|
What, Exactly, Is an eBay Business?
Dec 13,2006 00:00
by
admin
What, Exactly, Is an eBay
Business?
To the question of what an eBay business is, the simple
answer is that it's a company that generates profits by selling merchandise on
the eBay site. That company, of course, can be a sole proprietorship run by a
single individual, as most eBay businesses are, or it can be a legal corporation
with multiple employees. The company doesn't have to sell exclusively on eBay;
it can sell through any number of channels (including a traditional
bricks-and-mortar store), as long as at least some of its revenues are generated
via the eBay family of sites.
Contrary to what you might think, eBay businesses do not have
formal business relationships with the eBay corporation, nor do they have to be
authorized by eBay. To become an eBay business, all you have to do is start
selling on the eBay site. Nothing more formal than a standard eBay membershipin
the form of a free Seller's Accountis required.
eBay businesses can be of any size, revenue-wise. Some eBay
businesses sell only one item a week; some sell millions of dollars worth of
merchandise every year. It doesn't even have to be a full-time thing. Many eBay
businesses are part-time endeavors run by people who have other full-time
jobs.
What distinguishes an eBay business from the average individual
selling on eBay is intent. While individuals tend to sell on eBay because they
need the money or want to get rid of old junk lying around the house, eBay
businesses sell merchandise that they intend to make a profit on. eBay
businesses have to purchase or create the items they sell; they also have to
ensure a constant flow of merchandise to feed a continuing schedule of auction
listings. eBay businesses sell on eBay every week of the year, not just when
it's convenient. And they work hard at it.
And, finally, eBay businesses are businesses. That means they have to deal with the same
issues any business has to deal withmanaging inventory, handling customer
payments, paying taxes, dealing with complaints, and the like. The people behind
these eBay businesses do what they do because they like it, sure, but also
because they want to make a profit.
|