1) Scammers & Sabotage
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There are people who deliberately target sellers to defraud them. You must cautious and aware of whom you are dealing with. This however takes time and experience to distinguish the difference between legitimate offers and fraudulent offers. Your competitors might also knock you out from eBay market place since you are threatening their good business. These people might pretend to be buyers and they bid your items, and then file a claim with eBay or PayPal by saying you were selling imitation, counterfeit, unauthorized copies until your account got suspended. In short eBay market place is dirty and full of vengeance among sellers who sell the similar items.

2) High Selling/Merchant Fees
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Sellers have to pay higher fees each year. To make situation worse, most of the fees are charged before anything is even sold. Selling on eBay or accepting payment through PayPal (eBay’s subsidiary company) involves many fees and commission rates that are deducted automatically from the closing price or through your seller account. Therefore, if you list that $2000.00 LV bag for $200.00, you will be charged at least $10.00 to list it. For an item that valuable and expensive, you will not want to take the risk of listing it too low. If you do list it low and add a reserve price, to ensure a minimum target price, you will be charged extra for that. This is how eBay makes ton of money from the sellers!

3) Time is Money
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Finding, comparing, analyzing and listing items on eBay can be extremely time-wasting that require at least more than 1 hour per transaction. Because it involves so many processes such as testing, photographs, listing, questions, etc. Often the profit made the item equivalent to slave labor if you calculate the time spent vs. the money made.

4) Over Saturation Market
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Many formal sellers might tell you that there was just too much intense competition for the items they sell on eBay. Even when you can find an original item on eBay that sells very well but it will just be a matter of time before others jump on your bandwagon. There is no exclusive right for you to sell an item on eBay, and anyone can emulate your business strategy such as type of item, item price, listing duration, shipping cost and etc.

5) Returns & Charge-backs
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According to study that an average of 5% of eBay buyers returning the merchandise. It may not be what they expected. It may not fit. They may be fickle. They may even be trying to defraud you. Failure to accept a return can cause a negative hit on your feedback and even jeopardize your future sales. If you accept payment via Credit Cards or PayPal, buyers can simply get their money back sometimes with little hassle simply by opening a dispute with their credit card company or PayPal. In most credit card or PayPal disputes, the company rules in favor of the buyer 9 out of 10 times regardless of the circumstances. When charge-backs are processed, the money is automatically withdrawn from your account.

6) Fraudulent /Invalid Payments
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Buyers may send you an unidentified and unqualified payment from an invalid or fraudulent source, (especially through PayPal) and then you ship the item only to find out days later the payment is reversed and taken out of your account automatically, without warning.

7) Non-Paying Bidders
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Unfortunately sellers are faced with non-paying bidders, people who bid on and win and auction, but never follow through and send payment. Non-paying bidders not only cause you to re-list the item again to find a qualified winning bidder, but you also waste time and money in the process. Sometimes these non-paying bidders were sent by your competitors in order to make your life tough. Sadly to say that sellers are not protected by non-paying bidders and this is one of the big flaws on eBay market place!

8) Buyer Dispute Claims
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Sometimes buyers have unreasonable and unrealistic expectations in mind when purchasing new or used items. If a buyer feels they received a product other than described, buyers can easily file a claim with eBay or PayPal, and in many cases receive a full refund, while the money is instantly taken out of your account without warning (even if there was nothing wrong with the product). Sites like eBay and PayPal are often skewed in favoring buyers over sellers (for obvious reasons), and unfortunately many buyers take advantage of this.

9) Lost/Stolen Packages
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If the parcel/package you ship to the buyer is stolen or missing in transit, sellers are actually held responsible for the package and liable to refund the money of the lost or stolen goods to the buyer (UPS, FedEx, etc. are NOT held liable to refund your buyer, even if the package is insured). Sometimes bad buyers will take advantage by claiming they did not receive the parcel but in actual fact they have received them. End up you have to resend them or worst still you refund them with full amount.

10) Bid Shilling
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A vast portion of transactions on eBay involve some form of fraudulent bid activity that is often disadvantageous to sellers. Bid shilling occurs when fraudulent bidders by assuming a different identity or by using associates to bid up the price of your auction only to cancel out at the last minute or fail to follow through and pay for the auction. These people are not more than sabotaging the sellers and discourage them to give up on eBay eventually.