Thousands of small businesses across the UK are using online auctions to grow their sales with eBay selling.

The online shopping platform originally rose to popularity as a place for people to sell their unwanted, second-hand items. But as time has gone buy, eBay has been reimagined as an ecommerce haven for sellers of all types and sizes.

Whilst auction-style sales remain at the heart of eBay, the traditional checkout option has become much more common, with 80% of all sales now being a result of the “Buy It Now” button.

Many companies will have their own online store within their website. But with eBay ranking #2 in the online shopping market, with a highly popular mobile app and unrivalled traffic potential for your shop, eBay provides a convenient and trusted platform for new customers to find you.

If you’re interested in moving your business online, or simply expanding your target market, eBay could be the ideal option for you.

So how would you go about setting up your eBay business?

eBay selling – make the big decisions

Of course, the most important decision you will make for your online store is what you’re going to sell. If your small business is already up and running, and trading on other platforms, this part will be easy. If not, make sure you do your research.

eBay is a huge platform, but its easy searching options and highly specific categories mean customers can look for unique products that are hard to find anywhere else. So, the more niche your range of products are, the better.

It is also a great place for selling products you have created yourself, which may also be seen as more trustworthy and professional than other sites like Etsy. Many businesses choose to source wholesalers and sell products on via eBay.

Once you know what it is you’re going to sell, you’ll need to decide how much you’re going to sell it for. Make sure you create an appropriate pricing plan, taking eBay subscription fees, your suppliers, labour, and other costs such as delivery into account.

When you start your store, you’ll need to register as self-employed. That’s because, when it comes to tax, an eBay business is as real as owning a physical store. If you think you may also need to register for VAT, speak to your Burton Beavan account for advice.

Once you have everything sorted, you can start building your eBay store.

eBay selling – customise your online storefront

When you set up your online store on eBay, you’ll be able to display your products in your own shopfront – which you can completely make your own.

All of eBay’s pages are built using HTML. That means if you know how to code, or you want to hire someone else who can, you can create your own website yourself. If you can’t, eBay has free page templates for you to use.

Businesses that are registered with eBay are able to list items for longer periods of time than standard users, and also receive additional discounts too.

To set up your business account, and start trading under your company name through eBay, all you’ll need is a UK address and your bank account details to set up a direct debit.

eBay selling – decide on the best type of shop for you

eBay has three different kinds of shop accounts that you can choose from. Depending on the range of products you plan on offering and how much you are willing to spend on your membership, you’ll need to choose the type of shop that’s right for you.

If you’re new to trading and only have a limited range of products, you may be interested in the Basic Shop. Costing just £25 per month, this account allows you to list up to 250 fixed priced products at any one time. All you’ll need to pay is a 10p charge for each fixed priced product you list, and 15p per auction-style listing.

You’ll also be given your own URL within eBay and a minimum one-month contract. To open this type of store, you will need to be PayPal verified; ideally with a minimum feedback score of ten positive reviews.

If you need to accommodate for even more products, the Featured Shop allows for up to 1,500 fixed price listings. Costing £69.99 per month, this account is a bit more expensive, but you will benefit from a reduced charge for all fixed price products, costing just 5p per listing. Auction-style listings will still cost 15p per item.

The Featured Shop is ideal for SMEs with a wider range of products, or for individual sellers with high volume sales.  In addition to the Basic Shop benefits, you’ll also get free access to eBay’s Selling Manager Pro tools and get free international listings.

You must be registered as a business seller on eBay to open a Featured Shop, and maintain an average score of at least 4.4 for a 12 month average.

eBay’s most inclusive deal is the Anchor Shop. Costing £269.99 per month, this store is ideal for extremely high-volume sellers looking for maximum exposure on eBay. With this type of account, you’ll be given unlimited fixed price listings, which are also completely free. Auction style-listings will always cost 15p.

With the Anchor Shop you will receive increased benefits across the board, as well as dedicated customer care from the eBay team. To open an Anchor Shop, you’ll need to maintain an average score of 4.6 or higher for a 12-month average.

Note: These details are based on eBay’s March 2017 price update and may be subject to change. 

eBay selling – setting up your eBay shop

Once you have decided on the shop type that suites your business, and you meet the minimum criteria for it, you can go about opening your shop.

You’ll need either a PayPal account or minimum feedback review score of five to start, as well as some kind of automatic payment method. This could be a credit or debit card, or a bank account that you can pay your sellers fees through.

When you’re up and running, your customers can add you to their ‘Favourite Shops’ list to see your latest listings.

eBay selling – make your eBay business a successful one

Whether you plan on solely trading through eBay, or if your store will work as a supplement to your main business, you’ll want to ensure you are as successful as possible.

Here are Burton Beavan’s top tips for eBay sellers:

• Don’t just sell one product. Listing a range of related products means you can cross-sell right from the start, giving you an immediate boost in sales.
• A picture is worth a thousand words. Make sure you upload plenty of images for each product. That way, customers know exactly what it is they’re buying and build a trust in your store.
• Deal with negative customer feedback promptly, professionally, and constructively. This will work to both protect your reputation and help you understand where your service may be lacking.
• Track every aspect of your eBay store to see what is and isn’t working. Constantly make changes to keep your site optimized for customer experience.

If you’re thinking of moving your business to eBay, or starting out as a trader, speak to the Burton Beavan team today on 01606 333 900 or email hello@burtonbeavan.co.uk.