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by Mike Vestil 

How To Start an eBay Reselling Business In 3 Easy Steps

Reselling items on the eBay marketplace can be a great way to make extra money. Sellers on eBay can make money by purchasing products in bulk and reselling them on their own eBay stores for a profit. 

Reselling is one of the easiest ways to build an online e-commerce business. People from all walks of life - students, stay-at-home moms, professionals, and even freelancers - can become eBay resellers. All you need is determination and a thorough grasp of the eBay buying and selling process to get started. 

With that said, I’m here to help you navigate the process of getting your eBay reselling business off the ground.

Let’s dive deep into this article.


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Steps To Set Up An eBay Store

Before you can begin reselling on eBay, you need to set up an eBay store. There are a few steps required to get your online eBay business up and running.

Step 1: Setting Up Reseller Accounts

  • Register for an eBay account. To begin, go to eBay's home page and click the "Sell" button in the upper-right corner. Fill in the required fields such as your full name, e-mail address, and postal address so that eBay can verify your identity. You can begin listing and posting items as soon as your account is ready. Listing items on eBay is free, but eBay takes a 10% commission on all sales.
  • Sign up for a PayPal account to receive payments safely. When it comes to accepting money from online purchases, PayPal is an excellent option because of its secure servers and guarantee that no personal information will be leaked. When you register for a PayPal account, you have the option of choosing between a Personal account and a Business account. We suggest you choose a business account. Start by entering your personal information, such as a bank account number, and then verify it. PayPal may levy additional fees on sales, which range from 2 to 5 percent of the money you earn.

Step 2: Finding Items To Resell


Image credits: Sell on eBay

  • To concentrate on the sale of specific products, pick a niche market. Try to sell only products you're familiar with and passionate about if you want to appear more trustworthy as a seller. To give an example, you might decide to focus on selling a specific type of clothing or accessory, such as shoes or electronics. Pick one or two products to begin with so that you aren't swamped with choices.
  • Before you buy something, do some research on its market value. When shopping for products, search for the items you're considering so you know how much they're worth right now. Look up the item on eBay to see what others have recently sold it for to get an idea of its current rate. The value of an item should not be determined solely by its listing price, as users may have over or underestimated its true worth. To see how competitive sellers are, many online and mobile apps allow you to compare multiple prices or listings at once. Look for well-known brands, as these tend to have higher profit margins.
  • Look for resellable items. You can find garage sale postings in your local paper or online, which will help you plan your search. Do some research on local stores in your area where you can find items of good value at a low price. Also, check out local listings on sites like Craigslist or Facebook Marketplace to see what people are offering for sale nearby. This allows you to determine if you’ll be able to profit from reselling them.
  • When old products don't sell or new inventory arrives, many stores put them in the clearance section. Visit the clearance section of your local department and big box stores to check out what's on sale and inquire about it to see what might be profitable to resell.

Step 3: Product Listing & Reselling

  • Look up the list prices of the products you're selling online to see what your competitors are charging. See if similar items have sold on eBay in the past to get an idea of how much you could earn. To gain a competitive advantage, price your products slightly lower than other sellers. Be sure to account for shipping costs when making your calculations, as shipping bulkier or heavier items will cost you more.
  • Create comprehensive product listings in your eBay reseller accounts. Include all relevant information, such as sizes and brand names in the listing's title to make it easier for people to find. Include at least two or three high-quality images in your listing to help increase sales.
  • Help promote your items by marketing your listings on social media platforms such as Instagram and Facebook. Depending on what you're selling, you may be in direct competition with other resellers. Promote your products by including links to them in social media posts. Let people know you're offering great deals and a variety of items for sale so they can browse your profile and find something they're interested in purchasing.
  • As soon as the orders come in, get to work on getting the products to the customers. Make sure all boxes and shipping containers are well-packaged to avoid any damage while in transit. There are two options here: take the item to your local post office so they can weigh it and create a shipping label, or print out your postage at home to save yourself the trip and time. Your customers will appreciate receiving their items faster if you ship the orders out right away.

Image Credit: https://deliverr.com/

How Much Do eBay Resellers Make?

The annual income statistics pertaining to eBay sellers lists are genuinely astounding. 34.3% of eBay sellers make around $10,000 per year, and 3.9% of eBay sellers make more than $1 million per year. About a fifth of sellers have profit margins greater than ten percent. However, more than half of them have much higher margins than 20%, and around 6% of sellers are fortunate enough to have margins of more than 50%.


