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How to Start a $400K/Year eBay Business

by Brandon Boushy
How to Start a $400K/Year eBay Business

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Have you ever wondered how to start an eBay business?

You can make a great living by starting an eBay store. Just ask Mike Wilson, who started Rideshare Reseller with less than $1,000. Today, he’s selling more than $30,000 per month on eBay.

We’ll share information about what to sell on eBay and explain how to start an eBay business. We’ll also answer questions most sellers have about selling on eBay.

You can either keep reading or click on any of the links below to jump to the section that interests you:

Let’s start by discussing what you need to know about selling on eBay before you open an eBay store.

Learn About Selling on eBay

A woman pointing to the eBay logo with both hands.

According to Business of Apps, there are 18.1 million sellers on eBay and over 132 annual buyers. These transactions generate a combined $73.2 billion in sales per year.

But what are the best products to sell on eBay? How do you sell on eBay, and how much does it cost? We’ll discuss the answers to these questions in the following sections.

What is selling on eBay?

On a yearly basis, the most commonly sold products on eBay include the following items:

  • Video games: eBay customers in the U.S. buy 15.8 million video games.
  • Cosmetics: Customers in the United Kingdom buy over 10.5 million cosmetics.
  • Sneakers: U.S customers buy almost 8 million sneakers.
  • Tools: Australians buy over 6 million tools.
  • Watches: Both Germans and Americans buy a combined 1.85 million watches.

Mike told us:

The best products to resell are the ones that you know about. From sealed VHS tapes to electronics, and clothes. Use your life experiences to establish what it’s worth, and you’ll make a great living.

How does selling on eBay work?

An open laptop showing the UpFlip blog about how to sell on eBay.

As long as you’re over 18, you can sell on eBay. You don’t have to create a business account to become an eBay seller, but it will save you money over the long run. With a personal account, you’ll have the lowest number of free listings and pay the highest seller fees.

You can sell products for a fixed price or hold auctions. Plus, you can sell locally through your eBay shop.

Each selling method works a little differently. We discuss them in more detail in our blog about how to sell on eBay.

How much does it cost to open an eBay store?

Opening an eBay store costs at least $4.95 per month and as much as $2,999.95 monthly depending on features and the size of your store. The table below provides the seller account options and benefits:

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  $1,072,558 $74.95
Free fixed-price insertions 250
/month
1,000
/month
10,000
/month
25,000
/month
100,000
/month
Free auctions in Collectibles and Fashion 250
/month
250
/month
500
/month
1,000
/month
2,500
/month
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% to 15% 2.5% to 15% 2.5% to 15% 2.5% to 15% 2.5% to 15%
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/month
50,000 fixed-price listing allowance with zero insertion fee Not included Not included Not included Not included $1,000/month
Eligibility Have an eBay seller account

The best type of subscription will depend on your activities and goals.

  • Starter: This is best for sellers who have a handful of products and want a storefront to brand and promote their business.
  • Basic: Unlock more listings with zero insertion fees, Final Value Fee discounts, and a coupon for eBay-branded shipping supplies.
  • Premium: If you have an extensive product assortment, a Premium Store subscription gives you substantially more listings with zero insertion fees.
  • Anchor and Enterprise: These top subscriptions are best for high-volume sellers who have an extensive product catalog or those who need dedicated customer support.

eBay Seller Case Study: Rideshare Reseller

An eBay landing page showing various items for sale by Rideshare Reseller.

Mike Wilson was driving for Uber after retiring from his furniture store. He decided he wanted to make more money and started thrift shopping.

He founded his eBay business Rideshare Reseller with just $1K. Today, he’s making nearly $400K a year as a side hustle. Mike explained:

You don’t want to buy just to buy. Only buy something you know you can sell fast. You don’t want to know what someone is asking for the product but what people are paying for [it] on eBay.

Listen to our interview with Mike to learn more about starting an eBay business:

Get ready to learn more about starting your online store.

How to Start an eBay Business

Starting an eBay store is much easier when you follow the steps below:

  1. Choose your niche.
  2. Register your business.
  3. Get a business bank account.
  4. Start an eBay business account.
  5. Change your eBay account settings.
  6. Upload inventory.
  7. Market your eBay store.

Step #1. Choose Your Niche

Before you start an eBay shop, you’ll want to choose your niche. eBay sellers can be successful in a variety of areas, but you’ll want to choose items that have more buyers.

Some of the product categories with the most potential buyers include:

  • Motors
  • Electronics
  • Collectibles
  • Home & Garden
  • Fashion
  • Toys
  • Sporting Goods
  • Business & Industrial
  • Jewelry & Watches
  • Refurbished Products

Once you’ve decided what to sell in your eBay store, you may want to register your business.

Step #2. Register Your Business

A business owner registering for an eBay account on a laptop.

You don’t have to register your business when you want to sell on eBay, but there are some benefits to doing so. Advantages include more free listings, tax deductions, and the ability to separate personal and business liability.

