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eBay: Don't 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.
MORE RESOURCES updated Thu. February / 09 / 2012
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Elizabeth Taylor collection sells for $183MCP24, CanadaChristie's auction house says all of the 1817 lots offered sold at auctions in New York and London, some at 50 times their pre-sale estimates. The top lot was Vincent van Gogh's landscape "Vue de l'asile et de la Chapelle de Remy," which once hung in ...and more » |
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Elizabeth Taylor auctions raise $183 millionWHIO RadioChristie's auction house says all of the 1817 lots offered sold at auctions in New York and London, some at 50 times their pre-sale estimates. The top lot was Vincent van Gogh's landscape "Vue de l'asile et de la Chapelle de Remy," which once hung in ...and more » |
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Elizabeth Taylor auctions raise $183 millionWSB AtlantaChristie's auction house says all of the 1817 lots offered sold at auctions in New York and London, some at 50 times their pre-sale estimates. The top lot was Vincent van Gogh's landscape "Vue de l'asile et de la Chapelle de Remy," which once hung in ...and more » |
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Elizabeth Taylor auctions raise $183 millionU-T San DiegoChristie's auction house says all of the 1817 lots offered sold at auctions in New York and London, some at 50 times their pre-sale estimates. The top lot was Vincent van Gogh's landscape "Vue de l'asile et de la Chapelle de Remy," which once hung in ...and more » |
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