Secrets of starting your own business on eBay

Practical Business tips from street level perspective

2009-01-28T00:47:00.002-08:00

As I have a little bit of spare time I thought I would write this guide that may be useful for anyone thinking of starting a small business on ebay or even a shop or markets in real life.

The first and most important thing in Business is to know your product, whether it be something you have always done as a hobby or something you may be interested in, but never tried before. You need to research it thoroughly.

If your main interest is plants it would be silly to try selling fine china or clothing.

I myself sell women's clothing and find that even after 40 years in the same business I still make mistakes if I venture into children's clothing or men's clothing, as I have no interest in either of those lines, but rarely make a mistake about women's clothing.

The second most important thing, especially if you are wanting to do ebay, is not to be undercapitalised especially in today's climate of rising interest rates, high petrol prices and the US economy.

If you decide to sell anything at all, even your own redundant household goods and find yourself short of cash it is not a good idea to think, "Ok I will list these things even though I have no money, when they sell I will have enough for the fees I need to pay."

A lot of times the things don’t sell and you the can’t pay the fees and ebay will stop you trading till you can pay them.

My advice would be to make sure you have at least the money to cover the first months fees.

With items you have purchased to sell, never make the mistake of thinking that all you have got back for them is your profit, I did that myself 40 years ago and went broke within the 1st year. Never made that mistake again.

Look at all your expenses like fees, cost of goods, postage, petrol, add all that together and then see what you have left that you can spend.

If you are on a tight budget and are trying to build a business it is probably better if possible, to put all your profit back into the business.

Don’t fall into the trap of doing as ebay says, listing your items to start at 99cents.

Because a lot of the time that is what you will finish with.
Its far better to start your item at the price you want to end up with.

Communication is a very important part of selling, there are many ways to do this.
I find the most effective for me, is to gain your buyer's interest by talking about general things
while letting them see the thing you would like them to be interested in.
Basically you need to create rapport and build a relationship with them.
Never forget you need them more than they need you and the way you interact with them
will determine the success of your sale.

Once they have made a commitment to buy from you, they will most likely continue to seek out your shop the next time they need something you have to offer.

With any business you need to be prepared to accept a small % of loss, human error and unsatisfied clients.
It could be in the form of lost parcels, sending a wrong item or just a person who thinks they didn't get what they thought they were buying.
In these instances I always replace the item and try to pacify the unhappy client by refunding their money.

With good communication none of these things need to be a big thing.
Last but by no means least, versatility is a crucial thing to have in sales or business of any kind.
Be prepared to accept change and to work with it, keep your eye open for what you can do to improve your sales.
You often hear people say "Gee things are slow, everything is going bad."
This may be so, but there is always someone that is doing well.
Look around for that someone, see what they are doing that you are not and try to emulate
them.
Better stop writing because this is looking like a book.

Margo

Web Resources

2009-01-28T00:47:00.001-08:00

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Visit Waterfalls in Australia - My Blog - Welcome to waterfall Australia. Want to get refreshed; visit a waterfall every weekend; and dip your body or head in its waters. Here you will find the places we have visited; photos and comments. Enjoy browsing!

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2008-04-05T18:32:00.000-07:00

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During the Sale

2006-11-18T20:39:00.000-08:00

Life will get busy once you start selling. Learn time management techniques, as well as the nitty-gritty of safeguarding your business, customer service and accepting payments.

1. Make a plan-and stick to it. "It's essential to plan your time and keep a mental schedule," says Marsha Collier, author of eBay for Dummies and eBay Time-Saving Techniques for Dummies. She recommends setting aside time to post sales receipts to QuickBooks and payment withdrawals to a checking account balance once per week, instead of doing it every five minutes. Collier also recommends that, every day or every other day, you set aside time to ship merchandise. And you must also schedule in time to search for and buy new merchandise. The most difficult priority to factor in, according to Collier, is usually answering questions from customers. But no matter how busy you are, make sure to answer their concerns as soon as possible.

2. Use auction management tools. "The best time-management tip is to find a good auction management program-that's key," says Angie Cash, 37-year-old founder of Cashco1000 Inc. (eBay User ID: cashco1000) in Kennesaw, Georgia, which sells home décor primarily on eBay and projects sales to reach $500,000 this year. You can use the software to launch auctions, organize listings, keep track of inventory, track payments, automatically send out customer notices through e-mail, and even track nonpaying buyers to file for and receive fee credits.

It's also important to consider eBay's selling tools- Selling Manager, Selling Manager Pro and Turbo Lister-which help sellers save time and perform various tasks related to selling items. Before buying an application, though, shop around for the right one to fit your needs, as choosing the wrong utility can be a big time-waster.

Mariano Ruiz, 50-year-old founder and owner of Reliable Tools Inc. (eBay User ID: reliabletools) in Irwindale, California, which sells $1 million of metalworking equipment per month on eBay, found that hiring a staff worked for him. "I tried to do it myself for the first few months, [but the business] just started growing and growing," he says. Currently, Reliable Tools, which expects sales of $12 million this year on eBay, has an average of 30 to 35 employees, depending on volume.

