Expert: Rob James - 11/19/2007

Question
Other than knowing eBay is an online auction website, I'm totally ignorant of the basic needs in order for me to start trading.
I know that I need to open an account with PayPal and a foreign account if I'm not from the US. I'm from Malaysia, a country situated above Singapore and I would like to sell books through eBay.
1. Basically, how much do I need to spend to open those accounts mentioned before I can start?
2. And what's the shipping cost of sending goods below 1kg to US, through air and the sea?
3. Any other expenses I need to go through?

Answer
Hello,

Opening accounts on both eBay and Paypal is free. You may need to check with Paypal to see if they offer services in your country. Depending on how much you sell, and the amount of money you receive, you may need to setup a business account with Paypal(also free). The main difference is the limits imposed on a standard account are removed and the fee structure is a bit different. You also need to go through the verification process which also costs nothing but essentially guarantees you are who you say you are.

As far as shipping costs go, you would have to check with the carriers you plan on using in your country to get rates. Here in the US the rates can vary widely between the postal service and places like Fed-X. It's really up to you to decide how you want to handle shipping. Just make sure that your customers pay the shipping fees or you roll them into your selling costs if you plan on offering free shipping or promotions.

Other expenses you may incur would most likely be shipping materials. Once you get established and begin selling larger quantities of merchandise you may opt to get some of eBays selling tools added to your account. These give you convenient options for managing shipping, feedback and auction data and start at about $5.00us a month.

Aside from that, you can get going for very little money. Good luck and enjoy!

Rob