Your Ultimate Guide to Starting an eBay Business in 2025
In a digital retail landscape dominated by giants like Amazon and Shopify, eBay remains a surprisingly powerful and profitable platform for entrepreneurs, side hustlers, and established sellers alike. As of Q1 2025, eBay boasts 134 million active buyers worldwide, browsing a staggering 2.3 billion active listings across more than 190 markets. The site pulls in over 700 million monthly visits, with the U.S. leading in traffic, and its audience skews 60.37% male and 39.63% female.
Whether you’re clearing out collectibles from your attic or launching a full-fledged online store, knowing how to start an eBay business offers a low-barrier, high-visibility entry into global e-commerce. The best part? Getting started is easier than most people think. With the right strategy, your eBay business can be more than just a side hustle; it can be a sustainable, successful source of income. Let’s dive in.
Step 1. Decide What to Sell on eBay
When starting an eBay business, the first big decision is choosing your niche. Commonly profitable categories include electronics, collectibles, fashion, home & garden, sporting goods, and refurbished items. The beauty of selling on eBay is that you can go as broad or as specialized as you want, from vintage vinyl records to high-end tech gadgets.
To source your products, you can explore several proven methods:
Liquidation Sales: Buy excess or returned goods in bulk, often at steep discounts, which can yield higher profits per item.
Dropshipping: Sell products shipped directly from the supplier, allowing you to start with minimal upfront investment.
Wholesale Purchasing: Purchase items in large quantities from suppliers to secure better margins and higher per-item profits.
Retail Arbitrage: Find discounted items in retail stores and resell them, offering a quick, low-barrier way to start selling.
Step 2: Evaluate Product Demand
When evaluating product demand for selling on eBay, it’s important to research what buyers are actively looking for. For example, you might notice that certain collectibles or vintage electronics consistently sell out, signaling strong demand.
Seasonal items, like holiday decorations or summer gear, may spike at specific times of year, while everyday essentials often maintain steady sales. Checking competitor listings and sold prices on eBay can give you a clear picture of pricing trends and buyer interest.
Additionally, exploring Amazon can provide further insight, as it’s another major marketplace where high-demand products often appear, helping you identify opportunities to source items that sell well across multiple platforms. To do this, you can combine data-driven tools like AMZScout Product Database and the AMZScout PRO AI Extension. These tools let you tap into market demand trends, even beyond eBay, so you can spot profitable items early.
AMZScout Product Database is a powerful platform with a library of over 600 million products. Its user-friendly filters make it ideal for both beginners and experienced sellers looking to identify profitable ideas.
Here’s how:
Go to the AMZScout Product Database and start your free trial by entering your email.
Use up to 16 filters to refine your search. For example, choose the “Patio, Lawn & Garden” category, set minimum monthly sales to 1,000+, and filter by profit margin.
![Product Database filters and Product Selections]( "Product Database filters and Product Selections")
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Click Find Products to see your results, then shortlist the items that stand out.
After identifying a promising product, the next step is to validate demand and profitability trends. While eBay-specific sales data can be harder to find, you can leverage the AMZScout PRO AI Extension to spot global shopping trends.
Install the AMZScout PRO AI Extension via Chrome.
![Install AMZScout PRO AI]( "Install AMZScout PRO AI")
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Search for your chosen product on Amazon and open its product page.
Use the extension dashboard to review the Product History section: check graphs for sales trends, reviews, and price history. Consistent demand and stable pricing are good indicators of profitability.
![AMZScout PRO AI Product History]( "AMZScout PRO AI Product History")
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Step 3: Assessing Products on eBay
Now, check the product’s actual performance on eBay:
Demand: Look for the “People want this” label, which shows how many shoppers are watching the item.
Sales: The “This one’s trending” note reveals units sold (e.g., 181 pieces sold).
Reviews: Filter feedback to gauge satisfaction (e.g., 38 positive, 5 neutral, 0 negative).
Step 4: Calculating Product Profitability
Check supplier prices on platforms like Alibaba, noting the MOQ (Minimum Order Quantity).
Compare with eBay selling prices (e.g., $54 per unit).
Factor in eBay fees, shipping, and any other costs using eBay’s fee calculator.
Calculate your profit margin: aim for 20%+ for healthy growth potential.
