Introduction and setting up
Note: Our eBay business feature has been fully updated. This article was first published in August 2012.
Celebrating its twentieth anniversary, eBay has developed into a shopping platform to rival even the mighty Amazon. Today around 11% of all retail purchases are made online according to the ONS (Office of National Statistics), with a peak each year on Cyber Monday.
Around 20 million Britons now use eBay as a retail channel, with thousands of small businesses earning their primary income from eBay alone – there are almost 2,000 eBay millionaires now.
How consumers shop has changed out of all recognition since Pierre Omidyar first set up eBay in 1995. Online retailing has exploded and shows no sign of slowing, as consumers continue to embrace the speed, convenience and savings that online stores can offer them. And with mobile commerce looking set to eclipse e-commerce online, eBay has moved to place its services on every smartphone.
Devin Wenig, eBay Chief Executive Officer, said: "Our new mobile app reflects our commitment to creating great experiences for our buyers and enabling continued success for our sellers. Looking ahead to the next 20 years, our vision is for the world to shop on eBay first because we offer the best choice and most relevance, powered by the simplest and most profitable selling platform."
Buy it now
For businesses the perception that eBay only sells unwanted items that people have stored in their attics has massively changed. The auction site is still at the core of eBay, but items with a 'Buy it now' option make up nearly 80% of all items on the service. The thrill of an auction will continue, but for many consumers, they simply want to find an item they want and buy it.
And the buying option is also what makes eBay such a powerful platform for businesses. With PayPal integrated into eBay, anyone can make a purchase instantly with any payment card they want. This immediacy and integration of one of the world's most popular payment methods ensures eBay has the services businesses need to make their eBay stores attractive to customers.
Business setup
The UK saw eBay open its doors in 1999. The first item sold on eBay.co.uk was a three track CD from German rock outfit The Scorpions. It sold for £2.89. Fast forward to 2015 and eBay's UK marketplace is visited by 18 million Britons each month.
To set up your own eBay store, you have to meet a number of minimum criteria:
You must be PayPal verified (to open a Basic Shop)
You must be registered as a business seller on eBay (to open a Featured Shop)
Maintain an average 4.4 score or above for a 12-month average (to open a Featured Shop)
Maintain an average 4.6 score or above for a 12-month average (to open an Anchor Shop)
There are three types of store you can open on eBay:
Basic Shop
This is the most basic store you can open and offers 200 fixed price listings and a one-month minimum contract. You also get your own URL (for example www.stores.ebay.co.uk/yourshopname) so you can drive buyers directly to your shop.
Featured Shop
1200 fixed price listings. A dedicated customer care team. Selling Manager Pro (normally £4.99/month) allows you to automate, improve, and streamline high-volume sales. Manage listings, sales, inventory, feedback, and customer emails in bulk. Discounted international listing rates.
Anchor Shop
Unlimited fixed price listings at no extra cost. Dedicated customer care team. Discounted international listing rates. Free three month trial of Storefeeder – a great multi-channel listing tool that allows you to perform all of your e-commerce tasks in one place.
What type of store you choose will depend on a number of factors:
Basic Shop (£20.85*/month, insertion fees from £0.10)
Consider a Basic Shop if you list more than 65 fixed price items a month. It's an easy-to-use and affordable solution for sellers who are just starting out.
Featured Shop (£62.60*/month, insertion fees from £0.05)
If you're a higher volume seller with more than 600 items per month, a Featured Shop may be right for you. You'll also get free access to Selling Manager Pro, plus, if you're a resident of the UK or Ireland, you receive discounts on your international listings.
Anchor Shop (£260.86*/month, insertion fees from £0.00)
If you're a higher volume seller with more than 5,000 items per month, who wants the best savings and the lowest package rates on eBay for domestic selling, an Anchor Shop may be right for you. You'll also get free access to Selling Manager Pro, plus, if you're a resident of the UK or Ireland, you'll receive discounts on your international listings.
(*Prices are inclusive of VAT at 20%).
A major component of your eBay shop will be the fees you will be charged – and check these out here. There is also a handy fee illustrator to help you decide which shop type would suit the level of fees you want to pay for your eBay store.
How your store looks on eBay also needs to be considered. You can of course create your own pages if you know how to build websites, as eBay's pages are built using HTML. However, eBay makes the design of your new store easy with a number of free templates to choose from. All you then need to do is load your product images and set your prices.
Integration and eBay checklist
Helping hands
If you already have an online store, many of the leading e-commerce platforms allow you to integrate eBay into your existing store. Consumers desire seamless experiences when they are looking for items to buy.
Being able to offer them eBay stores as well as your own is a great way to gain loyalty. There are a number of e-commerce platforms that can also integrate with eBay including:
Shopify
ekmPowershop
Magento
Actinic
One of the most important aspects of any eBay store is the quality of the images. People that buy on eBay want to see what they are purchasing. The better your images, the more sales you will make – it's as simple as that.
Try and make your images as appealing and attractive as possible, and don't forget to optimise them for the web to ensure they download quickly. Customers want pages that load fast, and won't wait for large images to appear. You can even buy third-party store templates to use for your new eBay business. Leading services include Auctiva and Vendio.
Once your store is live on eBay you can start to promote it. You can use a couple of tools that eBay offers to help you shout about your new business. The first is called the Markdown Manager and it allows you to set a discount of between 5% and 50% that will automatically appear on all items you attach the discount to.
The second service that eBay offers is the email newsletter. Your store can have an option to 'sign up for store newsletter'. The tool allows you to create newsletters that can be used to promote your store to everyone who has expressed an interest in hearing more about your store and business.
Your eBay checklist
Follow this checklist to ensure you set up your eBay store properly and give it the best chance of success.
1. Do your research to see how other businesses in your sector are using eBay. Ask yourself what can you do better?
2. Ensure the design of your store is engaging and professional. Make sure your text is search engine friendly and that each image is attractive and optimised for the web.
3. Look closely at all the costs associated with your business before deciding on the prices you will charge.
4. A good reputation is vital on eBay – some people won't buy from stores with a lower positive comments percentage. Deal with problems quickly and efficiently to protect your reputation.
5. Track every aspect of your store to see what is working and what needs to be changed. Stores that are updated regularly achieve more sales.
6. Use the social media networks including Facebook and Twitter to make personal connections with your existing and potential customers.
Opening a store on eBay is now quick and easy. With a raft of promotional opportunities and a ready and waiting audience for your goods, what are you waiting for?
How to take advantage of mobile retailing
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