Chances are you’re just starting out on your online auction adventures learning how to buy and sell and take advantage of everything eBay has to offer. As you gain more experience, however, you may decide that you’re pretty good at the whole thing, and start to wonder what it might take to ramp up your eBay activities. You might even dream about one day making your living from selling goods online.
For tens of thousands of eBay users, making a living from online auctions isn’t a dreamit’s reality. It’s definitely possible to sell enough items to generate a livable income from eBay auctions. It takes a lot of hard work and it’s as complex as running any other business; but it can be done.
One of the steps to running your own eBay business although not a requirement, by any means is to become an eBay PowerSeller. eBay’s 100,000-plus PowerSellers generate enough business to warrant special attention from eBay, in the form of dedicated customer support, premier tools, and the occasional special offer. Plus they get to display that cool PowerSeller logo in all their auction listings.
To become a PowerSeller, you must meet the following qualifications:
The most important point is the first, because it’s the most quantifiable. There are five levels in the PowerSeller program; qualification for each level is based on average gross monthly sales, calculated over the past three months of selling activity.
Note: To keep your PowerSeller status, you have to maintain this sales rate. If your sales drop below these levels, eBay will give you 30 days to bring your account back into compliance; if you don’t, your membership in the program will be revoked. (You’re free to re-qualify at a later date, however.)
That’s right, there are some eBay sellers who average $150,000 or more a month. That’s almost two million dollars a year in revenues from eBay auctions no slight accomplishment!
Membership in eBay’s PowerSellers program is free. However, you can’t apply; PowerSeller status is by invitation only. Each month eBay sends out invitations to sellers who meet the PowerSeller criteria. You become a member by (1) meeting the criteria; (2) receiving an invitation; and (3) responding positively to the invitation.
The biggest difficulty in selling to non-U.S. buyers is shipping the item. Not only are longer distances involved (which necessitates more secure packagingand longer shipping times), but you also have to deal with different shipping options and all sorts of new paperwork.
Chances are your normal method of shipping won’t work for your international shipments. For example, you can’t use Priority Mail to ship outside the United Statesnot even to Canada or Mexico. This means you’ll need to evaluate new shipping methods, and possibly new shipping services.
If you want to stick with the U.S. Postal Service, you can check out Global Priority Mail (reasonably fast and reasonably priced), Global Express Mail (fast but expensive), Airmail (almost as fast, not quite as expensive), or Surface/Parcel Post (slow but less expensive). In addition, UPS offers its Worldwide Express service, FedEx offers its FedEx Express service internationally, and DHL is always a good option for shipping outside the United States. Be sure to check out your options beforehand, and charge the buyer the actual costs incurred.
Given the increased chances of loss or damage when shipping great distances, you should purchase insurance for all items shipping outside North America.
You’ll also have to deal with a bit of paperwork while you’re preparing your shipment. All packages shipping outside U.S. borders must clear customs to enter the destination countryand require the completion of specific customs forms to make the trip. Depending on the type of item you’re shipping and the weight of your package, you’ll need either Form 2976 (green) or Form 2976-A (white). Both of these forms should be available at your local post office.
When you’re filling out these forms, describe the item in terms that ordinary people can understand. That means using simple, generic terms. A “greatest hits CD compilation” becomes “compact disc.” A “SimCity extension pack” becomes “video game.” And so on.
You should also be honest about what you’re shipping. Some buyers will try to talk you into describing the item as a gift so that they can save on duties or tax on their end. That’s lying, and you shouldn’t do it.
eBay offers several pages of advice for international trading at pages.ebay.com/internationaltrading/.
In addition, there are certain items you can’t ship to foreign countriesfirearms, live animals and animal products, and so on. (There are also some technology items you can’t ship, for security reasons.) You need to check the government’s list of import and export restrictions to see what items you’re prohibited from shipping outside U.S. borders. Check with your shipping service for more detailed information.
Finally, note that shipping across borders takes longer than shipping within the United States. This is especially true if an item is held up at customs. Make sure your international buyers know that shipping times will be longer than what you might state for domestic buyers.
One of the issues with selling outside the United States is in dealing with foreign currency. First, you have to convert it to U.S. dollars. (How many lira to the dollar today?) Then you have to receive it in a form that is both secure and trusted. (Do you trust a personal check drawn on a small Spanish bank?) Then you have to find a way to deposit those funds and convert them to U.S. dollars. (Does your bank handle foreign deposits?)
The currency issue is simplified somewhat when you specify bidding and payment in U.S. funds only. This puts the onus of currency conversion on the buyer, which is a plus.
The payment process can be further simplified when the buyer pays by credit card or, even better, by PayPal. PayPal is now active in 45 countries (including the United States) and can handle all the payment, conversion, and deposit functions for you.
Should you sell internationally? The answer to this isn’t a simple one. It depends a lot on your tolerance for differences (in money, in language, in routine), and your ability to deal with unusual post-auction activity especially in regard to payment and shipping.
The pros of opening your auctions to non-U.S. bidders include the following:
The cons of selling outside the Unites States include the following:
Just looking at this list, it may appear that the cons outweigh the pros. That might not always be the case, however especially if you’re a real “people person.” Many eBay sellers get great joy from interacting with people from different cultures, sometimes turning foreign buyers into lasting friends. I can vouch from my limited personal experience that most non-U.S. buyers I’ve dealt with are exceedingly polite and tolerant of the extra effort required to complete an international transaction.
If you decide to sell outside the United States, you’ll want to state this in your auctions, along with a line indicating that “shipping and handling outside the United States is higher,” “listed shipping charge is for United States only,” or something to that effect. If, on the other hand, you decide not to sell internationally, state that in your ad also with a “U.S. bidders only” type of notice.
My personal opinions on international sales are sure to invite argument. No offense to non-U.S. users, but I don’t ship internationally, period. I’ve done it in the past, and the hassle factor simply isn’t worth it. Even if the transaction goes smoothly (and it often doesn’t, all things considered), the big issue is that the procedures involved are just too different from what I have set up for my normal day-to-day auction activities. In other words, international auctions are unusual transactions that mess up my normal domestic auction production line. My apologies to buyers outside the United Statesmost of whom I’ve found to be wonderful people to deal withbut I can’t let my normal activity be jeopardized by these high-maintenance shipments. (I do, however, make the occasional exceptionprimarily with small items shipping into Canada that can be handled without much additional paperwork or hassle.)
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