Tips for Buying a Phone on eBay
What You Need to Know Before Buying a Cell Phone on eBay
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By Aron Hsiao
Updated August 06, 2016
Mobile phones have become centerpieces of modern life, but buying a mobile phone is often still a strange and stilted process.
Retail stores want you to sign a year-long or even multi-year contract. You can’t take your phone with you if you move from one carrier to another. You only get to replace your phone at certain times unless you’re willing to pay full retail price. When you replace your phone, your carrier may or may not be offering the phone that you really want.
Used or refurbished phones at retail stores are few and far between, meaning that you always pay a premium.
Benefits of Buying a Phone on eBay
eBay has become a solution to many of these problems, and the benefits of buying a phone on eBay have become clear:
Phones of every make and model are sold on eBay, from the very common to the very rare.
Many of the phones on eBay are unlocked, meaning that in theory you can take them from carrier to carrier.
Used phones are in abundance, so you can avoid emptying your pocketbook for the latest-and-greatest if last year’s model suits you fine.
You can buy a phone without a contract on eBay, then take it to a pay-as-you-go carrier and save money and the need for a contract.
But buying a phone on eBay can also be a minefield. In the retail stores, the products offered are guaranteed to be safe, functional, clearly documented, and compatible with your carrier.
On eBay, all of this is up to you.
How to Buy a Phone on eBay the Smart Way
Here are the points to keep in mind as you shop eBay for your next mobile phone, aside from the usual considerations like the feedback of the seller, shipping and return policies, and so on.
Note whether the phone requires a contract. On eBay, you’ll find some phones that require you to sign a contract in order to buy them and many more that include just the phone. Know which one you’re after—if you have an existing contract or provider, you likely don’t want another contract, so avoid phones that are listed as requiring that you sign one. Instead, you want just a phone—one that you can take to your existing carrier and have activated for you.
Look for phones compatible with your carrier. Among the four major American carriers (AT&T, T-Mobile, Sprint, and Verizon), only AT&T and T-Mobile phones are potentially compatible across networks—and even then, there are limits. For the most part, the phone that you buy must match the network that you use. In eBay terms, this means to search for the phone that you want and the network that you use (“iPhone 4 Verizon”) rather than just the phone itself.
Buy unlocked if you want international or cross-carrier support. If you use a GSM-based service (your carrier requires a SIM card), consider searching for an “unlocked” phone, which will allow you to consider more phones (AT&T and T-Mobile phones can work across networks if they are unlocked) and may make it easier for you to travel internationally (by using inexpensive local SIM cards wherever you go). Beware, however, that AT&T and T-Mobile operate on different frequencies in the U.S. Using a GSM device on a competitor’s network often involves some limits—notably on data transfer speed. For international travel, look for a “world phone” or an AT&T phone, since the T-Mobile U.S. frequencies are less common abroad.
Be careful about SIM cards. If you use a SIM-based carrier, be sure that the SIM card required by the phone you’re considering matches the SIM card you already have. There are several SIM sizes these days (the classic “mini SIM” and the newer “micro SIM” being the most common), and they are physically different. When eBay listings don’t spell this out for you, use Google to find out which kind of SIM your would-be new phone requires. If in doubt, ask your carrier whether a new SIM can be issued if necessary, or visit a local mobile phone shop to have them identify the SIM you already have (and to ask whether they can trim it or adapt it to fit your new phone).
Read descriptions carefully. Very many of the used phones sold on eBay have defects of some kind—a cracked screen, a broken button, a serious scratch, and so on. Read phone descriptions very carefully to be sure that the phone meets your needs and doesn’t leave you bearing the burden of unmet expectations. If a description states that a phone needs repair, trust the description, it does. It is being sold for parts and is intended for someone who repairs and resells phones—not for end users.
Avoid phones with “bad” or “blocked” IMEI or ESN numbers. These phones are often in good condition and perfectly functional; their “only” problem is that they have a “bad” or “blocked” network identification number. This means that the phone in question was stolen or has been blocked for some other serious reason by carriers; you will never be able to get your carrier to allow this phone on their network. For all intents and purposes, for regular users, this is a phone that is for parts and cannot be repaired. There’s a reason these sell so very cheaply.
Be wary of “enhancements” to phones. If you’re shopping in the smartphone space and are tempted by “jail broken” or “rooted” phones or phones with “custom” firmware, realize that these modifications—usually made by the phone’s owner—may enhance some features of the phone, but also ensure that no customer service agent (including those of the manufacturer) will ever touch you or your phone with a ten-foot pole in response to questions or other needs. Realize that these kinds of enhancements also often contribute to instability in other areas of phone use or functionality, and that sometimes these cannot be reversed.
