How to Start Selling Online - The Basics of Selling and Shipping

I've covered a lot of the basic topics like fees, shipping issues and such, but I've noticed several posts on forums from people who don't know how to start selling online, or what to do once they make their first sale. So I'll try to keep this as a simple step by step guide for the basics.

Getting Set Up

First, decide what you're going to sell, then find a venue that fits that item. Etsy is limited to handmade items, vintage (20+ years old) and craft supplies. eBay is pretty much a free for all where you can sell everything from broken crayons to electronics to pictures of a 1967 Mustang on a piece of toast. Selling on Amazon, you'll need a UPC code for each item you sell there. UPC codes can be easily purchased online and there are many brokers with available codes to sell. I did a lot of searching when I went to list my dice bag on Amazon, and found EZ UPC to have some of the best prices, as well as confirmed that they are legally allowed to sell UPC codes. You will need a separate code for each item, even if it's just a color variation of the same item.

Next is to familiarize yourself with your chosen venue's restrictions on items. Most places won't allow Nazi memorabilia or things like ivory to be sold there. Firearms and weapons are other items that are commonly not allowed. You can view the full lists for Etsy, eBay and Amazon here:

Etsy's Restricted and Prohibited Items
eBay's Restricted and Prohibited Items
Amazon's Restricted and Prohibited Items

Setting Up Shop

Next is getting your shop set up on your chosen venue. Each venue will have different fees associated with it that can change with different options you select while getting set up. I have the fees for eBay and Etsy covered in my blog here.

Photos

eBay allows up to 12 photos per listing, which gives you plenty of opportunity to show off your item or all of the items if you're selling a set of something. Etsy only allows 5 photos, so it's very important to get good photos to use there. Amazon allows 6 photos and each one must be taken on a plain white background with nothing but the item for sale (no props or accessories that aren't included).

Include as many good pictures as you can! Try to get pictures of each side, and close ups of any details, flaws or damage so your buyers can evaluate if the item is worth buying. If you can't get good lighting inside, then take your pictures outside on a clear day. Purple can be notoriously hard to photograph and sometimes taking pictures of purple items in natural light turns out best.

This part I can't stress enough, make sure your photos are all in focus. If you're wanting someone to pay $800 for a ring or necklace, they need to be able to see all of the details. Blurry and dark photos will only hurt your chance of making that sale. If your camera is old and doesn't do close up photos well, then try your phone. Most phone cameras now have excellent cameras on them, and I know of a number of sellers who use their phones for most if not all of their photos.

Description

Here's the hard part. You need to write a good description for your item. Just saying something like "Child's blue coat" isn't going to cut it. You need to try to anticipate any questions a buyer could have and answer it in your description. A good description for the coat might be:

Girl's blue coat, size 5. Made from 100% wool with polyester lining. The front buttons all the way down with 1-1/4" navy blue buttons. Sleeves measure 11" long from shoulder, coat is 26" long from base of neck to hem. There is no padding between the outer coat and lining, so it's best suited for fall wear.

Now you've answered any questions they might have. It's told them the fabric content, the measurements, and that it's not suitable for winter in Minnesota.

Shipping

This is a hard one for a lot of people. If your item is a vintage item or something already made, it's a little easier. You can package it up and get the box dimensions and weight, then figure the postage from there. If it's not something already made (something you make to order in their size or with their customizations on it), then it gets a little trickier and you have to guess.

You can use the USPS postage calculator found here to figure both domestic and international shipping rates.

eBay, Etsy and Amazon all let you set either fixed price postage or variations based on location. Whichever you use, you will need to have some idea of the dimensions and weight of the item to make sure you charge enough to cover the shipping costs. These costs include more than just the postage, make sure you've allowed enough to cover boxes, tape, labels, packing supplies and gas/time to go to the post office. I have the USPS pick up my outgoing mail most of the time, so my shipping costs don't include the gas or time for going to the post office.

If you've never sold online before and have no idea how to ship an item, this next part applies to you.

First, make sure you package the item securely. If there are a number of small pieces, put them in a bag. I know a lot of sellers who use Ziploc bags to hold small items. That way everything stays together and if the box or envelope is damaged, pieces won't fall out. If the item is breakable, wrap it in bubble wrap and put more bubble wrap or packing paper around it in the box. Very valuable, fragile items should be double boxed. Wrap and pack it in a box, then put that box inside another box with more padding around it.

Next, address the box. If you're using one of the venues' online postage printing, this will all be done for you and you'll only need to enter in the package's dimensions and weight and pay the postage online, then print out the label and attach it to your box or envelope. If you're not printing the postage online, your address goes in the upper left corner and your customer's name and address goes in the middle of the box or envelope. Then you take it to the post office and they'll weigh and measure it and you pay for the postage there.

And that's it! You've now set up your online shop and can package and ship your first sale!