Image Credits: https://www.webretailer.com/

Is Reselling On eBay Legal?

Yes, it is legal to resell products on eBay. Every product has a market, even if it's a niche one. What you can't do is determined by what you’re reselling. For example, you are not allowed to resell branded products such as the ones owned by Nike or Disney. Large corporations with powerful legal departments are more likely to forbid reselling on large marketplaces like eBay. 

Reselling a product is generally legal. There are usually limitations imposed by the platform rather than a manufacturer. Reselling most brands is usually safe. But you can't make claims like "brand new" or "straight from the manufacturer. "

Can You Sell On eBay Without PayPal?


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Despite the fact that PayPal is eBay's most popular payment method, numerous other choices and alternatives are available to sellers.

Accounts For Merchant Credit Cards

The Merchant Account is the second most popular option after PayPal among buyers and sellers. This account allows you to accept credit card payments! Through eBay checkout, you can create a merchant account, which is basically a bank account. You can use this to accept credit or debit card payments from customers. When a buyer clicks 'Pay Now,' they will be taken to your payment gateway via eBay checkout.

Wire Transfer

This is considered one of the most straightforward ways to pay on eBay. The money will be directly deposited into your bank account by the buyer. eBay also recognizes this to be one of the most secure payment methods.

Cash On Delivery (COD)

If both the seller and the buyer are located in the same country, they can use the Cash on Delivery payment method. The delivery agent will pick up the payment once the product has arrived at the customer's doorstep.

How Do I Avoid eBay Fees?

For any seller, eBay serves as an excellent platform to create awareness for their products. Many amazing selling tools are available with the added assurance of secure transactions between sellers and buyers. However, as wonderful as it may be, we are all aware that it is not free. A little part of the earnings from your business will be drained in the form of eBay fees. But it is possible to turn those eBay fees into higher profits for your company. Here’s how it works:

  • Create your template: When selling on eBay, you can't avoid paying the minimum insertion fee, but other fees can come as a surprise. When it comes to fees, eBay's Template and Scheduling fees are the two most easily avoidable ones. Using listing templates on eBay will cost you 10 cents each time. Even the seemingly insignificant charges add up over time. Create your template, and then use it to schedule your listings automatically. eBay's Template and schedule options may save you a few minutes now and then, but they'll cost you more in the long run.
  • Make the fee structure work in your favor: Rather than being a burden, eBay store fees can be a benefit. Try to find a credit card with an excellent rewards program, such as a cashback or a travel reward. While you pay, you'll always be saving money in some way — and sometimes even earning money.
  • Set up an eBay storefront: Take the leap! Go for it if you have the inventory to support it. You won't have to pay listing fees if you open an entire store. eBay charges a flat monthly fee, allowing you to list as many items as you want while saving you hundreds of dollars every year. This is also an excellent tool for promoting your business, as it allows you to link your other listings together. 
  • Take advantage of no insertion costs: A monthly fee is associated with each eBay store subscription. The cheapest option may tempt you, but depending on how many items you sell, it could end up costing you more money in the long run. A starter seller listing 250 articles per month will pay $4.95 in subscription fees and $52.50 in listing fees. But a basic seller pays $21.95 per month and lists 250 items with no listing fees. Choose the subscription model that is best suited to the number of listings you will be inserting per month to reduce your insertion fees. 
  • Reduce final value fees: Every eBay subscription, from Basic to Enterprise, has zero insertion fees and lower final value fees ranging from 4% to 9.15%. It's possible to eliminate the final value fee on shipping altogether by offering eBay Fast N' Free shipping to your customers.
  • Be a top-rated seller: There is a 10% discount on your final value fees if you are a top-rated eBay seller. You must meet the following criteria in order to be a successful eBay seller:
  • Have an eBay account that has been active for 90 days or more
  • Have transacted at least 100 times and sold $1,000 worth of goods to US customers in the last year
  • Adhere to eBay's policies on selling practices, transaction defect rates, unresolved cases, and late delivery rates
  • Simplify the listing: When it comes to the various listing upgrade options, it's easy to get carried away and wind up with a massive bill in the end. Monitoring and calculating the return on investment is vital when making listing upgrade selections. Do not upgrade if you are not making more than six times the profit from bold listings compared to regular listings in your market.
  • Recover the fees from unpaid buyers: Whether or not a buyer pays for their item within the specified timeframe, you will be charged the final value fee. To get your money back, either agree to cancel the transaction with the buyer or report the item as unpaid on eBay before you pay the fee. In addition, you may be eligible for an insertion fee credit if you relist the item within 90 days of the original listing expiration and keep the starting price equal to or lower than the initial listing.
  • Eliminate additional charges: If you'd like to make more money selling on eBay, you can cut costs elsewhere. The following are places where you can cut charges to increase your profit margins:
  • eBay Fulfillment
  • eBay Advertising
  • eBay Product Sourcing
  • Sourcing goods from eBay
  • eBay Listing & Tools

