Starting up and running an eBay business - #3 Top 10 Selling Tips

Continuing our eBay UK series, here are some key things to bear in mind if you want to successfully sell on ebay.

1. Groundwork - Before you even start, you need to research your market. If you have a product in mind, do you have a lot of competition, can you make a profit by selling on eBay?

2. Committment - Although selling on ebay may sound easy, if you want to set-up a real business selling, you will need a lot of committment, just as you would in any other business area.

3. Presentation - Marketing your products is as important as any other tip on this page. Your listings pages are like parts of a shop window. Take time creating clear and uncluttered listings templates, make your listings as professional looking as possible and you could gain competitive edge over other sellers in your field.

4. Growing your eBay business - Organic growth is best. Rather than spending a fortune on products and storage, why not test the water. See how the selling process works in practice, which items are the most popular and then grow the business at a reasonable pace.

5. Reputation - ebay has a feedback system which rates sellers according to the amount of positive feedback they receive. People are unlikely to buy of sellers with a low percentage of good feedback. Over time, the number of feedback points your get will increase.

6. Communication - Despite being Internet based, you will regularly interact with buyers via email. Asking questions, confirming postage costs, etc. Make sure you answer all your buyers' questions in a timely and professional manner - you may well be selling to them again if you get it right the first time.

7. Packaging - When sending goods out to customers, ensure they are well packaged. Receiving a securely wrapped parcel will impress customers and ensure you receive glowing feedback points. For higher value items, we recommend you use recorded or registered post. It is also worth sending a copy of the bid receipt with the package.

8. Payment - Paypal is the recommended method of payment on ebay - transactions are instant and linked to the buyer/seller's bank accounts securely. Disputed transactions are easy to clear up. However, to reach as wider audience as possible, you'd be wise to accept all types of payment. If you do opt to accept personal cheques, make sure the payment has cleared before sending out the item.

9. Keywords & Description - Take time to input accurate keywords relating to your product and make your title line as succinct as possible. Buyers will often make a decision at the search stage, i.e. if the title is clear and not full of sales nonsense, they are more likely to click on the link.

10. Tax Liabilities - You do need to keep a record of your costs and profits for tax purposes. The Inland Revenue is more than aware of the money made on ebay UK and you must declare your profits (minus costs) on your tax return each year as any small business would do.