Business Startup Costs: The Ultimate Guide (2024)
September 14, 2022
More people are thinking about starting a business than ever before. In fact, nearly 5.4 million businesses were started in 2021, so how much does it cost to start a business?
The answer is different for every business, but many small business owners spend less than $5,000 on startup costs. We’ve talked to a ton of small business owners about how to start a business and we’re going to share what we’ve learned from them.
We’ll break down the business startup costs into upfront costs, one-time costs, and recurring expenses for each type of business. Let’s look at how we classified each type of cost.
Typical business startup costs
We’ve broken down the startup costs into fixed costs and variable costs. We’ll discuss each below.
Fixed Costs
Fixed costs are business costs that do not change as sales increase. The following items are common startup costs that are fixed costs:
- Office Space (Recurring): This includes both rent and utilities. Most small business owners start with home office space and deduct the percentage of space from their taxes as a small business cost.
- Legal Fees (Upfront): These are recurring costs that you have to pay to run a business legally, which usually include business formation, business licensing, and other professional fees to comply with regulations.
- Software Costs (Upfront and Ongoing): These business startup costs include payment processors, websites, CRM, accounting software, and more. You can find some that would be one-time costs, but most are recurring charges.
- Equipment Costs (Upfront): This includes machinery, vehicles, and other costs to meet the mission critical aspects of the business.
- Insurance Costs (Upfront and Ongoing): If your business requires insurance, make sure to keep it continuous. If it doesn’t, you may want to consider it anyway.
As time goes on, some businesses may find that a few fixed costs only remain fixed up to a certain volume. After that, they might see a drastic increase to add more volume and then it will become a fixed cost again. Adding a second service truck is one of the typical costs that work like this.
The other type of small business startup costs are variable costs, which we’ll discuss next.
Variable Costs
There are business costs that vary based on the volume the business does. These startup costs are called variable costs. Common startup costs in this category include:
- Shipping Costs (Variable Expense): Shipping costs are included in variable costs because you only pay for them if you order materials or ship products to a customer.
- Marketing Costs (Ongoing Costs): The Small Business Administration suggests spending approximately 8% of desired revenue on marketing. The advertising costs seem to be one of the defining factors as to whether a business succeeds long term.
- Material Costs (Varies): The time and materials that go into offering a product or service will affect your revenue.
- Supplies and Packaging Costs: Items you use for running the business must be considered early in the game. This startup cost may include computers, cleaning supplies, business cards, packaging for products, and other items that help your business.
- Wages: Most wages will vary with the amount of business you have. You have to pay employees for their time regardless, but you’ll schedule less hours when you have less business.
- Unexpected Costs: You should always leave a little wiggle room for unforeseen events. I’d suggest at least a 10% slush fund for unexpected startup costs and operating costs.
- Other Costs: This is a catch all for spending you can forecast, but are not sure which cost categories to include them in.
Now that you know the costs we’ll be analyzing, let’s look at the average start-up costs for businesses.
How much does it cost to start a business?
I broke down the average costs of starting a business into four different classifications:
- Low Cost: start a business with a shoestring budget and figure out the ongoing expenses along the way.
- Average Cost: start a business with the money to cover the first year of organizational expenses.
- High Cost: business owners interested in the startup costs to guarantee they stay in business for five years.
- Franchise: business owners who want to buy a franchise.
| Low (Just Startup) | Average (Home-Based for 1 Year of Expenses) | High (Store Location with 5 Years Expenses) | Franchise | |
|---|---|---|---|---|
| Office | $0.00 | $1,800.00 | $30,000.00 | $21,600.00 |
| Legal Fee | $500.00 | $2,000.00 | $10,000.00 | $3,500.00 |
| Software | $200.00 | $1,000.00 | $135,000.00 | $1,000.00 |
| Equipment | $300.00 | $3,000.00 | $125,000.00 | $4,800.00 |
| Insurance | $0.00 | $1,200.00 | $25,000.00 | $5,400.00 |
| Shipping | $2.99/item | $6.99/item | $500/item | $6.99/item |
| Marketing | $0.00 | $24,000.00 | $1,440,000.00 | $24,000.00 |
| Material | $0.00 | $10,000.00 | $50,000.00 | $10,000.00 |
| Supplies | $300.00 | $2,000.00 | $10,000.00 | $1,500.00 |
| Wages | $0.00 | $0.00 | $200,000.00 | $0.00 |
| Unexpected | $300.00 | $1,000.00 | $5,000.00 | $1,000.00 |
| Other | $0.00 | $2,000.00 | $10,000.00 | $89,950.00 |
| Total | $1,600.00 | $48,000.00 | $2,040,000.00 | $162,750.00 |
How much does it cost to start a small business?
According to the Small Business Administration, one out of every four businesses start with less than $5,000, and over half of small businesses have startup costs of under $25,000. But the median is just over $24,000, and the weighted average would be between $72,000 and $276,000.
| Small Business Start Up Cost Analysis | ||||||
| Low | High | Midpoint | Percent | Low Weighted Average | Midpoint Weighted Average | High Weighted Average |
| $0.00 | $4,999.00 | $2,499.50 | 24.10% | $0.00 | $602.38 | $1,204.76 |
| $5,000.00 | $9,999.00 | $7,499.50 | 11.70% | $585.00 | $877.44 | $1,169.88 |
| $10,000.00 | $24,999.00 | $17,499.50 | 15.10% | $1,510.00 | $2,642.42 | $3,774.85 |
| $25,000.00 | $49,999.00 | $37,499.50 | 12.00% | $3,000.00 | $4,499.94 | $5,999.88 |
| $50,000.00 | $99,999.00 | $74,999.50 | 12.80% | $6,400.00 | $9,599.94 | $12,799.87 |
| $100,000.00 | $249,999.00 | $174,999.50 | 12.80% | $12,800.00 | $22,399.94 | $31,999.87 |
| $250,000.00 | $999,999.00 | $624,999.50 | 8.90% | $22,250.00 | $55,624.96 | $88,999.91 |
| $1,000,000 | $5,000,000.00 | $1,000,000.00 | 2.60% | $26,000 | $26,000.00 | $130,000.00 |
| Source: ABS | Total | $72,545.00 | $122,247.01 | $275,949.03 | ||
How much does it cost to start an online business?
Online businesses are normally some of the lowest in cost to start. You can start most of them for under $1,000 without any educational expenses.They require a computer, internet, business licensing, and some software. Businesses in this category might include:
- E-commerce stores
- Graphic design
- Blogging
- YouTube content creators
- Virtual assistants
- Marketing agencies
- Software developers
- And more
When people ask “how much does it cost to start a business online?” search results will normally provide answers about ecommerce stores. We’ll discuss those next.
How much does it cost to start a t-shirt business?
T-shirt companies are fairly easy to start. For example, you can start with a $30 Shopify, some design software, and a print-on-demand provider. If you really want to make money on it, you have to get good at SEO and marketing, which will increase your costs.
| T-Shirt Business Startup for Revenue of $350,000 per Year | |||
| Low (Just Startup) | Average (1 Year Cost) | High (5 Years) | |
| Office (Homebased) | $0.00 | $0.00 | $0.00 |
| Legal Fee | $0.00 | $1,000.00 | $5,000.00 |
| Software | $50.00 | $6,000.00 | $30,000.00 |
| Equipment (Print-on-Demand (POD) + Dropshipping) | $0.00 | $0.00 | $0.00 |
| Insurance (Optional) | $0.00 | $1,000 | $5,000.00 |
| Shipping | $5.99/item | $59,900.00 | $299,500.00 |
| Marketing | $0.00 | $24,000.00 | $120,000.00 |
| Material | $20.00 | $200,000.00 | $1,000,000.00 |
| Supplies (Optional) | $0.00 | $0.00 | $0.00 |
| Wages (POD built into material costs) | $0.00 | $0.00 | $0.00 |
| Unexpected | $0.00 | $1,000.00 | $5,000.00 |
| Other | $0.00 | $1,000.00 | $5,000.00 |
| Total | $70.00 | $292,900.00 | $1,464,500.00 |
| Content | Throwback NW | Urbanity | Big Frog |
Check out our interview with the owner of Urbanity to learn more:
How much does it cost to start a landscaping business?
We’ve interviewed multiple business owners who have started landscaping companies. It’s one of the easiest types of businesses to start. You can even start a business for as little as $300.
The table below shows the breakdown of the business expenses a small business owner should expect when starting a landscaping business.
| Landscaping Startup Costs | ||||
| Low (Just Startup) | Average (Home-Based for 1 Year of Expenses) | High (Store Location with 5 Years Expenses) | Franchise | |
| Office Space | $0.00 | $1,800.00 | $9,000.00 | $0.00 |
| Legal Fee | $0.00 | $2,000.00 | $10,000.00 | $3,500.00 |
| Software | $0.00 | $1,000.00 | $5,000.00 | $1,000.00 |
| Equipment | $300.00 | $25,400.00 | $127,000.00 | $4,800.00 |
| Insurance | $0.00 | $1,800.00 | $9,000.00 | $5,400.00 |
| Shipping | $0.00 | $0.00 | ||
| Marketing Costs | $0.00 | $24,000.00 | $120,000.00 | $24,000.00 |
| Material | $0.00 | $10,000.00 | $50,000.00 | $10,000.00 |
| Supplies | $0.00 | $4,000.00 | $20,000.00 | $1,500.00 |
| Wages | $0.00 | $60,000.00 | $300,000.00 | $0.00 |
| Unexpected | $0.00 | $1,000.00 | $5,000.00 | $1,000.00 |
| Other | $0.00 | $15,000.00 | $75,000.00 | $15,000.00 |
| Total | $300.00 | $146,000.00 | $730,000.00 | $66,200.00 |
| YouTube Video | Plan-It Vision | Augusta Lawn Care Franchise | Augusta Lawn Care | |
Check out our most recent YouTube video with a small business owner who started Plan-It Vision with only $300:
How much does it cost to start an eyelash business?
An eyelash business is one of the most commonly searched small businesses. To get started, you may need to go to cosmetology school. Many states require school, but some do not. If you haven’t already gone to cosmetology school, starting a small business will cost more than $20,000.
Most eyelash small businesses run as a combination of brick and mortar business and traveling to their client’s location. We’ve provided you with estimates of how much to expect startup expenses to cost based on the assumption you haven’t already gone to cosmetology school.
| Eyelash Business Startup Costs | ||||
| Low (Just Startup) | Average (Home-Based for 1 Year of Expenses) | High (Store Location with 5 Years Expenses) | Franchise | |
| Office | $0.00 | $7,800.00 | $39,000.00 | $100,000.00 |
| Legal Fee | $2,000.00 | $2,000.00 | $10,000.00 | $3,500.00 |
| Software | $0.00 | $1,000.00 | $5,000.00 | $1,000.00 |
| Equipment | $300.00 | $300.00 | $1,500.00 | $300.00 |
| Insurance | $1,200.00 | $1,200.00 | $6,000.00 | $1,200.00 |
| Shipping | $0.00 | $0.00 | $0.00 | |
| Marketing | $0.00 | $24,000.00 | $120,000.00 | $24,000.00 |
| Material | $50.00 | $8,000.00 | $40,000.00 | $8,000.00 |
| Supplies | $0.00 | $4,000.00 | $20,000.00 | $4,000.00 |
| Wages (assuming no employees) | $0.00 | $0.00 | $0.00 | $0.00 |
| Unexpected | $0.00 | $0.00 | $0.00 | $0.00 |
| Other | $20,000.00 | $30,000.00 | $70,000.00 | $55,000.00 |
| Total | $23,550.00 | $78,300.00 | $311,500.00 | $197,000.00 |
| Schools and Franchise Opportunity | Cosmetology School | Lash Bar Franchise | ||
Subtract $20,000 from any of these numbers if you have already gone to school. I included legal fees and insurance costs in the low cost startup funding because you don’t want your new business to be slapped with a major fine for operating illegally.
How much does it cost to start a cleaning business?
Cleaning businesses are great for startups. You can even start your own business for as low as $300 if you just buy the cleaning supplies. Almost all the costs are variable expenses.
However, you should get the business license and the insurance as soon as possible if you decide to get them after you get started. The ultra low cost way assumes you rent any equipment after booking a job that needs equipment.
| Cleaning Business Startup Costs | |||
| Low (Just Startup) | Average (Home-Based for 1 Year of Expenses) | High (Chris Now) | |
| Office | $0.00 | $3,000.00 | $9,000.00 |
| Legal Fee | $0.00 | $2,000.00 | $13,200.00 |
| Software | $0.00 | $2,400.00 | $12,000.00 |
| Equipment | $0.00 | $4,000.00 | $20,000.00 |
| Insurance | $0.00 | $1,200.00 | $112,000.00 |
| Shipping | $0.00 | $0.00 | $0.00 |
| Marketing | $700.00 | $24,000.00 | $50,550.00 |
| Material | $0.00 | $0.00 | $0.00 |
| Supplies | $300.00 | $15,600.00 | $56,544.00 |
| Wages | $0.00 | $0.00 | $565,448.00 |
| Unexpected | $0.00 | $10,000.00 | $10,000.00 |
| Other | $0.00 | $0.00 | $132,000.00 |
| Total | $1,000.00 | $62,200.00 | $980,742.00 |
| YouTube Videos | Spruce Clean | South Sound Janitorial | Queen Bee Cleaning Service |
Check out our interview with Christopher Mondragon below or sign up for our cleaning business course that covers pricing, business credit, Chris’s marketing scripts, and automation templates:
How much does it cost to start a jewelry business?
Many people enjoy doing arts and crafts like making jewelry. You can start a business out of this fun hobby for less than $100 and build your business as you grow. Premade findings are typically more economical, but creativity is often the joy of this type of business owner, so you might want to make your own pieces.
