What does it cost to start a business on eBay.com.au?

Article by: Tim Davies, Manager Seller Education & Engagement, eBay Australia & New Zealand

eBay  is no longer just a great place to convert all that stuff lying around your house into cash. Tens of thousands of Australians  are now running profitable businesses on the site too.

In 2012, eBay reported that almost 160 Australian businesses each achieved $1 million or more in sales on eBay.com.au.  So how did they get started?  Surprisingly, many of them started at home, and then moved into bigger premises as they grew.

Over 7 million unique visitors come to eBay.com.au every month.  That’s a lot of potential customers already searching for products you could be selling.  The great thing about eBay is that the costs of setting up a business are minimal, and most of the costs are only incurred when you sell.  That means the up-front risk is very low.  So what are the costs?

Fees on eBay

There are four types of fees on eBay.com.au:

–    Store fees
–    Insertion fees
–    Feature fees
–    Final Value fees

Register as a seller on eBay

It costs nothing to register as a seller on eBay.

Open an eBay store

Without an eBay store, you will only be able to list single items for a maximum of 10 days.  Opening an eBay store means you can create a listing for each product, nominate the quantity you have available, and leave it active until you sell out.  (See all the differences between having an eBay store or not.)

You can choose from three store levels to suit your business, and can change the store level at any time.  eBay store fees are charged monthly.  The more you pay for the store each month, the less you will pay when you make a sale.  The monthly fees are shown in the table below.

Listing products on eBay

Products can be listed on eBay in either Fixed Price or Auction format.  Every seller gets some free Fixed Price listings each month, so if you start with a small product range, it could cost you next to nothing until you make a sale.  The table below shows the Insertion Fees for each store level.

Adding a subtitle to your listings or adding a Buy-It-Now price to auction listings will incur an additional Feature fee.  Uploading up to 12 photos for each listing is free.

Making a sale

Every time you make a sale, eBay will calculate a Final Value Fee on the sale price.  The rate will depend on which level store you were subscribed to when the item sold.

Certain product categories have lower or higher Insertion Fees and Final Value Fees.  For details of all eBay fees, visit http://pages.ebay.com.au/help/sell/fees.html

Using the above table, you can quickly work out how much it will cost you to start your eBay business.

PayPal fees

If you accept payments from customers via PayPal, make sure you include PayPal fees in your calculations.  PayPal fees are charged at the time the customer makes their payment using PayPal, and reduces as more of your sales volume goes through PayPal.  For details of PayPal fees visit https://www.paypal.com/au/webapps/mpp/paypal-fees

Returns & refunds

Every time you refund a customer (conditions and time limits apply), eBay will also refund you the Final Value Fee charged on that transaction.  If your customer paid via PayPal, and you refund them via PayPal, PayPal will also refund the PayPal fee.

Other costs

As with any business, there are a wide range of costs to take into account including rent, staff, equipment, storage, delivery, office supplies, services and other overheads.  If you plan to grow your eBay business, it would be wise to consider an eBay compatible trading solution which can save you time, and allow you to manage a bigger volume of inventory and transactions with a higher level of automation.  With prices ranging from free up to $1,200 per month, selecting the right one will depend on your individual business needs.  Check details of some of the solutions available here.

eBay recently launched a new Seller Centre, intended to provide relevant and helpful information about running a business on eBay.  If you’re thinking about starting a business on eBay, or already have one, the Seller Centre is the best place to start.

Image source: ABC news

A New Magento Extension with Big Shoes to Fill

A Brisbane based software business, Lay-Buy Financial Solutions Pty Ltd, recently launched a new extension to the Magento Connect marketplace.

The extension Put it on Lay-Buy powered by PayPal, is a payment gateway extension that resides in a merchant’s checkout and can increase sales by offering customers the choice of affordably paying for their product purchases via one down-payment and up to 3 monthly instalments, and improves a merchant’s cash flow as the merchant receives the down payment, all instalment payments and only delivers the product after they have received the final instalment payment. The extension was only released into the Magento marketplace on 3rd January 2014 and already has merchants on-board offering the payment option in their checkout. One such merchant is Australian online shoe retailer, www.bigshoezam.com.au specializing in larger shoe sizes for women.

Janelle Dawson of www.bigshoezam.com.au had this to say: “My business is all about making large size women’s shoes accessible and affordable for my clients. We found that clients were saving for shoes for several months, but when they visited our store to make their purchase, the item they had saved for was out of stock. The lay-buy option lets our customers reserve the shoes they want and pay them off in easy and affordable monthly installments. Because they reserve the item earlier in the season, replacement stock is more accessible, meaning we don’t miss any of the earlier sales opportunities. So overall we make more sales with lay-buy than without. Previously we had manually administered this option for our clients, and found it very labour intensive. We had to chase clients up, remind them about payments and create PayPal invoices for them to pay. It also meant the client had to process multiple payments – which made the purchase more effort for them too. The Magento Lay-Buy module automates it all, making it simpler for both us and our clients. Payments happen without further action being required from either of us. We get our cash, and the client gets their shoes. A winning combination for all.”