Check included accessories. Read carefully to see whether or not the phone in question includes a charger, battery (if applicable), case and/or screen protector, and whether or not these are in good condition. If they are not included or are not in good condition, remember to include in your cost calculations the prices of these necessary items—and also take into consideration the effort involved in getting them. Depending on where you live, it may not be easy to find such items for the phone you’re considering in local retail stores, which tend to carry accessories only for the latest and greatest models, and then only at very high prices. Consider searching eBay instead if you need them.
Test early and carefully. Once you’ve made a phone purchase and your new phone has arrived, charge it immediately and attempt to connect to your network. When it comes to phones, the proof of the pudding is in whether or not it can be used—and used well—on your network and where you live. If there are any indications that this will not be the case, pack up the phone and return it if you’re able. Don’t make the mistake of dragging your feet for two weeks because of the hassle involved, only to find—when you finally do talk to your carrier—that it can’t be used.
As a last resort, sell it again on eBay. If you find an issue and at the same time find that you can’t return the phone for whatever reason (whether this is because of seller return policies, damage you have done, ultimate incompatibility with your network, or some other issue), file a dispute and seek remedy through buyer protection and/or a credit card dispute. But remember, too, that you can always sell it again on eBay, often for a good percentage of what you paid for it. Just remember to include anything new you’ve learned about the phone in your item description so that you’re not facing a frustrated buyer at the end.
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Find out what sellers mean when they say, “refurbished”
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By Aron Hsiao
Updated August 06, 2016
With its array of sellers peddling refurbished goods, eBay is one of the all-time great resources for deal-hunting shoppers. eBay is flush with products that have been gently used, but not “used up.”
Why Frugal Shoppers Enjoy eBay
Gadget, phone, consumer electronics shoppers, and upgraders aren’t the only shoppers that use eBay to save money. Just about any frugal person who’s willing to buy used or refurbished in order to save cash has probably considered buying, or actually bought, their desired item on eBay at one time or another.
Most of the time, eBay purchases of the used or refurbished variety go very smoothly, provided that shoppers check seller feedback, don’t have unrealistic expectations and are aware of the ins and outs of shopping for particular kinds of goods.
Every now and then, however, things can go awry—particularly frustrating when the item in question is being sold as refurbished. In fact, there’s a broad swath of product quality territory covered by the word “refurbished” and this ambiguity can lead to some unexpected problems.
Here are some of the things you should know and do when shopping for refurbished goods on eBay.
What to Watch Out For
Though shoppers often imagine that refurbished means “a step above used” or even “almost new,” there are some potential pitfalls surrounding refurbished goods—particularly in electronics or mechanical items—to be aware of:
“Refurbished” might simply be another word for “used.” Some sellers engage in the shady practice of selling any used item that works as “refurbished.”
“Refurbished” might mean seller- or third-party repaired. Not all refurbished goods on eBay have been “refurbished” by the original manufacturer. In some cases, refurbished goods may have been refurbished by a third-party specialist; in some cases, refurbished goods have been repaired by the seller themselves.
“Refurbished” doesn’t mean “as new.” While in some cases refurbished goods can be restored to and shipped in new-item condition, along with new packaging and all accessories, in many cases, refurbished goods do not include original packaging and/or accessories.
“Refurbished” can mean “unrepairable in the future.” In cases in which a seller or third-party refurbisher has refurbished goods, non-OEM parts or non-factory techniques can mean that the item or product can’t be serviced by others down the road. This may simply be because the manufacturer will refuse to work on items refurbished by other companies, or it can be because the item has been altered in ways that make it more difficult to repair.
“Refurbished” might mean “gray market.” In some cases, sellers of refurbished items are actually selling international versions of products that were also released in the U.S. Though consumers often aren’t aware of the fact, many kinds of goods (digital cameras, multimedia and entertainment equipment, phones and computers, some kinds of tools, etc.) are produced differently for different countries’ populations, to conform to local regulations.
In some cases, refurbished goods on eBay are international version items that have been shipped in from overseas markets that may or may not be compatible with your home and the goods in it. They also may or may not be serviceable in your country.
What to Ask Before Buying
For these reasons, if you’re considering buying a refurbished item on eBay—particularly if it’s an expensive one—you should ask a few questions before you place your bid.
Has the item been restored to factory-new specifications/condition? This question helps you to understand more about the condition of the item you’re about to buy and whether it really has been “refurbished” or is closer to “used but functional and cleaned up.”
Who refurbished the item? Be willing to pay more for items that have been refurbished by the manufacturer, less for items that have been refurbished by a third party refurbishment specialist and the least for items that have been refurbished by the seller themselves, unless the seller is precisely such a specialist.