3. Hire employees. If you still need help beyond the assistance an auction management software program can provide, consider hiring employees. Full- or part-time staff can assist you with shipping, answering e-mails and more.

You've got items posted for sale, bids coming in, questions from potential buyers, and orders to process and ship. Are you stressed yet? Don't be. Stay in control with these time-management tips:

4. Use your time wisely.

eBay allows sellers to print USPS Priority Mail and Express Mail shipping labels with Delivery Confirmation for no label processing fee, and pay for the postage through PayPal. (PayPal is an eBay service that enables businesses to receive and send online payments through a credit card or bank account.)

Sellers can also print USPS shipping labels from their PayPal accounts. Fees for First-Class Mail, Parcel Post and Media Mail labels are 20 cents for label processing, and 13 cents for Delivery Confirmation. And now you can even order eBay-branded shipping boxes. Simply place your order, and the free boxes will be shipped directly to your address.

Protecting Yourself

While fraud is not a big problem on eBay, occasionally a transaction does not go as expected. Here's what to do when you encounter:

Nonpaying bidders: Contact the buyer/bidder after your listing has ended. Buyers/bidders can have legitimate reasons for not responding to you right away. If you still do not receive payment after sending a reminder, you can file an Unpaid Item alert. After 10 days of trying to resolve things with your buyer/bidder, you can request a Final Value Fee Credit. A refund will be credited to your account within 48 hours.

Bid shielding: If your buyer/bidder is engaged in bid shielding-protecting a low bid by deliberately using a secondary User ID to place an extremely high bid that is pulled away at the last second-report it to eBay's investigations department. Disciplinary action may result against the buyer/bidder.

Here are some additional tips on how you can protect yourself against fraud:

Never ship an item until you have received payment and it has cleared.

"Don't ship to a different address than is registered for the credit card," says Joseph T. Sinclair, author of eBay Business the Smart Way: Maximize Your Profits on the Web's #1 Auction Site.

Ship to a confirmed or verified address through PayPal, an eBay service that enables businesses to receive online payments through a credit card or bank account.

Protect yourself from chargebacks. If you follow the PayPal Seller Protection Policy, you can file a complaint and be reimbursed for the transaction, up to $5,000 per year.

Track your deliveries, suggests Sinclair. If someone claims he or she did not receive his or her order, you can prove it was delivered and received.

Check buyers' feedback ratings. A lot of negative feedback means you might want to cancel the buyer's bids or double-check that they are reputable."If somebody happens to place a bid, and their feedback is at a minus one, I have no problem e-mailing them and making sure they are really interested in the item, and that they are willing to pay [for] it," says Chris Porter, 34, a work force management representative for eBay and founder of All.business (eBay User ID: all.business), a Salt Lake City company that sells sports memorabilia on eBay and expects to make $14,000 this year. "This gives everyone the chance to explain themselves." If he does not receive a response after e-mailing that person, Porter removes the bid that was placed.

Providing Good Customer Service

If at first the sale succeeds, they'll buy and buy again.

Stellar customer service is the key to succeeding on eBay. Simply put: The more customer-friendly your policies are, the more likely your first-time buyers will become your regular customers. That means answering e-mails as soon as possible-within 24 to 48 hours-and shipping items promptly.

Max Wasserman, co-founder of Wasserman Partners (eBay User ID: xyzxyz) in Las Vegas, which sells on average about 200 VHS tapes and DVDs per week on eBay and projects sales of $225,000 this year, responds to e-mails in less than one day and ships at least every other day.

"Some people put in their listings that they ship every Tuesday, for example," says Wasserman, 70. "But for me, shipping every day is an important [part] of our business, and if we didn't [ship every day], it would have a big impact on our business."

The best customer service offers a variety of payment methods and clearly spells out shipping costs and policies. It's also a good idea to embed eBay's shipping calculator directly in the listing, especially if shipping costs are variable based on the buyer's location (or you could offer a flat rate to a specified area). Make sure return policies are clearly stated in your listing. And, if possible, offer guarantees that allow customers to return anything they order.

"We'll replace anything that is defective, without any questions, and we'll accept the return," says Wasserman, clarifying that he can do this because his products have a low price point of $10 to $15. More expensive items could make such a policy cost-prohibitive.

Accepting Payment on eBay

How will your customers pay you? Here's a closer look at the most popular ways of accepting payment:

PayPal: This service, which lets the seller accept a credit card or bank-account-funded online payment, is the most popular way to accept payment on eBay. "PayPal is accepted in over 90 percent of listings [in the United States], and 3 out of 4 eBay buyers prefer to pay with PayPal," says Bill Onderdonk, director of U.S. eBay Business for PayPal in San Jose, California. One reason it's popular with sellers is because it offers a PayPal Seller Protection Policy that protects against chargebacks. (PayPal also offers a PayPal Buyer Protection Program, covering buyers for up to $500 on a transaction.)

PayPal, which has a limit of $10,000 per transaction, has two fees: the standard rate, which is 2.9 percent plus 30 cents per transaction, and the merchant rate, which is 2.2 percent plus 30 cents per transaction. The qualification for the merchant rate is $1,000 per month in payment volume.