Warrin Van Deventer of Lay-Buy Financial Solutions stated: “The main reason for us developing the extension was due to my wife and I continuously buying some of the more expensive products online, but often not having the total monies available. Three years later after designing, developing and prototyping the PUT IT ON LAY-BUY powered by PayPal platform ourselves and actually running an online lay-buy store for more than two years, the extension was born. We will also move live next week further plug-ins for cart types PrestaShop, OpenCart and WooCommerce.”

Warrin further re-iterated: “There are many consumers shopping online today that cannot afford to pay the full list price in one upfront payment. These consumers are shouting-out for an affordable payment plan solution like LAY-BUY to be offered as a payment option when making payment at a merchant’s checkout. These consumers are young and old with differing reasons for this affordable and flexible payment option. We are now really excited to work with online retailers like Janelle Dawson of Bigshoezam where we see her not as a mere customer of ours but rather as a merchant partner where together we will work to increase their sales and improve their cash flow going forward. And at the same time offer online consumers out there affordability and flexibility when checking out products from our merchant partner websites.”

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Put it on Lay-Buy will be exhibiting at the 2014 PeSA Internet Conference. Alternatively please contact Warrin Van Deventer for more info on 0410 880 977 or warrin@lay-buys.com

Five things you should know about eBay Seller Protection

Article by Tim Davies, Manager Seller Education & Engagement, eBay Australia and New Zealand

Running a business on eBay can be very rewarding and profitable. Treating customers well is the foundation to any good business, and this is especially true of eBay. Despite your best efforts as a seller, things don’t always go as intended, and it can take a lot of time and effort to win the customer back.

eBay has a dedicated Seller Protection team working hard to protect you from problems that might arise. Here are a few things you ought to know about eBay Seller Protection:

1. Automatic 5-star ratings
How buyers rate you is an important part of your reputation on eBay. eBay will automatically award you 5-star Detailed Seller Ratings (DSRs) for:

• Postage and handling charges – If you offer free postage, the buyer chose your free postage option and left you feedback
• Communication – If you specify 0-1 business day handling time, upload tracking information within 1 business day, there are no communications initiated in eBay Messages, no requests made for contact information between you and the buyer, and no pending PayPal Protection cases.

Additionally low DSRs will not affect your Seller Performance rating for:

• Postage time – If you offer a 0-1 business day handling time, and upload a tracking number within 1 business day of payment having been received.

2. Feedback removal

eBay will remove negative and neutral feedback and low DSRs, or ensure they do not impact your overall seller standard when:

• The feedback is left by a non-paying buyer
• A buyer shows a pattern of leaving low feedback
• The feedback is based on something that’s out of your control such as weather-related delays, postal strikes or natural disasters
• You offer 0-1 business day handling time and upload postage tracking information within one business day of payment being received and the feedback is regarding postage speed
• The feedback is from a buyer whose account is suspended at the time of leaving the feedback.

If you receive feedback that violates our policies, contact eBay customer support and request that it be removed. Feedback will be removed if it’s eligible under eBay’s Feedback Removal Policy.

3. PayPal Seller Protection

One great advantage of offering PayPal to your eBay buyers is PayPal’s Seller Protection Policy which can protect you and your money.
PayPal Seller Protection is available if you:

• Sell on an eBay site and accept payments to your Australian PayPal account
• Accurately describe your item when listing it on eBay
• Post the item to the address specified by the buyer during checkout
• Can provide proof of postage such as an uploaded tracking number on eBay

See PayPal’s Seller Protection Policy for full details.

4. Reporting problems

If you encounter a problem with another eBay member, take a moment to let eBay know.

• Report buyers who may be violating one of eBay’s policies. Review the buying practices policy to understand if a buyer is breaking the rules
• Use the Resolution Centre to work out a solution with your customer when direct communication doesn’t work
• Use the ‘block buyers’ function (based on user ID or select buyer requirements). Learn more about managing bidders and buyers.

If you need further help, information or guidance on the appropriate steps to take when a problem comes up, contact eBay Customer Support.

5. Seller Dashboard

Your Seller Dashboard should be checked regularly to help you keep track of any issues. Spotting undesirable trends early gives you opportunity to address them before they affect your Seller Status. Being a Top Rated Seller will give you the best possible placement in Best Match search results. Top Rated Sellers can also qualify to have the eBay Premium Service badge automatically displayed on any listings which meet the criteria. This reassures buyers that you offer the best possible customer experience on eBay.

For more information about how eBay Seller Protection can help your business, visit the Seller Centre Seller Protection page.

The changing delivery game – Alternatives being trialled by Fastway

Article by Liz McConnon, Marketing Manager, Fastway Couriers.

The freight and postal game is changing. As online shopping is surging, customers are increasingly time poor and spending less time at home. Bearing each of these factors in mind, courier companies are looking at new ways to service customers beyond traditional home deliveries.

Courier companies generally either: require a signature on delivery, allow the customer to opt to leave parcels in a ‘safe’ spot at home, or simply get packages delivered to work.

