eBay marketplace: how to maximize your sales and manage your cash flow effectively

Why sell on the eBay marketplace?

Selling on eBay offers many opportunities for an online seller:

• Creating a low-cost e-shop . The platform lets you place up to 150 ads online free of charge each month. You only pay when you make sales.

• A reputable platform offering optimal visibility. eBay is a world-renowned platform. It enjoys an excellent reputation among Internet users.

• A dynamic market and a large international audience . eBay lets you reach nearly 200 million visitors a month.

• Diversified sales formats with fixed-price and auction formats. This gives you the freedom to choose your sales format to suit your products and sales strategy.

• A rating system that reinforces your e-reputation on the platform. The platform allows you to request user reviews to boost the confidence of your potential customers.

Fees and commissions on the eBay marketplace

eBay applies different types of fees:

Sales commissions

They can be fixed or variable depending on the price of the order. It varies from 5% (for the telephony, computer or console categories, for example) to 12% (for clothing and accessories, luggage or perfumes and wellness products).

For collectible card games, for example, the commission is 9% for the portion of the sale price below 990 euros and 2% for the portion above.

Selling costs

These are charges levied by the platform for each advert even if the product is not sold. It depends on the listing option: 0.30 euro for the Fixed Price format and 0.40 euro for the Auction format.

eBay store fees

Professional sellers can choose to open a store eBay. These include a higher number of free listings, advanced marketing tools and reduced listing fees.

The platform offers 3 boutique packages:

• La Boutique Classique at 19.50 euros

• La Boutique A la Une at 39.50 euros

• Premium Boutique at €149.50

International transaction fees

These are charges applied by the platform for deliveries outside the Euro zone and Sweden. They vary from 1.6% to 3.3%, depending on the place of delivery.

eBay also applies special rates for the Car, Motorcycle category. In addition, the platform applies additional costs if you want to set up specific merchandising options to showcase your products.

What are the requirements for selling on the eBay marketplace?

Here's what you need to do to sell on eBay:

1. Open a professional seller account

2. Respect the platform's rules on prohibited items

3. Respect return and customer service policies. For example, the platform recommends at least 30 days for returns.

4. A PayPal account . In fact, on eBay, you can choose from 3 payment methods: Paypal, direct debit and credit card. Paypal is the preferred payment method, as it is the most widely used by buyers and professionals alike.

3 steps to selling on eBay

Here's how to offer your products on eBay in 3 steps:

Creating an eBay seller account: steps to follow

This is the first thing to do if you want to sell your products on the platform in the usual way.

You will be asked to fill in a form with the following information:

• Your company name

• Company type and status

• Company details: address, telephone number, registration number

• The e-mail address of the eBay account manager.

Optimize your ads to attract more buyers

Here are our tips for optimizing your sales on the eBay platform:

• Use a catchy, clear and precise title by drawing inspiration from other customers' ads. This is the key to optimal search engine optimization, and to ensuring that your ads appear prominently in users' searches.

• Describe your products in as much detail as possible and well-written, highlighting all its specific characteristics:

  • Manufacturing materials

  • New or used product

  • Available colors and sizes

  • Etc.

Remember to add the most important information at the beginning of the text.

• Add high-quality photos . The photo must clearly illustrate your product. This is what will enable potential customers to clearly visualize the product and check whether it meets their expectations.

• Set a competitive price. In the face of competition, you need to set a price in line with the level of your competitors.

Manage your reviews and build customer confidence

As elsewhere on the Internet, it's all the more important to build a good reputation on marketplaces. Make sure you project an image of confidence by displaying an impeccable sales history.

A flawless track record allows you to strengthen your credibility on the platform, to encourage buyers to purchase your product. To do this, you need to pay particular attention to the quality of your customer service and your products.

How can you optimize your cash flow on the eBay marketplace?

On marketplaces, sellers only receive payment after a certain period of time. This is known as a payment delay on marketplaces.

Payment terms and their impact on your cash flow

When you integrate a marketplace, it acts as an intermediary between you and your customers. It is the platform that collects payments and stores them for a certain period of time.

This timeframe varies from one platform to another.

The longer the delay, the greater the potential negative impact on a company's cash flow. On Amazon, for example, this delay is 14 days. In other words, the seller-company has to wait 14 days before receiving payment for its orders.