Is this item covered by a warranty? What kind and for how long? Note here that a warranty is not the same thing as a return policy. Find out whether anyone is guaranteeing the product’s condition and functionality, and if so who and for how long. Place a premium on manufacturer warranties here, even if they’re comparatively short.
Third-party warranties from “warranty companies” can be suspect and “seller” warranties that simply amount to verbal promises shouldn’t add much, if anything, to your bid.
Is this item fully serviceable by any repair center in my country? This question helps you to understand whether the item may have been altered in some way by the refurbishment process. If the answer is that only the seller or their authorized shop will be able to repair the item in the future, steer clear.
Is this item fully compatible with accessories, software, etc.? The answer depends on the kind of item in question. Your goal, however, is to ensure that the version of the item you’re getting will work with common accessories available in your country and that it can accept the software, firmware updates, phone carrier and more.
Is the serial number still valid/do all serial numbers match? This question helps you to avoid “Frankenstein” items that are actually repairs in which many broken items have been combined into a single working one. While there’s nothing wrong with buying an item like this per se—if it works, it works, after all—such items are better described as “repaired” than as “refurbished.”
Many authorized service centers and manufacturers will refuse to work on items that are actually a combination of parts that have been assembled piecemeal from multiple devices.
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By Aron Hsiao
Updated May 05, 2016
Too many new eBay sellers begin with tremendous optimism but end up burned out, frustrated, or financially worse off than when they began. Many of these sellers try to lay the blame at eBay’s feet or at buyers’ feet (yes, they often blame “unreasonable” customers) when in fact a little common sense and some awareness of common mistakes could have helped them to get off on the right foot.
Here are some of the most common eBay mistakes made by new sellers and the best ways to avoid making them.
1. Not Treating Their eBay Selling Like a Business
New eBay sellers often imagine that eBay is a chance to “start slow and grow,” by which they secretly mean to avoid thinking of their selling as a business until they are making good money with it. This kind of thinking puts the cart before the horse. In order to make good money on eBay, you will need to think of eBay as a business from the start and behave that way—you will have to set yourself up as a money-making enterprise, using all of the other money-making enterprises on the planet as a model. Period.
Avoid this mistake by carefully selecting a business model and outfitting an office, taking accounting and bookkeeping seriously, working hard on sourcing and market awareness, and avoiding the pitfalls associated with starting a business without taking it seriously enough to succeed.
2. Trying to “Get Rich Quick” with Drop-Shipping
If getting rich were as easy as buying a subscription to a Google-promoted “drop shipper” and then letting the drop shipper and eBay “do the rest” in a business that “runs itself,” everyone in the world would be rich.
The truth is that there are so many sellers on eBay trying to use the same handful of drop shippers to sell the same goods in a very crowded marketplace that it can be very difficult to survive this way, much less grow or make a good profit.
Avoid this mistake by carefully studying drop-shipping options if you’re inclined to think along those lines, but only after also understanding and consciously choosing an eBay business model that will work for you and the many sourcing options that are likely available to you if you can think locally and creatively.
3. Not Keeping a Clear Picture of eBay Fees Owed
Small sellers in particular can struggle with what is, ultimately, the drudgery of calculating and recording fees that eBay charges, both for listing items and as a cut of items that have already sold. The same goes for PayPal fees, which are charged in addition to eBay fees. Too many sellers start out by putting in lots of hours and earning lots of sales only to feel as though they aren’t making much money. They may even find that their net sales amounts aren’t covering their actual costs—something that can drive a seller out of business very, very quickly.
Avoid this mistake by using fee calculators and basic accounting techniques to keep careful tabs on and control your eBay fees, so that you know whether all that selling you’re doing is actually contributing to your bottom line or hurting it.
4. Setting Starting Bid or Fixed Prices Too High and/or Setting a Reserve Price
If your item and item listing are in good shape, your item will sell for something approximating market value—unless you kill interest with a high starting bid price, a high fixed price, or a reserve price.
On eBay, reserve-free auction items that start at $1.00 earn more bids and finish at higher prices than identical auctions with “stop loss” starting bids or reserve prices. Too many sellers are so unwilling to trust the market that they set either a bid/sale price that’s far too high or a bid-killing reserve price, in all cases ultimately leaving money on the table that they otherwise would have earned. New sellers of used items also tend to overestimate the values of their goods. Too many new sellers of used items include the language “Cost $N.NN when new several years ago, our loss is your gain!” in their listings. Truth is, a used item is worth a fraction of what the new item was worth, no matter how high its original value.