Credit cards: eBay sellers with merchant bank accounts can accept credit cards from buyers. "But there are very few sellers who only offer a merchant account," says Onderdonk, who adds that setting up a PayPal account is easier than setting up a merchant account with a bank. "You can be up and running, selling on eBay using PayPal, in five minutes, whereas it could take you hours, if not days, to put a merchant account together."
Alternative payment options: Most eBay sellers let buyers pay with a check, a money order, a cashier's check or a direct wire transfer. Checks do have drawbacks: Sellers must wait for the check to clear before sending the item, leading to transaction delays. Additionally, when you send someone a check, you are also sending that person your bank account number, which makes many customers uncomfortable.

Melissa Campanelli is a marketing and technology writer in New York City.

After the Sale

2006-11-18T20:36:00.000-08:00

You've sold your product. What's next? Use these tips for successful shipping, returns and refunds, feedback and dealing with payment problems.

Sharon Greenwald thought she had packed the piece of Lladro porcelain securely, so it was an unhappy surprise when she got an e-mail from the buyer saying that the piece had arrived with the head broken off. It was then that the 41-year-old owner of Luxurywares (eBay User ID: luxurywares) in Briarcliff Manor, New York, which sells mostly clothing and collectibles, made some changes to her shipping practices.

Understanding proper shipping procedures can make or break an eBay seller's success, explains Paul Purdue, president of iFulfill.com, a shipping and fulfillment center in Maumee, Ohio. Without proper knowledge of shipping and packaging options, he says, eBay sellers risk wasting money and damaging their customer relations. Among the most important shipping tips to remember:

Make it drop-proof. "A package should be able to be dropped from five feet," explains Purdue. "'Fragile' stickers don't mean anything. Writing 'This side up' doesn't mean anything. No attention is paid to them."

Instead, says Purdue, pick a sturdy box, and pack the item securely so there's no void between the box and the item, even if the item is not fragile. Double-boxing-placing a box inside of a box-can also provide additional protection against crushing, but it's important to be sure the interior box is packed securely inside the exterior box, leaving no gaps, Purdue says.

Ask the buyer. When Greenwald is unsure of how to pack delicate items, she asks the buyer, especially if that person is a collector. "Collectors are the nicest people, and they usually know more than I do about how to pack certain items," says Greenwald, who brings in approximately $3,000 per month on eBay.

Use packing materials properly. Gary Neubert, 52-year-old owner of Gatorpack (eBay User ID: gatorpack), a Tampa, Florida, purveyor of shipping supplies to eBay sellers and small businesses, says packing materials lose their effectiveness when not used properly. For instance, bubble wrap should be used with the bubbles facing toward the item, and packing peanuts should fill the entire space between the item and the carton, leaving no gaps. "When you don't pack the item properly, it's much more susceptible to being damaged," says Neubert, a Gold PowerSeller whose company takes 100 to 200 orders per day.

Choose the right courier. For packages weighing less than 4 pounds, Purdue recommends the U.S. Postal Service (USPS) as a good choice for shipping. Check into FedEx, UPS and the like for heavier packages. Each has different rates and benefits, such as tracking capabilities, so choose the one that suits your needs and provides the best value.

Insure. Insurance, which is offered by FedEx, UPS, the USPS and other courier services, is a good idea for expensive items, but make sure you know the requirements for cashing in-and abide by them. Says Purdue, "Even if you have insurance, if someone didn't sign for the package, the insurance may not pay for the item."

Returns and Refunds

While some ebay sellers are careful to state "As is, no returns" on each of their listings, other sellers find that offering refunds and taking returns are better courses of action for their businesses. Which is right? "Like many things pertaining to eBay transactions, it's up to the seller's discretion," says Greg Holden, author of How to Do Everything With Your eBay Business. Holden says sellers who are primarily concerned with maintaining a high level of customer service-and a high feedback rating-may wish to implement a refund or return policy. Those who sell only occasionally, or who sell items with unusually high profit margins, may want to be more stringent about refunds and returns.

Daryl O'Connell, 39-year-old founder of Anita's Joy Gift Shoppe (eBay user ID: anitasjoy) in Manasquan, New Jersey, sells her small antiques with an "As is, no exceptions" disclaimer. But that's not to say that she wouldn't make an exception.

"If someone was terribly unhappy, I'd consider making other arrangements," says O'Connell, who has yearly sales of approximately $100,000 for her gift shop and about $1,000 in monthly eBay sales. "But that's never happened yet. I use the [picture] pack, where you can put up to six photos for a dollar, and I make sure that if there's a nick or a scratch, I show it. I also give the dimensions of the piece. That's worked well for me."

Other sellers find that an open return policy works best. Matt Solar, founder of Yoozed.com (eBay user ID: urbanaddiction), which manages its own as well as consignment auctions, believes that his easy return policy instills confidence in his customers. The policy states that if Yoozed.com makes a mistake, they'll pay for the return, including shipping. Solar, 27, will work with customers who are unhappy with an item to resolve the situation, either by replacing the item with shipping charged to the buyer or by refunding money, less a restocking fee of 10 to 15 percent.

