Here are five tips you should always follow when you sell on ebay:

1) Sell at prevailing ebay market prices.

If you try to sell your products for obscenely high rates, you will end you losing profits. Although clever pricing strategy can get higher bids for your product, there really is a ceiling for what you can do selling on ebay. If your products aren't selling, reset the prices to something more reasonable.

2) Sell items that yield higher profit margins.

If you're selling radios from a dropship source that only yields a 2% profit margin per sale, you are in serious danger of losing money if you have to relist items. The easiest solution to this problem is finding another dropship source with lower prices or selecting another item that will yield a higher profit margin.

3) Improve your auction layout and design.

A poor layout and unprofessional design can easily deter potential customers. If you can't honestly say that you would be impressed with your own ebay auction template, you should trash it and make a new one. You may want to ask a friend or relative to give you a honest opinion of your template to help you assess where you should put information, pictures, and links (if it is a store template). This can do wonders to improve your conversion rates as an ebay seller.

4) Improve your store policies.

Offer to give your customers a money-back guarantee if they are not satisfied. Many people are weary of shopping on ebay because they have heard of other people who purchased things from less-than-honest ebay sellers. You should go out of your way to provide your customers with consistent store policies--and then to follow through with them when the need arises. This will boost your credibility, bring in repeat sales, and prevent nasty confrontations and negative feedback.

5) Improve your keyword and keyphrase density.

Most people search ebay using either "titles" or "titles & descriptions." If your title and item descriptions are not packed with highly-searched topics related to your product, you will seriously reduce the amount of potential buyers you could have viewing your auction.

To reiterate--if you want to make money on ebay, you should set reasonable prices, pick items with high profit margins, use a professional auction layout, set and follow consistent store policies, and pack your titles and descriptions with highly-searched keywords.