You will pay a fee to sell on eBay, but that doesn't mean you can't turn a profit. You can make eBay your most profitable sales channel by understanding eBay seller fees and how you can reduce them.


Image Credit: eBay subscription fees

Why Is eBay So Expensive To Sell?

eBay has become one of the most expensive sites to sell on and here are the reasons why:

  • Final Value Fees: eBay retains a percentage of the sale proceeds. Most categories have a 12.55%final value fee or less, plus an additional $0.30 per order. This fee is based on a percentage of the total sale price, which includes shipping and handling but does not include sales tax. 
  • Insertion Fees: For every listing on eBay, regardless of whether or not it generates a sale, you'll be charged an insertion fee, also known as a "listing fee." There is an insertion fee based on the category in which the item is listed. In addition, most categories charge $0.35 per listing as a standard insertion fee.
  • Listing Upgrading Fees: Upgrading fees are entirely your choice. It is possible that upgrading your listing to "buy it now" status, adding a bold title, or including more images will raise your expenses.
  • eBay PayPal Fees: PayPal is the preferred payment method for the majority of eBay sellers. When you use PayPal, you'll be charged a flat fee as well as a percentage of the transaction value. Consider including your eBay fees when pricing your products.

Best Tips For eBay Resellers

Listed below are a few tips and pointers for making money by reselling items on eBay.

Understand The Limitations

eBay restricts the number of items a seller can sell at any given time. Sellers can be prohibited from listing certain things, or the number of items that can be sold might be restricted. These limitations have been put in place to ensure that new sellers can do business while providing buyers with excellent customer service. eBay can increase limits if you have a proven track record of sales and good metrics. You can sell more by selling better. The limitations frequently spark the debate and comparisons of Etsy VS eBay and which one is better for both sellers and resellers.

Have A Strategy For Pricing

Selling an item on eBay is all about knowing how much it's worth and how to price it for maximum profit. New eBay sellers frequently make the blunder of selling something with a retail price tag. The idea is to offer discounts and at the same time price your product slightly lower than that of your competitors. Once you have fulfilled multiple orders successfully and have stacked up a good number of reviews, you can increase your prices as people would now see you as a high-quality seller and not move away from you because of your comparatively high price

Stock Up On The Right Items

Selling items on eBay does not require a significant outlay of cash. Some of the things needed to sell can be found right in your own home. You'll need white poster boards, scales (used to weigh items for shipping), and other things to display your products and deliver them seamlessly to the customer.

Choose A List Type

There are no restrictions on how much buyers may bid on an item during the auction period. The highest bidder is declared the winner on the set date. You can also create a list of predetermined prices. eBay allows you to list items in one of two ways: through an auction or with a fixed price. An auction price gives you a deadline, and the final purchase price may be higher than you anticipated. On the other hand, a fixed price does not ensure a sale date, but if that date comes, you will receive the sale amount from the buyer.

Put Together An Appealing And Professional Product Catalog

To be unbeatable in the marketplace, your product must be superior. eBay searches have an SEO component, so make sure your list is a good source of relevant keywords if you want to appear in the search results for a potential buyer. Buyers are more likely to notice a detailed product description. The seller should make sure that this description is as complete and precise as possible.

Boost Your Feedback Rating

A feedback rating is assigned to each eBay item. Buyers and sellers can provide feedback to one another after each transaction, including a rating and even a few remarks. Buyers can rate sellers in greater detail in addition to providing feedback. The better feedback you receive as a seller, the more credible you become in the community.

Learn The Fundamentals Of Shipping And Packaging

Packaging and shipping are also critical skills for sellers. Make sure you have adequate supplies and that the products are adequately packaged. If the product gets damaged during shipping, please notify the buyer to make the necessary changes to their order information.

