COMMENT
How To Be An Internet Entrepreneur

By David Kuo (TMFDragon)
February 10, 2006

Being an entrepreneur couldn't be easier these days. According to eBay, thousands of people can earn good money buying and selling stuff on its auction site. In fact, nearly 70,000 people in the UK apparently make a tidy living from buying and selling anything from cars to bras, and from toys to boy's shoes at the click of a mouse.

To qualify as a real "eBay entrepreneur" you need to make at least 25% of your income buying and selling things on their website. And for some people Internet trading can even turn into a full-time occupation -- one trader reportedly makes £70,000 a year selling designer shoes on eBay. Nice!

It strikes me that the fashion-shoe trader may well be a specialist in his or her field, which is vital if you want to succeed when selling at online auctions. There is nothing to beat product knowledge especially when you are dealing millions of street-wise buyers.

When selling on eBay, a useful tip is to set your "Buy-It-Now" price in the region of what you think your item is worth. Additionally, avoid putting a reserve price on your item. (A reserve price is the lowest price you are prepared to accept, but it can give the impression that you don't really know what your item is worth.)Instead, start your bidding price as low as you can tolerate. That's because you want healthy bidding interest, which should eventually lead to a higher final sale price.

Even if you are not expert trader, it can still pay to be as professional as you can. Remember, the eBay auction site is equivalent to the shop window in a high street store. Consequently, drawing as many people as possible to your advertisement is key. That means paying attention to using the correct key words in your title. And it goes without saying that you should check your spelling carefully. Many of us may have good idea about who "Etlon John" may be, but the search engine doesn't.

A good photo can also improve the chances of making a sale. By paying attention to simple things such as lighting and the angle from which you shoot your photo, you can greatly enhance the way your product looks.

Finally, tax. You may be liable to pay tax when buying and selling on Internet auction sites if you profit from the trade. Currently, you are allowed to make an annual profit on £8,500 on items you buy and sell before you become liable to capital gains tax, plus there is a chattels exemption for personal goods and effects sold for £6,000 or less. However, if HM Revenue & Customs considers you to be an active trader, you may not be eligible for either of these exemptions.

For many people, eBay has gone from being an Internet jumble sale to a market place where they go to buy and sell for a living. If you are really serious about being an Internet entrepreneur, you can find out more on our Online Auctions discussion board.