"Restocking fees make sure that people aren't just returning the item on a whim," says Solar, whose Boston business makes more than $1 million per year selling primarily home goods, consumer electronics and clothing on eBay.

Holden says that another key to good return policies is consistency. "Come up with boilerplate wording that is the same from [listing] to [listing]," he suggests. "It builds buyer trust."

How do you set a policy that's right for you? Holden suggests following these tips:

Ask yourself whether it's more important to encourage repeat business or make individual sales. "A no-return policy will not encourage repeat business; a more liberal policy will," he explains.

Set an appropriate time frame for returns. Usually a week or so after you receive delivery confirmation is appropriate.

If you must charge handling fees, be fair. "Deduct a few dollars-but don't gouge someone by taking out $10 or more," Holden says. He adds that it's fine to deduct any processing fees you may have incurred from your refunds.

Overall, says Holden, keep customer service at the front of your mind. "A few dollars isn't going to make a big difference in a year's worth of sales," he says. "If you are hoping to operate a part-time or full-time business on eBay, customer satisfaction, good feedback and return business will make a huge difference. Keeping the big picture in perspective and giving refunds when the customer won't be satisfied any other way can pay off in the long run."

Jody Wilner's Sterling Silver Jewelry business, Beyond Expectations (eBay User ID: thejeweler1), had a sterling feedback history, with thousands of positive reviews. That changed when he and his partner, Glenn Unger, 42, moved the business and their families from Wantagh, New York, to Lutz, Florida. Out of touch for a few days, Beyond Expectations quickly racked up a batch of negative feedback comments, mostly for nonresponse.

"We lost a lot of e-mails. People couldn't get in touch with us. There was no way to post an explanation. It was the biggest batch of negatives we've ever had," Wilner recalls, adding that if he had it to do over again, they wouldn't have planned any listings for the period when they moved. "There's a lot of back-and-forth that has to go on when you have 200 [listings] a week. We should have stopped the [listings] and restarted when we were set up." Luckily, they moved past the situation-and now make about $14,000 per month selling on eBay.

Feedback is important to the eBay user, according to Joseph Sinclair, author of eBay the Smart Way: Selling, Buying and Profiting on the Web's #1 Auction Site: "If a buyer is purchasing an expensive item, maybe over $100, they'll definitely look at the feedback of the seller first. If it's not good, many people won't bother bidding."

Sinclair believes that a few good business practices can really safeguard your feedback rating. He offers these tips:

Avoid surprises. Use your listing description to disclose all relevant details about the item, especially if it's used or has any sort of defect. Photographs can be very helpful in showing features or damage. In addition, mention in your ad if there will be any sort of delay in shipping or communication-whether it's a policy of not shipping until payment is received, or using a lower-cost shipping method such as third-class or media mail, which could take several weeks to arrive.

Ship right. Ship your items securely to ensure that they arrive in good condition. Larger items, like the tractors and farm equipment sold by Allen Bishop and his wife, Jeanette, both 56, need other arrangements. The Bishops (eBay user ID: harley1983), who live in Chadwick, Missouri, make arrangements to transport each piece of equipment themselves, arranging a date with the buyer at the time of sale. Even though they've sold 26 tractors over the past year, they have no negative feedback to date.

Check buyer feedback. Just as buyers check your feedback, you can use buyers' feedback as insurance, says Sinclair. If you see that someone doesn't have feedback or has a string of negative feedback, be cautious. Be sure that you have payment for the item, and protect yourself by shipping it with insurance and requiring a signature guarantee.

If you do find yourself in a situation where you receive negative feedback, you may have an opportunity to work it out with the seller. eBay recently instituted the new Mutual Feedback Withdrawal policy, which allows members who mutually agree to withdraw their feedback to do so. While the rating, which can impact the member's score, is withdrawn, the text of the comment remains in the member profile; and member profiles include the total number of times a member has withdrawn feedback.

Protecting Your Payments

Something didn't seem right about the highest bidder on Chad Savage and Joseph Berger-Davis' latest listing. Their Los Angeles company, Play Angry (eBay User ID: squirmal), a startup with a projected revenue of $20,000 for fiscal year 2005, has a policy of not shipping its sportswear until payment is received. It had been weeks since this overseas customer had been in touch. Finally, after several months, the customer responded that the shipping charges were too high and that he wouldn't pay for the item.

"eBay has a reporting site, and they sent him a notice that they'd be keeping an eye on him for nonpayment," recalls Savage, 38. "He sent me an apology, and I let it go."

While the majority of online buyers are honest, nonpayment issues and conflicts still arise, says Donny Lowy, author of Secrets of eBay: Strategies and Tips Used by the Most Successful eBay Sellers. Protecting oneself, he says, requires setting good practices, developing good instincts, and keeping on top of the latest requirements of PayPal and credit card companies.

Start at the listing. Lowy says that having clear descriptions and photographs of items is a must. Invite prospective buyers to call with questions. If it's a low-cost item that he expects to sell in quantity, Lowy will offer a sample: "I do whatever I can to make sure that people know what I'm selling them upfront."

