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What is eBay?

eBay.com is owned and manged by eBay Inc. which is one of the worlds leading consumer to consumer shopping services. eBay started out as a humble operation has now become one of the giant corporations in the online shopping industry. It offers round the clock shopping facility and brings together buyers and sellers from all nooks and corners of the world. The site is offered in thirty different languages and the goods that are traded on eBay range from collectibles and household items to appliances and even industrial surplus items.

How eBay Works

Today millions of items are being sold on eBay ranging from personal items and collectibles to decorations, home and office furnishing to electronics, computers, household and industrial equipment to virtual goods such as tickets, software and domain names. In general terms sellers are allowed to sell everything they legally own and does not violate eBay’s trading policies. With eBay sellers have the opportunity to not only sell their goods locally but reach out beyond the borders of their country and continent using a unified payment system know as PayPal. In order to list and sell an item on eBay the sellers agree to pay a listing fee for the duration their ads will be shown plus a commission arising from the sale of their goods. The buyers are also bound to pay a commission on their transactions when they purchase an item. In order to maintain transparency and good conduct, eBay has a rating system that allows buyers to rate the product and services of a seller they purchased their good from. This review system also helps new buyers to shop from eBay with confidence.

Buy Now Items
Besides the products that are being sold via the auction process eBay also offers trusted sellers who have gained a required level of recognition and reputation an opportunity to sell their items using the ‘Buy Now’ feature using PayPal. This feature allows the sellers to not only list their items for auction but additionally allow buyers to pay the full reserved price of the item even before the auction time ends. This feature has been well received by the users and allows them to acquire goods quicker whilst paying a fixed price which may or may not be higher than the point where an auction might end.

Listing Charges and Taxe Information

The main source of revenue for eBay comes from the listing fee. The fee structure is quite sophisticated and often confusing for the new users. The total fee is comprised of several parts including the product listing fee, the final sold price of an item and additional charges that apply depending on the category a product is listed under. As the firm is based in the USA they do not charge sales tax to buyers who reside outside the USA and buy products using eBay.

Industrial Surplus and Specialty Stores

eBay has also successfully established a strong relationship with businesses who want to sell directly to their consumers. Today we find a great number of brands that maintain their dedicated stores and offer stock surplus and clearance deals from time to time. The service is also extremely popular amongst the buyers as it allows them a window of opportunity to grab goods from their favourite brands for less. They also offer a number of options for the sellers to employ automated selling mechanisms using their API. There are several thousand companies out there making use of the API and also software development firms specializing in eBay API integration for their customers.

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Author
Hi, My name is Paul Garcia. I have been an eBayer for 6 years and I like helping new traders who are learning the ropes. I hope you find this blog useful in your quest for success.

Please don't forget to comment if you like my blog.

I wish you all the best!

Paul