Avoid this mistake by starting auctions at well below fair market value (ideally at $1.00), without reserve prices, and trying not to think of eBay selling as a way to recoup the “original value” or local retail value of an item.
5. Skimping on Item Descriptions
Most of what’s sold on eBay are standard consumer goods. eBay offers a catalog system that has the specifications and a stock photo for most of these, and asks for an item condition (variations on new, refurbished, used, or not working). As a result, many new eBay sellers assume that there’s no reason to supply “their own” description when listing an item for sale. Nothing could be farther from the truth! eBay buyers are a picky bunch and generally want to see your description of the item. Why are you selling it? Even if new, what is the condition of the packaging? Are all the accessories included? Is this a resale after a private purchase, or are you a liquidator? Is it still under warranty? Scratches? Dents? Dings? Items without good descriptions sell for measurably less on eBay auctions than items with good descriptions.
Avoid this mistake by crafting an item description that is unique to you and to the item(s) that you are selling, and that looks and reads like the kind of item description that eBay buyers have come to expect and understand.
6. Skimping on Item Photos
Listings without photos or with only eBay-supplied stock photos also tend to seriously underperform relative to listings with photos that you took of the actual item(s) you’re selling, particularly in auction format listings. eBay shoppers tend to want to see (a) that you actually have the item in question, and are not a reseller or drop-shipper without any stock of your own, (b) that you are a conscientious enough seller to be willing to spend a little time marketing your goods yourself, and (c) what the item’s condition actually seems to be—when it is seen with their own eyes.
Avoid this mistake by taking multiple good-quality photos of any item(s) that you sell on eBay and including these in each of your eBay listings.
7. Charging Too Much for Shipping
It can be tempting to try to increase shipping costs slightly in order to make an item’s sale price appear lower, but this strategy only serves to hurt you in the long run. For one thing, price-conscious consumers that sort their search results by price will see items sorted according to their total cost (including shipping), so “making up the difference” in shipping actually tends to lead to decreased sales.
More importantly, though, eBay shoppers increasingly seek out and are willing to pay more for “free shipping” listings, and eBay’s best match system tends to promote listings that offer it to higher search result placement. Perhaps most importantly of all, eBay shoppers these days are notoriously touchy about shipping costs and may quickly ding you with a one, two, or three-star detailed seller rating for shipping costs. A few of these and you can kiss your eBay business goodbye.
Avoid this mistake by selecting a carrier, packaging and weighing your goods, and charging for the actual shipping you’ll owe the shipper in order to have the item delivered—or doing what many other sellers are doing and simply offering free shipping, even if the item’s price has to be adjusted accordingly.
8. Having Friends and Family Bid on Auctions or Using Another Account to Do So
Many novice sellers mistakenly assume that it’s a smart strategy to have friends, family, or even a second account bidding on their auctions in order to raise auction closing prices and “ensure” a fairly priced sale. In fact, all of these kinds of activities are classified as shill bidding, and shill bidding is the kind of offense that gets you banned from eBay for life.
Avoid this mistake by listing items with a high starting price or reserve price if you’re really worried about not getting enough for a sale.
9. Being Unresponsive to Customer Complaints and/or Not Allowing Returns
If your goal is to sell as much or more on eBay as you are selling right now, failing to address customer concerns in a prompt, positive, professional manner is a bad idea. eBay’s feedback and detailed seller ratings systems guarantee that each new shopper that considers buying from you will have some idea about how you have treated past buyers, and you’ll find that shoppers will tend to quickly evaluate your feedback to decide whether or not you’re the person they want to do business with. More to the point, eBay also watches the number of disputes that have been filed against you and the number of complaints that they’ve received about you that they end up having to fix with their buyers.
Avoid this mistake by always answering customer email and phone calls in a cheerful, timely manner even if the customer is upset, and offering the opportunity to return items to customers when they are truly dissatisfied with a purchase they have made from you.
10. Not Using All Available Tools to Grow and Prosper
Too many new and eager sellers plod along with the “base” eBay, wasting their time and selling inefficiently and using guesswork, even as their competitors list more items and make more sales in less time and with better final margins and sell-through rates. It is nuts for you to allow this to happen to your business, particularly when so many free and inexpensive tools are available to you.
Avoid this mistake by evaluating and using a combination of Selling Manager, Listing Analytics, Sales Reports, Terapeak or one of its competitors, eBay Stores, Turbo Lister, and other time- and money-saving tools and services.
The Bottom Line
These aren’t all the mistakes that new sellers tend to make, but these are many of the most common. All of them are easy to avoid, particularly once you understand the impact that they can have on your business and its viability in the long run.
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