If you are trying to make gold and silver jewelry, you can expect the cost to be much higher. A troy ounce of gold varies based on market conditions, but has been between $1,000 and $2,000 over the last 15 years. It will only make about five to 16 rings, and you still have to have the tools to melt it.
How much does it cost to start a storage unit business?
The answer to this isn’t particularly clear cut. If you are wanting to buy storage units that are selling people’s stuff to recoup the costs, you should plan to bring at least $500 to the auction. Then, hope you find a gem and recoup your investment.
If you are talking about building storage units and renting them out, you’ll need to:
- Buy land (acres range from $1,600 to millions, with an average of $12K over the continental U.S.
- Build storage space for $25 to $45 per square foot.
- Run the property for $2 to $4 per square foot of operating expenses.
Check out Love to Know’s blog for more detailed information.
How much does it cost to start a food truck business?
You might be able to start a food truck for as low as $10K, but I’d expect to spend more like $20K to get started. You’ll probably need around $156K to make it through the first year and around $670,000 to make it through the first five years.
If you figure out a winning recipe, it can lead to a million dollar business, though.
| Food Truck Business Startup Costs | |||
| Low (Just Get Started) | Average (Full Year Costs) | High (5 Years) | |
| Space | $0.00 | $0.00 | $0.00 |
| Legal Fee | $2,000.00 | $6,000.00 | $30,000.00 |
| Software | $0.00 | $2,400.00 | $12,000.00 |
| Equipment | $8,700.00 | $27,200.00 | $27,200.00 |
| Insurance | $2,000.00 | $24,000.00 | $120,000.00 |
| Shipping | $0.00 | $0.00 | $0.00 |
| Marketing | $3,000.00 | $36,000.00 | $180,000.00 |
| Material | $1,000.00 | $12,000.00 | $60,000.00 |
| Supplies | $2,000.00 | $24,000.00 | $120,000.00 |
| Wages | $0.00 | $0.00 | $0.00 |
| Unexpected | $0.00 | $0.00 | $0.00 |
| Other | $2,000.00 | $24,000.00 | $120,000.00 |
| Total | $20,700.00 | $155,600.00 | $669,200.00 |
| Content | Food Truck Blog | Vet Chef | Abyla Grill |
Check out our video below to find out how Saied Samaiel makes more than $600K per year with his food truck:
How much does it cost to start a dropshipping business?
The cost of starting a dropshipping business can vary dramatically because you may have to design a product and purchase inventory. If you are using print-on-demand with dropshipping, it is often fairly cheap.
Expect to spend at least $80 getting started, but if you are sourcing materials and manufacturing, it could be more than $30,000 to make your products. Through the course of a year, you might spend up to $180,000.
| Dropshipping Business Startup Costs | |||
| Low (Just Startup for Print-on-Demand) | Average (Design a custom product, manufacture it, and sell for a year.) | High (5 Years) | |
| Office | $0.00 | $0.00 | $0.00 |
| Legal Fee | $0.00 | $2,000.00 | $10,000.00 |
| Software | $50.00 | $2,400.00 | $12,000.00 |
| Equipment | $0.00 | $0.00 | $0.00 |
| Insurance | $0.00 | $1,200.00 | $6,000.00 |
| Shipping | $5.99 | $6,000.00 | $30,000.00 |
| Marketing | $0.00 | $24,000.00 | $120,000.00 |
| Material | $20.00 | $140,000.00 | $700,000.00 |
| Supplies | $0.00 | $0.00 | $0.00 |
| Wages | $0.00 | $0.00 | $0.00 |
| Unexpected | $0.00 | $1,000.00 | $5,000.00 |
| Other | $0.00 | $1,000.00 | $5,000.00 |
| Total | $75.99 | $177,600.00 | $888,000.00 |
| Content | Shed Defender Blog | Shed Defender YouTube | Beard Head |
Check out our interview with Casey about how he created and dropships Shed Defender:
How much does it cost to start a candle business?
You can start a candle business for less than $200. The materials and a Shopify account are all you need to get started. The numbers below are from our interview with Jazmin who started the company in 2020 and is making more than $150K per year.
| Candle Business Startup Costs | |||
| Low (Just Startup) | Average (Home-Based for 1 Year of Expenses) | High (5 Years) | |
| Office | $0.00 | $0.00 | $0.00 |
| Legal Fee | $0.00 | $2,000.00 | $10,000.00 |
| Software | $30.00 | $1,000.00 | $5,000.00 |
| Equipment | $0.00 | ||
| Insurance | $0.00 | $1,200.00 | $6,000.00 |
| Shipping | $0.00 | $24,000.00 | $120,000.00 |
| Marketing | $0.00 | $24,000.00 | $120,000.00 |
| Material | $10,000.00 | $50,000.00 | |
| Supplies | $80.00 | $0.00 | $0.00 |
| Wages | $0.00 | $0.00 | $0.00 |
| Unexpected | $0.00 | $6,000.00 | $30,000.00 |
| Other | $0.00 | $0.00 | |
| Total | $110.00 | $68,200.00 | $341,000.00 |
| Content | BLK Sunflower Blog | BLK Sunflower YouTube | BLK Sunflower |
Check out our interview below:
How much does it cost to start a towing business?
A towing business can be started for under $10,000. It has special licensing requirements that raise the cost and most people don’t own a tow truck. You can typically make around $100,000 per truck––if you do it right.
| Towing Business Startup Costs | |||
| Low (Just Startup) | Average (3 Trucks) | High (5 Years) | |
| Office | $0.00 | $0.00 | $0.00 |
| Legal Fee | $2,000.00 | $3,500.00 | $17,500.00 |
| Software | $300.00 | $3,600.00 | $18,000.00 |
| Equipment | $6,000.00 | $25,000.00 | $125,000.00 |
| Insurance | $1,000.00 | $12,000.00 | $60,000.00 |
| Shipping | $0.00 | $0.00 | $0.00 |
| Marketing | $0.00 | $24,000.00 | $120,000.00 |
| Material | $0.00 | $0.00 | $0.00 |
| Supplies | $0.00 | $0.00 | $0.00 |
| Wages | $0.00 | $109,500.00 | $547,500.00 |
| Unexpected | $0.00 | $6,000.00 | $30,000.00 |
| Other | $100.00 | $10,000.00 | $50,000.00 |
| Total | $9,400.00 | $193,600.00 | $968,000.00 |
| Content | K.O. Towing Blog | K.O. Towing YouTube | Sant Lines LLC Podcast |
Check out our interview with a towing company business owner to learn more:
How much does it cost to start a painting business?
You should expect to spend $5,000+ to start a painting business because you’ll need a contractor’s license in most states to start a painting business. Contractors’ licenses have financial requirements that make them more expensive. States may require:
- Background checks
- Surety bonds
- Multiple years of experience
- Licensing exams
| Painting Business Startup Costs | |||
| Low (Just Startup) | Average (1 Year Cost) | High (5 Years) | |
| Office | $0.00 | $0.00 | $0.00 |
| Legal Fee | $4,000.00 | $4,000.00 | $20,000.00 |
| Software | $100.00 | $6,000.00 | $30,000.00 |
| Equipment | $300.00 | $5,000.00 | $25,000.00 |
| Insurance | $1,000.00 | $2,000.00 | $10,000.00 |
| Shipping | $0.00 | $0.00 | $0.00 |
| Marketing | $0.00 | $24,000.00 | $120,000.00 |
| Material | $100.00 | $10,000.00 | $50,000.00 |
| Supplies | $100.00 | $500.00 | $2,500.00 |
| Wages | $0.00 | $0.00 | $0.00 |
| Unexpected | $0.00 | $1,000.00 | $5,000.00 |
| Other | $0.00 | $0.00 | $0.00 |
| Total | $5,600.00 | $52,500.00 | $262,500.00 |
How much does it cost to start a detailing business?
You can start a mobile detailing business for as little as $300, but you should probably expect the annual costs to approach $53K to really grow. That includes licensing, insurance, a vehicle, upgrading your website, and spending $2K per month on marketing. Check out the breakdown below:
| Detailing Business Startup Costs | |||
| Low (Mobile with Car to Get Started) | Average (Mobile, Vehicle Purchase and 1 Year Expenses) | High (5 Years) | |
| Office | $0.00 | $0.00 | $0.00 |
| Legal Fee | $0.00 | $1,200.00 | $6,000.00 |
| Software | $0.00 | $5,000.00 | $25,000.00 |
| Equipment | $200.00 | $6,000.00 | $30,000.00 |
| Insurance | $0.00 | $1,200.00 | $6,000.00 |
| Shipping | $0.00 | $0.00 | $0.00 |
| Marketing | $0.00 | $24,000.00 | $120,000.00 |
| Material | $100.00 | $0.00 | $0.00 |
| Supplies | $0.00 | $5,000.00 | $25,000.00 |
| Wages | $0.00 | $0.00 | $0.00 |
| Unexpected | $0.00 | $1,000.00 | $5,000.00 |
| Other | $0.00 | $10,000.00 | $50,000.00 |
| Total | $300.00 | $53,400.00 | $267,000.00 |
| Content | Attention 2 Detail Blog | Attention 2 Detail YouTube | Slide In Mobile Detailing |
How much does it cost to start a trucking business?
Trucking businesses will normally cost around $10,000 to start in-state or $20,000 for interstate operations, but you can expect to spend $100K to $250K per year to run a trucking business.
Make sure the truck you buy is less than 10 years old because most companies require a newer vehicle when hiring you to haul their products.
| Trucking Business Startup Costs, Making $10K per Week | |||
| Low (Just Startup) | Average (1 Truck, 1 Year) | High (1 Truck, 5 Years) | |
| Office | $0.00 | $0.00 | $0.00 |
| Legal Fee | $3,000.00 | $3,500.00 | $17,500.00 |
| Software | $300.00 | $3,600.00 | $18,000.00 |
| Equipment | $6,000.00 | $41,500.00 | $41,500.00 |
| Insurance | $4,500.00 | $20,000.00 | $100,000.00 |
| Shipping | $0.00 | $0.00 | $0.00 |
| Marketing | $0.00 | $24,000.00 | $120,000.00 |
| Material | $0.00 | $0.00 | $0.00 |
| Supplies | $0.00 | $0.00 | $0.00 |
| Wages | $0.00 | $0.00 | |
| Unexpected | $0.00 | $6,000.00 | $30,000.00 |
| Other | $5,000.00 | $250,000.00 | $1,250,000.00 |
| Total | $18,800.00 | $348,600.00 | $1,577,000.00 |
| Content | Attention 2 Detail | K.O. Towing YouTube | Sant Lines LLC podcast |
Check out our interview with Mikael Sant. He averages $75K a month running Sant Lines LLC:
How much does it cost to start a taxi business?
Taxis are a dying business in most places. The business structure is antiquated. You have to register with your city’s transit authority, hire dispatch, and buy a bunch of taxis. We’ve provided an estimate for starting with five taxis running 24 hours a day.
If you already have a car, you can start driving for Uber or Lyft. All you have to do is get a business license, pass a background check, and have a current car inspection. You can run a successful business fairly easily. The startup costs for this kind of business is around $300.
| Taxi Business Startup Costs | |||
| Low (Lyft or Uber) | Average (Taxi with Dispatch and 5 Vehicles) | High (Taxi, 5 Years) | |
| Space | $0.00 | $700,000.00 | $875,000.00 |
| Legal Fee | $300.00 | $4,500.00 | $22,500.00 |
| Software | $0.00 | $3,000.00 | $15,000.00 |
| Equipment | $0.00 | $45,000.00 | $225,000.00 |
| Insurance | $0.00 | $40,000.00 | $200,000.00 |
| Shipping | $0.00 | $0.00 | $0.00 |
| Marketing | $0.00 | $24,000.00 | $120,000.00 |
| Material | $0.00 | $0.00 | $0.00 |
| Supplies | $0.00 | $0.00 | |
| Wages | $0.00 | $438,000.00 | $2,190,000.00 |
| Unexpected | $0.00 | $20,000.00 | $100,000.00 |
| Other | $50.00 | $116,343.75 | $581,718.75 |
| Total | $350.00 | $1,390,843.75 | $4,329,218.75 |
How much does it cost to start a laundromat business?
Starting a laundromat can cost nearly $1 million to get started and about twice that over the first five years. The building, equipment, and utilities are most of the cost.
| Laundry Business Startup | |||
| Low (Go to people’s homes and do their laundry for them.) | Average (Laundromat, 1 Year Expenses) | High (Laundromat, 5 Years) | |
| Space | $0.00 | $700,000.00 | $1,100,000.00 |
| Legal Fee | $0.00 | $1,200.00 | $6,000.00 |
| Software | $0.00 | $3,000.00 | $15,000.00 |
| Equipment | $0.00 | $45,000.00 | $45,000.00 |
| Insurance | $0.00 | $1,200.00 | $6,000.00 |
| Shipping | $0.00 | $0.00 | $0.00 |
| Marketing | $0.00 | $24,000.00 | $120,000.00 |
| Material | $0.00 | $0.00 | $0.00 |
| Supplies | $100.00 | $5,000.00 | $25,000.00 |
| Wages | $0.00 | $62,400.00 | $312,000.00 |
| Unexpected | $0.00 | $20,000.00 | $100,000.00 |
| Other | $0.00 | $200,000.00 | $200,000.00 |
| Total | $100.00 | $1,061,800.00 | $1,929,000.00 |
| Content | Laundromat Blog | Ferndale Laundry YouTube | Rosie Wash Express |
Check out our interview with Justin Pike of Ferndale Laundry:
How much does it cost to start a photography business?
You can start a photography business for as little as $500, which includes the price of the camera, a website, online photo gallery, and Adobe Photography Suite.