Pro Tip: Analyze Existing Listings for Insights
Before committing to a product, take time to study how successful sellers are presenting it on eBay. This isn’t about copying, it’s about decoding what’s working so you can refine it and make it your own. Here’s what to focus on:
Titles & Keywords: Search your product name (e.g., 5 Tier Indoor Metal Flower Shelf) and review the top 10–15 listings. Notice which keywords appear repeatedly, for instance, “metal plant stand,” “multi-tier flower rack,” or “indoor/outdoor shelving.” The more relevant terms you incorporate, the better your product’s search visibility.
Pricing: Compare the average selling price across the first page of results. If most vendors are pricing between $52 and $58, and one seller is at $49 with free shipping, that’s a strong signal they’re competing aggressively on price. Decide if you want to match, beat, or differentiate (for example, by offering faster delivery).
Photos: Count how many images top vendors use. On eBay, high-performing listings often feature 8-12 high-resolution images showing the product from multiple angles, in use, and close-up on details. Many vendors also use lifestyle shots, which can increase conversion rates by 20% or more.
Shipping & Delivery: Check whether bestsellers offer free shipping and how quickly they dispatch orders. If the top sellers in your niche offer 1–3 day handling times, matching or beating this can be a competitive advantage.
Feedback & Reviews: Analyze feedback percentage (aim for sellers with 98%+ positive ratings) and read actual customer comments. If you notice recurring complaints, such as poor packaging or unclear assembly instructions, you can address these in your own listing to stand out immediately.
By quantifying what works and spotting where competitors fall short, you position your eBay business to launch listings that look professional, rank well, and convert visitors into paying customers.
Step 5: Create an eBay Seller Account
Before you can start selling on eBay, you’ll need to open a seller account and there are two main types to choose from. A personal account is ideal for casual sellers or those testing the waters, while a business account is designed for volume sellers, offering more branding options and tax advantages.
To set up your eBay account do the following:
1. Visit eBay.com and click Register.
2. Select either Personal or Business account.
3. Enter your name, email, password. Business accounts also need business name and contact info.
Then, you can choose a store subscription tier to unlock additional perks and savings:
Starter: around $7.95/month (or $4.95/month if billed annually) for 250 free listings; extra listings cost about $0.30 each
Basic: approximately $27.95/month (or $21.95/month annually) for 1,000 free fixed-price listings (plus 250 auction listings in select categories); extra listings are around $0.25 each.
Premium: about $74.95/month (or $59.95/month annually) for 10,000 free fixed-price listings, 500 auction listings, and extra listing fees as low as $0.10–$0.15
Anchor: roughly $349.95/month (or $299.95/month annually) for 25,000 free fixed-price listings, 1,000 auction listings, and shorts extra fees of $0.05–$0.10, including dedicated customer support
Enterprise: a hefty $2,999.95/month (annual) for 100,000+ listings, lower insertion rates, and the full suite of pro-level tools and support
![How to sell on eBay - set up the account]( "How to sell on eBay")
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4. Link a bank account for payments and fees.
5. Verify your identity with a government ID; business users may need to supply tax or business registration details.
Once you're live, your Seller Hub gives you the dashboard for building your eBay business, where you manage listings, track analytics, and upgrade your store as you scale. Make sure to familiarize yourself with eBay’s policies around listings, payments, and returns to avoid surprises and keep your account in good standing.
Register and Legalize Your Business
If you plan to grow your eBay business beyond a casual side hustle, it’s important to operate as a legitimate, tax-compliant entity. Registering your business not only builds credibility with buyers but also makes it easier to open a business eBay account, secure wholesale supplier relationships, and deduct eligible expenses at tax time.
Start by choosing a business structure: many small eBay vendors opt for a sole proprietorship or LLC, though corporations can be beneficial for larger operations. You’ll also need to apply for an EIN (Employer Identification Number) from the IRS, which is free and takes only minutes online.
Depending on your state or country, you may also need a reseller’s permit or sales tax license to collect and remit taxes on your eBay sales. By legalizing your operation early, you protect yourself from compliance issues and set a strong foundation for a profitable and successful eBay store.
Plan Your Inventory & Pricing Strategy
When planning your inventory and pricing, consider these key factors:
Fixed-price listings (Buy It Now) offer steady, predictable sales for items with consistent demand.
Auction listings can generate higher prices for rare or highly sought-after products through competitive bidding.
No matter your format, pricing should start with a clear understanding of total costs, not just what you paid for the item. Factor in eBay seller fees (insertion fees, final value fees), payment processing fees, packaging, shipping, and even your time.