Provide A Policy For Refunded Purchases

eBay wants its customers to feel confident about making purchases from their website. It's a common misconception amongst online shoppers that all sellers on eBay must adhere to the same return policy. The purchaser is entitled to a refund if the item is not as described, is misplaced in the mail, or is damaged in transit. If you have a 30-day or longer return policy, eBay will notice and reward you by boosting your listing on the search results.

Ensure Top-Notch Customer Care

Last but not least, offer dependable customer support. Here, sellers must be courteous and respectful of their customers; they must also be flexible in their dealings. While the demands of some customers may be absurd, make an effort to meet their needs and provide them with the purchasing experience they desire. Knowing the basics of reselling can always come in handy.

How To Start eBay Reselling Business - FAQ

What is eBay reselling?

Resellers on eBay are people who buy items from various places and then resell the items on eBay for a profit. Even though anyone can make extra money by selling old junk, eBay resellers go out of their way to buy things they intend to resell.

Is reselling on eBay a successful business option?

Businesses that resell items on eBay can be located in a physical location or be operated entirely online. Online reselling has become more profitable due to the COVID-19 pandemic and the resulting shift to online businesses. The following are some of the top reasons to resell products online:

  • It's a lucrative business opportunity for anyone who wants to sell online but lacks the resources and expertise to manufacture their products.
  • It's possible to have many different products listed. When it comes to resellers, there aren't any hard and fast rules. You can sell a wide range of products, some of which are related to each other, while others are not. All resellers need to do is make sure their products meet customer demand.
  • It's simple to set up an eBay reselling platform where you'll be able to list your available goods and start doing business as usual.
  • There aren't any costs associated with keeping inventory in hand. You don't have to spend anything on warehousing, compliance, or bulk purchases.
  • Resellers can work from home. The primary thing you need to start an eBay reselling business is a reliable internet connection.

What is a Shipping Policy?

You must first create a shipping policy before you can create a listing.

There are tariffs associated with shipping a specific item or group of things, and these tariffs are known as a shipping policy. Return policies and other details can be found in the shipping profile.

To create a shipping policy, go to the Shipping tab and click the Create Policy button on the right side of the page to create your Shipping Policy. The next step is to fill out the Shipping Policy template, giving it a name and selecting one or more tariffs from the drop-down menu. You can color-code each Shipping Policy for ease of use.

Using your Shipping Policy template, you can see for yourself if the type of shipping you require is available for various regional locations. If the requested shipping method is not available due to regional site policies, an explanation will be provided beneath the icon. There's also an exclusion list for shipping that you can check there. Once you've completed the form and verified the shipping information, click the Save button to finish.

What is eBaymag?

eBaymag is a program that streamlines the process of listing items on international eBay sites and helps keep track of sales. It's a system for managing orders and optimizing logistics.

It gives you the ability to:

  • Sell items all over the world by listing them on eight different eBay international sites at once.
  • Get timely assistance in your native language from customer service
  • Import the items as an Excel table and list them all at once
  • Keep all eBay sites up to date with current inventory levels
  • Select the most appropriate item categories for listings
  • Adopt international eBay sites' listings automatically
  • Place your orders and take advantage of the most cost-effective shipping options

Is there a fee for using eBaymag?

There is no cost to using eBaymag. However, eBay will charge listing fees when you sell an item, like an insertion fee, in case you have exceeded your monthly zero insertion fee listing allotment. It varies from country to country, as do the eBay fees and the number of zero insertion fee listings you can have in a given month.

eBaymag service guards you against unintentionally accumulating excessive fees. Suppose you've used up all of your free listings for the month. In that case, eBay will only charge you for the first listing over the allotment, and eBaymag will automatically stop any additional listings and notify you that the quota has been reached.


A platform like eBay is a goldmine for people who want to get into eCommerce (both selling and reselling). Also, getting started in the reselling industry comes with its learning curve, and you'll undoubtedly pick up new skills along the way. Research, hard effort, and patience are all required to reap the best out of eBay.

However, if you follow the advice provided above, you'll well be on your way to making reselling on this eCommerce platform a reliable source of revenue for yourself. Once set up, this source of income will last for many years to come, so the initial hard work will pay off.

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About the author 

Mike Vestil

Mike Vestil is an author, investor, and speaker known for building a business from zero to $1.5 million in 12 months while traveling the world.

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