If you want to upgrade to a higher end business with better equipment and a good marketing budget, you should expect to spend around $45,000 the first year. It’s even higher if you want a good studio, however.
| Photography Business Startup | |||
| Low (Low End Camera) | Average (High End Camera, Full Year Expenses, Full Licensing and LLC) | High (5 Years) | |
| Space | $0.00 | $3,000.00 | $15,000.00 |
| Legal Fee | $0.00 | $1,000.00 | $5,000.00 |
| Software | $100.00 | $2,000.00 | $10,000.00 |
| Equipment | $500.00 | $10,000.00 | $15,000.00 |
| Insurance | $0.00 | $1,000.00 | $5,000.00 |
| Shipping | $0.00 | $0.00 | $0.00 |
| Marketing | $0.00 | $24,000.00 | $120,000.00 |
| Material | $0.00 | $0.00 | $0.00 |
| Supplies | $0.00 | $0.00 | $0.00 |
| Wages | $0.00 | $0.00 | $0.00 |
| Unexpected | $0.00 | $3,000.00 | $15,000.00 |
| Other | $50.00 | $0.00 | $0.00 |
| Total | $650.00 | $44,000.00 | $185,000.00 |
| Content | UpFlip Photography Blog | Mile High Productions Video Pt. 1 | Mile High Productions Video Pt. 2 |
Check out our interview with a couple that started their own photography company:
How much does it cost to start a handyman business?
Most places require handymen to be licensed contractors, so you can get started for as low as $2,750 without risking violating laws, but you can expect to spend around $40,000 during the first year if you really want to do it right.
| Handyman Business Startup Costs | |||
| Low (Just Get Started) | Average (Full Year Costs) | High (5 Years) | |
| Space | $0.00 | $3,000.00 | $15,000.00 |
| Legal Fee | $1,000.00 | $1,000.00 | $5,000.00 |
| Software | $0.00 | $2,400.00 | $12,000.00 |
| Equipment | $500.00 | $10,000.00 | $15,000.00 |
| Insurance | $1,000.00 | $2,400.00 | $12,000.00 |
| Shipping | $0.00 | $0.00 | $0.00 |
| Marketing | $0.00 | $7,200.00 | $36,000.00 |
| Material | $200.00 | $12,500.00 | $62,500.00 |
| Supplies | $0.00 | $0.00 | $0.00 |
| Wages | $0.00 | $0.00 | $0.00 |
| Unexpected | $0.00 | $0.00 | $0.00 |
| Other | $50.00 | $1,800.00 | $9,000.00 |
| Total | $2,750.00 | $40,300.00 | $166,500.00 |
| Content | North Seattle Handyman Blog | North Seattle Handyman Youtube | Modern Realty Uses Similar Skills Investing in Real Estate |
Check out our interview with Caleb to find out how he makes $125K per truck:
How much does it cost to start a soap business?
Soap businesses are fairly inexpensive to start. You could start making soap for under $100 and build from there. Successful business owners will spend nearly $70K in their first year of business to make around $200K. Check out the TruIC blog for the steps to start a soap business.
Small Business Owners Funding Resources
Now that you know the costs associated with starting a business, check out some of our resources for finding funding.
- Business Credit: Check out our preferred lending partners to get small business loans or a business credit card.
- Business Hub: Learn how to start a business entity, get insurance, and estimate a company’s revenue in our hub.
- Small Business Administration: Get information from the SBA on grants, loans, and local business resources.
- Evaluate Funding Options: Whether you are using a personal savings account or looking for alternative funding methods, check out our funding blog.
What Type of Business Will You Start?
We’ve covered the typical expenses associated with the costs of starting a business. Now it’s time to examine your personal expenses and cash flow to cover the filing fee and other business costs.
Make sure to follow our YouTube channel and blog for more great information on how to start a business.
Which business do you think is a worthwhile investment? How will you manage the financial implications of starting a new business?
Author
Brandon Boushy
Related articles
The Amazon marketplace handles 40% of U.S. e-commerce sales and has more annual sales than all but 11 countries. That’s a huge business, and there’s room for more sellers to get their share. But first, you have to answer an important question: what are the best products to sell on Amazon?
We’re going to provide information about selling products on Amazon from the business owners of companies like ShedDefender, Pooch Selfie, and from owners like Michael Jackness and Ryan Hogue. These four businesses make a combined $200K per month selling products on Amazon.
[su_note note_color="#dbeafc"]
We’re going to show you the secrets to creating a profitable Amazon business. We’ll cover the following topics to help you make the most of your Amazon Seller account. Click on any of the links below to jump to that section.
You should sell on Amazon for several reasons:
(Not familiar with Jungle Scout? We’ll explain this helpful research tool and others like it later on in the article.)
Let’s take a closer look at the items that made up the best sellers in each category to spot opportunities for your business to sell on Amazon.
According to Jungle Scout, toys and games were the most purchased product category with nearly 20% of the top 200 top product ideas. The most popular selling items during this time were:
[su_note note_color="#dbeafc"]
Beauty product ideas include items like:
[su_note note_color="#dbeafc"]
There is consistent demand on the Amazon store for baby products, including:
[su_note note_color="#dbeafc"]
The tools and home improvement category has consistent sales in:
[su_note note_color="#dbeafc"]
[/su_note]
If you start selling these products, you won’t be competing with many other sellers.
Surprisingly, all the easy keywords were about trapping mice and rats habitating in your garden. If you look at the best sellers in Amazon Marketplace, you find a completely different story. The garden best-selling categories include items like:
[su_note note_color="#dbeafc"]
[/su_note]
At this point, you know everything you could possibly want to know about top selling Amazon products, but what about Amazon seller restrictions?
Restricted products on Amazon include 41 categories. For some categories you can’t sell at all, and for others you have to follow specific rules. Just make sure you read the rules for each category in which you sell. Review Amazon’s restricted categories page before selling stuff on Amazon.
An Amazon best seller rank compares the current sales and the sales history. If a product is ranked #1, it means that it is the most sold item on Amazon in that category during the specific hour. The most bought items on Amazon may be shown for the entirety of Amazon, but each store also shows their trending items on Amazon.
Once you perform product research and decide what items to sell online, You’ll need to perform keyword research to find:
Retail arbitrage is a method of finding products that are being sold at a lower price at one site or retailer, buying them all, and then selling them somewhere else.
Many of the best things to sell on Amazon may be discontinued or limited edition items. Amazon top sellers can often buy trending products at retail prices, mark them up, and then make two or three times the manufacturer’s suggested retail price.
These items become trending products on Amazon and other e-commerce platforms. Learn more about an eBay seller’s retail arbitrage tricks and try them with Amazon trending products.
Another place to find best selling products is on other websites. You can use a tool like CNET shopping extension to find places online that sell a product for a lower price.
Google Trends shows you what is trending on the world’s largest search engine. Trends on Google can soon become some of the best products on Amazon. Just be aware that the Amazon best selling products change fast.
Make sure to check whether the hot items to sell on Amazon are short-term or cyclical. A celebrity blooper is probably short-term, while NFL merchandise is cyclical because it will have another season the next year.
New sellers will want to consider using Fulfillment by Amazon (FBA). Both Ryan and Casey use Amazon FBA. Ryan told us:
[su_quote]When you sell Amazon through FBA your products become Prime eligible.[/su_quote]
The top sellers on Amazon typically use this strategy because it improves their shipping costs, customer service, and click-through rate.
Most products will work well with Amazon FBA, but larger products can get more costly quickly because of the storage costs and shipping fees. We discuss this strategy in our FBA blog.
In case you’ve forgotten, Amazon started as a bookseller. Needless to say, one of the best products to sell on Amazon is books. You can sell books as ebooks and paperbacks. This service is called Amazon Kindle Direct Publishing or (Amazon KDP).
Buying from dropshippers can be a good way to get Amazon top-selling items. When you work with a dropshipper, you are mostly focused on the keywords and marketing for the top Amazon products. The dropshipping company will ship the products once you pay for the things you sell on Amazon.
A private label requires designing your own products with the help of a manufacturer. You can talk to manufacturers on Alibaba or AliExpress to find suppliers that can help you create things to sell on Amazon. There are also locations in the U.S., but they are normally best for product development and small order sizes. Learn about manufacturing before you engage with a manufacturer.
- Is it Profitable to Sell on Amazon?
- Why You Should Sell on Amazon
- Features of Best Products to Sell on Amazon for Beginners
- What Are the Best Products to Sell on Amazon?
- Amazon Restricted Products
- What Is an Amazon #1 Best Seller?
- How to Find the Best Products to Sell on Amazon
- What Is the Best Selling Strategy on Amazon?
- Where to Get Products to Sell on Amazon
- Make Your Own Brand The Best Amazon Products
Is it Profitable to Sell on Amazon?
If you’re wondering whether selling on Amazon is worth the effort, the answer is clear: definitely, it is! And it’s easy to get started. We talked with several business owners who shared their positive experience with Amazon sales. Michael Jackness, the cofounder of Ecom Crew told us: [su_quote]I always recommend starting on Amazon. They have everything that makes a good ecommerce site: Eyeballs, Fulfillment, and Traffic.[/su_quote] Casey Walters, the owner of Shed Defender, told us that his Amazon selling accounts for about 65% of his business’s sales. He also told us: [su_quote]Our margins are 40-70% depending on the sales channel: Amazon, our website, or wholesale.[/su_quote] Check out our interview with Casey below. [su_youtube url="https://www.youtube.com/watch?v=XTiks_VFTMo"] Now that we know you can count on making a profit with your Amazon business, let’s look at why you should choose Amazon over other e-commerce platforms.Why You Should Sell on Amazon
You should sell on Amazon for several reasons:
- Amazon had over 2.4 billion views in March 2023, according to SimilarWeb. (Only Google, YouTube, and Facebook have more.)
- Amazon categories make selling items easy.
- Fulfillment by Amazon (FBA) handles fulfillment, shipping, and quality control so you can focus on growing your business.
- Amazon has the most sophisticated logistics network on the planet. This helps you provide better service to your customers.
Features of Best Products to Sell on Amazon for Beginners
Before you open your Amazon store, doing a bit of research about what products are easy to sell will pay off in the long run. Michael Jackness told us: [su_quote]Picking the right niche and market is really important.[/su_quote] The best product to sell on Amazon will have the following characteristics: [su_note note_color="#dbeafc"]- Low Competition
- High Demand For the Product
- Low Shipping Costs
- $10-$100 Selling Price
- Small Dimensions and Weight (These factors impact the Amazon seller costs.)
- Lower Amazon Commissions
- High Profit [/su_note]
What Are the Best Products to Sell on Amazon?
Based on our criteria above, we used Jungle Scout’s Opportunity Finder from 4/12/23 to find very low competition keywords that sell at least 1,000 per month at a value of $10-$100 with a niche rating of 6-10. We also excluded big brands and highly seasonal items. It produced 266 products across the following product categories:| Top Performing Categories | |||
| Category | Rank | Results in Top 200 | Percent of Top 200 |
| Toys & Games | 1 | 38 | 19.39% |
| Health & Household | 2 | 31 | 15.82% |
| Beauty & Personal Care | 3 | 29 | 14.80% |
| Grocery & Gourmet Food | 4 | 23 | 11.73% |
| Clothing, Shoes & Jewelry | 5 | 18 | 9.18% |
| Baby | 6 | 15 | 7.65% |
| Home & Kitchen | 7 | 12 | 6.12% |
| Kitchen & Dining | 8 | 9 | 4.59% |
| Tools & Home Improvement | 9 | 5 | 2.55% |
| Pet Supplies | 10 (Tied) | 4 | 2.04% |
| Sports & Outdoors | 10 (Tied) | 4 | 2.04% |
| Patio, Lawn & Garden | 10 (Tied) | 4 | 2.04% |
| Cell Phones & Accessories | 13 | 3 | 1.53% |
Games and Toys
According to Jungle Scout, toys and games were the most purchased product category with nearly 20% of the top 200 top product ideas. The most popular selling items during this time were:
[su_note note_color="#dbeafc"]
- Easter Items: 12 of the top selling items
- Squishmallows: 7 high performing keywords
- Fake Money: 4 high performing keywords
- Buffalo Puzzles: 3 high performing keywords
- Water Guns: 3 of the top selling products under $100
- Pool Floats: 2 appearances on the list -ne for swimming floats for kids/babies, the other for adults floats
- Chuckle and Roar: 1 appearance for the popular board game
- Thomas and Friends: 1 appearance
Health & Household
The next most commonly sold items come from the health and household category. There were 31 high-demand products on this list, including: [su_note note_color="#dbeafc"]- Tejocote: 7 appearances for this Mexican root that provides vitamins, minerals, and appetite suppression
- Pain Relievers/Headache Medicine
- Triple A Batteries
- Drain Cleaner
- Other Vitamins and Minerals
- Cleaning Products
Beauty Products & Personal Care
Beauty product ideas include items like:
[su_note note_color="#dbeafc"]
- Travel bags and razors
- Hair dye
- Sunscreen
- Soap, Shampoo, and Conditioner
- Body Scrubs
- Lash Growth Stimulating Products
Grocery & Gourmet Food
Food products are among the popular categories for Amazon buyers, with 23 items that have low competition amongst Amazon sellers. You might want to consider: [su_note note_color="#dbeafc"]- Candy (especially for approaching holidays)
- Orange Juice
- Energy Drinks
- Coffee and Creamer
- Powerade
- Soda
- Eggs
- Peanut Butter and Jelly
Clothing, Shoes, and Jewelry
Clothing, shoes, and jewelry all make good product ideas to sell on Amazon. High ranking profitable products for Amazon sellers include: [su_note note_color="#dbeafc"]- Toddler Shoes and Sandals (specifically sizes 6, 9, and 10)
- Matching Outfits
- Gynecomastia Compression Shirts
- Plaid Shirts
- Kids Crocs
- Taylor Swift and Sublime merch
- Cable and Gauge Tops
Baby Products
There is consistent demand on the Amazon store for baby products, including:
[su_note note_color="#dbeafc"]
- Breastfeeding Equipment and Storage for Milk
- Hello Bello Diapers
- Pacifiers and Accessories
- Baby Pillows
- Airplane Beds
- Wash Cloths
- Baby Wash/Shampoo
- Mama Bear Diapers
Home & Kitchen
The home and kitchen category has a lot of demand without too much competition for the following products: [su_note note_color="#dbeafc"] [/su_note]Kitchen & Dining
Some low-competition products that are in high demand while online shopping are: [su_note note_color="#dbeafc"]- Cruise Ship Magnets
- Slushie Cups
- Bread Mats
- Seasonal Tablecloths
- Cakepops
- Gifts for Women
- Pink Dish Rack
- Dash Griddle Mini Maker
Tools & Home Improvement
The tools and home improvement category has consistent sales in:
[su_note note_color="#dbeafc"]
[/su_note]
If you start selling these products, you won’t be competing with many other sellers.