Seller Protections for Online Selling

I've spoken to a few people who are under the belief that they have no protections when selling online, and any disputes opened against them they'll automatically lose. Fortunately for sellers, this isn't true. Selling venues have different seller protections, and it's important to familiarize yourself with those guidelines. I'll cover what protections Etsy, Paypal and most major credit cards provide.

Etsy

Etsy's seller protection must meet certain requirements. First, you must fill out shop policies. These need to outline your policies on returns, customization and exchanges. You also need to make sure your policies are in line with any local laws, especially if you're selling food or pet treats. You also must have detailed photos of the item, including color, size, materials, conditions and any customized options. (Basically, if you send a blue shirt, and the customer tries to claim it's a green shirt to file a "not as described" complaint, you need to be able to prove they ordered and were sent a blue shirt.)

You also need to ship to the address given in Etsy by the customer. You also must be able to prove date of shipping and proof of delivery for US shipments. This is something I cannot stress enough, is to ship everything with tracking within the US and wherever possible internationally. A lot of sellers who sell smaller items ship without tracking, but if you print your shipping labels online, tracking is included for free. Up to 3 oz will cost you $1.93 with tracking within the US when you print the labels online.

The item also must be a physical item you send to the customer (digital downloads will not receive this coverage). You can do local pickups, but you should get a signed receipt saying they received the item and are happy with its condition. If you do a local pickup and don't get that signed receipt, you will have no way to prove they received it or the condition should they try to dispute the charge.

If a customer does open a case against you in Etsy, make sure you reply in the case (not a separate convo to the customer) with all of the relevant details including shipping date and proof of shipping and delivery.

You can read Etsy's full protection policy here.

Paypal

Paypal's seller protections are more limited in some ways than Etsy's. The key points to qualify for protection are: You must ship to the confirmed address in Paypal. If the address is international or unconfirmed, it may not qualify for any protection. It must be a tangible item, digital items are not covered. You must respond to any request for further information from Paypal within the time frame they give you. Finally, your address must be within the US.

There are some additional requirements depending on what type of claim the person may file. If they file an "item not received" claim, their payment must be marked as "eligible" or "partially eligible" on the transaction page and you MUST provide proof of delivery in the form of a tracking number. Local pickups are not covered by Paypal's seller protection, even with a signed receipt.

Here's what Paypal doesn't cover:

• item significantly not as described
• digital items
• Local pickups
• Transactions made through Paypal Here card reader or other virtual terminals
• Multiple Payment items (the item was on layaway so the payments were spread out over time)
• International shipments are not covered when delivery cannot be confirmed

You can read Paypal's full protection policy here.

eBay

Since most eBay transactions are done through Paypal, Paypal's policies are where most of the coverage comes into effect. For the few suggestions eBay has, you can read those policies and recommendations here.

Customer Claims They Didn't Receive Item, Tracking Shows as Delivered

I'm including this as a separate point, because it can happen anywhere. Basically, the customer opens a complaint with the selling venue or payment processor claiming they didn't receive their item even though the tracking says it was delivered. Or they may claim they received an empty package.

There are several steps that you can take at this point. First, contact your post office, and have them contact the receiving post office and verify delivery with the carrier. I've been told the new carrier scanners show a GPS location of where the item was scanned as delivered, so they can verify if it was left at the correct house or place of business. I'd say at least 75% of the time where I've talked to or heard from sellers who have had this happen, once it gets to the point of checking with the carrier, the package "miraculously" appears.

Now, if the carrier cannot confirm the delivery, you have a couple of options. You can offer to resend the item if it can be replaced. You can refund the customer, or you can follow through to the next step, and this is the one that will call the bluff of most anyone trying to pull a scam. Tell them at this point they must file a stolen mail report with their local post office and police department, and once you receive a copy of that report, you will refund their money. Most small time scammers won't cross the line of filing fraudulent police reports because the penalty for that will be far worse than whatever money and item they're trying to scam you out of.

If they go to that step and file the report, then you can probably be 99% sure the item was stolen from their mail and their claim is legitimate. This leads me to my last recommendation, which is insurance. Anything you aren't willing to self-insure (either to remake/replace or refund the money directly out of your pocket), if the value is higher than the free insurance offered by the post office ($50 on Priority Mail, $100 on Priority Express), then you MUST purchase additional insurance on the shipment. Should you need to file a claim, you'll have to provide the postal service with a copy of the transaction receipt to prove the value, so make sure you claim the full value and don't try to pad it. The additional insurance is inexpensive, and filing a claim can be easily done online through the USPS website at USPS Online Claim Form.

So make sure you follow the rules of the venue or payment processor and keep your documentation in case you need it. Most do provide seller protection, because their success depends on having sellers willing to sell there and knowing the venue will back them up when they've played by the rules. But it's not an all-encompassing protection against everything and everyone, because they need to have the trust of buyers as well against fraudulent sellers. Sometimes they may rule against you even when you know your case is right, but likewise, sometimes buyers get ruled against when they have a legitimate claim. All you can do is make sure you have the documentation needed to prove your side and that you've done everything necessary to fulfill your side of the transaction.