Such a delay can obviously create a "hole" in the company's cash flow. The company may find itself short of cash to cover current expenses .

On eBay, on the other hand, this timeframe is relatively short. That's right, 2 to 3 days is all it takes for the platform to transfer the funds. As a result, eBay is less constrained by payment deadlines.

How can you finance your inventory and purchasing to stay competitive?

We've seen that, unlike some marketplaces, payment times on eBay are fairly short. However, if you need to restock in the meantime, you can use alternative solutions.

For example, you can use Heropay. This payment solution can advance payment of your supplier purchases .

But that's not all, as it allows you to repay it either deferred payment (after 60 or 90 days) or in 3 or 4 instalments (payment in instalments) .

These payment facilities enable the company to maintain a positive cash flow and avoid external financing.

In fact, it has the necessary liquidity to cover its operating expenses without having to draw on its own funds.

eBay vs Amazon marketplace

Ebay and Amazon are the two benchmarks for e-commerce sites.

Here's what sets them apart:

Distinct pricing methods

On Amazon, professional sellers pay a fixed subscription fee of 39 euros per month and commission on every sale .

On eBay, on the other hand, you pay 0.35 euro for each ad broadcast We also charge a commission for each sale, as well as additional fees for exceptional services.

Different sales models

Amazon operates as an online retailer. It also offers its own products in direct competition with third-party sellers.

It standardizes product sheets so that several sellers can share the same sheet.

It also exercises strict control over prices. Sellers with the most competitive prices are given preference in the Buy Box. This creates fierce competition to be retained.

eBay operates on a pure marketplace model. The platform simply bring buyers and sellers together.

On eBay, sellers have more than latitude to create their product sheets and personalize their ads . They can also pay extra to optimize the display of their products.

The type of products on offer

eBay is better for selling collectors' items or rare or unique objects.

Amazon, on the other hand, is more popular with major brands and offers mass-produced products .

In short, Amazon is the ideal platform for established brands who want to sell in large quantities while benefiting from a ready-to-use logistics solution.

eBay, on the other hand, is more popular with sellers of niche or second-hand products, or small, human-scale businesses who still want to test their product.

eBay vs Rakuten

Rakuten is also a marketplace particularly popular in Japan but also enables us to reach an international clientele.

While eBay gives its sellers more freedom to manage their listings and logistics, Rakuten has a more community-based approach.

It seeks to create a community of high-quality sellers and loyal buyers'. . It focuses on loyalty with Rakuten Points.

Positioning

eBay is popular with bargain-hunting buyers and rare or unique second-hand products.

Thanks to its partnerships with major brands, Rakuten is positioning itself more and more as a a premium platform . It focuses on a high-end clientele, offering quality new products.

Customer loyalty: a plus at Rakuten

Rakuten's loyalty program, which rewards purchases, is a real asset on the platform. Shoppers use their points to obtain discounts, which encourages them to return to the platform often.

This is a real asset for salespeople, who can better cultivate their customer relationships t.eBay does not have a similar loyalty program.

eBay vs Cdiscount

Cdiscount is a French marketplace. It doesn't have the same historical background as eBay.

Geographical scope

Cdiscount est a generalist marketplace which offers a wide range of products. However, it is mainly French customers.

Although particularly popular in the USA, eBay has a much more international customer base.

So Cdiscount is only suitable if you're targeting the French market. If you're looking to expand beyond Europe's borders, you're better off with

The type of products on offer

Cdiscount stands out in the French market electronic products.

eBay is certainly a generalist platform. However, the platform specializes more in designer clothing, collectibles and cutting-edge electronics .

How does Heropay help you sell on the eBay marketplace?

Heropay responds to the problems faced by small businesses selling their products on marketplaces like eBay. The platform prevents you from suffering the negative effects of payment delays on marketplaces.

To do this, Heropay advances payment for your sales the day after order confirmation.

But that's not all: it can also advance payment in full of your stock purchases . You can secure funds for your other expenses and optimize your cash management with innovative financial offers.

In short, eBay is an e-commerce platform that shines thanks to its longevity and reputation. Remember to optimize your listings by adding quality photos, clear, detailed descriptions and relevant keywords. Heropay can also be a valuable ally in reducing your dependence on late payments on eBay marketplace .