Pet Supplies
Another popular category to sell products is pet supplies. There are some products I was surprised by that are easier to rank, including: [su_note note_color="#dbeafc"]- Dog Whistles
- ChomChom Rollers (pet hair removal tools)
- Cat Scratch Carpet Protectors
- Fancy Feast Purely
Sports & Outdoors
You’d be surprised by some of the things that end up in best-selling categories. Jungle Scout suggests someone start selling: [su_note note_color="#dbeafc"] [/su_note] You can always go with staples like camping equipment too.Patio, Lawn, and Garden
Surprisingly, all the easy keywords were about trapping mice and rats habitating in your garden. If you look at the best sellers in Amazon Marketplace, you find a completely different story. The garden best-selling categories include items like:
[su_note note_color="#dbeafc"]
[/su_note]
Electronics/Cell Phones & Accessories
I used ahrefs to investigate the search volume of certain keywords on Amazon, and it showed some interesting numbers within the electronics categories. Nearly 60% of searches involved electronics, which is weird because you’d think if so many people research products on there that there would be some crossover between the ahrefs results and Jungle Scout. My guess is that with so many sellers, the electronics are highly competitive. Items that make this list include: [su_note note_color="#dbeafc"]- Computers
- iPhones and accessories
- Headphones and ear buds
- All video game systems
- Security systems like Ring
- Mice, keyboards, webcams, and other computer accessories
Amazon Restricted Products
At this point, you know everything you could possibly want to know about top selling Amazon products, but what about Amazon seller restrictions?
Restricted products on Amazon include 41 categories. For some categories you can’t sell at all, and for others you have to follow specific rules. Just make sure you read the rules for each category in which you sell. Review Amazon’s restricted categories page before selling stuff on Amazon.
Can you sell alcohol on Amazon?
Maybe. Amazon does allow wine sales, but there is a catch. Many states do not allow direct-to-consumer sales of alcohol, and it is the seller’s responsibility to follow all state and local laws. There’s a loophole though. As an online business, you are allowed to sell brewing kits with all the ingredients to brew alcohol. Learn more about Amazon’s alcohol policies.What Is an Amazon #1 Best Seller?
An Amazon best seller rank compares the current sales and the sales history. If a product is ranked #1, it means that it is the most sold item on Amazon in that category during the specific hour. The most bought items on Amazon may be shown for the entirety of Amazon, but each store also shows their trending items on Amazon.
How to Find the Best Products to Sell on Amazon
There are a lot of ways to perform product research as an Amazon business. Aside from Jungle Scout, other sources for researching profitable products include:- Amazon's Best Selling Products
- Researching Competitors’ Stores
- Keyword Research
- Find Private Label Products to Sell on Amazon
- Use Retail Arbitrage to Source Amazon Products
- Find Direct-Source Products on Amazon
- Check Out Other Marketplaces
- Avoid Big Brands
- Consider Selling Custom Print-on-Demand Products on Amazon
- Reverse Engineer Top Industry Amazon Affiliate Publishers
Amazon's Best Selling Products
Amazon knows what their customers want better than any third party. They know their exact search volume, click-through rate, and top purchases. Other sites that report on Amazon sales can only pull the information from Amazon and try to guesstimate their algorithms. Knowing this, the first step you should take is to review Amazon’s best sellers page. It will give you a good idea of what product categories and items sell well. The picture below shows the top-selling items at the time of writing.
Research the Competition
Next, you’ll want to use product research software like Jungle Scout or other Amazon seller tools. These sites help an e-commerce business:- Identify top-selling products
- Track performance over time
- Find high-performing keywords
- Source products
- Create optimized product listings
- Learn about selling items on Amazon
Keyword Research
Once you perform product research and decide what items to sell online, You’ll need to perform keyword research to find:
- Search Volume
- Sales Volume
- Price
- Keywords for Title and Product Description
Find Private Label Products to Sell on Amazon
Private label selling can be highly profitable if there is an untapped market. If you find items that are completely missing from Amazon selling, find a way to source them and start selling before other sellers realize they can underbid you.Use Retail Arbitrage to Source Amazon Products
Retail arbitrage is a method of finding products that are being sold at a lower price at one site or retailer, buying them all, and then selling them somewhere else.
Many of the best things to sell on Amazon may be discontinued or limited edition items. Amazon top sellers can often buy trending products at retail prices, mark them up, and then make two or three times the manufacturer’s suggested retail price.
These items become trending products on Amazon and other e-commerce platforms. Learn more about an eBay seller’s retail arbitrage tricks and try them with Amazon trending products.
What Can You Sell On Amazon: Direct-Source Products
If you can bypass the wholesaler and go straight to the manufacturer, this will lower your cost per item dramatically—but you’ll have to buy more of each product. This is both a benefit and a potential risk because your storage fees will increase, but your gross margin will also increase. As long as you can sell the items within a month, you shouldn’t be hit with huge storage fees.Check Out Other Marketplaces
Another place to find best selling products is on other websites. You can use a tool like CNET shopping extension to find places online that sell a product for a lower price.
Avoid Big Brands
Top-selling items on Amazon are often big name brands. These won’t be the most profitable items to sell on Amazon because you have to have a:- Higher seller’s rank
- Better SEO strategy
- Lower product cost
Copy Amazon Affiliate Strategies
Influencers are in all the selling categories. They know how to build their own brand, and they can turn ordinary things into trending Amazon products. Find the best influencers in your industry and study what they do. When they release a new video for a product, put those trending things on sale.Use Google Trends
Google Trends shows you what is trending on the world’s largest search engine. Trends on Google can soon become some of the best products on Amazon. Just be aware that the Amazon best selling products change fast.
Make sure to check whether the hot items to sell on Amazon are short-term or cyclical. A celebrity blooper is probably short-term, while NFL merchandise is cyclical because it will have another season the next year.
What Is the Best Selling Strategy on Amazon?
There are four main ways of selling on Amazon. They each have their pros and cons, and if you want to achieve sustainable growth, you should consider each of the strategies and your own products before deciding. We’ll discuss each of the strategies below.- Amazon FBA
- Amazon Merch
- Print-on-Demand
- Digital Products
- Fulfillment by Manufacturer
Amazon FBA
New sellers will want to consider using Fulfillment by Amazon (FBA). Both Ryan and Casey use Amazon FBA. Ryan told us:
[su_quote]When you sell Amazon through FBA your products become Prime eligible.[/su_quote]
The top sellers on Amazon typically use this strategy because it improves their shipping costs, customer service, and click-through rate.
Most products will work well with Amazon FBA, but larger products can get more costly quickly because of the storage costs and shipping fees. We discuss this strategy in our FBA blog.
Amazon Merch
Amazon Merch is Amazon’s print-on-demand service. New sellers that just want to sell shirts, hoodies, tote bags, phone cases, pop sockets, and throw pillows will want to apply for this business model. Amazon approves designs and starts selling them on the website. You’ll get between 80 cents and $3.00 royalty for each of your products Amazon sells. Products qualify for Amazon Prime too.Print-on-Demand
Most print-on-demand companies don’t qualify for Prime membership like Amazon Merch. It normally takes two weeks for the customer to receive the product. The benefit of working with Print-on-Demand companies is that other companies like Printful have more of the most profitable product categories. They can also be connected to other e-commerce sites. These are best for products that Amazon merch does not offer.Digital Products
In case you’ve forgotten, Amazon started as a bookseller. Needless to say, one of the best products to sell on Amazon is books. You can sell books as ebooks and paperbacks. This service is called Amazon Kindle Direct Publishing or (Amazon KDP).
Fulfillment by Manufacturer
If you use other e-commerce sites and do your own manufacturing, your own private label business might want to fulfill orders. The problem with this is you have to have more monthly sales volumes to pay for the location and all the shipping. This strategy is normally used by higher volume sellers who have developed a reputation and can benefit from higher sales margins when people visit their own website.Where to Get Products to Sell on Amazon
You can get products to sell on Amazon from the following locations:- Dropshipping Companies
- Wholesalers
- Private Label Sellers
Dropshipping
Buying from dropshippers can be a good way to get Amazon top-selling items. When you work with a dropshipper, you are mostly focused on the keywords and marketing for the top Amazon products. The dropshipping company will ship the products once you pay for the things you sell on Amazon.
Wholesale
Wholesaling is buying items from a manufacturer or distributor in bulk then marking up prices on those the best selling Amazon products. This method normally helps you get the best items on Amazon at a lower price per item, but your overall startup costs will be higher. Check out our blog about how to get your products in stores to learn more about wholesalers.Private Label
A private label requires designing your own products with the help of a manufacturer. You can talk to manufacturers on Alibaba or AliExpress to find suppliers that can help you create things to sell on Amazon. There are also locations in the U.S., but they are normally best for product development and small order sizes. Learn about manufacturing before you engage with a manufacturer.
Make Your Own Brand The Best Amazon Products
At this point, you know: [su_note note_color="#dbeafc"]- What sells the most on Amazon
- Ways to identify the best Amazon finds
- What can I sell as a new seller?
- Where to buy products to sell on Amazon FBA
Resources
Wonder where we got the statistics in the first paragraph? You can find them (and a lot of other great info) here:- 74 Amazon Statistics
- The World's Tech Giants, Compared to the Size of Economies
Do you love dogs? What if you could harness your affection for animals to provide a fun and safe place for pets to hang out while their owners go about their routines, vacations, and unexpected events?
According to the latest statistics, Americans recently adopted new pets at a staggering rate, especially dogs. Rover.com reports that 49% of Americans adopted a new dog during the early COVID pandemic.
If you ever thought about working with dogs, here's your cue to secure the rewarding livelihood that a dog boarding business can provide.
We interviewed Larry Fosnick Davis and his wife. They conditioned their Seattle-based dog daycare and boarding business, Metro Dog Seattle, for continued success.
With all the great insight Larry offered, we were able to compile this step-by-step guide to help you start your very own boarding business. Keep reading to find out if opening a dog daycare is the right business for you.
Let's start with an overall view of the pet care services industry.
Research if Professional Pet Boarding Certification (PPBC) might help you achieve credibility in your desired market.
Other certification programs are available through the IBPSA, NAPPS, and NDGAA.
After all, earning a certificate from a respected organization could be a good selling point to set you apart from the local competition. It makes sense, right?
Gain experience by jumping at the chance to:
Larry and his wife started small. Initially, they sat pets and walked dogs for extra income. Two decades later, they invested $700k to open a larger location to serve as a local “community center for pets.”
Please keep it simple by registering with a service like Rover.com, a bookings portal for sitters and dog walkers. Also, read this article on how to start a pet sitting business.
You’re super excited about the idea of making tons of fluffy friends, right?
So, let’s document a plan to put this idea in motion. A business plan is crucial, and we have advice and resources to help.
Remember branding when choosing a name because it's like a shiny label your business wears to distinguish itself from others.
Ask yourself how your name will look on a logo or graphics and an image you might incorporate that complements your selected moniker. Learn more in the sales and marketing section (Step 13) of this guide.
Now let’s consider your labor options. Like Larry and his wife, you could start on your own or with a partner, at least until business picks up.
Limiting staff keeps costs down without worrying about whether you can pay employees fairly and keep them around. It's a perfect option if you plan to start with walking and sitting gigs rather than a full-on boarding facility.
However, hiring someone who has experience could get things off the ground sooner rather than later if you have the money to do it.
Just be sure that whomever you hire has the same level of passion for pet care as you and that they’re comfortable and confident working with dogs of all breeds and sizes.
For inspiration, view this kennel attendant job description and interview questions.
If you bring on some helping hands, use the following checklist to comply with employment laws:
The most important part of dog boarding is keeping your furry guests safe and healthy. After all, that’s why their owners brought them to you. The safety of you and your staff is also a top priority.
It’s time to talk finances. Ambling in this area will prevent your kennel business from covering the ground it needs to succeed. Let me explain.
The digital age all but demands a strong strategy for online marketing. You’ll fare much better if you set up a website, social media profiles, and email newsletter subscriptions.
If you’re interested in going further, buy digital ads, try search engine optimization (SEO) techniques, and set up a digital business card with Popl.
A fun fact is that featured snippets can establish you as a dog-boarding authority. It's worth your time to learn how to optimize for these in your web-based content.
After mapping your processes, set expectations of acceptable and prohibited behavior (by staff and customers) with clearly written policies centered around topics such as:
Step 1: Learn more about pet boarding
Let's start with an overall view of the pet care services industry.
What is dog boarding?
