Color of Money Book Club

Author Amy Joyner joined Michelle Singletary for a discussion of this month's Color of Money Book Club selection -- "The eBay Millionaire" (Wiley, $22.95).

Michelle writes that stories of eBay PowerSellers and the question-and-answer sections at the end of each chapter (with each online merchant) make this book interesting.

A transcript follows.

Read Michelle's past Color of Money columns .

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Michelle Singletary: Good afternoon everyone. Well isn't this a fun topic? I've been on eBay but never bought or sold anything so I'm interested myself in this hot new trend. So let's get started.

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Fort Worth, Texas: Are estate sales worth attending to buy items for resale, or would the items already be priced too high to make any profit?

Amy Joyner: A lot of estate sales are run by antiques dealers who know the value of the things they're selling. So, you probably won't get very good deals on things you buy there.

That's not to say that you won't be able to find something to sell on eBay at one of these sales. Just make sure you know the eBay value of any item before you buy it. And consider purchasing things that don't have a high value locally but might have a higher value nationally.

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New Canaan, CT: I am wondering how best to sell my company's inventory which consists of upscale handmade women's accessories (many one of a kind): jewelry, scarves, clothing, hats, jackets, handbags, leather goods, some home accessories, my store displays and fixtures, etc. I am no longer actively pursuing this business and want to sell out the entire retail studio that has been moved to my home. I have returned to practicing law full time, have 2 sons and limited time to handle this on ebay.

Amy Joyner: Sounds like you don't have a lot of time to sell these items on eBay yourself. So I'd suggest you find a trading assistant in your area who will sell these items for you.

I did a quick search on eBay and found a few who you might want to work with. One, whose ebay ID is luxurywares, specializes in collectibles, designer clothing and accessories. The trading assistant is in Briar Cliff, NY, but says she does visit her client's home to check out and sort through merchandise. You'll get 60 percent of the profit from any item that sells; the trading assistant will keep 40 percent. And you'll share the cost of the eBay fees.

Another trading assistant who might work for you is pastperformances, who also specializes in designer clothing and accessories. This seller offers a 50-50 commission split.

For a complete listing of trading assistants in your area, visit http://pages.ebay.com/help/confidence/know-seller-trading-assistant.html

Remember to check out the trading assistants' feedback rating and look at any auctions they have ongoing. You want to make sure you find someone who is experienced and skillful enough to get you the best price for your mechandise.

Perhaps you want to try your hand at selling these items on eBay yourself. That will take more time, but I have a few suggestions on how to minimize your time committment.

Because you ran a retail store, I'm guessing that you multiple units of the same item to sell. (For example, the same style of shoes in various sizes or 10 of the same handbags.)

If this is the case, you're in luck. You only have to photograph these items once, write a description once and create the auction ad once if you use an auction management program.

Because you're not interested in starting an eBay business, I recommend that you download eBay's free bulk-lising tool, Turbo Lister at http://pages.ebay.com/turbo_lister/

Turbo Lister will help you manage the auctions and save you so much time. (Another way to save time; organize the items so they're easy to find once an auction ends.)

Preparing items for shipment will take some time. You could contract with a local shipping center to package the items for you (just make sure you include their fees in the shipping fees you charge bidders.)

You could also enlist your kids -- if they're old enough -- to help you with shipping. They can wrap items in bubble wrap or tissue paper, fill boxes with packing peanuts or tape boxes.

To save yourself time at the post office or UPS or FedEx, print your postage online. Then, all you have to do is drop it off -- or better yet, schedule a pickup. (You'll need a scale and a ruler because you have to input package dimensions and weight to buy postage online.)

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Silver Spring, MD: Hi Michelle - hope you're also answering just regular questions today.

My husband is about to take a job as a "consultant" so he won't have a 401K like we're use to. I've heard a Roth IRA is a good alternative but we may make too much money to qualify for that. What would be a good way for us to save for his retirement while he's doing the consultant job?

