Welcome to the eBay online auction guide. The information provided on this site is geared toward those who want to use online auctions to generate at a minimum a consistent second income, and possibly even a full-time income. If you’re only interested in online auctions as a way to sell some extra items around the house or to make a little extra here and there, we encourage you to skip the information provided on this site, jump right in and start selling on eBay. eBay’s online tutorial will give you the basic information you need so you can get started right away. You are more than welcome to return anytime you decide you want to make eBay an actual income generating business.
The information on this site is 100% free. The auction guide was created in response to a large number of members from my other website requesting information about how to go about making money on eBay. The guide started to take a life of its own and we decided that it needed a home of its own. All that I ask in return is that if you find the information in this guide useful, you share the site with others that may have an interest in it.
Although this auction guide focuses on eBay since it is by far the largest of the online auction houses, most of the information can be utilized with virtually any of the other online auction sites if you choose. If you are ready to start learning, let’s get right to it!
I assume you’re here at this site because you want to make a little (or more likely, a lot of) extra money on the side and you have heard that online auctions are a good place to do it. There is certainly an opportunity to make a decent second income and even build it into a full-time income if you choose, but it won’t be as easy as all the “earn a 6 figure income on eBay” e-book advertisements make it out to be. In order to make a decent amount of money, it will take the same amount of work and dedication that would be required to make a success of any business venture.
Although you may be revving to go, you need to step back for a second and get clear exactly what you want to accomplish. If you were starting a business, you would sit down and write a business plan. Although it doesn’t have to be as detailed as if you were presenting your idea to a bank of venture capitalists, writing a basic business plan is a good way to get started.
The reason for this is that if you start your auction business before doing the proper foundation groundwork, you’ll likely waste hundreds, if not thousands, of dollars by rushing ahead and not keeping proper records. If you are serious about making this an income generating source, then you need to take the time to get your business properly set up. This is critically important because even before you make a single dime selling items by auction, you can immediately save hundreds of dollars on your taxes just for trying to sell the items. A thorough reading of Starting Your Own Business will give you the basics of what you need to do and how you will gain these savings.
In addition to the general percentage deductions that you will be able to claim against your home utilities and mortgage, you’ll also be entitled to deduct anything related to your online auction new business. Rushing off to sell before you have considered all of the possible deductions will result in you losing money since each deduction you forget to account for and properly document will be lost when it could have lowered your taxes. Even if you don’t make any money right away from the auction business, these deductions can still be applied toward your taxes assuming that your household has another source of income that is taxable.
For example, you’ll want to take the time to prepare a mileage log for your car. Why? Because anytime you’re searching for new products to sell, whether you’re driving around to garage sales or to your favorite shops to search their discount bins, the mileage you drive getting there and back can be deducted as an expense. The truly frugal can plan their buying trips around their daily need trips thereby making most of this deduction. For example, if you drive to the local Salvation Army shop to search for items to sell as the main purpose of your trip and the grocery store happens to be next door, that trip is still deductible as business mileage. Assuming that your car will not be used full time for your new online auction business, you will need to keep careful records of when and how far you drive specifically for your online auction business to be able to deduct this expense.
Of course, the actual cost of the items you want to sell will be deductible as an expense. Some other items that may be partially or fully deductible are the cost of your computer, printer, digital camera, scanner, software, computer hardware, office supplies, packing material, postage, Internet fees, phone, auction fees, banking fees, newspapers, periodicals, membership fees, books, courses, etc. This is just a small sampling of what you can deduct against earnings. Sitting down and going through exactly what you need and the services you’ll be using to run this new business will give you plenty more opportunities to apply deductions towards your earnings or another household member’s earnings.