Simply put, dog boarding is the act of caring for dogs while their owners are away. Boarding facilities charge a set fee to pet owners for an agreed-upon length of stay. The goal is to provide a safe and fun place for animals to lodge when pet owners have obligations to attend to or want their animals to socialize. Simple, right?Learn the lingo
Learn the "dog words" associated with this business by checking out this glossary published by the American Kennel Club (AKC), a leading authority on dogs in the United States. Study other terminology sources, such as this grooming glossary provided by Petco.Trade organizations
The good news is that there are wonderful organizations that set standards for the doggy care industry. Here are a few notable ones.Dogs
The AKC is a respected, 130-year-old non-profit organization dedicated to canine pets. Turn to them for expert advice on breeds, behavior, products, and services.Cats
The Cat Fanciers' Association (CFA) and Alley Cat Allies provide information for feline pets.Other international and national organizations
Related trade organizations for animal lodging and care include:- The International Boarding & Pet Services Association (IBPSA)
- National Association of Professional Pet Sitters (NAPPS)
- National Dog Groomers Association of America (NDGAA)
Publications
Pick up a copy of Pet Boarding and Daycare magazine and leap into this list of other pet-related publications.Certification
Research if Professional Pet Boarding Certification (PPBC) might help you achieve credibility in your desired market.
Other certification programs are available through the IBPSA, NAPPS, and NDGAA.
After all, earning a certificate from a respected organization could be a good selling point to set you apart from the local competition. It makes sense, right?
Step 2: Pick up some training and experience
You’ll want to fetch some training and experience. There’s a lot that goes into caring for dogs, so you’ll need to be sure you have what it takes to keep both them and their owners happy. Let's get into it.Training
Now let’s go over some skills you’ll need to operate a boarding business confidently. Technical abilities are a must. Of equal importance is nurturing the soft skills furry four-legged friends need to feel safe and secure. Let me explain.Technical abilities
Complete a course on pet handling techniques like low-stress and fear-free. According to Larry, these skills—along with pet first-aid—are essential to pet owners. He says: [su_quote]The public as a whole started to realize how important it was that their hired caregivers have the same sort of qualifications that you might find in a human daycare provider.[/su_quote] Pursue additional training in the following areas:- Pet safe cleaning and sanitation to limit the spread of disease
- Breed knowledge to understand their various needs
- Grooming, such as nail clipping, brushing, and bathing
Soft skills
OK, I know what you're thinking: what about those soft skills? Here are some tips on techniques to learn and practice:- Clear communication because owners love their pets and want to talk about them!
- Patience because you will need to learn and adapt to many personalities, both human and pet.
- Empathy because you'll be caring for someone's best buddy, often considered a family member.
Reference material
The American Society for the Prevention of Cruelty to Animals (ASPCA) maintains an engaging library on dog care that I recommend you review and save to your favorites list to reference as needed.Experience
Gain experience by jumping at the chance to:
- Work for a boarding business.
- Walk dogs or pet sit with apps like Rover.com or Wag.
- Work in a related field, such as for a veterinarian, groomer, or animal shelter.
- Watch pets for friends and family.
- Take a pet first-aid class, like the one offered by Metro Dog.
Pets at home are OK, but not enough
Prior experience with pets, not just the ones at home, is highly recommended because you will need to determine if you can:- Physically handle different breeds and sizes of dogs.
- Deal with various personalities and behaviors.
- Properly feed, medicate, and groom them.
- Know how to recognize issues that require you to call a veterinarian or the owner.
Step 3: Decide what type of animal boarding business is right for you
When you think of the ubiquitousness of pets and how much people love them, the number of pet business ideas from which you can profit is wide open and very promising. As such, boarding kennels can trail off into several different directions, so you'll want to know which is best for you. Prepare yourself for this important decision by taking IBPSA's complimentary webinar on business models. The following sections offer some specific points to consider. Keep reading.At-home kennels
There are two types of home-based kennels: at the customer's home or in your home. And here's a fun fact: Experts feel this is a wonderful option for anxious dogs. If you offer this arrangement, be transparent about other pets and pet guests in the home and the conditions of the house. Consider setting up a meet-and-greet with prospective customers. Before trotting off in this direction, check local laws and ordinances, especially if you’re a renter.Pet sitting and dog walking
Larry and his wife started small. Initially, they sat pets and walked dogs for extra income. Two decades later, they invested $700k to open a larger location to serve as a local “community center for pets.”
Please keep it simple by registering with a service like Rover.com, a bookings portal for sitters and dog walkers. Also, read this article on how to start a pet sitting business.
Housesitting
Don't snooze on offering dog sitting as part of housesitting as these services are often combined and allow you to travel to exciting destinations. Like pet sitting and dog walking, housesitting is an excellent way to begin your business with limited start-up funds.Investigate how to start a dog kennel
Kennel-based animal care facilities might be what most people think of for boarding. There are crated and private room facilities, like The Doggy Dorm. There are even crate-free layouts, like at Dogs Unleashed. If you’ve got the resources to make it happen, consider opening a brick-and-mortar location. Big or small, physical space will provide the most freedom to allow you to accept more furry guests than doing it at home.Start a doggy daycare at a veterinarian's office
If you are a veterinarian, then assess how to offer kenneling as an additional service. Pets with age-related or health issues usually benefit from this amenity.Include cats and other pets
Tips for boarding other types of pets are available on petinsurance.com.Diversify
Larry and his wife diversified their services to include daycare, boarding, pet sitting, walking, first-aid training, and more, made possible by their years of experience in the industry. Some providers endorse and sell products, such as personalized tags and collars, shampoos, and collapsible dog dens. Larry says retail is new for his business and, while speaking about Metro Dog’s new location, mentions: [su_quote]We also have multiple play floors and ... private dog rooms for dog breed meetups, dog birthday or adoption parties, etc.[/su_quote] In addition: [su_quote]We have our own classroom to teach pet first aid ... we have a treatment room where we can offer a variety of animal health services.[/su_quote] So, don’t be afraid to add on products and services related to pets.Step 4: Write a dog boarding business plan
You’re super excited about the idea of making tons of fluffy friends, right?
So, let’s document a plan to put this idea in motion. A business plan is crucial, and we have advice and resources to help.
Sniff out the market
Before drafting your business plan, it’s best to analyze the market. Tease out your target audience and local options for pet lodging. Here's the magic: you'll land in a better position to make intelligent decisions.Be specific
No matter the type of business, the sections of a business plan are the same. Make it a practical, living document by delving into specifics within each area. Specific items to highlight in your kennel business plan are:- Additional services you might provide
- Answering the question, "Are there kennels in my area?"
- The best location for starting a dog kennel
- Financial projections and costs, especially as the business grows
- Pet boarding kennel insurance to provide adequate coverage
- Regulations for being a pet boarding business owner
- The unique competitive advantage of your professional dog kennel
Be flexible
We’ve all done it: create a beautiful plan on paper only to realize that bringing it to life requires adjustments. Larry says: [su_quote]When we did our original business plan, it looked great on paper. But in practice, many of the ideas were not as great as we thought and required a change in paradigm.[/su_quote] The bottom line is that while you need to go through the exercise of writing a business plan, it’s not a static document. Just remember to be flexible and embrace change, and everything will work out.Step 5: Choose the right name for your pet care business
After figuring out your boarding business model, devise a memorable and playful name. Let me show you how.Have fun, but leave some wiggle room
Make sure the name is easy to spell, pronounceable, and gives strangers some idea of what your business does. For instance, Room & Bark Boarding Services is light and easy to say, and there’s no guessing what the enterprise offers. Are you not sold on cute and quirky names? Then try sleek and elegant or something that includes your location, like South Austin Pet Lounge or Metro Dog Seattle. Try to ensure it won't need changing in the future because that can be troublesome and expensive.Hang a tag with a brand
Remember branding when choosing a name because it's like a shiny label your business wears to distinguish itself from others.
Ask yourself how your name will look on a logo or graphics and an image you might incorporate that complements your selected moniker. Learn more in the sales and marketing section (Step 13) of this guide.
Gobble up a dot com
Check to see if your business name is available as a dot com. Using one for your website will give you an established look and make your virtual address easier to remember. Search for available domain names and dig into UpFlip's guide on creating a website. Give it a go!What if I buy an existing business?
In most cases, boarding kennels that are "for sale by owner" already have a name. Research the business' reputation to decide if you want to keep the name or rebrand with a new one.Chew on a bit of feedback
Run your name through Google Trends and seek your friends' and family members' feedback. Google Trends will tell you what searches are trending on the Internet, while your friends and family will just tell you their opinions. After that, you decide, but it can’t hurt to hear what others think, especially if they’re looking out for your best interests.Registration
If all looks good and you’re ready to make it official, then register your business name with the government.Step 6: What is legally required to start a dog daycare business?
Selecting a legal structure is like placing your doggie daycare in the right-sized crate. The truth is, this step is usually beyond the expertise of many entrepreneurs. So, expect to incur costs engaging the services of an accountant, attorney, and tax professional. The best part is, many of these professionals make excellent business coaches!Licenses and permits
Figure out what licenses, permits, and tax forms you’ll need. It all depends on your location and the services offered. For example, your city might have a barking ordinance. It's understandable.Structure
Evaluate how to set up your business as one of the following:| Type | Description |
| Sole proprietorship | The easiest option, but doesn’t protect personal assets. |
| Limited liability corporation | Protects personal assets and provides tax advantages but has time-consuming administrative requirements. |
| Franchise | It’s an agreement to sell services for a franchisor in exchange for an already established business, sort of like a pre-assembled doghouse. |
| Corporation or partnership | A less likely option because most pet boarding businesses employ fewer than 50 people. Learn more on Investopedia. |
Regulations
As expected, dealing with live animals and their byproducts merits a figurative collar and leash to control the effects on the facility, community, and environment. Learn about regulations in your locale and comply with them. For example, the Ohio Environmental Protection Agency (OhioEPA) has precise rules about animal waste. Non-compliance can result in serious penalties. Don't let this be you.Step 7: Select a location
Larry and his wife found a dog daycare location in 2001. He says: [su_quote]We found a suitable location in August 2001 and signed the lease a month later. We opened for business November of that year.[/su_quote] The location you can have or access goes paw-in-paw with the type of boarding business you can own. Let me explain.How much does it cost to build a dog boarding facility?
A brick-and-mortar location requires you to investigate the feasibility of building a new facility, leasing a space, or buying an existing building. While investigating, ask yourself the following questions:- Can I find a dog boarding business for sale in the area where I want to do business?
- Is there commercial leasing for a pet boarding business near me?
- What's the proximity to similar boarding facilities?
- What are the area's demographics, and how do they compare to my targeted customer base?
- Is this location the right size for the services I want to offer?
- Should I buy a business for sale?
- What utilities and infrastructure are needed?
- What are the zoning laws for my type of business?
A quick note about leasing a commercial property
Investigate the condition of the property to ensure business disruptions will be minimal. At least make sure the building passed its code inspections. Nevertheless, some things are unavoidable, like when Larry’s landlord closed his whole building for two weeks—right in the middle of the busy summer boarding season—to upgrade the electrical system.Designing a kennel or at-home location
The right location and design will elevate you to alpha status in this business. The Barkleigh Store (cute name) sells a book on how to design a kennel. Information for an at-home operation is also available in Upflip’s guide on starting a pet sitting business. No matter your location, zoning is super-important. Learn as much as you can so that you don't bark up the wrong tree with local authorities, especially the public health department.Step 8: Hire the right people
- Obtain an Employer Identification Number (EIN) from the IRS.
- Keep employment tax records per this guide provided by the IRS.
- Pay federal unemployment tax.
- Hang Workplace Posters in a visible spot.
Step 9: Stock your boarding facility with equipment and supplies
However you decide to outfit your boarding business, just remember that cleanliness and organization are your keys to success. Now let’s go over the equipment and supplies you'll need.Basics
If you’re planning to start small like Larry and his wife, only basic supplies and equipment are needed. It should include the following:- Hands-free leash and waist pack
- Poop bags
- Pet first-aid kit
- Dog wipes
- Treats and water
- Headlamp
Brick-and-mortar
For those opening a brick-and-mortar boarding business, there’s quite a bit more to consider. Most importantly, the days of crated dog care are on their way out, as many dog owners now prefer cage-free environments for their precious companions.Overnight boarding
Have some crates and large kennels for overnight care. To keep up with the progression of daytime dog care, customers prefer open areas where dogs can socialize and play.Indoor and outdoor spaces
Cutting-edge boarding facilities include indoor and outdoor spaces, so you’ll want to consider materials for outfitting both if that’s the route you take. The Home Depot offers a delightful collection of dog playground equipment.Cleaning and sanitizing
Once you build a safe and secure space for your four-legged guests, you’ll need plenty of cleaning supplies to keep everything sanitized. Pick up basic grooming supplies, like bathing stations, soaps, shampoos, plenty of towels, and nail trimmers.Decor
There are so many whimsical and clever ways to decorate a pet-focused business. Take advantage of the possibilities and be creative! Larry says this about his new facility, “It’s also bright on colors and lighting. Even during the public health inspection, the inspector commented on how nice and bright it is.” If you’re looking for inspiration, then check out what Amazon.com has to offer.Step 10: Incorporate safety protocols for boarding kennels
The most important part of dog boarding is keeping your furry guests safe and healthy. After all, that’s why their owners brought them to you. The safety of you and your staff is also a top priority.