Michelle Singletary: I don't mind off the topic questions. You're right a Roth would be a good way to save for retirement if you qualify. Roth IRA contributions are not deductible, but retirement distributions are not taxed the way distributions from a traditional IRA are.

The maximum annual contribution you could make to your Roth IRA for the 2005 through 2007 calendar years is $4,000 and then goes up to $5,000 for 2008.

In addition, individuals age 50 or older by the end of the tax year are permitted to make an additional catch-up contribution of $500 for 2005 and $1,000 for tax years 2006 and later.

The qualification phase-out begins at $150,000 for married couples filing jointly.

But remember even if you can't find a tax advantage way to save you can still invest for your retirement in a index or managed mutual fund.

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Washington, D.C.: Does this book exclusively cover Titanium Powerseller?

Thanks

L.A.

Amy Joyner: Everyone in the book is a titanium PowerSeller.

Michelle Singletary: But if I might add, there is a lot of information for novice eBay sellers.

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Alexandria, VA: Would curtains sell well on eBay or do they currently?

Amy Joyner: Actually, curtains don't really sell well on eBay, unless they are new and in the original packaging.

I just checked, and there are currently 6,005 listings for window treatments on eBay. But a quick scan showed few bids for custom draperies.

The reason, I think, is because everyone's windows are a different size. So, even if you paid hundreds for your draperies, your chances of recouping part of that cost through selling on eBay are slim.

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Bowie, MD: I have a home in NC and will be relocating there in about 5 years. I am working in the Washington area and I am currently renting at the tune of close to $1500 -month. My question is should I purchase a home while here for the next five years and sell when I relocate in 5 years.

Thank you.

Michelle Singletary: If you already have a home why would you need one here? Think of all the cost you will incur to buy a home in DC only to sell in a few years. Now of course we all know the prices are crazy here and perhaps you could get a handsome sum but that's all an "if." Look renting isn't a BAD thing. You are getting something in return. A roof over your head. Now if you have extra money and think you buying a home in DC would be a good investment, then it might make sense. Otherwise, don't worry about the money you think you're wasting on rent.

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Melbourne, FL: How does one with little money go about purchasing excess inventory from people to start their eBay selling?

Amy Joyner: Rather than buying the items, why don't you offer to sell the items on consignment? That way, you don't have to invest any money up front.

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Washington DC: Michelle: I was confused by your column on Sunday. I was under the impression that, if I lived in a house and realized a capital gain when I sold it (regardless of the amount), I could roll over the entire amount into a new residence purchase with no tax consequences. Is that not the case? Must the new house cost more than the one sold; if so, by how much? Is there a limit on the amount that can be rolled over?

Michelle Singletary: You are confused. The 1031 exchange I wrote about is only available for investment purposes. You cannot shield all the capital gains from your PERSONAL residence. You are only entitled to shield up to $250,000 if you're single and $500,000 if married filing jointly. Any amount over that is taxed if and when you sell your personal residence.

And come on, do you really think the tax code would be that GENEROUS!

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Alexandria, VA: What are the type of items sold on eBay that have made people successful?

Amy Joyner: It's a wide range, really. Some of the people are selling big, high-ticket items. But others are selling inexpensive items in volume.

Here are a few examples:

Italian charm bracelets (each sells for $4-$5)

used and new restaurant equipment

golf clubs and equipment

sports memorabilia

vintage movie posters

designer shoes

computer equipment

consumer electronics

athletic shoes

designer clothing

DVDs

estate jewelry

music instruments

cars

camera equipment

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Richmond, VA: Submitting early, hoping to get your opinion. I donate a lot of things to Goodwill, I try to take at least one box a month. At Goodwill recently, I met a woman who makes money by buying things at Goodwill and selling them on Ebay. Now, I was immediately put off by this. When I donate my items, it is with the intention that someone who needs them receives them at a reduced price. If I was selling them at a tag sale, it would be fair to buy and then resell but I think of Goodwill as a charity.

