eBay and PayPal offer the ideal environment for you to think out, test and then launch your on-line shop.
You can use the auction facilities – perhaps on a fixed price basis – to:
Test your market
Set up your sourcing and dispatch processes
Train yourself and your staff to deal with the inevitable queries and issues arising
Build up your turn over and on-line reputation
Trade in the weeks and months before Google and the others eventually find you.
In fact, many on-line traders never move on!
You may be old enough…
like me, to remember the original eBay launch back in 1995 as an occasional one-to-one on-line market place, and in essence unsuited to a real on-line business launch, but things have moved on since then.
There are now four different auction formats, some of them not auctions at all:
The classic sell-to-the-highest-bidder auction,
The sell-to-the-highest-bidder auction with a reserve price below which you will not sell,
Fixed price Buy-it-now sales,
A combination auction allowing sell-to-the-highest-bidder with a buy-it-now option
Together with specialist areas like car and property sales.
Having sold your goods or services, you will want your money and eBay makes that simple through its PayPal subsidiary.
eBay requires everyone using the site to have a PayPal account, which is of great advantage to the seller in particular. PayPal processes – for a fee – all of your sales and deposits your funds into your bank or credit card account.
PayPal setup is quick and almost instant.
The original occasional sales’ model still exists…
but many people use it – particularly the ‘Fixed price Buy-it-now’ sales option – to trade on a continuous or regular basis marketplace.
Ideally, once you have a grip on the whole sales process, you can move on to your own shop on eBay, or even on one of the many eCommerce sites on the market.
eBay with PayPal is an effective way to test your business model and dip your toe into on-line business.
Many of us would find eBay an unsatisfactory medium for our business plans, but at the very least it supplies the budding entrepreneur with a test bed for our ideas and ambitions. That said it is an effective and low cost test bed for our business ideas, and a method of trading through the delays and possible expense inherent in search engine marketing.
Starting a new business is an adventure and even the best adventures are fraught with risks. New2Business.com [http://new2business.com] is a wiki site helping you to assess your financial and reputational risks and providing the tools to minimise them.
We separate your Start-Up into 3 processes, Planning, Launching and Going On-Line and lead you through each at the level of detail you feel appropriate.