First aid
As we mentioned earlier, you and your employees will need training in first aid for dogs. Keep contact information for each pup’s veterinarian on file. It wouldn’t hurt to have a working relationship with a local vet’s office, just to be safe. Being up to speed on basic human first-aid will also be helpful in the case of a bite or other injuries.Meet and greet
Require a “trial day” to help prevent incidents. During the evaluation, closely monitor new dogs to get to know them. Be sure you and your staff can accommodate and address any anxiety and behavioral issues your pet guest presents. Require all clients to provide vaccination records for their dogs to limit the spread of illness and disease. All dogs should also be spayed and neutered. In addition, discuss these areas in your safety plan:- Americans with Disabilities Act (ADA) compliance
- General things that can go wrong and how to handle them
- Regular inspections for safety issues
- Sanitation
- Working conditions per Occupational Safety and Health Administration (OSHA) requirements
Step 11: Get the right insurance
I've been there, thinking there’s insurance for everything nowadays. You’re probably asking if you need to take on that extra expense. The short answer is a resounding yes. Insurance protects your business if something happens to a dog, you, or your property. General liability insurance is a must because it covers bodily injury, property damage, and medical payments—all-important for a pet business. On average, kennels spend $300 to $700 for every $1m in coverage, which is about what other types of businesses spend on this type of insurance policy. Other types of coverage to consider are:- Commercial property insurance
- Commercial umbrella insurance
- Commercial auto insurance
- Home-based business insurance
Step 12: Handle your kenneling costs and revenue with a sound financial plan
It’s time to talk finances. Ambling in this area will prevent your kennel business from covering the ground it needs to succeed. Let me explain.
Bank account
Accounting, taxes, and money flow are easier to manage in one location, such as a business bank account for all your business transactions. Some businesses even set up a separate account for payroll.Budget
A well-thought-out budget is like a dog gate to secure your finances by keeping them where you want them to be. If numbers aren’t your thing, explore affordable budgeting courses from Udemy.com and Coursera. Manage your budget with an application like Xero or QuickBooks.Funding
Ways to acquire funds for your new business include the following:- Angel investor or venture capitalist
- Credit cards
- Crowdfunding
- Government programs
- Home equity loan
- Partnership
- Personal funding
- Loans from friends or family
- Loans from a lending institution
- Rollover for business startups (ROBS)
Pricing
Pricing is a mysterious obstacle faced by many business owners. Take control of it by determining the value of your service. Start by researching your market and competition. Refer to the market analysis section of your business plan, check the prices in that market, and then use the information to determine your value proposition on the price of kenneling dogs or cats.How much is dog boarding?
Most boarding businesses charge by the day, with the option for add-on services like grooming. The American Pet Products Association (APPA) publishes market research every other year, informing what consumers spend and other significant data. Give it a chance. Keep in mind that you might need to increase prices annually to keep up with minimum wage increases and inflation.Revenue
You might be wondering how much a dog boarding business makes. For Metro Dog Seattle’s first two years, the salary from Larry’s full-time job supported the business. After the start-up period, however, revenues grew enough to employ Larry and his wife full-time. Although Larry and his wife opened the doors in 2001, weathering economic and global events over the years, within the last five years, his revenue increased from $660k to over $800k annually. Not bad. Cuddle up to this dog daycare cash flow. See what the average consumer spends annually on pet ownership—including boarding costs—on Investopedia.com.Step 13: Kick-off a sales and marketing campaign
Marketing attracts customers, and sales bring in revenue. Be the leader of the pack by following the advice in the sections below.Know your customer
Here's the magic: Tapping into the pet care services market won't be difficult as consumers are already spending tons of money on pet hotel costs. In fact, according to recent Economic Census statistics, consumer spending on pet care services totaled $5.8bn. Think about that for a minute. Figure out what your ideal customer looks like by creating a customer avatar. Keep reading.Partnerships and Specials
Build relationships with other entrepreneurs. Veterinarians, pet stores, and groomers might be open to exchanging service promotions. For instance, “Buds N Suds” grooming can provide their customers a unique promotional code to redeem with your business for 10% off your services—or vice versa. At Metro Dogs, Larry offers special deals for foster and service dogs. Think about what this could mean for your business.Establish a logo and brand identity
DIY or hire a graphic designer to develop a simple and effective logo and brand identity. Branding is your visual introduction to the public, so be sure to do the work required. While you're at it, follow Forbes' expert advice for small businesses. It provides excellent guidance for establishing your:- Tone - Are you professional, casual, or funny?
- Values - What’s important, and how will you communicate it?
- Blog - Because 81% of readers trust the information.
Digital marketing
Printed marketing collateral
Include printed materials in your marketing strategies, such as brochures, car magnets, flyers, door hangers, t-shirts, and other printed items. Take advantage of the robust templates and graphics-editing tools on Canva.com.Direct contact
Direct contact can be effective. Visit dog parks or even try cold calls to fetch initial clients.Professional appearance as a walking advertisement for your business
Sales and marketing tactics are super important, but what reigns supreme is your level of service and how you represent your business. Maintain a clean and organized facility. Provide efficient and friendly service to match. Implement neat uniforms, even if it's simply a branded polo shirt.Reviews
Proactively seek reviews and respond to negative reviews professionally. Take it from Larry, who says: [su_quote]The achievements we’re most proud of are what our clients have to say about us.[/su_quote]Media outlets
Don’t leave traditional media outlets out of your marketing plan because they can still provide great exposure for your business. Television talk shows interviewed Larry and his wife, and he’s written articles about pet safety. The Seattle Times quoted him about safety hikes with dogs, and the couple demonstrates pet first aid at events.Step 14: Establish sound business processes for daily operations
Business process maps might seem like something giant corporations pay consultants tens of thousands of dollars to create. However, they're a simple tool that any entrepreneur can use to:- Establish operational processes.
- Create customer-facing materials.
- Deploy new products and services.
- Work through the ideal and alternative paths of daily processes.
Key processes to document
Here are a few ideas of process diagrams you can create to document your business operations:- Acclimating new pet guests
- Answering pet parents’ questions and concerns
- Handling incidents
- Laying out the facility
- Keeping people and pets separate and secure
- Processing payments and reconciling accounts
- Running the back office and providing administrative support
- Sanitizing on a schedule and performing the related activities
- Scheduling exercise, feeding, and grooming
Policies
After mapping your processes, set expectations of acceptable and prohibited behavior (by staff and customers) with clearly written policies centered around topics such as:
- Behavior
- Emergencies
- Hours of operation
- Food
- Health conditions and medications
- Payment
- Pick up and drop off
- Weather events
- Vaccinations
People will always need pet care, so go out and do it!
The three pillars of Metro Dog Seattle’s success are tenacity, knowledge, and flexibility. As Larry says: [su_quote]You always keep your options open and never ever give up.[/su_quote]Now that you know what it will take to open your very own dog boarding business, what's your next step?
At this point, there's not much standing between you and a room full of loveable furballs! Ask yourself the following questions:- Am I the right person to own a pet boarding business?
- Do I have what it takes to handle customers and their concerns?
- How can I ensure my facility is profitable?
- Do I still want to be a dog daycare business owner?
Have you ever wondered how to sell on eBay? eBay selling can make over $400K in revenue, and you can start with the money in your pocket.
Mike Wilson started Rideshare Reseller and the Golden State Picker social media channel after 30 years of owning a retail furniture store. Now, he’s bringing in revenue of $30,000-$35,000 a month selling on eBay. He shares his tips for success, including where he finds the items he sells today and how to price products.
We’ll share everything you need to know, from setting up your eBay seller account to finding the best products. We’ll even do a guided walk-through where I actually list an item and set up a shop. Once you’ve read this you’ll be confident you can start selling products.
Starting an eBay store is free. As of January 2023, you can currently list up to 250 items each month at no charge, but eBay may change its terms over time. You can get subscriptions that come with more features for prices ranging from $4.95 per month to $2,995 per month. There are five levels:
[/su_table]
This is a complicated question. You are ultimately charging the customer for the shipping costs when you include a shipping price or if you offer free shipping. Even though the customer covers the cost, you are actually the one who pays UPS, FedEx, or USPS for the shipping cost. Learn more about eBay shipping.
Mike told us:
[su_quote]People generally make their mistakes with shipping.[/su_quote]
He also told us:
[su_quote]I add my time and packaging costs to shipping to make it more profitable.[/su_quote]
It’s easiest to make eBay sales if you get the products that sell the most on eBay. The best-selling products tend to be used items like:
Pokemon cards are a popular item to sell on eBay. There are currently nearly 1.4 million Pokemon active listings by eBay sellers. The pricing ranges from $.01 in auctions to $4 million for a Pikachu Illustrator PSA 9 in mint condition. You’ll want to include the following information in the listing:
Selling books on eBay is easy because you can start with the International Standard Book Number (ISBN), a unique identifier for books. When you do this, eBay will pull up all the books with that ISBN. Here’s what it looks like. All you’ll have to do is change simple portions like the description, condition, and price.
If you’ve ever wondered how to sell a car on eBay, they have a whole page dedicated to eBay used car sales. You’ll need to:
[/su_table]
Go to the eBay homepage here. Click “sign in” or “register” in the top left corner.
If you already have an account, jump to Step 3 (because you likely already know how to create an account); otherwise, go to Step 2.
Next, you’ll confirm the information and click the “Create an account” button.
You’ll need to fill out your contact information and submit it.
Then, go to your email and verify your new eBay account. If other pages show that you need to verify your account, go to Account Settings. You will be able to verify through there as well.
Click the “Start using Seller Hub” button, and you will go to a screen that prompts you to use the guided tutorial.
You can get by without customizing your layout for now, but once you start selling, I’d recommend setting it up with the Sales, Orders, and Feedback as the top three spaces.
The guided walkthrough also shows you where to find orders (right next to listings in the picture above).
You can see the second and third rows in the picture above.
You can make the following changes:
Now that you know how to become an eBay seller, it’s time to discuss how to find items to sell on eBay.
Mike suggested trying software like WorthPoint, but you can also use the eBay app to check prices on your phone. If you want to be able to calculate your profit in the field, consider using a tool like the eProfit eBay Profit Calculator on iPhone or Android.
Once you have found an item worth selling on eBay, it’s time to create your eBay listing.
eBay has a background removal tool, but it’s not that good. I personally prefer Canva’s background removal tool. It works way better than most I have tried.
You can add up to 24 pictures for free or choose Gallery Plus for $.35. You can also add videos. eBay’s policies on pictures require:
Next, we’ll discuss the item categories.
[/su_table]
These make selling on eBay much easier than the early days when you had to sell everything in an auction. It also makes it so new products can be sold easier, but only about 20% of sold items are new products.
According to eBay.com/help, you can list multiple of the same product with only one insertion fee by using the quantity field. You’ll still have to pay the final transaction fee for all sold listings, but if you carry multiples of a single product it will save money by avoiding insertion fees.
Each of these has different options you can choose. We’ll go through each separately to help you understand your options.
Once you put in these details, you will need to make changes regarding domestic and international shipping.
You can also offer Local Pickup if you wish. Next, we’ll discuss how to ship freight on eBay.
Freight is for heavier items and doesn’t offer as many options. Just add the weight, dimensions, and excluded locations. Then, the shipping amount will be billed to the customer on purchase. You can see what it looks like in the picture below:
These are fairly intuitive, but you may want to know more about the payment method options you can set.
Read eBay’s payment method page for more details on payment options. Make sure you understand which payment options qualify for the eBay money-back guarantee. Large purchases and payments outside of the eBay platform are the most common exceptions.
I will warn you that while researching this blog, I had an acquaintance go out of his way to warn me about the risks of using eBay for cars. Here’s the conversation:
Philip Plastina: “I've tried doing this twice in my life and it's been a total disaster. eBay took a ton of money from me [and] it took forever for me to get it back. The car delivery service brought the car to the wrong city to drop it off.
Your best bet is to put it on auto trader and Facebook Marketplace. Craigslist is shot too; don’t use it.”
On a sidebar, if you like electronic dance music, check out Phil’s group Dancetronauts.
[/su_table]
How to Sell on eBay for Beginners
Before we give you a guided walk-through of how to sell on eBay, it’s important to understand why becoming an eBay seller is attractive. We’ll answer questions like:- Is It Profitable to Sell on eBay?
- How Old Do You Have to Be to Sell on eBay?
- What Does It Cost to Sell on eBay?
- Who Pays for Shipping?
- What Can I Sell on eBay?
Is It Worth It to Sell on eBay?
Yes. Selling on eBay can be highly profitable. Mike told us: [su_quote]I’ll find items for free I can sell for $100.[/su_quote] Check out our interview with Mike below: The average eBay shopper spent $550 in 2021, and the average seller made approximately $4,600, according to Business of Apps. Many sellers only sell a few items, while the top 100 sellers all sell more than 5,000 items per month. Mike hasn’t reached top 100 status yet, but his $30K+ monthly revenue equals about 1,000 products per month at $30 per item.How Old to Sell on eBay
According to eBay’s Underage User Policy, the seller must be 18 or older to open an eBay store. If parents start an account so kids can sell online before turning 18, the parents are still responsible for following the eBay selling rules.How Much Does It Cost to Be a Seller on eBay?
