Running a Retail Business on eBay

Running an online retail business is, in many ways, like any other type of eBay business. The big difference is that you're selling pretty much the same items day in and day out, just as a traditional retailer does. This means running dozens (if not hundreds) of identical auctions, which should lead to very efficient operations.

Ordering and Stocking the Product

As with any business, you have to decide which products you want to offer for sale. You can choose a very narrow product mix or offer a wider assortment. You can also vary your mix over time.

Unless your supplier offers drop shipping services, you'll have to order your merchandise before you start selling. While some suppliers let you buy exactly what you need (including onesies and twosies), many have a minimum order requirement (and sometimes a minimum opening order requirement) that forces you to buy in larger quantities. Plan accordingly.

And while you're planning, you better start planning your warehousing. If you have to buy in large quantities, you have to put those large quantities someplace. If you have to rent warehouse space, factor this into your costs ahead of time.

Note

Learn more about eBay Stores in Chapter 27, "Opening an eBay Store."

Also, you need to find out how you're expected to pay the supplier. Some suppliers let you establish a line of credit, which means you can order merchandise and not have to pay for it for 10 or 20 or 30 days. Other suppliers demand payment up front, others will ship C.O.D. Find out what's required, and plan your finances accordingly.

Managing the Auction Process

The nice thing about retailing a consistent assortment of merchandise is that you're running the same auction listings over and over. Shoot one photograph and use it in hundreds of listings; write one description and use it over and over. (In fact, you may be able to use official manufacturer artwork in your listings, which could save you the trouble of shooting your own product photos.)

Since you have a steady product assortment, this is an ideal time to open your own eBay Store. In this instance, your eBay Store functions just like a traditional storefront, letting you sell your merchandise 24/7, regardless of which and how many auction listings you have running. You may even want to launch a non-eBay merchant website, to supplement your eBay-related sales. It all depends on how big you want to grow.

Packing and Shipping

Selling a lot of the same items also has advantages when it comes to packing and shipping. Since you know you'll be shipping a lot of the same thing, you can order large quantities of boxes and packing supplies and save by buying in bulk. You also should be able to set up a very efficient packing operation, since you'll get lots of experience packing the items you sell.