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eBay: Dont Believe All the Hype
Three billion dollars (that's billion with a "B") in revenues, 135 million users, millionaires all over the place at eBay! Yeah, eBaby!!!, to steal a line form another great author. (See "EBay: No Way?Yes Way (Ten Seller Themes) by Barbara Snyder M.A." at http://www.sbmag.org/howtosellonebay.html)
Yeah! Wow! ? Make a million! Open a store on eBay and get rich! Man this is easy!!! -NOT!!!
It's way to easy to get caught up in all the hype out there about eBay and to start thinking all you have to do is set up an eBay store and you are on your way to the life style to which you would like to become accustomed. Don't believe it.
Before you start primping for your own segment of "Life-styles of the Rich and Famous," there are a few things you should learn about eBay and small business start-ups in general.
The rate of survival of a traditional small business reads something like half of all new business start-ups fail in the first year and half of the survivors do not survive the second year, and eBay is probably no different. In fact, it's not easy at all anymore (if it ever was) to carve out a fortune on what has been dubbed "the world's largest garage sale".
"But Floyd, take a look at all that money", you say. Sure eBay is doing just fine, but of that three billion dollars, how much of it is actually spent on items in "your" category or product line "you" have for sale?
Everyone has to decide exactly what business he or she wants to be in. Then they have to decide if they are going to be a niche player or try to carve out significant market share. Either way you decide to go, you may find out that the pool you are swimming in is not as deep as it may first appear. Unless you are selling automobiles or real estate, not all or even a large percentage of that three billion dollars is spent in your merchandise category. Make sure you check the water before you dive in head first.
When you do decide to jump in, make sure you are ready both financially and mentally to go through a learning curve of some months. Back in the earlier days this may not have been the case, but today eBay has become extremely competitive and significantly more expensive for sellers. And don't expect a lot of help from eBay directly. They are not the greatest company in the world at customer support. They have a lot of information available, but they also have a tendency to answer help questions with loads of boiler plate "fixes" that usually serve more to confuse then to actually help.
Speaking of fees, this is how eBay lives. They literally nickel and dime you to death (actually its more like quarter and dollar)? thirty cents for the cheapest insertion free, thirty-five cents for a gallery picture, a buck for "bolding" and on and on. And then there's the fair value selling commission and the PayPal fees (PayPal is a must have!). All these small fees add up fast. Don't forget, you pay the listing and insertion fees whether your item sells or not. You will quickly learn that your selling percentage becomes crucial and why it is so important you learn how to make very efficient listings at the lowest cost possible as fast as possible. If you fail to learn this, before for you know it, eBay is taking half or more of your total sales just in fees, not counting your cost of product and shipping.
eBay has been called the "world's largest garage sale" for good reason. You know what people are looking for at garage sales, cheap prices. In the beginning, if you were the only one on eBay selling a specific product, you could demand and get higher prices. Today it's a bit different. The competition is brutal. You are competing against people and business of all sizes, and there is always someone selling your product at very, very low prices, or worse yet, using it as a loss leader. Some of these people are huge jobbers and or the manufactures themselves, hard to compete against. Some sellers are part time or hobbyist and don't need or care if they make much money (and they probably don't). Unless you have a very unique product or are in a position where you can bring a new, hot product to eBay first, you must be prepared for extremely aggressive pricing competition in a market where the average buyer is looking for cheap beer prices on high quality champagne.
So, all said, you may be wondering if it's even worth the effort. That depends on you and how well you prepare.
Before you open your eBay Store or run out and buy a bunch of product, visit Strictly Business Magazine's "How to Sell on eBay Resource Center" at http://sbmag.org and read all the "free" articles. Then buy and read a series of books about eBay, there are a number of them listed there. Start out with a book on the basics and then the more advanced volumes.
After you have read up on the basics, set up a seller's account. Not a Store yet, that starts the meter running after the thirty day free trial. Not a lot of money, but why pay it until you have the necessary education you are going to need to be successful.
Once you have a basic education, experiment with a few items you have lying around the house you'd like to get rid of. This will give you the chance to experience the eBay process and give you an idea of what you are in for. Pick items that sell for under $10, this will give you the cheapest listing fees to experiment with. (A $9.99 item lists for half the price of a $10 item, same thing as $24.99 vs $25). Also make sure you pick items that are easy to ship. Check with the post office for shipping fees and packaging. If you use Express Mail, most of the shipping materials are free and in some cases will more then offset the higher postage fees and will get your product to your customer faster, resulting in better a Feedback Rating, something you will soon learn is very important in eBay.
As you're reading the books you have just bought, watch for important subjects such as Feedback Rating, shipping and handling, product selection, effective listings, taking and using photos and using hmtl in your listings. Also make note of other tips and ideas on keeping your listing professional but at the same time keeping the cost down. Other topics of importance include "keywords" and how they affect eBay search engines and auctions vs fixed price listings.
