Start with the auction in question. Make sure that you read every word of the description and the auction details.

Pay special attention to what the description and auction details do not say. For example, is a guarantee mentioned? Is the item new? Is it authentic? Is there evidence of authenticity? Look for auctions that provide the right information, and just keep away from those that do not.

Success is measured subjectively, relative to each person. For some, hitting the million dollar mark is success, while for others it is the simple fact of being able to quit their job to stay at home and have that freedom. It's important to establish what it means to be successful for you. Don't just think about it, write it down. Know what you want, and don't forget it. Ideas in our head almost always seem to drift away if we don't manifest them somehow and sometimes immediate action isn't possible… so simply write it down.

The practical thing to do, however, when it comes to eBay, is to measure your current business, or, if you're just starting, to know how to measure it. This means taking into account your total sales and everything that goes along with that, such as your eBay fees, Paypal fees, what percentage of auctions ended successful compared to how many items were listed and the average price each item sold for.

If this sounds overwhelming, take a step bank and look at the whole picture. If you're an established business, it's as simple as measuring each statistic above within any given time period. Take auctions listed each week, month, and depending on how old or young your business is, each year. If you've just started, each week you list, measure these statistics after each of your listings end. This way, you'll know which items are selling well, where you can change certain aspects of your business, and, most importantly, how much profit you're making.

One of the most important parts of measuring your business statistics is to know eBay fees. I sometimes get excited about how much I've sold and looking at the price on My eBay, think that I did well. Then I pay my eBay fees and realize I did not do quite as well as I had thought. If you have an accurate knowledge of eBay fees, this will increase your potential for profit.

Who will pay the shipping and handling costs? Often, the buyer pays these costs, but sometimes, the seller tries to charge more than the actual shipping and handling costs are. Be careful of high shipping costs, especially for items that will be auctioned off at a very low price. Note when the item is supposed to ship after the bidding has ended.

Don't make the mistake of bidding on an item merely because it is a 'good deal.' It is only a good deal for you if the item is something that you really want or need. A lot of people simply bid for the sake of bidding - or winning - without having any real need for the item in question. Before bidding on items that you do want or need, it's best to check prices around the Internet and the prices available from offline sources as well.

Learn more about the seller. What is their rating? Read their feedback page. Not learning more about the seller can be very costly. Sometimes scammers make their auctions sound like really great deals. Be cautious of prices that seem to be extremely low.