Starting an eBay store is free. As of January 2023, you can currently list up to 250 items each month at no charge, but eBay may change its terms over time. You can get subscriptions that come with more features for prices ranging from $4.95 per month to $2,995 per month. There are five levels:
- Starter
- Basic
- Premium
- Anchor
- Enterprise
| EBAY Subscription Plans | |||||
| Starter | Basic | Premium | Anchor | Enterprise | |
| Yearly subscription converted to monthly rate | $4.95 | $21.95 | $59.95 | $299.95 | $2,999.95 |
| Monthly subscription | $7.95 | $27.95 | $74.95 | $349.95 | - |
| Free fixed price insertions | 250 /mo | 1,000 /mo | 10,000 /mo | 25,000 /mo | 100,000 /mo |
| Free auctions in Collectibles and Fashion | 250 /mo | 250 /mo | 500 /mo | 1,000 /Mo | 2,500 /mo |
| Additional fixed price insertion | $0.30 | $0.25 | $0.10 | $0.05 | $0.05 |
| Additional auction insertion | $0.30 | $0.25 | $0.15 | $0.10 | $0.10 |
| Final Value Fee | 3.0% - 15.00% | 2.5% - 15.00% | 2.5% - 15.00% | 2.5% - 15.00% | 2.5% - 15.00% |
| Insertion fee credits for auction-style items that sell | not included | Yes | Yes | Yes | Yes |
| Promotions Manager | Yes | Yes | Yes | Yes | Yes |
| Markdown Manager | Yes | Yes | Yes | Yes | Yes |
| Subscriber discounts | Yes | Yes | Yes | Yes | Yes |
| Store home page | Yes | Yes | Yes | Yes | Yes |
| Link to eBay Store on listings | Yes | Yes | Yes | Yes | Yes |
| Terapeak sourcing insights | not included | Yes | Yes | Yes | Yes |
| Dedicated customer support | not included | not included | not included | Yes | Yes |
| 10,000 fixed price listing allowance with zero insertion fee | not included | not included | not included | not included | $250.00 /mo |
| 50,000 fixed price listing allowance with zero insertion fee | not included | not included | not included | not included | $1,000.00 /mo |
| Best for sellers who | Best for sellers who have a handful of products and want a storefront to brand and promote their business. | Unlock more zero insertion fee listings, Final Value Fee discounts, and a coupon for eBay-branded shipping supplies each quarter. | If you have an extensive product assortment, a Premium Store subscription gives you substantially more zero insertion fee listings. | For high volume sellers who have an extensive product catalog or are running a business that would benefit from dedicated customer support. | For high volume sellers who have an extensive product catalog or are running a business that would benefit from dedicated customer support. |
| Eligibility | Have an eBay seller account. | ||||
How much are eBay final value fees?
You will pay final value fees on transactions that range from 2.35% to 15% and sometimes include a $.30 transaction fee. This fee is based on the:- Item price
- Handling charges
- Shipping service the buyer selects
- Sales tax
- Any other applicable fees
How to sell on eBay for free
You can’t sell on eBay for completely free, but you can start posting products to sell in your eBay store for free and then just pay the seller fees when the product sells.Who Pays for Shipping on eBay?
This is a complicated question. You are ultimately charging the customer for the shipping costs when you include a shipping price or if you offer free shipping. Even though the customer covers the cost, you are actually the one who pays UPS, FedEx, or USPS for the shipping cost. Learn more about eBay shipping.
Mike told us:
[su_quote]People generally make their mistakes with shipping.[/su_quote]
He also told us:
[su_quote]I add my time and packaging costs to shipping to make it more profitable.[/su_quote]
Decide What to Sell on eBay
[su_quote]You don’t want to buy just to buy. Only buy something you know you can sell fast.[/su_quote] Before you start selling on eBay, you’ll want to understand what an eBay business can sell. In general, it is more difficult to sell items like:- Items that show nudity or sexual content
- Alcohol
- Guns
- Historical Artifacts
- Software
- Counterfeits
- Medical Equipment
- Prescriptions
- Illegal Products
What Can I Sell on eBay?
It’s easiest to make eBay sales if you get the products that sell the most on eBay. The best-selling products tend to be used items like:
- Parts and Accessories
- Consumer Electronics
- Home and Garden
How do beginners sell on eBay?
Beginners need to avoid scams and selling fakes. If you aren’t sure, don’t buy it. Mike told us: [su_quote]You don’t want to know what someone is asking for the product, but what people are paying for on eBay.[/su_quote]Want to know more about what sells the most on eBay?
Consider this list. Each item sells fairly easily and you probably have some at home, which makes it easy selling on eBay for beginners.- Clothes
- Shoes
- Pokemon Cards
- Cars
- Books
- Music
- Movies
- Other Collectibles
- And More!
How to sell Pokemon cards on eBay
Pokemon cards are a popular item to sell on eBay. There are currently nearly 1.4 million Pokemon active listings by eBay sellers. The pricing ranges from $.01 in auctions to $4 million for a Pikachu Illustrator PSA 9 in mint condition. You’ll want to include the following information in the listing:
- Language
- Card Condition
- Set
- Rarity
- Character
- Finish
- Pictures
- Other information to help buyers know more about the card.
How to sell shoes on eBay
You can follow our guide for posting to help you sell shoes on eBay. Remember to specify whether they are men's, women’s, or kid's shoes. Be sure to include the sizing and whether it is in US or EU sizing.How to sell books on eBay
Selling books on eBay is easy because you can start with the International Standard Book Number (ISBN), a unique identifier for books. When you do this, eBay will pull up all the books with that ISBN. Here’s what it looks like. All you’ll have to do is change simple portions like the description, condition, and price.
How to sell baseball cards on eBay
Baseball cards (and other collectible cards) have a grading system that you need to understand before selling them. Unless the item is extraordinarily rare, don’t expect much for any condition less than near-mint. Companies like PSA Grading will certify your cards’ condition to give buyers reassurance.How to sell clothes on eBay
You can sell used clothes on eBay as long as the listing clearly states “the clothes are used and have been washed.” Remember to include:- A title that clearly describes the product
- Front and back pictures
- Sizing information
- Care information
- Materials that the product includes
- Other relevant information
How to sell car on eBay
If you’ve ever wondered how to sell a car on eBay, they have a whole page dedicated to eBay used car sales. You’ll need to:
- Register the VIN with eBay Vin Decoder.
- If the VIN does not show up, explain why. The most common reasons are the vehicle:
- Is a pre-1980 model.
- Was manufactured outside of North America.
- Was not originally intended for street-legal use.
- Use Autocheck for eBay. (It’s like CarFax but specifically for eBay sellers.)
- Create your listing. Use this checklist from eBay to make it easier.
- Use an Escrow.com account to give buyers peace of mind between purchase and delivery.
- Accept an offer.
- Deliver the vehicle.
- Request positive feedback.
How much does it cost to sell a car on eBay?
Selling a car on eBay will involve the following costs: [su_note note_color="#dbeafc"]- Monthly Fees: $4.99 to $2,999.95
- Autocheck: $24.99
- Listing Fee: $19 to $79 per car (See what’s included in the table below.)
- Deposit Fee: 2.8%
- International Fee (optional) 1.65%
- Escrow.com Fee: $10 to $890 depending on escrow amount up to $100K.
- Total Potential Fees: $60 to $8,500 assuming the vehicle is under $100K.
- Accurate Shipping Costs: $1,300-$2,000 (Estimated using a car carrier from Las Vegas to New York City. Pricing will vary based on distance, gas prices, and other factors.)
| Listing Type | Basic Package: $19 | Plus Package: $49 | Premium Package: $79 |
| Auctioned Cars | 12 photos | 18 photos | Gallery Plus upgrade |
| Auction up to 7 days | Auction up to 7 days | Auction up to 10 days | |
| AutoCheck (cars & trucks listings only) | Reserve price up to $20,000 (cars & trucks, other vehicles & trailers, and boats listings) | Unlimited Reserve price | |
| Reserve price up to $10,000 (motorcycles and powersports listings) | Add 'Buy It Now' | ||
| AutoCheck (cars & trucks listings only) | AutoCheck (cars & trucks listings only) | ||
| Bold title and subtitle upgrades | |||
| Fixed Price Cars | 12 photos | 18 photos | 24 photos |
| Duration up to 7 days | Duration up to 30 days | Gallery Plus upgrade | |
| Vehicle price up to $10,000 (cars & trucks, other vehicles & trailers, and boats listings) | Vehicle price up to $20,000 (cars & trucks, other vehicles & trailers, and boats listings) | Duration up to 30 days | |
| Vehicle price up to $5,000 (motorcycles and powersports listings) | Vehicle price up to $10,000 (motorcycles and powersports listings) | Unlimited vehicle price | |
| AutoCheck (cars & trucks listings only) | AutoCheck (cars & trucks listings only) | AutoCheck (cars & trucks listings only) | |
| Bold title and subtitle upgrades |
How to Setup eBay Account to Sell
If you don’t already have an eBay account you’ll want to:- Go to the eBay Home Page.
- Create an Account.
- Start a Seller Account.
- Go Through the Guided Tutorial.
- Add Payment and Billing Methods.
- Set Shipping Preferences.
Step 1. Go to the eBay Homepage
Go to the eBay homepage here. Click “sign in” or “register” in the top left corner.
If you already have an account, jump to Step 3 (because you likely already know how to create an account); otherwise, go to Step 2.
Step 2. Create an eBay Account
When you click “Register,” your screen will look something like the one below. Choose “Business Account” and sign up with Google, Facebook, Apple, or email. Whichever you choose should follow a similar process.
Next, you’ll confirm the information and click the “Create an account” button.
You’ll need to fill out your contact information and submit it.
Then, go to your email and verify your new eBay account. If other pages show that you need to verify your account, go to Account Settings. You will be able to verify through there as well.
Step 3. Start a Seller Account
Go to ebay.com/sellerhub, which will look like the picture below:
Click the “Start using Seller Hub” button, and you will go to a screen that prompts you to use the guided tutorial.
Step 4. Go Through the Guided Tutorial
Once you are in the seller hub, which is often called my e bay, you will go through a short guided walkthrough about selling things on eBay.The seller hub is the business account portal. First, it will show you how to customize your screen.
You can get by without customizing your layout for now, but once you start selling, I’d recommend setting it up with the Sales, Orders, and Feedback as the top three spaces.
Next, it shows you that you can go to listings from anywhere in the seller's portal.
The guided walkthrough also shows you where to find orders (right next to listings in the picture above).
Next, you can view your messages
The messages are in the top right corner of your screen as shown in the picture below:
eBay Seller Hub overview
There are five rows of default data blocks. We’ll cover each row to help you understand more about what you can view from your eBay business screen.Seller Hub Row 1
The first row of eBay’s seller hub includes the following sections from left to right, as seen in the picture above:- Get Started: This section includes a New Business Seller Guide, Subscription Options, New Listings Video, Listings Best Practices, and other useful resources.
- Tasks: This section starts empty and adds tasks as you need to do something.
- Sales: This section shows how much you’ve made in the last 7 days, 31 days, and 90 days.
Seller Hub Row 2
- Orders: This section includes orders that need to be shipped, returns, cancellation, ones waiting for payment, orders waiting for feedback, and orders that can count as combined purchases.
- Listings: Create listings, and view active listings, scheduled listings, and unsold closed listings.
- Traffic: Learn how many people are seeing your listing, clicking on it (clickthrough rate), viewing the page, and the percent of page views that result in sales (conversions).
You can see the second and third rows in the picture above.
Seller Hub Row 3
This row includes three really important areas of the seller's hub.- Seller Level: You can be top-rated, above average, and below standard. Once you reach top-rated or top-rated plus, you’ll have an easier time competing against other sellers. We’ll talk about how to become top-rated later in the blog.
- eBay Academy: This is critical because an established seller can get lazy. Both top and new sellers should continue to learn how to sell stuff on eBay faster.
- Feedback: Buying and selling on eBay requires trust. That’s why reviews matter. You want to pay attention to your reviews because they impact how your items are displayed in comparison to other sellers. Make sure to provide feedback to your buyers and respond to any feedback you are given.
Seller Hub Row 4
[su_youtube url="https://youtu.be/DG7WaXXG0CE"]
The default setup for seller hub row four includes:- Research: Learn which products sell better on eBay using TeraPeak.
- Shortcuts: These are just useful links for people selling items on eBay.
- Selling Tools: Integrate eBay with other programs like Quickbooks, eBay Seller Capital, and automate your responses.
Seller Hub Row 5
This row is focused on announcements from eBay.- Announcements: You’ll find updates from eBay to let you know what they have released.
- Promotional Offers: You’ll find special promotions eBay is offering. At the time of writing, they offered 200 listings without insertion fees.
- Monthly Limits (Account Summary): (This section might be labeled with either title.) It summarizes how many more listings you have under your plan.
Step 5. Add Payment and Billing Methods
The next step a new seller will need to do is add their payment and billing methods. You’ll need to be signed in to add your payment options, but you can add a:- Personal bank account
- Business checking account
- Paypal account
- Credit card
- Debit card
Step 6. Set Up Your Shipping Preferences
You’ll want to set up your shipping preferences. The page will look like the one below:
You can make the following changes:
- Enroll in the Global Shipping Program: Over 50% of eBay sales are to overseas customers, so you’ll probably want to join it.
- Exclude Shipping Locations: You can choose to limit potential buyers based on the continent, region, or country.
- Create Shipping Rate Tables: Create default rates to charge when a product is purchased.
- Offer Other Shipping Options: Use calculated shipping, combined payments, flat shipping rates, and other shipping options.
Now that you know how to become an eBay seller, it’s time to discuss how to find items to sell on eBay.
Find Items You’ll Be Selling on eBay
You’ll need to find products to sell. Mike suggested: [su_quote]Start by selling stuff you don’t want in your home.[/su_quote] Most people have a ton of junk they don’t want or need. You can create an eBay listing with low risk while learning the eBay platform. After you have a better understanding of the platform, you can look for items to resell by visiting places like:- Thrift stores
- Garage sales
- NextDoor Free Finds
Tools to Estimate eBay Sales Price
Mike suggested trying software like WorthPoint, but you can also use the eBay app to check prices on your phone. If you want to be able to calculate your profit in the field, consider using a tool like the eProfit eBay Profit Calculator on iPhone or Android.
Once you have found an item worth selling on eBay, it’s time to create your eBay listing.
Create Product Photos
Product photography is critical for selling on eBay and other ecommerce platforms. Most eCommerce platforms suggest white backgrounds for your photos. There are two main ways of accomplishing plain white photos.- Use a product photography box like the one below.
- Use a background removal tool.
eBay has a background removal tool, but it’s not that good. I personally prefer Canva’s background removal tool. It works way better than most I have tried.
How to Post on eBay
When you are ready, start a new listing in the seller portal. It’s near the top of the hub. Just click where it says “Create Listing.” Then, you’ll go through the following process:- Explain What You’re Selling.
- Add Pictures.
- Add the Title.
- Set the Item Category.
- Provide Additional Details.
- Describe the Condition of the Product.
