EBay generates revenue from a number of fees. There are fees to list a product and fees when the product sells.
The eBayfee system is quite complex, and in the US based eBay.com, takes $0.20 to $80 per listing and 2-8% of the final price (as of 2006).
The Swiss based eBay.co.uk (eBay.co.uk offices) takes from GBP £0.15 to a maximum rate of GBP £3 per 100 for an ordinary listing and from 0.75% to 5.25% of the final price.
In addition, eBay now owns the PayPal payment system which has fees of its own.
Why Sell on eBay?
Why sell on eBay? The answer is simple.
EBay is the largest online marketplace in the world.
The eBay Marketplace creates a very powerful online platform for the sale of goods and services by a passionate community of individuals and small businesses.
On any given day, there are millions of items available through auction-style and fixed-price trading.
With millions of buyers and sellers worldwide, eBayoffers localized sites in the dozens of country markets from the USA, to Europe, right across to India, Singapore and China.
EBAY – COMMERCE OF THE WORLD
Let's start with how large this particular market medium is:
EBay is a massive Internet-based conglomerate that is comprised by 18 localized auction sites – each of which concentrates on a single country in Asia, Europe, or North America.
Additionally, eBay has a partnership with MercadoLibre, which caters to the Latin American market.
When all of these eBay mini markets are combined, they reach an amazing buying pool of over 100 million people, which is by far the largest single market place in the world.
It is amazing how eBay can operate without any control from any single group.
Prices on eBay are generally much lower than you would find anywhere else, and you’ll also see that eBay’s prices too do not escape the forces of demand and supply!
HOW MASSIVE IS EBAY?
EBay, being as massive as it is, accounts for thousands of online transactions per day!
With that, eBay has wisely taken control over Paypal, which is currently the largest Internet-based transaction medium.
eBay also owns various subsidiaries, including Skype.com, which is the largest Internet-based phone service; Shopping.com, which is a major comparative shopping site; and Rent.com, which is the largest single place for listing apartments for rent.
EBay also owns Half.com, which sells books exclusively and Prostores.com, which has an e-commerce solution for Internet-business entrepreneurs.
Earning Big Bucks on eBay
The key to actually making real money on eBay with a physical inventory is to sell in massive quantities, since the profit margin per item will definitely be slim.
This means that you have to find some highly efficient system for setting up auctions, processing auctions, processing transactions, and mailing out each sale.
This is the only way in which you will actually earn money.
But do not worry; you do not have to start with a massive physical inventory just to do well on eBay!
We will show many other more effective methods of starting at eBay at literally no cost at all!
Additionally, eBay has launched a number of new, in-house projects, such as eBay Motors, which allows car auctions and eBay Express, which was just recently released.
These are just some of the examples to show you how huge eBay actually is! eBay is literally a world marketplace.
If there is anywhere on Earth you can start selling, it is Ebay.