Don't be misled into believing that the buyers are clamoring all over themselves to bid up every item you offer up for sale. Go browse the listings in the category that you will be listing in. You may be surprised to see that most items don't have a single bid and will not sell at all and others have only a single bid. You may also want to find out what are the best days and time frames most successful auctions close.
The price you pay for a few books and the time it takes to read them and do a little research may be returned ten fold or more in just the first few months after opening your eBay store.
Floyd Snyder is the founder and former owner of Executive Advertising, Camera Ready Art and Strictly Business Magazine. Currently he is the owner of Strictly Business Magazine at http://www.sbmag.org, http://www.FrameHouseGallery.com, http://www.EducationResourcesNetwork.com/and http://www.TraderAide.com.
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The words you select to describe your item will have a tremendous impact on the final price it receives or if it receives any bids at all. This is because no matter how great the item is you have up at auction, if you use words that don't lead prospective buyers to it, no one will ever see it.
From Ebay Zero to Power-Selling Hero: The Devil Is In The Details
If you've ever heard the expression "the devil is inthe details," you can probably already guess how itrelates to today's lesson. The bulk of the work youdo as an Ebay seller will be easy and repetitive, but it is the minor details that will make or breakyour business.
Game Theory, Nobel Prize, & Auctions - Auction Primer Series - Part 1
William Vickrey, highly regarded as the founder of auction theory, was an economics professor at Columbia University when he published two papers outlining his views on auctions:"Counterspeculation, Auctions, and Competitive Sealed Tenders", 1961, Journal of Finance"Auction and Bidding Games", 1962, Recent Advances in Game TheoryIn 1996 he received a Nobel Prize "for fundamental contributions to the economic theory of incentives under asymmetric information." It's important to understand that asymmetric information is an essential component of auctions, where potential buyers have varying levels of knowledge about the value of the item.
Drop Shipping Increases Profits
You would like to increase your income by selling other peoples` products but you just don`t have the money to stock inventory.On the other hand, perhaps you have lots of your ownproduct and would like to increase your sales, but youdon`t have a lot of money for advertising.
Importing Products to Sell on eBay
The interesting thing about online buyers is they are extremely price sensitive. A survey done by Forrester Research shows that 73 percent of surveyed online buyers expect prices on the Internet to be cheaper than in stores.
The Secret To Real eBay Success
Q. I hear so much about people who started selling on eBay and eventually turned it into their full time business.
Fundraising Ideas Using eBay
Have you thought of using the online auction site eBay as your next major fundraiser?I have, and it was a huge success!Like many other businesses the fundraising business has seen an incredible change since the internet. Everyday there are new tools, softwares and websites that are making fundraising not only easier but a lot more fun.
Your eBay Username - What Does It Say About You?
Have you tried to register a decent eBay username and been frustrated at the poor names left available? With over 125 million people using eBay in 2004 it is understandable that a lot of the good ones have gone.How important is registering a good eBay username (User ID) anyway? Well that depends - you may be wanting to register a username for business use so getting the right one would be important.
How To Increase eBay Profits
Some sell on eBay to clean out their garage or attic.Some sell to make a little extra money here and there.
EBay Feedback, 5 Key Things All EBayers Should Know
eBay's user feedback system is one of the site's most important components. Without the conscientious comments recorded by both buyers and sellers, there would be no way for anyone to build up a trustworthy reputation in the nearly anonymous realm of cyberspace.
From Ebay Zero to Power-Selling Hero: Don't Be That Random Ebay Guy
If I could convey only one concept to someone who wasabout to start selling on Ebay, it would be this: no one has ever purchased anything on Ebay with this in mind--"I think I'll buy something on Ebay from some random guy and pay more than I would at the storedown the street."No one has ever said that.
Selling on eBay? Heres a Success Tip for Your Online Auctions
Are you planning to sell on eBay? Or have you tried in the past but not had much success with your online auctions? If so, here's a strategy that has worked very well for me.In my experience, the auction lots where I created a useful collection of related items got more bids and closed at higher prices than auction lots that were all one thing.
Maria's New Lifestyle: Short Story About The Benefits Shopping On The Net Has Given
I've got this strange friend; her name is Maria. Maria's always been a little weird but now things have gotten unworldly altogether.
Ebay And Dropshipping, A Marriage Made In Heaven?
eBay is the 'BEST' opportunity you can use right now to make money online in the dropshipping business from the comfort of your own home.Thousands of people just like you use eBay auctions on a daily basis to sell and buy products on the Internet; now it's your time to START your own dropshipping home-based business and succeed in the eBay auctions 'game'!There are no special skills required for this dropshipping business, all you need is a computer, Internet access and some basic computer / Internet knowledge.
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