I haven't taken any items to Goodwill since, I have a box piled up in my garage. I have no problems with the free enterprise system, I just find it distasteful that some people are making money from charitable donations.

Any thoughts?

Amy Joyner: I understand why you'd be put off by this, but I don't think you should be.

Goodwill stores are a good place for needy people to find clothing and household goods. But anyone is welcome to shop there; in fact, Goodwill encourages that. (My inlaws, who both have great jobs and earn great salaries, shop at Goodwill all the time because they like the bargains. In fact, my mother-in-law thinks if everyone shopped there, they'd wind up with a lot more money in their bank and retirement accounts.)

Goodwill operates its stores to raise money for its mission of promoting "the value of work and self-sufficiency through the provision of vocational services and work opportunities for people with special employment needs." (That's the mission statement from Goodwill in my area, by the way.)

In fact, Goodwill nationwide is doing things to upgrade its stores and make them more attractive to all people, not just needy people. The reason is simple. Revenues from the stores help fuel Goodwill. In Central North Carolina, where I live, sales from the retail store account for almost 90 percent of the charity's operating funds.

So, I hope you'll continue to donate to Goodwill because by not doing so, you are hurting the charity. And whenever that woman buys something from Goodwill to sell on eBay, she's helping the charity, too.

Michelle Singletary: I totally agree with Amy. The woman buying things from Goodwill is helping and so are you when you donate your items. I hope you return to your goodwill!

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washingtonpost.com: Michelle's Sunday Column: Think Location And Taxation

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Washington, DC: How important is a fancy listing when selling on ebay? While my descriptions are clear, knowledgeable and thorough, sometimes I worry that my listings don't get attention, because they don't have all the bells and whistles. I feel like this is especially a problem when selling luxury items like art and antiques.

Any thoughts?

Amy Joyner: I know that when I'm shopping on eBay, I'm most concerned with the seller's feedback rating, the item description and the photographs. I don't really care if someone uses a fancy auction template.

To me -- and I think to most buyers -- the photo and the description tell the story. And you have to have a high feedback rating, particularly if you're selling expensive items.

One extra I think you should always pay for -- a gallery listing. That's the thumbnail-sized picture that runs on the search results page. You'll get a lot more people looking at your auction if you give them a sneak peak on that search page.

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Port Orchard, WA: Buyers are complaining about shipping and handling. How can you keep your customers happy and still make a profit? I travel a lot and do a lot of shopping for good quality and I still get questions why do I charge a handling cost? I have not charged more than a gallon of gas for handling. So should I raise the starting bid price or keep it low?

Amy Joyner: Shipping costs are a big issue for eBay buyers or sellers? Do you disclose in every auction listen that your shipping charge includes a handling charge? If not, you need to start doing that, and spell out the exact dollar amount.

I think bidders get upset when they're suprised by handling costs at the end of the auction. But, if they know about them in advance, they can adjust their maximum bid accordingly.

I wouldn't raise the starting bid of your items to cover handling. That might cost you sales because you want to start bidding as low as possible to attract more bidders.

One thing you can do to shroud the cost of postage versus handling is to have your mail metered. And when you ship with FedEx or UPS, no one can see how much you paid to send the package.

Rather than having a a different handling price for each item, I'd suggest setting a standard fee for every item. Aggregate your cost of doing business over every item you sell. That's what a lot of catalog companies do.

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Re: consulting and retirement: The consultant should also look into things like SEP IRA and Keogh plans which are each small business retirement investment arrangements. A SEP IRA requires very little set-up and administrative time.

Michelle Singletary: Good point. Thanks!

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Olney, MD: Michelle, I thought you in particular would love this advice for the person with the curtains:

You can have someone pick them up and put them to good use if you post them on a local Freecycle group. Freecycle is completely free, and everything on it is free. It's goal is to keep items that are still usable out of the landfill by connecting you with someone in your community who might be able to still use the item. Broken appliances might be tinkered with and possibly repaired by a more frugal member, scraps of cloth can be used for art projects...everything is welcome, and nothing is too small!