For example, if you’re selling a 5 Tier Indoor Metal Flower Shelf for $54, eBay’s fee calculator might show: $8.10 in selling fees, $12 shipping cost, and $25 supplier cost, leaving you with a $8.90 profit. Seeing the breakdown helps you avoid underpricing and ensures you hit your target margins.
By pairing smart pricing with the right listing format, you can keep your eBay store competitive, profitable, and resilient to market changes.
Create Effective Product Listings
Your product listings are your storefront. So, they need to capture attention and convert browsers into buyers. Use multiple high-quality images with clean, uncluttered backgrounds to showcase your item from every angle; listings with 8 to 12 sharp photos tend to perform best.
Also, craft keyword-rich titles and descriptions that naturally include terms your target customers are searching for, boosting your product’s visibility in eBay’s search results. Tools like AMZScout’s Keyword Research can help you uncover high-performing keywords that shoppers use on Amazon and are likely to search for on eBay as well.
A polished, detailed listing not only drives clicks but also builds trust, setting your eBay business up for long-term success.
Ship Orders and Handle Fulfillment
There are two main ways to handle shipping and fulfillment when it comes to eBay:
Self-Fulfillment: Pack and ship orders yourself to maintain full control. Use sturdy packaging, include tracking numbers, and communicate clearly with buyers to build trust and reduce disputes. Aim to ship orders within 1–2 business days whenever possible.
Third-Party Logistics (3PL): As your sales grow, consider outsourcing fulfillment to a 3PL provider. They handle storage, packing, and shipping, ensuring faster delivery and consistent service while freeing up your time to focus on sourcing and marketing.
Start Selling and Fulfilling Orders
Once your listings are live, it’s time to start selling on eBay and turning browsers into buyers. Monitor your sales closely, respond promptly to customer questions, and maintain excellent communication throughout the buying process.
As orders come in, fulfill them quickly to boost your ratings and build trust. Consistency in order fulfillment helps create loyal customers and positive feedback, which are key ingredients for a profitable and successful eBay business. The sooner you master this rhythm, the faster your side hustle can grow into a thriving online store.
Tips for Successful eBay Business
Building a thriving eBay business takes more than just listing products. It requires ongoing attention, smart decisions, and adapting to what the data tells you. Here are some key tips to help you succeed:
Use eBay Seller Hub: This powerful dashboard lets you track your sales, monitor traffic, analyze conversion rates, and understand keyword performance all in one place. Regularly reviewing these metrics helps you stay on top of your eBay business health and spot opportunities for growth.
Analyze What’s Working: Don’t be afraid to tweak your listings based on data. Adjust titles, prices, photos, or shipping options to improve visibility and conversions. Small changes informed by real insights can make a big difference in your profitability and ratings.
Promote Smartly: Take advantage of eBay’s promotional tools like promoted listings to increase your item’s visibility in search results. Running markdown sales and offering volume discounts can attract bargain hunters and encourage bigger orders, fueling a more
profitable and successful eBay store.
Provide Outstanding Customer Service: Quick responses and friendly communication build trust and encourage positive reviews, which are crucial for long-term success.
Conclusion
Starting an eBay business in 2025 is an exciting opportunity to tap into a massive global marketplace with millions of active buyers. By carefully choosing what to sell, setting up your account properly, planning your inventory and pricing strategically, and creating standout listings, you set yourself up for success.
Don’t forget to leverage smart tools like AMZScout to streamline product research and optimize your listings. With dedication and the right approach, your eBay side hustle can quickly grow into a profitable, rewarding venture.
FAQs
How much does it cost to open up an eBay store?
Opening an eBay store costs between $7.95 and $299.95 per month, depending on the subscription tier, from Starter to Anchor. Each plan offers different free listing limits and fee discounts, helping sellers scale their eBay business efficiently.
Do I need a business license to sell on eBay?
A business license isn’t required for casual selling, but if you operate regularly or sell in high volumes, registering your business and obtaining necessary licenses can help you comply with tax laws and build credibility.
How much does eBay take from a $100 sale?
eBay typically charges about 12.9% in fees on a $100 sale, including final value and payment processing fees. Additional costs like shipping and listing fees may apply, so calculating total expenses is key to profitability.
Is selling on eBay worth it?
Yes! With 134 million active buyers and billions of listings, eBay offers vast market access and low startup costs, making it a great platform for building a profitable and successful eBay business, whether as a side hustle or full-time venture.