- Provide the Description of the Product.
- Set Pricing.
- Set Shipping Rates.
- Set Preferences.
- List it!
Step 1. Explain What You Are Selling
First, eBay will want to know about your listing. It will look like the image below. If you are too precise it might not show up. For instance, mine did not show up using the term: “Black the Rolling Stones 1975 US Tour Replica T-shirt Kids Medium,” which is the most accurate description of the shirt. They also have a way to use templates, but you have to create them. You won’t have a template when doing your first listing. You should probably create templates as you list items for simplicity later.
Step 2. Add Pictures
You can add up to 24 pictures for free or choose Gallery Plus for $.35. You can also add videos. eBay’s policies on pictures require:
- A minimum of a single image per listing.
- Keep sizing at least 500 pixels on the long side and less than 12,000 pixels calculated using height plus width.
- Images must be JPG (all but GIF convert to JPG), BMP, GIF, TIF, or PNG no more than 12 MB file size. Just save a JPG quality 90+ and save space on your computer or phone.
- Do not add borders to images.
- Do not add text or artwork to pictures.
- eBay catalog stock photos cannot be the primary photo for a used item. Books, movies, or video games are exceptions.
Some pictures don’t work right on eBay
In addition, your photos will not work correctly if you use: [su_note note_color="#dbeafc"]- GIF87 format: These will not show at all.
- TIFs with transparent background: This format might result in a black image.
- CMYK color: You’ll need to convert to RGB. eBay suggests using cmyk2rgb.com to convert your photos.
- PNG: eBay converts transparencies to a white background and saves them as JPG.
Review the eBay App Picture Links
You may also want to review the following links.- Adding Images to Listings: eBay explains how to add photos and use the background removal tool to create white images.
- Photo Tips: Learn how to take photos to make selling on eBay easier.
- Picture Policy: Make sure you don’t break their policies. The most important ones are:
- Photos must accurately represent the item.
- Placeholder images are not allowed.
- Used, damaged, and broken items must be accurately represented.
- Do not add any text, callouts, or other items to the photos. Only include the item or items for sale.
- Use a product photography box.
- Use Canva background removal tool. It works way better.
Step 3. Add an Item Title to Your eBay Store Store Listing
The title should include relevant keywords at the front because it is the first thing people see. eBay allows titles up to 80 characters long. This includes spaces. For additional listing fees, you can add:- Bold Titles: $2.00
- Subtitle: $1.50 for up to 55 characters
- Custom Label or SKU: Free. (Make it easy to track orders and packages with SKUs up to 50 characters.)
Next, we’ll discuss the item categories.
Step 4. Set the Product Category
The product category is used to help eBay and customers identify what kind of product you are selling. You need to make sure this is correct because it will limit how fast an item sells if you misclassify it. There are over 20,000 different product categories from which to choose, and they are updated twice per year. The last update was in September 2022 and there were 438 new categories, 230 retired categories, and 204 changes. The listing page will help you find categories, but sometimes they aren’t intuitive. I would have expected a teen’s t-shirt to be under clothes, but I had to go with the following category: Entertainment Memorabilia > Music Memorabilia > Rock & Pop > Artists R > Rolling Stones If you can’t find what you’re looking for on the Complete Your Listing Page, you’ll want to use the following page to find the best option for your product: Preview Category Changes.Step 5. Provide Additional Details
Make sure to provide as many item specifics as possible. The more you know about the product and item specifics, the better your sell-through rate will be. Use TeraPeak (mentioned above) to establish more information that will help your listing appear in search results.
Step 6. Describe Condition of Product
Selling on eBay requires providing potential buyers with information about the condition of the product. A buyer pays what they feel the product is worth based on the condition. If you misrepresent your products, you aren’t going to do well selling on eBay because you’ll have lower customer satisfaction and negative feedback. This will make you rank lower in search results. Just be honest. People don’t expect inexpensive items to be perfect, but they want to know what they will be getting. You have up to 1,000 characters to describe the condition of the item you’re selling on eBay.
Step 7. Describe Product
In the product description, you’ll want to describe the item using the same keywords you include in the product title and subtitle. Add additional information that goes beyond what people can see in the search results. Also, describe any features or stories that make the item unique.Step 8. Set Pricing
Even with a great item description, title, and positive feedback, you won’t get more sales if your pricing is too high. There are two main pricing strategies for selling on eBay:- Auction Format
- Buy It Now Listings
Auction Style Listings
This selling format is used for products that have a large demand and for which it might be hard to establish a reasonable price. Auction style listings can be highly profitable.The highest selling auctions have included yachts, towns, homes, and lunch with Warren Buffet. You can set the following conditions with an auction:- Duration: You can choose three, five, seven, or 10 days.
- Starting Bid: Set the starting price as low as one cent. The lower the opening bid, the better odds of creating a multi-bidder battle that can create extremely profitable products. While writing this section, the auction with the most bids started at 99 cents and has seven bidders competing for a competitive price that is currently around $75 dollars.
- Buy It Now Option: You can set a price where people can bypass the auction, but it needs to be 30% over the starting bid. If you have a reserve price, make sure the “Buy It Now” function is above the reserve price.
- Reserve Price: You can set a price that the auction must exceed. You have to pay a 7.5% fee to enable a reserve price, but it minimizes your losses if demand isn’t there for the product.
- Allow Offers: People can choose to send you an offer and you can auto-accept, accept, counter, or reject the offer.
- Schedule Listing: Set a specific time and date for the listing to begin.
- Sell as Lot: Sell multiple items together. If you have multiple items you think buyers will want collectively, you can include them in a single listing to stay under your monthly selling limits. (The free plan is 250 listings per month and $20,000 starting off). This is helpful for sellers with lots of products.
- Autorelist Checkbox: If you have listings that don’t sell during the auction period, you can use this feature to relist them up to eight times. Be careful with this. It can eat profit really quickly.
- Private Listing: Some buyers may not want everyone to see what they buy with their personal account. This checkbox lets them bid without showing who they are to the public.
Buy It Now (Fixed Price) Listings
You can choose “Buy It Now” as the preferred sales method in the quick listing tool. It makes it so someone can buy the products for your listings immediately. Buy It Now has fewer listing options than the Auction method, but has one highly beneficial feature that auctions don’t. [su_table responsive="yes" alternate="no" fixed="yes"]| Buy It Now Benefits | Fields Missing From Buy It Now |
| List multiples of the same item with the quick listing tool | No Duration field |
| Less fields to fill out | No Starting Bid field |
| Volume pricing for larger buyers | No Reserve field |
| Great for online retailers |
Step 9. Set Shipping Rates
eBay offers numerous shipping options. You’ll start by choosing whether you will offer:- Standard Shipping
- Freight
- Local Pickup Only
Each of these has different options you can choose. We’ll go through each separately to help you understand your options.
eBay Standard Shipping Options
Standard shipping is for small to medium size packages. You can specify the weight and dimensions of the package or you can use eBay’s suggested shipping details. For odd-shaped boxes, you can mark it as an irregular package.
Once you put in these details, you will need to make changes regarding domestic and international shipping.
Domestic Standard Shipping on eBay
The default setting is “Calculated” using USPS First Class and the customer pays for the shipping. You can edit this to fixed-rate pricing, allow free shipping, provide a calculated shipping rule, or add services. You’ll find that it is easiest to use their default settings, but it may not be the most profitable. Changing these settings can be more profitable, but you’re going to have to learn more about shipping. Most consumers (90%) cite free shipping as the main reason they shop online and it shows with 30% higher ticket values. Check out an eBay price calculator to help you make a profit on completed listings with free shipping. You can also add a handling fee to cover time and materials for packing.eBay International Shipping
If you sell to an international customer base, you’ll want to use the Global Shipping Program. You just follow this simple process:- Pack the product in your packaging.
- Attach the shipping label.
- Mail the package to eBay’s global shipper.
- Global shippers handle the international portion of the shipping.
- Provide free domestic shipping.
- Handle the order in a same-day or one-day time frame.
- Meet the sizing and value limitation.
You can also offer Local Pickup if you wish. Next, we’ll discuss how to ship freight on eBay.
eBay Shipping Freight
Freight is for heavier items and doesn’t offer as many options. Just add the weight, dimensions, and excluded locations. Then, the shipping amount will be billed to the customer on purchase. You can see what it looks like in the picture below:
eBay Local Pickup Only
You can set items where people can only pick them up locally. This might be helpful if you are selling large equipment or cars, but it somewhat defeats the purpose of selling on an online marketplace.
Step 10. Set Preferences
There are a few preferences you can set on an eBay listing including:- Payment Types: There are four options for a payment method.
- Returns: You can choose to accept or reject returns for domestic and international customers.
- Item Location: If people want search results near them, they’ll want to be able to see where the product is located.
These are fairly intuitive, but you may want to know more about the payment method options you can set.
Automatic Payment Methods
eBay has the following automatic payment method options:- Apple Pay
- Credit card
- Debit card
- eBay gift card, voucher, or bucks
- Google Pay
- PayPal account
- PayPal credit
- Pay upon pickup
- Spendable Funds
- Wire transfer for select eBay categories
Additional Payment Options
Some categories also allow you to add additional payment options like:- Bank account transfers (bank cash transfers or bank wire transfers)
- Cash on pickup
- Checks
- Money orders
- Online payment services including:
- Escrow.com
- XOOM
- Allpay.net
- Fiserv
- CertaPay
- Nochex.com
Read eBay’s payment method page for more details on payment options. Make sure you understand which payment options qualify for the eBay money-back guarantee. Large purchases and payments outside of the eBay platform are the most common exceptions.
Step 11. List it!
All you have to do now is click Submit Listing and you have completed the posting guide. You’ve created a listing! If you have more products to sell, repeat the process until you are done listing everything.
How much can you sell on eBay before you pay taxes?
You can sell $600 before the Internal Revenue Service requires eBay to send you a 1099-K. This is a dramatic change from 2021 when you could earn up to $20,000. Make sure to review your business details each year (especially for 2022 because I suspect a lot of sellers will get a surprise tax bill). Learn more about sales tax and income tax for eBay sellers. Next, we’ll discuss how to successfully sell on eBay.How to Sell on eBay Successfully
Mike gave us some input on how to become a successful eBay seller including the following advice: [su_quote]If you want to know how to sell fast on eBay, only buy things people are buying.[/su_quote] He also emphasized excellent customer service: [su_quote]Answer people’s questions, focus on Buy It Now items, and be prompt with sending out products.[/su_quote] Next, we’ll answer some of the most commonly asked questions.eBay FAQs
With such a vast platform, it is no surprise how many questions people ask about selling on eBay. Find answers to the common ones here:How much does it cost to be a seller on eBay?
You can list up to 250 items for free, but you should expect that 15% of the final ticket price will go to eBay. In addition, eBay has monthly plans ranging from about $4.99 to nearly $3,000. Jump to the eBay seller costs section of the blog for more information.How to use my eBay garage?
eBay Garage is the automotive portion of eBay. eBay makes it really easy to find parts that fit your car after you add the following data.- Year
- Make
- Model
- Trim
- Engine
I will warn you that while researching this blog, I had an acquaintance go out of his way to warn me about the risks of using eBay for cars. Here’s the conversation:
Philip Plastina: “I've tried doing this twice in my life and it's been a total disaster. eBay took a ton of money from me [and] it took forever for me to get it back. The car delivery service brought the car to the wrong city to drop it off.
Your best bet is to put it on auto trader and Facebook Marketplace. Craigslist is shot too; don’t use it.”
On a sidebar, if you like electronic dance music, check out Phil’s group Dancetronauts.
How to increase sell limit on eBay?
In case you exceed your selling limit which starts at 350 items and $20,000 per month, there are three ways to increase your selling limit on eBay:- Get great feedback. (Free)
- Request a higher limit. (Free)
- Upgrade your plan. (Increased monthly fees)
How to sell on eBay without PayPal?
You do not need PayPal to sell on eBay since eBay ended its partnership with PayPal in June 2021. They still allow you to accept PayPal but also accept:- Apple Pay
- Credit card
- Debit card
- eBay gift card, voucher, or bucks
- Google Pay
- PayPal credit
- Pay upon pickup
- Spendable Funds
- Wire transfer for select eBay categories
How to sell multiple items on eBay?
You can either sell multiple different items in a single batch or you can list multiples of single items and set a quantity available. The process is basically the same for each with slight variations. View the process for each in the table below. The main differences are colored orange: [su_table responsive="yes" alternate="no" fixed="yes"]| Step Number | Multiple Items in Single Batch | Sell Multiple of a Single Item Individually |
| 1. | Describe Your Item | Describe Your Item |
| 2. | Add Pictures. | Add Pictures. |
| 3. | Add Title. | Add Title. |
| 4. | Set The Item Category. | Set The Item Category. |
| 5. | Provide Additional Details. | Provide Additional Details. |
| 6. | Describe Condition of Each Product.in Lot | Describe Condition of Product. |
| 7. | Provide Description of Each Product. | Provide Description of Product. |
| 8. | Set Pricing. Maybe Auction or Buy It Now. Mark “Sell As A Lot.” | Set Pricing. Must Buy It Now. Set Quantity. |
| 9. | Set Shipping Rates. | Set Shipping Rates. |
| 10. | Set Preferences. | Set Preferences. |
| 11. | List it! | List it! |
Did We Succeed at Showing You How to Sell on eBay?
We try to make it as easy to succeed as possible. When we get an opportunity to provide a guide that can easily be followed anywhere, it excites me personally. We hope you actually find them easy to use. Did you find this step-by-step eBay selling guide useful? What can we improve? Are there other platforms you’d like us to cover?Comments
Get business advice straight to your 
Inbox 
Learn from business failures and successes in 5 min or less. The stories, frameworks, and tactics that will make you a 10x better founder.
Join our 45,000+ entrepreneurs