-A local group moderator

Michelle Singletary: I do love this idea. I too am concerned about the amount of stuff that is just thrown away!

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Bethesda, MD: Amy, you state an interesting statistic on page three of your book/first paragraph: "..more than 40 percent of all eBayers closed an actual sale on the site in the past year". That seems rather low! You commented on this statistic again on page 38/seventh paragraph when you described how eBayer AuctionDrop sells "an extraordinary 92 percent of items it lists for sale." Could you comment on why only 41 percent of items listed actually find a buyer?

Amy Joyner: The original statistic refers to every auction posted, and it comes straight from eBay.

I think that stat results from a lot of inexperienced people trying to auction off items that are priced too high. Or they'll use reserve auctions -- something most of the titanium powersellers never do.

AuctionDrop is choosier about the items it sells on eBay. They check to see that there's a market for the item -- at the price they want to sell it at -- before listing it on eBay. Sometimes, less experienced sellers forget to do that. Or they forget to check out the competition. If I have something to sell on eBay, I always check to see if there are other duplicate items for sale before posting my auction. If there are, I'll wait.

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Washington D.C: My husband and I have been married for over 20 years and he has basicaly taken care of our family's finances. We both are not particularly astute when it comes to financial planning as we have basically "winged" it all of these years. Just a few days ago my husband drove up in a used car that cost 34 thousand dollars with a $600 dollar monthly note. It was a surprise for me from him (I'm normally a thrift-store shopper), therefore my reaction to the car was a surprise to him (we are not speaking now). I knew that this was a bad idea. We have a daughter in college and a 12 year old son. Our retirement plan is shaky to say the least and we are both almost 50. I am very scared to continue as we have done all of these years. I want to take a more active role in our finances, but I don't know where to start. Do you, Michelle suggest that we secure a financial advisor (recommendation of a person) and is there something that I can begin to do.

I didn't want to give to many details for fear that I would take to much of your time, but I would appreciate an answer and possibly another opportunity to speak with you again. I feel that we living in a time bomb.

Desperate!

Michelle Singletary: Oh my dear. You are in a pickle. First, sit down with your husband of 20 years and discuss calmly your feelings about his "gift." I agree that I would be very, very upset with my husband for such a gift that will cost our family such a huge expense going forward. Something like that he should have discussed with you. But the deed is done. Now it's time to take action. You two need to do some serious talking. And you are right to want to become more involved in the finances. So do it. NOW. If talking is tough try to find a counselor that can help (check with your church if you belong to one, check with your employee benefit office to see if you qualify for counseling. You may consider hiring a fee-only financial planner to take a look at what you've got to see where you need to go. But the fees can be high anywhere from $150 to $200 an hour. Commission-based planners might work if that number is too steep for you but remember they will try to sell you stuff.

Most important tho is to have the talk with your husband and the TWO of you sit down and come up with a plan (including how you will handle a $600 a month car note. And for goodness sake what kind of car did he get you?

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Washignton DC: What do you think of these drop-off store franchises? Will they succeed?

Amy Joyner: Another great question. I'm afraid to say that I think most of these drop-off stores won't succeed. (I've already seen several close in my town.)

To make money, these companies have to charge such a high commission. Their commissions typically aren't higher than traditional consignment stores. But for some reason, people expect to make more money on the things they sell on eBay.

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Sandston, VA: Pardon me, you probably answer this in your book, which I mean to read soon:

How does starting the bid low (a penny!?!) help? The obvious problem being we would be afraid we would be selling something for a really low price in the end.

Amy Joyner: And that's a legitimate fear.

But this is a strategy used by most (not all) of the titanium PowerSellers.

Starting auctions at a penny gets more people interested in bidding -- and competing against one another.

I wouldn't use this strategy, however, with DVDS (the market is too saturated) or collectible that is worth a lot of money but has a narrow audience.

