From eBay to Etsy and beyond: what to consider when selling goods online

The internet has offered many businesses a much wider customer base than they would have been able to access through traditional retailing. Now it is possible for someone specialising in antiques in south London to sell to a fan of English vintage in south Melbourne.

Marketplaces such as eBay and Etsy provide an outlet for sellers of niche products such as vintage curiosities, handicrafts and spare parts for electronic and mechanical devices to an international audience.

While many stores are small, there is also great potential for growth. Birmingham-based Car Parts and Spares has had an eBay store since 2012 that sells car parts directly to consumers, alongside a trading arm that deals with trade and retail.

The company's managing director Peter Jones describes eBay as a great "moving and changing model and platform".

One of the first decisions for an online seller is which platform to use. EBay and Etsy are well-established online marketplaces but there are now also many more to choose from. Arina Pritch, the designer behind Pritch London, which sells luxury leather fashion, uses Luxxlab, a online outlet for new designers with high-end products.

Pritch says she opted for Luxxlab after becoming "bored" with the usual online channels. "Luxxlab sells luxury things – it is important to be somewhere where all the products are aimed at a similar market."

Design is also a consideration for prospective online retailers. Beth Evans, who sells print products, started out selling vintage fabrics on Etsy but is now considering switching to the design site BigCartel.

"Etsy still has a homemade feel," she explains. "The look of an online marketplace is very important. The people who sell on BigCartel tend to be graphic designers and the profile is a lot cleaner."

One online retailer who has already made BigCartel a home for his business is Johnny Joannou. He decided to use BigCartel 18 months ago when he turned his hobby of creating sports-related prints into a business.

He was attracted to the site initially because, unlike eBay and some other online marketplaces, there was no commission and no contract, just a monthly subscription, which was waived if you sold fewer than six products a month.

His business has developed but he is happy with his choice of the US-based platform. "It's a small company but a very personal service," he says. "That really helps."

Joannou says that getting merchandise onto online marketplaces is the easy bit. "Driving traffic to your shop is the hardest part," he says. "That's what I have found difficult."

With so many online shops to choose from, this is a common problem for businesses and each has its own solution. For Joannou it was learning from stores selling similar products about pricing and display.

"I made lots of adjustments," he explains. "Simple things like updating your copy make a massive impact when it comes to converting views into sales."

Fortunately there are many resources that online retailers can use to increase their prominence, including ones offered by the platforms themselves.

Eastbourne-based artist Imogen Skelly, who sells her paintings on Etsy, has managed to find buyers from across the world, including Japan.

"It's a feel-good site," she says. "It's like having my own stall in the marketplace – I look on Etsy like an online version of that."

She says that Etsy's forums allows sellers to build supportive communities of like-minded enthusiasts who give each other feedback and advice and promote each others' work.

In addition to this free way of promoting merchandise, for a fee many online marketplaces will feature your product more prominently on the site.

However, many online sellers are instead opting for free social media services to get the message out about their store.

Evans uses several social networks to promote Patternlore, including Pinterest and Instagram. "People can then look at your ideas and influences as well as your products," she says. "It shows your commitment to your business."

Descriptions of products are also essential when it comes to selling things online. Arina Pritch admits that it is often difficult to sell clothes online particularly when it comes to luxury products.

"It is very important that my customers feel the leather and see the merchandise," she says. "Whenever you present your goods you need a detailed description. Ours includes a description about which leather we use. That helps us explain our products."

Raine Marcus, who sells antiques on Etsy and eBay through her Radar Vintage shop, says that good pictures and descriptions are vital, particularly when it comes to selling antiques where condition is all-important.

"My philosophy is to be honest and upfront," she says. "Mention any flaws in advance and include good photos. Etsy gives you five free pictures and eBay up to 12 so make sure you have at least one close-up and if there are any flaws you should take one or two photos of these."

Other things to factor in when using online marketplaces include delivery and site fees, which contribute to the price.

Some sites take a commission, while others charge a monthly fee. If an online retailer uses an online payment service like Paypal, further fees apply.

Getting a product to a customer safely is also important and some sellers, including Raine Marcus, will only offer tracked and signed-for delivery to protect themselves in the event a dispute with a buyer arises.

Insurance is often available through delivery services for breakage, but Marcus adds that it is important to be aware of exclusions, which often include glass breakages.

Another thing to take into account is returns. Marcus advises online retailers to make sure their returns policy is listed clearly and to study the UK Distance Selling Regulations. These regulations give buyers very clear rights when it comes to returning products they no longer want, within a set period of time. They apply to items sold at a fixed price, rather than online auction listings.

Skelly says that a good return policy reassures customers. "It is important to know what it feels like to be an online buyer," she says. "Good communication is important."

While there are many things to take into account when setting up an online store, they have provided an easy way for people to start a retail business from home.

Evans says online platforms like Etsy and eBay have "changed everything" for creatives. "It's great that people who are creative have an outlet to sell their works. This has opened up so many opportunities to people who otherwise would not have pursued their dreams."

- This article was originally published in November 2013

Sign up to become a member of the Guardian Small Business Network here for more advice, insight and best practice direct to your inbox.