Check out suspicious customers. If Richard Hect, owner of Golden berry.com (eBay user ID: richardseller), a $1.25 million purveyor of Anglo-American foods, collectibles and gift baskets in Ridgefield, Connecticut, hasn't dealt with a customer before and notices an odd or unusually large order, he'll ask the buyer to call before processing the order. Hect is especially careful to do so if the individual doesn't have a strong feedback history. "We've had trouble with overseas buyers not paying," says the 37-year-old entrepreneur. "With eBay, you have the added issue of feedback, which does do a lot to keep people better behaved. But at the end of the day, you have to decide whether this is a person you trust or do not trust."

Get paid the right way. Know what PayPal or credit card companies require to help protect you from fraudulent charge-backs for non-receipt of merchandise. "PayPal offers protection to the seller if the item is going to the same address where the credit card bill is sent, but you still have to have confirmation of delivery. Some credit cards require the CVV2 [identification digits on the credit card] to be included in the payment process," says Lowy. "It's all in the name of trying to combat fraud, but it puts a big burden on sellers."

Ship promptly and properly. Items should be shipped as soon as possible after payment is received. Any delays in shipping should be disclosed, and expensive items should be insured. "But remember that you're only compensated [by the insurer] for the cost of the item," says Lowy. "If you got a great find at the flea market but didn't get a receipt, you may not be reimbursed."

Deal with problems immediately. If a customer expresses dissatisfaction, work quickly to address the problem. "Sometimes, people just want to be reassured," says Lowy. "And sometimes, they have a complaint. On a $100 order, I may say, 'Will you be happy if I send out [another] $15 worth of merchandise and you pay for shipping?' That will usually work to salvage the relationship."

If a problem does arise, try to contact the buyer directly to work it out. Those who can't work out their disputes can also turn to SquareTrade, a fee-based third-party arbitration system. SquareTrade acts as a mediator in situations where negative feedback has been given and will help resolve conflicts, often resulting in negative feedback being removed.

GWEN MORAN is a writer and consultant specializing in marketing.

What to sell on eBay?

2006-11-18T20:34:00.000-08:00

Get ahead of the competition with these tips for selling items you know and love.

I'm often asked what the sticking point is that keeps most people from selling online. "What should I sell?" or the ever popular, "What item will make me the most money in the shortest period of time?" are the most popular questions representing barriers to online success. People just don't seem know what to sell.

The answer to the second question is much more complex than the first. To be honest, the lucky individual that finds a hot item and makes a killing with their sales is an extreme rarity. Think about it. How many instant success stories have you ever heard about? It would be nice to think you could be one of them, but the odds of finding that life-changing, magic item are miniscule. There's no slam dunk--no magic key to an "instant" fortune for most of us.

So why not concentrate on finding a group of items that'll give you a steady stream of income over a long period of time? It may be a slower way to riches, but at least you can control your income as your business grows.

To start out, you can easily hone your selling skills by helping your neighbors get rid of their excess stuff. Offer to sell for people in your community (post a flyer at the laundromat or at church) and charge a percentage (plus eBay fees). This way, the profits you make from selling the excess in your neighbors' garages becomes the backing for buying your first "official" merchandise to resell. You'd be surprised how positive your neighbors may react, finding it a blessing if you offer to sell their excess stuff on eBay for them. eBay even backs you in this endeavor with Trading Assistants, experienced eBay sellers who sell your items for you on eBay for a fee. By hiring a Trading Assistant you can take advantage of their selling expertise, save time and effort, and still reap the rewards of selling your item on eBay. Visit the Trading Assistant hub page for more information, including marketing tools and templates at www.ebay.com/tahub.

Now that you have to actually buy merchandise to sell, you need to consider selling what you know. Did you have a hobby as a teenager? Is there something particular that interests you? For example, if you loved drama in college perhaps you know a lot about Broadway shows and could sell Broadway memorabilia like old Playbills and posters. Did you collect coins? You can get back into what's hot and what's not by starting out bottom-feeding and buying coins from people who want to sell off collections.

If you're coming out of a career, think about selling items that would be of benefit to people with a similar job. Say you were in the nursing profession--weren't there a few items that made your job easier for you? Were there certain things you and your friends just had to have? That's what you should be selling.

Get it? Sell what you know! Sell what interests you. That way you'll have a leg up on the competition who has just randomly picked a group of items to sell. When you sell the same item as your competitors it's your personal experience that'll place you ahead. Your experience allows you to move with the trends far better than someone can who's not an expert in the field.

If you're still at a loss for an idea, look around your house. Check out products you use or you think add something special to your life. Check out the packaging and find out the manufacturer's name. Google them and make contact. Find out how you can sell their item online.

Once you've gathered a few dollars and are ready to go out and buy "wholesale," there are a few steps to complete. Assuming you and your business are ready to go, you have to deal with the tax man. Be sure to file a fictitious name statement, look into local licenses and file for your Federal Employee Identification Number. Once you have that you'll need a Seller's Permit. Use Google to search for your state's sales tax department--that's usually the group that issues a "reseller" or "sellers" permit. This permit is the only way you can buy at true wholesale prices. Legitimate wholesalers won't even let you through the door without producing your seller's permit number.

