eBay Fees Are Too High To Make Money

People are angry that they have to pay high fees when selling on eBay and that they have less control over the selling process. When they have had enough,that’s when they decide to open an E-commerce online store as the best alternative to eBay.
 
But are these people right?
 
Do you think opening an online store is the better alternative to simply registering on eBay, where you can start selling right away? I don’t think so, and let me explain why.
 
An e-commerce online store is a website you can control, add your own products and you don’t have to pay any final value fees or insertion fees like you do on eBay.
 
If you are selling on eBay and you want to list the item, you have to pay for inserting it into the eBay marketplace. The insertion fee is calculated on many different factors, but personally, I cut it down to only a few cents for inserting an item. I think it is a fair price, because your product will appear in the eBay marketplace and it will be visible to numerous potential buyers.
 
If your item is sold, you have to pay final value fees for eBay,which is a little bit higher and is based on your final price. If your buyer pays through PayPal, you must also pay PayPal fees, which are $3.20 if the person sends you $100.
 
Therefore, if you want to sell on eBay, you have to pay three types of fees: insertion, final value and PayPal. That’s it; you don’t have to pay for anything else.
 
However, remember that eBay is the No. 1 auction platform in the World and it has its own registered customers. This year alone, eBay had 160 million active users. (Active users are real people who sell and buy.) I am also a seller on eBay and sell many different items, but I also buy a lot through eBay as well. Think about how huge this market really is with so many people searching through things to buy.
 
Now let’s get back to the main thing – E-commerce store. Imagine you decided to open an online store and you added many different products.
 
How you are going to get customers?
 
They don’t know you. So how are you going to attract the same amount of potential customers as eBay?
 
The answer is simple; you need to spend money for advertising, SEO (search engine optimization), press releases and many other campaigns if you want to start selling. However, you can’topen an e-commerce store just like that. You have to pay a monthly fee to have one or hire a programmer to create it. And if you decided to create a custom online store, don’t forget about creating a professional design, because you don’t want to appear sloppy and unattractive.
 
Now think about how much a professional SEO expert will cost you, along with a good programmer, press release writer and banners on other sites. You need to spend at least $5,000 every month and this is not a very big sum if you want to get some sales.
 
Do you still want more control over your products? Yes, ok let’s move on.
 
Most online stores use merchant accounts and PayPal. Because I use eBay to sell my products, PayPal is the best and easiest option for me. However, if you have an online store, you have to open a merchant account and that could really cost you money, definitely more than PayPal.
 
You can’t just list one or two products in an e-commerce store because it will not look professional. People use online stores so that they can choose between several different products. So you have to store many different products, and a big warehouse is a best solution for this.
 
But with eBay, it is much different. You can list just one item, and make money. This is how simple it is really is.
 
EBay fees are not that bad; you are just paying a little bit to introduce your products to 160 million people.
 
I don’t want to say that an e-commerce online store is bad and you don’t want to go this way. No, it is a very good business, but it can cost a lot. One day I calculated everything and came to a costly conclusion. If you want to set up and start a business selling products through an online store, you need at least $100,000 for the things I just mentioned.
 
However, if you want to start a business on eBay, you can start with only a few hundred dollars. Starting the business with a few hundred dollars will lead you to increasing income every month and best of all, you might even be able to quit your day job.
 
I think the main problem is that people don’t source products from China. Instead, they like to use drop shipping or local wholesalers, and this is the main reason they fail on eBay, but blame the high fees and big competition. You must understand that you need to use the main source, buy and import directly from China if you want to make money. I have no problem paying eBay fees because I buy products cheap and there is a huge room for profit.
 
The conclusion is that eBay is the cheapest and fastest way to make money selling products online. This is why I use eBay and don’t have an e-commerce store. And honestly, I am not thinking about opening any time in the near future.

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