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Washington, D.C.: What do U suggest is the best way to contact and develop a "mentor" relationship with a Titanium Powersell on eBay or any type of power seller on eBay?

Thanks

Amy Joyner: I found that the powersellers I interviewed were more than willing to share their expertise. Most of them had mentors who offered them help as they started their business.

So, send your would-be mentor an email or give them a call (many titanium powersellers list their telephone numbers with their auctions) and tell them you'd want their advice in starting your own eBay business.

Now, I wouldn't contact something you're seeking to compete against. They won't be helpful. But folks with John Stack of A City Discount and Joe Myeress of Cord Camera and Bob Buchanan of Inventory Solutions, I'm sure, would be happy to offer you some insight.

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alexandria, va: How do people find the opportunity to get the antiques or the designer clothes they sell to create such a significant inventory that in turn propels them to the level of a power seller?

Amy Joyner: In the case of one of the sellers I profiled, evalueville, they have a relationship with Bloomingdales. They buy are their customer returns and then resell them on eBay.

The jeweler I profiled already operated a jewelry store in St. Petersburg, Fla., and he uses eBay to get a wider audience for his products.

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Fort Worth, TX: I'd like to know what software tools these sellers are using and what is lacking.

Thanks,

Shawn

Amy Joyner: Shawn, I'll answer the first part of your question, but I'm not sure I understand exactly what you're asking in the second part.

The Titanium PowerSellers I interviewed used a variety of auction-management tools, but ChannelAdvisor was the preferred solution for most of the high-volume sellers.

These are some others they're using:

Andale

Marketworks

Seller's Assistant Pro

SpareDollar

Turbo Lister (eBay's freebie)

If you're looking for the best fit for your business, I'd suggest you start using eBay's free tool, Turbo Lister. After you've used it, you'll be able to make a list of what features it's lacking. Then, you can shop around and see which software best meets your needs.

One caveat: none of the software will do everything you want it to do. Rock Bottom Golf switched from Marketworks to ChannelAdvisor, but it's still not the perfect solution for Todd Rath.

Scott Gaynor of SC Gaynor Auctions uses SpareDollar. While he has some complaints about it, he prefers it to other options because SpareDollar doesn't charge a per-transaction fee, just a flat monthly subscription.

Another option is to design your own software solution, either yourself or by hiring a programmer. If you decide to do this, I recommend you join the eBay Developers Program. Visit http://developer.ebay.com for more info.

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Washington, D.C.: I read the book and it was very good. However, all of the Power Sellers interviewed either had an existing business and/or previous business connections to suppliers. How would you suggest novice entrepreneurs develop a steady supply of product to move on eBay?

Amy Joyner: That is always a challenge. Unfortunately, I couldn't get any of the Titanium Powersellers to reveal who their suppliers are.

One way to get merchandise to sell -- without having to invest a lot of money in inventory -- is to set yourself up as a trading assistant. That is, offer to sell things for other people. That's how several of the people I interviewed got started.

Another thing I'd suggest is visit manufacturers, distributors and retailers in your area and ask if you can sell their surplus inventory on eBay. A lot of companies are storing things that they'd like to get rid of. (Make sure you have some expertise in the product area.)

A third option is eBay's Reseller Marketplace, which was launched in June. (I haven't tried this out yet.) But here's the gist: "Reseller Marketplace is a private online marketplace for eBay PowerSellers to purchase liquidated and refurbished inventory and excess inventory in lot sizes directly from manufacturers and distributors."

You can also find merchandise to sell at garage sales, but you'd have a hard time becoming a top-level powerseller using this strategy.

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Rockville, MD: Love your book - has some great tips. My question is what is the best way to distinguish my product from the rest of the crowd? I want to sell jewelry online, and I noticed that there are thousands of listings. Is there really a market for all that stuff?

Amy Joyner: I've never bought jewelry online, but believe there is a market for it.

What you need to do is offer the kind of service that someone's hometown local jeweler would. I think you need to cultivate return customers.