Check out my website for a listing of Merchandise Marts by clicking here. These are places that have a large group of manufacturers' salesmen whose job it is to sell wholesale merchandise to retailers (that's you). Also, check out the website www.greatrep.com for a list of upcoming trade shows (huge expos where manufacturers sell their latest lines of goods).

Once you've established a selling relationship with a manufacturer or a manufacturer's representative, see if they'll drop ship some of the bulkier or expensive items in their line for you. Try not to start out with a drop shipper since they're basically middlemen marking up merchandise to sell to you. This cuts severely into your profit margin.

Please send me feedback on my website, www.coolebaytools.com, if you've found a unique way to find merchandise for your business. In the meanwhile, have a great holiday selling season!

News Flash
eBay now has a subscription service designed to help inexperienced sellers set online prices and better understand the eBay marketplace. The new service, called eBay Marketplace Research, gives subscribers access to data, charts and graphs to help them understand the demand for items they're planning to sell. Subscribers can view top searches within a category or the entire site to see what buyers are searching for, with the charts providing information on the average bids per item, the number of completed items and more. For less than $10 a month, sellers can follow trends as they play out online, allowing them to adapt their sales strategies immediately.

Marsha Collier, a successful eBay PowerSeller, is Entrepreneur.com's "eBay" columnist as well as the author of the bestselling eBay references,eBay for Dummies, 4th EditionandStarting an eBay Business for Dummies.

Choosing auction software

2006-11-18T20:29:00.001-08:00

There is as much art as there is science in crafting an effective eBay listing. Fortunately, there is a host of software applications that can take care of the technical details and free you up to focus on content. Whether you're looking to create clean, professional listings; list multiple items with ease; or make managing your business on eBay a breeze, there is a program out there for you. "Streamline" and "automate" are the buzzwords here.

Mac users may find it a little more of a challenge rounding up software for listing eBay items. There are some options available, though, including a Web-based application. Check out the following rundown of features for eight popular auction applications, with a focus on listing software. You might just find the one that's right for you, saving yourself time and money.

Andale

Starts at 10 listings for $2 per month
Andale offers a wide suite of auction applications that keep track of everything from image galleries to counters and research. Lister is just one of many of Andale's auction programs. With Lister, users can pick and choose the elements they want. Highlights include access to more than 100 layouts and templates, plus a launch scheduler and automated inventory management.

Marketworks
Starts at $14.95 per month, or 2 percent of transaction closing price ($3 max)
Marketworks Salesware is geared toward small businesses seeking a complete auction management solution. Users can purchase up to 1GB of hosted image storage. Advanced features include an integrated e-commerce storefront, automated customer notifications and a bulk inventory upload utility.

Auctiva
Starts at $9.95 per month
Just one of a suite of software and services available from Auctiva, Poster takes the guesswork out of pricing by allowing unlimited postings for a single monthly fee. It also offers a variety of template options, as well as a batch upload feature. Although free picture hosting and counters come with embedded ads, these features are also available ad-free for an extra charge.

ChannelAdvisor
Starts at $29.95 per month
ChannelAdvisor offers packages for individual sellers all the way up to enterprise businesses. The Pro package targets low- to mid-volume sellers and comes with customizable templates, a launch scheduler, 250MB of hosted image storage and customizable settings.

eBay
One month free trial for new users; $15.99 per month
Auction software straight from the source, eBay's Selling Manager Pro combines the abilities of eBay's free Turbo Lister program with inventory tracking, listing statistics, feedback automation, bulk listing, sales reports and templates. If you don't need so many features, Selling Manager Basic is available free for the first 30 days, then $4.99 per month.

Infopia
Starts at $8,000
Infopia's Marketplace Manager is a complete e-commerce solution for small and midsize businesses that have an auction services component. Besides the usual suspects like auction scheduling and inventory management, the program also assists with bulk e-mail campaigns, coupon creation and automated post-sale management. The cost is for a full installation.

Vendio
Varies; flat rate starts at $12.95 per month
Vendio also offers a suite of extra services that can be added on. Sales Manager perks include bulk feedback submittal and FedEx, UPS and USPS integration. A built-in spellchecker keeps your listings looking professional and easy to read. Pricing varies with the number of auctions you run and whether you choose a flat rate or pay-as-you-go plan.

Zoovy
A one-time setup fee of $400; $49 per month (basic bundle with auction bundle added)
The Zoovy Auction Package has components for setting up, launching and closing ads with a heap of automated features. Bulk listings, hit counters and the usual assortment of customizable templates and themes are all within the scope of the program.

Sell online the easy way. Learn how to start and run your own eBay business. Visit Entrepreneur.com's eBay Center for step-by-step expert tips and resources.

Steps on Starting an eBay Business

2006-11-18T20:22:00.000-08:00

eBay is the world's leading online marketplace for discounted merchandise ranging from garage sale items, to fine collectibles all manner of new products. These items are sold by individuals and small businesses that operate eBay stores - and people are raking in big bucks by selling on eBay.

