Top Ten Traps for New Ebay Sellers

Over time, we've seen some common disasters encountered by new sellers who didn't realize the Ebay way.

Generally, an Ebay disaster means establishing a bad ebay record. A seller who screws up is seldom vulnerable to being sued, or anything more than that.

The top ten traps:

1. If some other seller is doing it, then it must be ok. Lots of listings on Ebay violate Ebay rules, and will be removed if reported. Even more contain statements which if seller did what the statement says, seller would almost certainly come to some bad result.

Shipping gouge (seller trying to profit from shipping).

Shipping to be calculated after end of auction.

Shipping insurance to be added separately.

Shipping insurance decision to be left to buyer (insurance benefits seller, not buyer)

"Free shipping", which is actually local pickup only.

Can't buy item unless buyer buys something else outside of the listing, like a cell phone contract.

"As Is", or "No returns accepted".

Add on items offered separately.



2. Doing it my way. Sellers who insist on doing it the way they think best eventually come to some painful end. Understand that Ebay holds some very powerful cards, and can mechanically trump seller's intent. For example, seller must understand the Ebay way regarding return requests. "Do I have to accept a return"? The written rules suggest not, and seller can put "no returns accepted" in the listing, but the reality is that if buyer files a well formed complaint, seller does have to accept stuff back for a refund including 1st way shipping. A seller who refuses to pay return shipping can expect to get very bad feedback scores.

3. Failing to figure out proper shipping before creating a listing. Usually, there is one best way to ship a particular thing, and that is the only way which should be offered. Don't let your buyer make a mistake, because you will pay. For sure don't force your buyer into a sub-optimal shipping method. Understand:

USPS Priority Mail Flat Rate Boxes. Three size categories, almost always right for smaller, heavier stuff.

First Class Package (under 13oz, goes just as fast as Priority Mail)

Parcel Post (never indicated under about $8 because there is a better choice, but as stuff gets larger and heavier, it's usually the right choice over $10.

UPS Ground (a competitor to Parcel Post, but it just won't work out to use the UPS storefronts to package and ship, because they are too expensive).

International Shipping. Most affordable international shipping methods do NOT meet the requirements for Paypal seller protection. Seller needs to be comfortable with that, but also realize that some countries have far more losses than others. Italy in particular should probably be avoided.

Understand Paypal Seller Protection rules: ship within 7 days, ship with Delivery Confirmation under $250 (including shipping), and with Signature Confirmation over $250, and ship to the address provided by paypal.


4. Impatience regarding being paid. Don't expect to see your money for the best part of a month as a new seller on Ebay, and you'll not be disappointed. It's a big mistake to put aggressive payment demands in the listing and follow them up with harassment of a slow paying buyer. Buyers can sting. Don't miss the "21 day hold". To block seller scams involving collecting the money and running, Ebay/Paypal hold seller funds for 21 days. They do release the funds earlier when seller can show delivery confirmation (DC) and requests the release. They also release funds earlier when buyer posts positive feedback.

Don't ask buyer for feedback so seller can get paid. Buyers misunderstand the 21 day hold thing far more broadly than new sellers, and often interpret such requests as indicating a scam. Do not ever ask buyer for feedback, because the feedback you get might be tainted by the request.

5. Drop Shipping. Drop shipping is when seller accepts the order but submits it to some warehouse which actually ships the stuff to buyer. The problem here is that seller takes all the heat when stuff goes wrong, and stuff goes wrong regularly. Ask yourself: why does this outfit need me? Why can't they list stuff themselves? The answer is, they need someone in between to absorb issues like Out Of Stock. Out Of Stock on Ebay is a major seller infraction and Ebay encourages buyers to penalize such sellers with unhappy feedback. Buyer is not buying a refund, and feels a loss when the stuff is not delivered.

6. Imagining that the written listing will provide protection against buyer confusion. If buyer is confused, seller loses. Particularly when bad news is buried down in the small print. If buyer is disappointed in what comes, buyer can almost certainly return it for a full refund. In particular, avoid:

Ask questions first. (confused buyers don't feel confused at all)

As shown in pictures (but when the picture shows some defect not otherwise disclosed, expect a bad result)

Ambiguous size. (you know what size it is, buyer knows what size it is too, but the two of those can be wildly at odds with it not being figured out until buyer receives what seems to be a tiny package).

Selling junk described pretty much as junk. (buyers will hope for something above the junk level, seller loses. Throw the junk in the trash, or donate it to your favorite charity thrift)

Not blocking buyer from international places seller does not wish to ship to. Configuring only USA shipping is not at all the same as formally stating that seller will ship only to the USA, and international bids are accepted. There is a block which must be configured on seller's selling profile.


7. Shipping gouges. Yes, some sellers are shipping gougers. No, it won't work for a new seller. Don't see shipping as a profit, and don't imagine that buyer will be pleased to aid you in avoiding ebay fees.

8. Canceling a transaction. It's tempting, after determining that buyer might be problematic, to want out of a transaction. Canceling a transaction on Ebay is not defined like new sellers might imagine. Canceling requires buyer's agreement, and does not compromise buyer's rights to leave feedback. Don't cancel unless you have some reason to expect buyer will cooperate. Generally, if buyer has neither paid nor communicated, it is far better to file the Unpaid Item Dispute. If buyer has paid, it is almost never appropriate to refuse to ship the stuff and try to cancel instead.

9. When seller lists an item, seller is required to actually sell it at the price it brings. If in doubt, look up prior sales to see what this kind of thing will bring in an ebay auction. Do not consider unsold listings as showing value, rather they show some kind of ceiling. Understand "commodity demand" vs "sparse demand". Commodity demand items attract attention and will sell around the commodity price if listed correctly. Sparse demand items might find a qualified buyer once a month, and thus are inappropriate for low starting price auctions.

Listings can generally be ended earlier than 12 hours before close with no commitment to anyone.


Watch out for:

Selling things for friends/relatives (who sometimes refuse to complete the sale)

Allowing other people to make decisions about stuff you have listed (such as selling it to someone else, or donating it to a charity)

Listing stuff which you don't actually have as yet (and may never get).


10. Under financed. A new seller should have $200 or so in the selling paypal account to do business with. Stuff happens. Sellers who don't have any money tend to make really bad decisions when something goes a little wrong, ending up with something big wrong.