However, each of these options can prove to be quite problematic, with people living busy lives and not having time to wait, parcels going missing from the doorstep, or clogging mail rooms at work. The traditional form of delivery is certainly starting to show its age.

Fastway Couriers is currently investigating a few ways couriers could improve efficiency and convenience during the ‘last mile’ of delivery.

1. Parcel Connect

Parcel Connect is a system which provides customers with the choice to have their parcels delivered to a local Parcel Connect agent. Fastway is currently trialling the service in conjunction with a variety of petrol stations and convenience stores. The courier will deliver the parcel to the chosen Parcel Connect agent and the buyer can then collect it at any time. This way, buyers won’t have to schedule a re-delivery, only to find they miss it again! Parcel Connect is all about what is most convenient for the customer, providing them with a great degree of flexibility.

2. Parcel Lockers

Similarly to Parcel Connect, parcel lockers will provide a great alternative to traditional courier services, especially when it comes to deliveries made directly from businesses to consumers. Fastway recently announced a trial with TZ Ltd’s parcel locker service, which will give buyers access to 24/7 pick-up stations, enabling them to pick up their parcel outside of the typical delivery or post office hours. This form of delivery provides online retailers and their customers with the reassurance that parcels are left securely.

3. Pakman Parcel Delivery Box™

Australia has just welcomed the Pakman Parcel Delivery Box™, the first, high security mailbox for residential properties. This mailbox is fully secure and large enough to fit a standard A3 parcel or even a case of wine safely inside. Fastway believe the Pakman Parcel Delivery Box™ is a major revolution for online shoppers and the courier industry, as buyers will now be provided with the guarantee of a hassle-free, secure delivery, to their own personal mailbox, right on their door step – the ultimate convenience for online shoppers!

The evolving, modern delivery options provide peace of mind, flexibility and reliability for all. There truly is a form of delivery suitable for everyone, so you have to ask yourself: which of these do you think works best for your customers?

For more information: visit www.fastway.com.au.

eBay update – all things postage

Postage Rate Tables

Now sellers have a truly flexible way of offering Postage to their customers. Postage rate tables allow for differentiating between states and cities around Australia and whether they want to use Australia Post, an individual courier or a shipping aggregator like Jedcart or Temando.  Rate Tables are especially useful for sellers of bulky goods.  Postage to some locations can be free, whilst others can be charged.  Learn more.

Postage Labels

This is a sensational feature for sellers (especially low volume sellers) because it will eliminate the need for sellers to process postage off eBay.  Everything can be done on the eBay site, all linked together, with a nice little discount from Australia Post. Best of all, sellers can accumulate their postage charges and they will simply be charged by eBay on their monthly invoice. Postage labels are being progressively rolled out over the coming weeks, with them available to about 10% of sellers at the present time.  Learn more.

Sell more with great pictures (eBay Update – Picture quality requirements)

by eBay Australia

Successful listings start with great pictures.  Over the coming months picture quality requirements on eBay.com.au will be introduced. You’ll need to provide quality images that will help your sales across all devices, plus improve customer experience.
The impact of images:

• Listings with more than one image sell better*.
• Good images inspire buyers in the eBay homepage Feed.
• Good images reduce customer questions and increase customer confidence.
• Almost half of all visits to eBay.com.au are on mobile devices where images are critical.

Many images uploaded via API solutions don’t meet eBay’s new quality guidelines and may soon be blocked.  To help sellers meet rising customer expectations and deliver first class customer experiences, from September 2013, several minimum requirements will apply:

• Every listing must have at least one picture
• Picture size of 1600 pixels on the longest side is recommended (minimum size of 500 pixels)
• Stock images can only be used for Brand New items
• From February 2014, the following minimum requirements will also apply:
• No borders, text or artwork on pictures
• Picture size of 1600 pixels on the longest side is required (minimum size of 500 pixels)
• Watermarks allowed for ownership and attribution only

Higher standards are already effective for all submissions to eBay Deals.
eBay are rolling these standards in stages to give you time to make necessary changes to meet and exceed the new minimum requirements ahead of your competitors.

VIDEOS – eBay has also made four videos about this change, including a how-to on tips for better photography.

eBay releases research report – Commerce 3.0: Enabling Australian Export Opportunities

eBay just released a new research report (Commerce 3.0: Enabling Australian Export Opportunities) revealing Australian eBay commercial sellers are taking advantage of the revenue opportunity presented through cross-border sales, with 78 per cent exporting goods through eBay’s global marketplace.

The report revealed:

• Share of exports through eBay.com.au grew from 60% cent to 79% from 2006 to 2012
• 78% percent of eBay.com.au commercial sellers export (compared to 3% offline), increasing to 97% when they reach sales of AUD$100,000
• eBay represents around one in five Australian SME’s (with sales between AUD$50,000-AUD$200,000), in other words a significant portion of SMEs
• eBay.com.au commercial exporters sell to an average 28 overseas destinations, compared to only three destinations for those offline