Can you still make money from ebay?

Still seen as an auction site for second hand goods, sales on ebay continue to grow. Internet sales as a whole contribute more than 14% of all UK retail and this is predicted to grow to 26% in 2016. The UK is already the most internet-based country in the world, according to a report by the Boston Consulting Group.

Many of us do use ebay to sell on unwanted goods, or to shop for a bargain. But, many businesses exist either entirely by selling on ebay, or by mixing their ebay sales with other online platforms or a physical shop. Is there still money to be made?

If you have a business idea you need to look at the sector and see if there is a space for you in the marketplace. If you have come up with a fantastic new invention then you may create your own space in the market by fulfilling a need, but many businesses are selling something that others are selling. If you are setting up a bakery you would want to do so in an area with a high footfall of people but without an existing bakery. If you are choosing to sell online then you would be competing with other online retailers. You would want to stand out by offering good value for money and excellent customer service. 

But, remember that online sales are growing overall, which means that there may be extra room in the marketplace for more sellers. Of course it is not as simple as that, and you need to ensure that you choose a sector which is growing rather than shrinking in the economic downturn. A quick spot of googling should answer that question for you. Remember that people are hunting for a bargain in the economic downturn so if you can sell essential goods at bargain prices you could be on to a good thing.

For an article on the fastest growing sectors in 2013 check out this article from 'startups': http://startups.co.uk/what-business-should-you-start-12-fast-growing-sectors-in-2013/

Why ebay though? I frequently get asked why I sell on ebay and Amazon rather than my own site. The simple answer is that these two internet giants drive a huge number of customers to my products. I do have my own site and I periodically spend time trying to improve the site and money trying to attract customers but to little avail. Ebay takes around 10% of everything that I sell, but for that it provides most of my marketing, customer footfall and technological support. I reckon that's a good deal. Amazon charges higher fees but seems to attract more customers (at least to my products) and those customers are prepared to pay for good quality items.

So in summary, research your sector, check out your competitors, and give it a try. Think about who your customers are. My main business is maternity clothes and babywear. My customers are often pregnant women who want the convenience and choice of shopping online rather than trawling the high street which only has a small quantity of maternity clothes. I believe that for the right business in the right sector there is still money to be made from ebay. Go forth and prove me right!