $54.99) |
| Optional Feature Fees | Subtitle: $2.20 |
| Scheduled listing: $0.44 | |
| List in a second category: $0.06 | |
| Buy It Now added to an auction: $0.55 | |
| Final Value Fee (Fixed Order) | $0.33 per order |
| Final Value Fee (Variable) | Varies by category and store package |
| Final Value Fee (NFTs) | 5.5% of the total sale amount |
| Final Value Fee (Services) | $44.00 |
| Dispute Fee | $24.20 per dispute |
| International Sales Fee | 1.1% of total sale amount |
| Seller Currency Conversion Charge (applied and retained by eBay) |
3% (excl. GST) |
What to sell on eBay: Top tips
Here’s are our top tips on selling on eBay:
Focus on high-demand products
The best way to start selling on eBay is by researching what’s currently in high demand. Look for trending items in categories like electronics, fashion, home goods and collectibles. Use eBay’s advanced search tools to see what’s selling quickly and at what price points. Starting with this strategy can increase your chances of making sales and boosting your profits.
Consider seasonality
When deciding what to sell on eBay, think about seasonality. For example, winter clothing and holiday decorations really pick up during the colder months, while outdoor gear and swimwear fly off the shelves in the summer.
You can keep your sales rolling all year by timing your inventory to match these seasonal trends. Picture this: you stock up on cosy winter coats just before the temperatures drop or offer pool accessories as soon as summer hits. This kind of planning can really boost your sales and keep your business thriving no matter the season.
Leverage niche markets
Tapping into niche markets can greatly boost your profits, especially if you find the right audience. You can sell items that cater to specific interests or hobbies, like vintage toys, rare collectibles, or specialised tools. These niche markets often have less competition, giving you a better chance to stand out and attract loyal buyers passionate about what you’re offering.
Offer competitive pricing
Setting competitive prices is key on eBay, where buyers love to compare options before deciding what to buy. To get it right, take some time to research similar listings and figure out the best price point for your products.
But don’t stop there—try to sweeten the deal, like offering discounts, free shipping, or even bundling items together. These little extras can make your listings stand out and attract more buyers. Remember, cost is not the ultimate factor behind purchases; quality of your products is just as important.
Sell what you know
When you understand the ins and outs of the products you’re selling, you can answer buyer questions with confidence, highlight key features and build trust with your customers.
If you’re knowledgeable in a particular area, like electronics, fashion, or antiques, focus on products in that field. Your expertise not only helps you create more detailed and compelling listings, but it also enables you to offer better customer service. This can lead to higher sales and positive feedback, giving you a real advantage over the competition.
Start with low-cost items
If you’re new to selling on eBay, consider starting with low-cost items to get a feel for the platform and build up your seller reputation. This approach allows you to experiment with different product categories and pricing strategies without a significant financial risk.
Take your eBay business global with WorldFirst
WorldFirst’s multi-currency account lets you send, receive and hold funds in multiple currencies. Sellers can collect eBay marketplace payments in 15+ currencies, including USD, AUD, GBP, CNH, SGD and more.
You get local bank account details with sort codes for each currency to receive customer payments without international transfer fees.
Currency conversion is done at competitive exchange rates and no hidden costs are involved.
WorldFirst constantly focuses on helping you save money by avoiding unnecessary costs so you can invest more in your growing international business.
Disclaimer: The information contained is general only and largely our views. Before acting on the information you should consider whether it is appropriate for you, in light of your objectives, financial situation or needs. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions, estimates, mentioned products/services and referenced material constitute the author’s own judgement as of the date of the briefing and are subject to change without notice. WorldFirst shall not be responsible for any losses or damages arising from your reliance of such information.
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