I'm wanting to hear from some Ebay sellers out there who have "launched" a business from Ebay. I have a website "business" that I am about to "legalize." I have an appointment with an attorney and account, and setting up a merchant account so I can accept credit cards myself.
I'd like to hear how this all works from someone who has done this.
I'm really lost, and it's a hard decision to make any help is greatly appreciated.
My business is totally on ebay for now and that's how I got started. I've been considering opening an internet "storefront" but that is still in the planning stages. I guess how complicated it is depends on what you sell. I sell antiques and collectibles. It was fairly easy and simple for me to start. What are your specific questions?
posted on November 13, 2000 05:30:54 PM
If this is a full-time venture, make sure you can eat for at least six months to one year before expecting to be profitable. Most businesses fail because they are undercapitalized--they don't have the dough to stay afloat.
Let's say if you were busy earning a couple of grand each month. Not bad huh? Then your computer blew up and your car broke down and your kid got sick. If you are waiting for that big check and the guy was a deadbeat, you have no income.
How much is enough? You need to earn at least 25% more than your regular job. This won't happen overnight;that's why you need to have money (not just credit lines) to see you through. A part-time job is a good idea. eBay selling allows considerable flexibiilty.
posted on November 13, 2000 05:57:07 PM
If you doing good selling on Ebay which is actually personal sales person to person auctions why not continue there.
If you want to set up a website and everything just do it start the website and store online forget the lawyers and accounts untill you see if the website actually sells frist before you put forword tons of your saveings or borrowing .
see if you can get it to turn profit enough to be worth your time and what it will take to handle the it if and when it does take off.
As well remember even though Ebay says its only a venue it truely is much more when you sell there you have some protection and ebay makes the rules.
When you sell On Ebay you have all the benifit of there name and advertizeing even thought there ar thousands of us selling there. on your own website ebay its self become just another company your competeing with.
posted on November 13, 2000 07:00:16 PM
Great advice everyone. (Sorry I was out to dinner!)
Well, I did start up a webiste in March, and have had very good results. In fact, I can't get much up on Ebay because of the webiste orders I currently have.
I guess my biggest question is about the merchant account. Is it really worth the expense?
posted on November 13, 2000 10:33:01 PM
I've seen websites doing biz with PayPal, but a merchant account might be ok. Can your margins cover it. Handling cards on a website requires good security.
posted on November 14, 2000 02:24:21 AM
I would definitely vote for accepting credit cards through your own merchant account at your website. I have a merchant account, and I accept PayPal and BillPoint. While it is tempting to drop the merchant account for PayPal (Billpoint fees are higher than my merchant account fees), ever day, I think "this is another dot-com, how much longer before it's dot-gone?"
Particularly with PayPal, they operate like no one there has any business sense. They freeze accounts under the suspicion of fraud. With a real merchant account, this does not happen. They take the money, if you can prove that you are right, you get it back. But you still have access to your money. There are rules and procedures and they are regulated.
I had a business before eBay. Merchant account through Nova (www.novainfo.com). Novus is also good, and First Data Corp.
Also, take time to learn about fraud and chargebacks. It happens. Visa has free guides you can order at http://www.visabrc.com/doc.phtml?2,104,890,906_brochure.html, but you have to be a merchant to get them. If you want to email me at [email protected], I will send you a copy of the chargeback management guide and the ecommerce risk management guide.
I don't like third party payment services at websites, as the only online payment option because as a merchant, you are giving up your point of sale. What if you were in a store, already at the register and once you get ready to pay, the cashier says "I'm sorry, but you have to go over there and pay Western Union, and they will pay us." I think that with so many buyers unsure about ecommerce, abandoning shopping carts, having another service like PayPal or something, something someone has to register for, just complicates a website transaction too much.
posted on November 14, 2000 09:33:32 AM
I thought as a buyer you don't have to sign up for billpoint, you just pay off of the seller's invoice?
This makes Billpoint more appealing than PayPal.
posted on November 14, 2000 02:11:08 PM
If you want to set up your own online storefront, consider freemerchant.com or bigstep.com They offer a free online store with an option of setting up real-time credit card processing.
I use freemerchant.com with propay.com to pay for credit card transactions. It works very nicely.
If you have your own site, but would like real time credit card transactions without the investment, look into ccnow.com They charged 8%-10% per transaction last time I checked but they provide you with a shopping cart feature.