But as with running any small business, there are some challenges you should be aware of as you consider starting an eBay business. The marketplace is vast. There are lots of competitors vying for the attention of buyers, and there are fundamental issues to deal with, such as financing, warehousing and fulfillment.

Registering on eBay

Once you have confidence that starting an eBay store is for you, and you've laid out a logical and sensible business plan, you need to get registered as an eBay seller. To do so, visit eBay and click on the "Sell" tab at the top of the homepage. Follow the step-by-step instructions to register as an eBay community member. You'll be asked to provide your basic contact information, as well as banking information, such as credit card and checking account numbers.

Structure and organization

Now that you're "official" on eBay, it's time to choose your business structure. Oftentimes, eBay entrepreneurs file for incorporation, or form a limited liability company (LLC). Even if you are operating your business part-time and/or from home, be sure to treat your business as a business, not a hobby.

It's also important to create a separate set of books for your eBay business. Always avoid commingling personal and business expenses, which creates confusion at tax time by making it difficult to understand how your business is operating. Keeping clean and accurate books from the beginning is critical - open a separate business checking account in the name of the business. We also suggest that you obtain the appropriate insurance coverage for yourself and your business. In each case, we recommend that you "go with the pros" and work with a professional accountant, banker and insurance expert to sort through these issues.

Lastly, as a cautionary note, if you intend to run a home-based business, check with your local authorities to ensure that operating a business out of your home does not violate any ordinances.

Additional logistical issues you should address before starting up a business include: how you'll pay for your merchandise; how you'll warehouse your inventory; how you'll receive payment from customers; and, last but not least, how you'll fund your business. Remember, there are various financing options available to new businesses, but it's important to seek the right kind of funding for your particular situation, not just any funding.

Getting the most from your dollar

For warehousing your inventory, consider your garage or basement as a first choice to save costs, as long as local ordinances allow this. To begin with, you will likely have limited inventory - you should avoid tying money up in unused warehouse space or excess inventory. Rental storage units are a good alternative choice for warehousing inventory if you don't have room at home.

To receive payment for your goods, the eBay company PayPal is a good first choice. PayPal is an online payment service that enables buyers to pay for their purchases by drawing funds from their credit cards or checking accounts. The advantage to using the PayPal service as a seller is that you will not need to obtain a merchant banking account, which can be costly and difficult to qualify for as a startup business.

Open for business!

Now that you have all of the logistics in place, it's time to open your eBay business. You'll need to think carefully about how you will merchandise your products, the "look and feel" of your eBay store web pages, and whether you will sell products using the auction model or the fixed price model.

You may need to experiment with each before determining what works best for you. And don't forget to do a good job with your photography. The only interface the potential customer will have with your products will be the photographs of the products. A great product photographed poorly will never look like a great product.

When it comes to packing and shipping products to your customers, take very special care to pack the products in a way that shows you care. You can even add a personal note to encourage repeat business. Once customers buy from you and have a positive experience, they are likely to become repeat customers. Repeat customers are the best customers to have, and are critical to growing your business.

Efficiency in your eBay business

Once your eBay business begins to grow to the degree that you find it difficult to manage alone, think "outsourcing." You can outsource many non-core functions, such as bookkeeping, warehousing and fulfillment. You should stick to utilizing your core skills and let others do the "commodity"-type work. You may even want to consider software which helps you automate the entire process. There are several good auction management software products available, such as Zoovy and AuctionHelper, just to name a few.

Good feedback

Finally, pay attention to your eBay feedback rating. The eBay feedback system is designed to help eBay buyers and sellers police each other. When buyers have positive buying experiences, ask them for feedback. As you collect positive ratings, buyers will view you and your eBay business as an increasingly credible source from which to buy, and this is critical. When you are just starting out, work hard to communicate with your buyers to make sure they post feedback ratings for you.

Once you get the ball rolling, you'll be on your way to great success as an eBay entrepreneur. So, start it up - on eBay!!!

StartupNation provides expert advice, community forums and resources for entrepreneurs starting a small business, from business plan and life plan development to marketing and sales techniques.

eBay Resources

2006-11-18T20:14:00.000-08:00

eBay.com
eBay is the world's largest online auction website, with thousands of buyers and sellers and millions of products.

eBay University
eBay University offers classes across the country or in the comfort of your own home.

eBay Forums
eBay's Community Forums are a great place to swap ideas and stories with other eBay buyers and sellers.

eBay Policies
Learning about eBay's policies will help you avoid breaking rules and aid you in trading with trustworthy buyers and sellers.

eBay Disputes
eBay has a very strict system for helping deal with buyer and seller disputes.

About Me Page
Express yourself through your own personal eBay About Me page.

Entrepreneur.com
Entrepreneur's eBay Business Center offers a wealth of free information to help start your eBay business.

Yahoo Auctions
Yahoo's online auction is another top spot for buyers and sellers. Find some great deals here.

Overstock.com
Overstock.com's auction site is one of the best places to find brand name merchandise at auction prices.

Bidz.com
Bidz.com offers the experience of "Live Auctions" to give you the feel and excitement of a real auction.

eBay Appetizer
This free eBook, The eBay Appetizer, is a bite-sized portion packed with eBay basics.