Include information about appraisals and certifation with each auction listing.

Pay attention to packaging; create your own version of the Tiffany blue box. Offer to gift wrap items for free.

Jewelry is an investment, and people have a lot of questions before they buy. I think you ought to make yourself very available to bidders. Perhaps you can publicize your telephone number on your auctions. (That's what the proprietor of Carsyours does.)

You also ought to keep a database of your former customers. Send them occasional emails that tell them what items you'll be putting up for sale.

One thing I learned in reporting this book, diamond engagement rings don't sell very well on eBay. But branded jewelry, such as David Yurman, does.

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Florida: Hi Michelle! I love your column/books--we get them down here too! My husband and I have no real debt. the cars are fairly new and paid off, no credit card debt, the main house is on a 15 year mortage and we recently bought a 2nd home. Both kids have a prepaid college plan that is paid in full. We fully contribute to the tax deffered plans (currently 20% of my income and about 15% of hubby's). We have a few stocks/bonds. What 'next steps' should we do to start building up our wealth? I'm afraid without a plan we'll just spend the extra money. We are in our late 30's. Thank you!

Michelle Singletary: You're kidding, right? What next step? ADOPT ME! Please you don't need a next step. You need to give yourself and break and have fun now. Sounds like you've got everything under control. No debt. House. Retirement savings. College taken care of (although remember those plans don't cover everything -- just tution. So you may need to save more for room and board). But essentially you're doing just what you should be doing. Now if you really have some extra money I have three rugrats I'm still saving for college for :)

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Washington, D.C.: This is just a comment. U are correct that "most" experienced eBay sellers don;t use (reserve) auctions...........HOWEVER......that all depends on the item sold.

Typical (from my own experience on eBay) and from observation, if the item to be auctioned is expected to sell for $200 more dollars..........THEN "reserved" auctions are the order for the day.

Just my 2 cents

Amy Joyner: Good point. Most big sellers don't use reserves. But, they have lots of inventory and make lots of sales. So, they can afford to lose money on an item every now and then. A smaller seller cannot.

(I still use reserves sometimes, too. I bought a $300 designer Moo Roo purse for $149 and decided to list it for sale on eBay. It didn't sell because I used a reserve. But I wasn't willing to lose money on the bag - because I figured if it didn't sell, I could always keep it and carry it myself!) That's the danger of selling things that you like on eBay!

Michelle Singletary: A $149 purse? Really? I can't identify :)

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Laurel: I haven't read the book, maybe you address this...

Let's suppose I'm willing to pay "about" $50 for an item. Other participants probably think they'd pay about the same. The people who'd pay $40 or $60 aren't really competing with bid my anway, so my competitors are the other people who think the item is worth about $50.

So how much little extra should I add? If bid $52.75 will I knock out the other people in the "about $50" group?

Amy Joyner: Laurel:

I wish I knew the answer to that. It's really hard to predict how your competitors are going to bid. My trick -- it works sometimes and sometimes it doesn't -- is to bid a kooky amount, like $53.64.

You just have to decide what your maximum is. (And usually it's higher than you think.) My husband missed out by a dollar or a collection of comic books because he had a $50 max in his mind. But when they sold for $51, he realized he would have paid $75 for them.

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Washington: Thanks for the informative columns, Michelle.

What are the most frequent and popular items that are sold on EBay?

Amy Joyner: This varies at any given time. eBay has a monthly "Hot Categories Report" where it lists some of the best-selling items. That report is available in the Seller Central area on eBay.

I checked the August report, and here are a few of this month's "hot" sellers:

perfume bottles

audiobooks

air compressors

high-quality film cameras

cell phone headsets and SIM cards

kids clothing

vintage clothing from the 1960s and 1970s

comic book figures

sci-fi trading cards

Disneyana

computer components

crocheting kits

autographed movie scripts

Buffalo pottery

sporting goods

These are just a few examples. I'd encourage you to check out the entire hot list.

