eBay is one of the many marketplaces you can join in order to promote and sell your products. But it comes at a cost as the site itself charges a fee and some merchants may feel exploited. There are even cases of closing seller’s accounts. So, here’s what you should know if you are planning to list your products and register as a seller.
- Fierce competition – yes, the marketplace has an established audience and this will help you avoid some hassle, but have you thought of all the other sellers that have had the same idea? Competition can get quite fierce. There may be multiple listings for the exact same product or a very similar one. Whilst this works in favour of the customer as they can often buy at a discounted price, it does not favour sellers.
- Fraudulent purchases – cases of making purchases with fake PayPal accounts, giving fake reviews, asking for a refund and refusing to return the product etc., have been noted. Ebay does not help sellers in this regard, as they have a strict buyer protection policy. The best way to watch your back is to clearly state all your terms and conditions.
- There are a plethora of reasons why a buyer can cancel a purchase or ask for a refund. This is why all terms and conditions need to be clearly stated before conducting a sale and shipping the product. It may be a good policy to exchange a product rather than refunding the customer.
- eBay fees can be significant ~ up to 15% on some items. Make sure you have enough margins on a product to cover eBay and PayPal fees before you list.
- Other reasons include lower brand visibility, buyers are not your customers, they are eBay’s customers.
You should sell on eBay but you must have your own website as your primary sales channel. Ebay and other marketplaces should be additional avenues, not the main. To read more on the subject, visit The challenges of selling on eBay