Cool eBay Tools
eBay expert Marsha Collier's website featuring articles, tips and tools to make your auctions sell.

Increase bid responses by adding pictures

2006-11-18T20:11:00.000-08:00

Buyers really like pictures. The more pictures you have, the more they’ll feel like buying their item from you, and not from your competitor. In fact, there are plenty of buyers who will literally leave your auction within 5 seconds of arriving if they don’t find a picture there waiting for them.

A little extra work on photography can pay off massively, especially if you’re working on slim profit margins. But why is it so effective?

It shows you’re serious. Sellers who take the time to take good pictures and present them carefully are surely more likely to go to the trouble of providing good customer service, and buyers know this, at least on a subconscious level. If you can’t even be bothered to take a photo and upload it to eBay, are you really going to pack their item properly? Are you going to post it on time?

It makes them trust you. Your buyers will feel more comfortable that you actually have the item if they can see that you have your own photo of it. It also reassures the buyers that your item isn’t a beaten up and broken piece of rubbish.

It makes your auction stand out. When your picture is displayed on the search results screen, people can see your item right there instead of having to read your title. People prefer to work visually, and are more likely to pay attention to a result with a picture.

But if you want the benefits of the response pictures can bring, then what should you do? Here are a few simple tips to make your pictures better.

Bombard them with images. eBay might want you to pay for the privilege of adding more than one picture to an auction, but if you have your own web hosting then you can do it for free. Just take as many pictures as you want, upload them to your webspace, and then add them to the auction using HTML.

You might not know how to do this, but it’s very simple. Just write this in your description each time you want to insert a picture:

Take better pictures. Use an image-editing program to touch up your pictures. There are plenty of choices – Ifranview (www.ifranview.com) is good, and free. Adjust things like brightness and contrast to make sure that buyers get the best view of your items.

Improve picture quality. Get a good camera, and pay attention to technique and composition when you take the photos. Don’t just throw them on your bed and take photos. If you’re not sure of yourself when it comes to photography, an empty, lightly coloured table against a white or nearly-white wall is always a good place to put things when you take photos of them.

Another good way to get more people to respond to your auctions is to find the best price points, including starting prices, Buy it Now prices and shipping. The next email will give you a few pricing strategies

What Is eBay University?

2006-11-18T19:32:00.001-08:00

eBay University is the learning program that eBay established to help people become successful eBay merchants. For convenience, eBay classes are held in many locations throughout the United States, and classes may also be completed from home, using your computer. You should note that all of the information you will learn through eBay University can be found on the website – for free.

However, understanding that free information isn’t always easy.

eBay University will teach you how to open a seller’s account, how to conduct research and create listings, how to improve listings for greater success, how to integrate Paypal with eBay, how to monitor your auctions, and how to complete transactions. Once you’ve finished the Selling Basics course, you are ready for the ‘Beyond the Basics’ course. This advanced course will teach you how to start and grow an eBay business, how to choose and create listing formats that sell, how to use all of the eBay resources, how to market your business, how to pack and ship your items, and much more.

Both courses are reasonably priced, and well worth the short amount of time that it takes to complete each course.

Start your own business on eBay, and make more money

2006-11-18T19:11:00.000-08:00

Do you go to garage sales and have no clue what items you should be buying to resell on eBay?

You can make money like other people who are making good money with their eBay businesses. You can be one of those people if you take the right steps at the beginning to set up your business. You should approach an eBay business like any other. Do the necessary research first. Don’t rush into it with dreams of making a quick fortune, but rather set up your ebay business to succeed.

Take your time and familiarize yourself with the eBay website. Take notes of the type of products you are thinking of selling - check out the competition, pricing and most of all take particular note of actual selling prices and whether the bidding was slow or fast and furious.

There are literally millions of eBay members, but this does not mean you are going to reach anywhere near that number. They won’t even know you exist unless you prepare your strategy first. You’ll find that a large number of successful eBay sellers have started off as buyers. This is a good idea as you can get a feel for how the whole system works, plus you will know what buyers are looking for and what problems you are likely to encounter. Being a buyer will certainly help you become a proficient seller as you will understand the system from both sides of the fence.

If you approach an eBay business like any other online business you will have a much better chance of making a good income. The following points should give you an idea of what you should be thinking about.

1. Decide whether you will set up an eBay Store

Whilst checking out the eBay website, you would have noticed a number of sellers have their own eBay Store. The advantages of this are many and you would be wise to check out the details of setting up your own eBay Store. Information is readily available on the eBay site.

2. Setting up your own Website

For many reasons, it is advisable to have your own independent website. Look at it as your “Head Office” with your eBay store as a subsidiary. If at some time in the future you decide to discontinue your eBay store, you will still have your business website.

Another good reason for setting up a website is that it gives you the ability to diversify your business. This can mean the difference between success and failure. It will also give you the ability to build a subscriber list that will be beneficial for both your eBay business and your own website business.

3. What Products are in high demand?

Take particular note of products that sell well and what the competition is. Also check the availability of the products as well as the cost. Armed with this information you can determine whether or not a product is a viable proposition. And keep in mind there is a lot of money to be made on eBay starting at garage sales .