Just about everyone has sold items on eBay or knows someone who has. Most people sell items they have in their home or garage that are of no use to them any longer or they are moving and need to clean house. Earning a few extra dollars selling their usable junk is fun and doesn’t take much time out of a persons day.
How to Make Money on eBay Full Guide
Right? What if you decided you wanted to go a step further and make selling on eBay a small business venture. Could you earn enough to give up your part-time job or maybe pay for the Harley Davidson motorcycle you’ve had your eye on for the last year? Yes, you can earn an income selling on eBay and compete with the big companies.
How To Start
Knowing where to start is the first major step to embracing the concept of running an eBay business.
The tools you need to begin an eBay business are:
1. A computer and printer
2. A digital camera
3. An account with eBay and PayPal
4. Some type of merchandise
Before you take that first step with your new eBay business, contact your city and/or county sales tax division. Most counties and states require you to file with them and obtain a sales tax number. You may need to collect taxes from your eBay customers on their purchases and you may have to file for sales tax collection every month.
You can set up your sales page on eBay showing the customer that sales tax needs to be charged and collected. After an item is purchased, sales tax for that particular state will be added to the total bill.
There are people who don’t claim their income or collect taxes on their sales from eBay. This is very careless and dangerous. No one wants the IRS knocking at their door. After obtaining information from the city and/or county regarding your business, you have one more decision to make.
Do you want a separate bank account just for business expenses and income? This is a decision each individual must decide for him or herself. I would suggest you open a separate account so money affecting the business would not be mingled with your household expense money. You will eventually need a business account as your eBay sales grow and your income increases. This is a concern you could discuss with a CPA or tax attorney.
Set Up the Ebay and PayPal Accounts
The first step is to register with eBay and PayPal by opening an account if you don’t already have one. I can’t stress enough that you should read all the rules and regulations set forth by eBay and Paypal. You need to follow the guidelines to have a successful business.
Both eBay and PayPal have excellent tutorials on running an online business and you can find unlimited information on the web regarding selling on eBay. There are also classes you can take that instruct you on running an eBay business. Do your homework and get the facts before making that first business sale.