To register a business, you’ll need to:

  • Choose a business name: When you choose a business name for your online store, pick one that’s unique. Make sure it’s available as a social media handle, website domain, and trademark.
  • Get an LLC: A limited liability company (LLC) separates your personal and business assets.
  • Get an employer identification number: Visit the Internal Revenue Service (IRS) website to get an employer identification number. It’s like a Social Security number for businesses.

Next, you’ll want to get a business bank account for your eBay shop.

Step #3. Get a Business Bank Account

An eBay store requires a linked checking account. When you get a bank account for your eBay store, you’ll be able to keep your business and personal expenses separate.

Step #4. Start an eBay Business Account

A business owner holding a credit card and registering for an eBay account on a mobile device.

This step requires you to have your bank account or credit card information, tax information, and a government ID.

Once you open the business account, you’ll be able to start selling on eBay with lower fees and more listings. You’ll also have more analytics, fixed price listings, and other benefits.

Learn more about eBay business accounts.

Step #5. Change Your eBay Account Settings

Choose your policy preferences for shipping, returns, and payments. These are especially important because they can impact whether your eCommerce business is profitable or not.

Step #6. Upload Your Inventory

A business owner holding a tablet with an uploads progress bar.

You’ll want to add all your products to your eCommerce platform on eBay. This way, buyers can see what you’re selling from a single location. Follow this process to list your items on eBay:

  1. Enter keywords to describe your product.
  2. Find the item that matches your product offering.
  3. Select the condition.
  4. Choose a category.
  5. Add photos.
  6. Edit the title.
  7. Add a SKU number.
  8. Edit the item’s characteristics.
  9. Write a product description.
  10. Set prices.
  11. Adjust shipping settings.

Enter Keywords to Describe Your Product

You’ll want to search for your product using the product name or model number. This approach will help you find the exact product you want to sell. Once you input the description for a product, click enter to search.

Find the Item That Matches Your Product Offering

A woman with a magnifying glass analyzing a cardboard boxes piled up around her.

A lot of products that are similar to your description will pop up with pictures and information. Look through them to find the one that perfectly matches the item you have for sale. You can also add an item if you don’t see it in the results.

Select the Condition

In this step, you’ll want to set the condition of your item. You can choose from four options:

  • New: New products must be unused and in their original packaging.
  • Open box: An open box product has been opened, lightly used, and returned in the original packaging.
  • Used: These products may or may not be in the original packaging. They’re functional, but they have been used more than once or twice.
  • For parts or not working: These products are the lowest quality. They often don’t work and are used to fix other similar items.

Choose a Category

You’ll want to choose a category for each item to let eBay know how to classify it. There are thousands of categories and subcategories to choose from when you sell items. Make sure to review eBay’s categories page to help you identify the categories you fit into.

Add Photos

You can add up to 24 photos and one product video to help people better understand the item you have for sale. Typically, you’ll want to include a picture from each side and images of any features you want to call out. You should also photograph any damage that the consumer should know about before making the decision to buy.

Edit the Title

Edit the product title to match keywords that are relevant to your item. This may help you stand out against the competition. SEO tools will help you find keywords that people use when searching for your product.

Add a SKU Number

If you know or can find the SKU number, make sure to include it. This is the best way to make your product match specific customer searches.

Edit Item Characteristics

An eBay listing for a Samsung external hard drive with all the detials filled in.

There are a number of required and optional characteristics that you can specify while listing a product. The fields will be different for each category and subcategory, but the picture below provides an example of the ones for a Samsung T7 1 TB External SSD.

Write a Product Description

The product details should help people understand more about the product you’re selling. This should include a physical description, instructions, damage disclosures, and any stories that could make the product more interesting to potential customers.

Make sure to include relevant keywords to help your products rank better in eBay search results.

Set Prices

A question mark and a dollar sign hovering over a person's outstretched hand.

You’ll be able to select between Auction, Buy It Now, and Classified Ad. Use Buy It Now if you know how much you want to get for something or have multiple of the same item for sale.

Auctions are helpful when you know how much you want to get, but you think you could get more than what you’re asking. Always set auctions at the lowest price you’re willing to accept. This is one of the biggest mistakes with casual sellers because you can end up losing money.

Adjust Shipping Settings

Set your shipping options based on size of the package, shipping method, weight, and the location of the buyer. Once you’ve filled in all the shipping details, you can submit your product listings.

Now that you know how to list on eBay, let’s answer some frequently asked questions.

eBay Account FAQ

Next, let’s take a look at some frequently asked questions about how to manage your seller account. Note that some of the links in this section will only work if you have an account.

How much does eBay take?

It’s free to list up to 250 items per month on eBay, but they take between 10% and 15.5% of the final selling price. Factors that impact the percentage include the type of item, international fees, and other fees. Go to Seller Central to learn more.

How to combine shipping on eBay

An eBay seller standing next to a stack of boxes with the eBay logo on the side.

A seller can combine shipping when a customer has multiple orders with them.Here’s how:

  1. Enable combined shipping.
  2. Wait until a buyer requests combined shipping.
  3. Go to My eBay or Sellers Hub.
  4. Select the items to combine.
  5. Adjust shipping costs from My eBay.
  6. Send the invoice.

How to block a buyer on eBay?

