How to Open a Physical eBay Shop

Cash in on the buying and selling of eBay's millions of active members and open a physical eBay shop to help people sell their items. Use your valuable expertise as an eBay trading assistant combined with your knowledge of eBay's continually updated merchant features to get friends and neighbors in your community the best sales price possible and make a profit for yourself as well.

Things You'll Need

• Broadband online access
• Computer and office accessories
• Residential or commercial office space suitable for storage of auction items
• Business licensing and tax registration as required by law

Instructions

1. Join the eBay Trading Assistant Program and review your options for a opening an eBay physical store.
   Decide if you wish to be an independent eBay store, co-op with another business or invest in an eBay drop-off franchise.

   Weigh the pros and cons of each eBay business model to find the best one for you.

2. Open a commercial location or home office if you wish to operate as an independent physical eBay shop. You’ll be responsible for the physical location and setting up all the office functions, as well as marketing and day-to-day operation of the business until your revenue has grown enough to afford employees.

   You can set your rates, commissions and procedures more competitively than a partnership or franchise, basing them on your overhead, anticipated customer base and a reasonable profit margin.
   Typical commissions for an independent eBay physical store are 25 percent to 35 percent with eBay transactions and other sales-related charges being passed back to the customer.

   Begin by setting up item storage space, desks and computer workspace and a comfortable, inviting customer reception area.
   Create brochures, forms, signage and begin advertising and promoting your independent eBay business.

3. Consider a co-op or partnership arrangement combining your eBay store with an existing business.
   Take advantage of an existing storefront or office that can offer customer traffic, lower overhead and faster startup as well as help from existing employees and combined advertising and marketing power.

   Consider piggybacking your eBay auction service with such businesses as print shops, gift shops, antique shops, galleries, recycling centers and many other related services. Expect to either pay a fee or split your profits with the existing business owner for these advantages and charge a higher commission of 30 percent to 40 percent.

4. Invest in an eBay drop-off franchise to set up your physical eBay store. Review factors such as financial commitment, franchise company reputation and management, franchisee support, and local competition.

   The advantages are a turnkey operation, training, support and encouragement from the parent company, and name brand visibility. The primary downside of franchising is a significant capital investment, making it much more difficult to close the business if it declines, in part because of the longer investment payback period.

5. Establish a Registered eBay Drop-Off Location as a trading assistant.

   The requirements are having a drop-off location open, staffed and open during regular business hours, adhering to eBay terms of operation and being fully insured and bonded. The advantages are getting priority on leads from eBay and using the Registered eBay Drop-Off Location designation.

Tips & Warnings

• Your eBay feedback rating is key to your credibility and buyers' trust. Do all you you possibly can to maintain a high an eBay feedback score.

• Be aware of any laws in your state regulating resellers of merchandise, such as pawn shops or auction dealers.

References

• Entrepreneur: The Evolution of eBay
• Fast Company: eBay Search and Update Information
• Ecommerce-guide: eBay Auction Drop-Off Stores

Resources

• eBay: University Learning Center
• eBay: Trading Assistant Program