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Los Angeles, CA: What are the key elements to the Ebay business success common to each of the Titanium Powersellers profiled in your book?

Amy Joyner: Very good question. And a tough one, too.

But here are some of the best lessons I learned from the Titanium PowerSellers.

- Begin with a low starting bid. That will generate interest in your auctions. And the item will sell for what it's worth. (One of my sellers did this with a $10,000 walk-in restaurant freezer. Starting with an incredibly low bid, but it still sold for what it was worth.)

- Take good photographs

- Write detailed descriptions

- Be proactive in giving feedback; most buyers will respond in kind

- answer questions you receive from bidders - and be kind in your response.

- Take advantage of eBay's special offers, such as penny listing days and free galleries

- Check out the fee structure before deciding how to price your auctions.

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Silver Spring, MD: Is there a good market for used-once wedding dresses on e-Bay? What would be the best way to sell them?

Amy Joyner: I was a bride a year ago, so I can speak to this from a personal as well as professional standpoint.

Uses wedding dresses don't sell well on eBay, but you will see a lot of listings. (AuctionDrop won't take used dresses any more.)

Most brides like to try on their dresses before they buy them. I know in my case the dress I picked out on the hanger wasn't the one that I ended up buying.

If you have a designer gown - Vera Wang, Monique Lhullier(sp?) - you'll have a better chance of selling it on eBay. But if you bought off the rack, you're better off saving it for your daughter (who won't wear it, by the way)

Michelle Singletary: Or sell the dress on consignment. I bought my wedding dress at a consignment store. If I remember right paid less than $200 for it. Great dress and nobody had to know it was used except the bride who wore it before me and she wasn't going to be at my wedding.

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Washington DC: More often than not, auctions that start at a penny have -outrageous- shipping charges to avoid eBay fees (like a cell phone charger that starts at a penny but has parcel post shipping charges of $13.95). I rarely look at penny auctions for this reason- I expect an unscrupulous seller.

Amy Joyner: I hate it when sellers do that. I won't bid on those auctions that try to charge $20 for shipping. The sellers I profiled don't do that. They really are willing to sell their items for what the market will bear.

If you're a seller, don't gouge people on shipping! It will hurt your business in the long run.

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Profits and taxes: How closely is the IRS looking at the sellers? They have to report income and pay taxes, right? Don't people have to keep careful records of expenses, sales, etc?

Amy Joyner: I'm not sure how closely the IRS is monitoring eBay sellers. But everyone should claim the income they make on eBay. And I believe that in most states, you're also supposed to charge collect sales tax if you sell something to a bidder within your own state.

And if you're a buyer, you have to pay sales tax on the new items you purchase online -- eBay included. I'm not sure of the rules on used items. Do you know, Michelle?

Michelle Singletary: I'm not sure either.

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Arlington, VA: I would like to sell an expensive (to me) painting on eBay. Could you suggest someone who would handle this, if we split the profit? Thank you.

Amy Joyner: I'd contact Hess Fine Art, one of the eBayers profiled in my book. They specialize in these sorts of items.

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Washington DC: I want to start an eBay business but have no clue what to sell. Can you tell me what areas I should explore that have the most profit potential?

Amy Joyner: Again, check out the Hot Categories Report in the Seller Central area of eBay.

I think you should explore your own hobbies, expertise and interests to determine what to sell on eBay. You'll be able to better guage the value, and you'll be able to offer your bidders expertise.

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Amy Joyner: Thank you all for the wonderful questions. I regret that I couldn't answer all of them, but if you read The eBay Millionaire, you'll find lots of other tips. Thanks again.

Michelle Singletary: Ditto. Good chat. Lots of great questions. And sorry if we didn't get to yours but keep looking for my column because I often used unanswered questions from the chat for my print column.

And don't forget to sign up for my weekly online newsletter. In addition to a heads up of my columns, I pass along infor about other personal finance issues.

Thanks again and see you in two weeks.

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