Sometimes, you might have a buyer who does a fraudulent charge-back or bids on an item but doesn’t pay for it. When this occurs, you may want to block the buyer. You’ll want to:

  1. Log into eBay.
  2. Go to your seller’s overview.
  3. Find the buyer you want to block.
  4. Add the buyer’s username to your blocked list.
  5. Verify the username was added to the block list.

You can block a maximum of 5,000 buyers. You can also block buyers who have:

  • Unpaid purchases
  • Bought large numbers of items for you over a set period
  • Residence in a country you don’t serve

You might also want to prevent people who are blocked from sending you messages. If so, go to your site preferences and select the option to keep blocked buyers from contacting you.

How to see sold items on eBay

There are multiple ways to find sold items on eBay. The process depends on whether you’re trying to find your sold items or items sold by another seller.

Check the Seller Hub order tab to search by buyer, status, or period of time. You can also check the orders section in My eBay. Both of these will show your orders from the last two years.

If you want to view another eBay store’s sold items, use the search function and follow the steps below:

  1. Add a search term.
  2. Select advanced features.
  3. Insert additional parameters.
  4. Click search to see results.

This helps you understand price points and buying trends for various items. You can also establish what items a store sells more by viewing their sold items. To do this, go to one of their products, click the see other products link, and select the sold items checkbox.

How to reprint shipping label on eBay

An eBay seller standing next to a screen displaying the eBay customer service page about shipping.

Reprinting a shipping label on eBay is simple. Just go to manage shipping labels and choose the option to reprint within seven days. Want to know more about eBay shipping? Check out their shipping page.

How old do you have to be to sell on eBay?

When you create free listings on eBay, you’re entering into a contract. That means you have to be at least 18 years old.

For teenage entrepreneurs who want to start selling on eBay, talk to a relative to see if they will work with you to start an eBay business under their account.

How much can I sell on eBay without paying tax in 2025?

At the time of writing, eBay states that you can earn up to $5,000 on eBay without the platform reporting your earnings to the IRS. The American Rescue Plan was originally requiring eBay to report every seller who made more than $600, but the IRS has decided to take a scaled approach to get there.

That doesn’t mean you don’t need to report your earnings as income. Using eBay as an online garage sale may be an exception to the tax requirements. However, if you’re running a business, you should claim eBay income under the appropriate business laws.

You’ll have to pay taxes on your profits, but you’ll also benefit from deducting expenses like shipping costs, your initial investment, and packaging. Each state has different laws about income and sales tax that you may also need to comply with.

How to cancel a bid on eBay as a seller

Canceling a bid as an eBay seller will require you to follow these steps:

  1. Click Sell, which will take you to the correspondence section.
  2. Select Cancel bids.
  3. Enter the item number, username of bid you’re canceling, and the reason for cancellation.
  4. Click Submit.

Learn more about managing bids as a seller.

How to refund on eBay

A person handing over a stack of cash to someone else with the eBay logo hovering above their outstretched hands.

No matter how well you set up eBay store operations, you’ll eventually need to issue a refund. Here are a few scenarios you may experience as you learn how to sell stuff on eBay:

  • Return requests: Buyers may submit a return request. When responding, you can offer a full or partial refund.
  • Order cancellations: You can cancel an order before shipping to issue a refund. Cancellations after shipping may require additional steps.
  • Item not received: When the buyer doesn’t receive an item that has been shipped, you may want to cancel the order.

Once you establish that issuing a refund is the best way to manage the situation, you’ll want to:

  1. Go to Seller Hub or My eBay orders.
  2. Find the order.
  3. Choose Send refund in the drop-down menu.
  4. Provide a reason for the refund.
  5. Input the refund value.
  6. Click Send refund.

eBay will send a refund initiation email once you’ve completed this step and another email upon refund completion. Documentation will also be available in your order history.

You can set up return automations to automatically process returns and refunds. It also gives you the option to provide different return addresses for products, which is helpful if you’re dropshipping. Learn more about how to set up an eBay account to manage refunds.

How does eBay pay you?

eBay makes payments available two days after the purchase is confirmed. You can have your payments sent to your connected bank account or debit card.

You can also have automated sending payments to accounts on a daily or weekly schedule. Learn more about getting paid.

Closing

You now know how to choose a niche and list items on eBay. We explained how to set up your business account, manage your settings, and upload your inventory. We also answered some questions that sellers often have about running a successful eBay business.

What kind of items will you sell on eBay? Let us know in the comments below.


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Author

Brandon Boushy

Our lead writer, Brandon Boushy, has been a business consultant, business owner, and marketer since 2017. Brandon is committed to the pursuit of knowledge and continuous improvement. He measures his success based on how many business owners he helps succeed. Brandon started Raising Daisy Photography in 2017 with Stephanie MacIver. His role was focused on marketing, estimating, and managing customer interactions. He is also a freelance business researcher and has provided over 3,800 hours of business research for more than 50 clients. His blogs are read by over 2 million people every year. Brandon told us: "My motto is never quit learning. I bring this motto to everything I do, and find writing the best way to help share the data I obtain to assist business professionals pursue their dreams." He empowers companies to improve their communication and brand awareness through creative content strategies and blog writing.

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