Ask ten different [tag]eBay[/tag] sellers about [tag]selling internationally[/tag] and you are very likely to get ten varying responses. Not surprisingly, there is so much misinformation circulating that many new eBay sellers choose to avoid offering their listings to the world rather than taking the time to determine if it is the right choice for their online business. Hopefully these few paragraphs will begin to set the record straight and provide you with the knowledge you need to make an informed decision.
In it's few years of existence, eBay has grown to truly be "the World's Online Marketplace™". No other company has done more to shrink our world for the average entrepreneur. With only a picture, a few descriptive words and a small fee, you can now offer your products as easily to someone in Australia as in Arkansas. The obstacle claimed by most sellers arises when trying to get their products to their international buyer. That is frequently the hurdle that causes many sellers to toss in the towel and decide to sell exclusively within the 50 states of the Union. So let's examine whether shipping internationally is really worth the hassle by dispelling a few myths.
Myth #1: "I have all the buyers I need right here in the USA."
According to statistics published by eBay, as of June 30th, 2006, [tag]international[/tag] registered users surpassed the total number of registered US users (113 million worldwide and 90 million in the USA). Simply put, limiting your eBay sales to domestic boundaries reduces your potential marketplace by 56%. Without question, most eBay sellers agree to the following formula:
more potential buyers = more page views = more bids = greater profits
That being the case, saying “No, thanks” to the majority of eBay registered users seems counter productive.
Myth #2: "I have no seller protection through [tag]PayPal[/tag] if I sell internationally."
While that may have been, it is certainly not always the case. PayPal now confirms addresses in both [tag]Canada[/tag] and the [tag]UK[/tag] which offers you the same level of security through their Seller Protection Program as selling within the USA. And from all indications, more markets will follow soon.
Myth #3: "I don’t want to have to deal with foreign currencies."
Fair enough. You don’t have to. Continue to list in US dollars and let your buyer worry about making the conversion (most of them are more than happy to do so). Offer PayPal as your singular method of payment for international buyers and PayPal makes the [tag]currency conversion[/tag] for you.
Myth #4: "I don’t want to have to deal with the [tag]customs[/tag] documentation."
It is not the big deal that it once was. Most customs documents are printed out at the same time when you use PayPal to print your [tag]postage[/tag]. Nothing could be faster or easier.
Generally I suggest that new sellers considering selling internationally start modestly and expand as their comfort level and experience grows. Most sellers testing the waters explore Canada as their first international market as there are several factors that prove it to be a very good expansion ground for American eBay sellers. They include:
- The USA and Canada are each others largest trading partners. [tag]USPS[/tag] and [tag]Canada Post[/tag] seem to work well together.
- We speak the same language and Canadians are very familiar with dealings in US currency.
- Many products sold in the USA are also sold in Canada. Brand recognition generally means greater acceptance.
- The North American Free Trade Act ([tag]NAFTA[/tag]) means that most items produced within the USA are accepted into Canada duty free (not to be confused with tax free - a different topic altogether).
- The US and Canadian dollars are rapidly approaching par in exchange. American produced goods are more attractively priced for Canadian buyers than they have been for years.
- As mentioned previously, PayPal now confirms addresses in Canada which assures US sellers of coverage under PayPal’s Seller Protection Program (provided all other conditions are met).
- Shipping costs to Canada by USPS are very reasonable and delivery is typically within two weeks.
- Adding Canada as a potential trading partner is like adding another California. Canada’s population of 33 million (California is approximately 36 million) is very internet and e-commerce savvy and eBay estimates that more than 12 million visits are made by Canadians to the site every month.
If you decide you are ready to extend your business empire to include Canada, here are a few points you should be aware of:
- All declarations of value should be for the actual sold price rather than an insured price. [tag]Canadians[/tag] pay both a Federal and Provincial tax on all imports exceeding CA$20 in value. Inflating the declared value for insurance purposes means that your buyer will pay an inflated amount of tax.
- Resist the temptation to mark goods as “a gift” on the customs declaration - even if your buyer repeatedly asks you to do so. Lying to customs agents is a serious offence and it is the seller that accepts the consequences of that act. Penalties include confiscation of goods and the potential of prosecution. Simply remind a persistent customer that you are unprepared to jeopardize your business in order to help them avoid a few dollars of tax.
- If using recycled packaging, be certain to obliterate references to what the package may have once contained. Your declaration form may assure that you are shipping a vintage toy but if the packaging is for high tech electronics, you can expect a delay while customs more carefully examines the contents.
- Avoid shipping by either [tag]UPS[/tag] or [tag]FedEx[/tag] unless your customer insists that you use them. Both of these services charge enormous customs clearance fees which frequently catch buyers unaware. Imagine your buyers reaction when they receive a bill for CA$45 for customs clearance of a US$30 widget.
- Be aware that delivery to Canada will take longer than normal domestic service. Aside from delays occasionally caused by customs inspection, USPS and Canada Post are not a single entity. As well oiled as their machines may be, they are still two individual operations that work on their own timetables. Most packages shipped by normal postal service are still trucked to destination.
In the end, should you decide to try your hand at selling internationally, you are likely to find what so many others have. Increased exposure generally results in increased rewards and, frequently, the additional effort on your part is minimal.
Bill Summers is a Canadian full time eBay seller and Canada’s leading eBay [tag]Education Specialist[/tag] trained by eBay. He is also the Canadian co-author of “Starting an eBay Business for Canadians for Dummies
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2 comments ↓
eBay claims that items which are sold internationlly sell for 16% more (or something like that)
True… eBay frequently trots out statistics - some of which are very hard to prove or disprove. While I wouldn’t want to put an actual number on it, it makes sense that the more people that have access to a desirable item - the higher the bids should be or the greater frequency of sales. Allowing international bidders access to your items should consistently result in higher selling prices compared to competitors that limit themselves to the domestic market.
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