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Editor's note: In the interest of helping our entrepreneurial readers grow their wealth, we're posting a series of articles to inspire folks to optimize eBay -- the world's greatest online auctionplace for myriad goods and services. Here, SaleHoo's Jimmy Huber offers up pragmatic advice on what to avoid selling on eBay...
By Jimmy Huber -- SaleHoo.com
eBay PowerSeller & Community Manager
1. Items under $10
It sounds like a great idea -- after all, everyone likes a bargain, don't they? But items that sell for under $10 have one big problem: Shipping. It's quite likely that the shipping for the item will cost more than the item itself, and this can be very off-putting to buyers.
For example, if the item costs $4.50 and shipping costs $6, the total cost for the item is $10.50. If the buyer can purchase the item at their local store for $8, then this suddenly becomes a much better deal. For small items and accessories, the way to get around this problem is by grouping the items together, such as sets of six [6] golf balls or five [5] tea towels.
2. Products everyone else is selling
Many sellers think that the best way to get started on eBay is to sell items that everyone else is selling. Surely those super-hot items -- such as iPods, cell phones, PSPs and so on -- will be a quick route to riches?
Well, no. The sellers who are already selling these items are not only more established on eBay -- and, thus, familiar to and trusted by buyers -- but they will be able to buy wholesale stock in larger bulks lots than you will, so their prices will always be better. Thus, it will almost certainly be very difficult for you to make a profit in a market that is already well-supplied.
3. Things you love... but no one else does
Hobbies can be a great way of making money -- but only if plenty of other people are interested in them, too. Another scenario is when you find a product that you think is absolutely wonderful and could be the next best thing... but no one seems interested in buying it. "Oh, well," you think. "It's only short-term. Eventually, they'll learn about my item and start flocking to buy it."
Uh, no, they won't. It's lonely work trying to educate people on the benefits of a product all on your own. As fabulous as the product might be, it's nigh-on impossible to start a trend on your own. To make money from a trend, you need magazines and newspapers, word-of-mouth and television to do some of the work for you.
4. Difficult items to ship; e.g., fragile china and plants
Now, I'm not saying that these are bad items to sell altogether; many sellers do very well from these items. But I don't suggest you sell such difficult items when you are first starting out. Both these items have an above-average shipping risk -- particularly, if not packed properly. As a new seller, any negative feedback you receive at this early stage could be especially damaging to your career.
5. Very large items
Thinking of starting with furniture or pianos? Unless you already have experience selling and shipping these items, then it might be wise to start with something smaller. Shipping such large items is a major operation. Not only that, these items will sell less often than mid-priced items, as they won't attract the same number of impulse buyers.
About the author: Jimmy Huber manages SaleHoo -- one of the fastest-growing product sourcing portals on the Internet. It contains a database of drop ship, wholesale, closeout and manufacturing suppliers, offering thousands of product suppliers to consumers! SaleHoo visitors are allowed to sign up for unlimited and lifetime access to its completely searchable database of products and suppliers. The database is regularly updated -- ensuring that the latest retail products are always available for purchase. SaleHoo proudly carries the BBB Reliability Seal!
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Editor's note: In the interest of helping our entrepreneurial readers grow their wealth, we're launching a series of articles to inspire folks to optimize eBay -- the world's online auctionplace for myriad goods and services. Here, SaleHoo's Jimmy Huber offers up pragmatic advice on how to sell on eBay...
eBay PowerSeller & Community Manager
1. Start small.
If you're anything like me, once you have a good idea, you want to put it into action immediately! Although you probably know, in theory, that any business takes 12-18 months to become established, somehow you still hope that you can get there in two!
But, one mistake entrepreneurs consistently make is to throw their life's savings into buying caseloads of stock -- before they even know how eBay works. It's easy to be lulled into a false sense of security on eBay after buying just one or two items.
For buyers, eBay is meant to be user-friendly. For sellers, things are a little more complicated. All PowerSellers agree that there are new things to be learned all the time, and you'll be surprised at how much more you know after several months of selling small, inexpensive items.
Be prepared to spend the first couple of months buying and selling a variety of inexpensive items you can purchase with your loose change. Keep track of what sells best and work on narrowing down the possibilities to a few strong products. By this stage, you will also have experienced the best and worst situations eBay has to offer, so you will be much better prepared to crank things up a notch.
2. Respond to questions as quickly as possible.
Most people use the Internet because it provides what they need instantaneously: information, contacts, gifts, advice, and so on. Therefore, I can't emphasize enough the importance of checking your e-mails as often as you can, and replying to queries as quickly as possible.
3. Organize your time and keep to a schedule.
If you are holding down a full-time job and working after hours to get your eBay business in motion, then it's vital to have a list of what you need to get done and stick to it, so you make the most of the precious time available.
Once you are working on eBay full-time, this becomes even more important! It's all too easy to reach the end of another day and find that you have gotten hardly anything done. So, keep a planner or diary, and make a timetable of what needs to be done and when.
4. Do take professional photographs from the beginning.
The old saying remains as true as ever: A picture speaks a thousand words. A bad picture can look unappealing and unprofessional. Plus, if the buyer can't really see the item properly, they may be put off bidding because they can't tell if it is what they really want. So, right from the beginning, work on creating the most professional pictures you can -- even if it means spending money on a photo tent and better lighting.
5. Don't put all your eggs in one basket; use other ways of selling apart from eBay.
eBay is not the be-all and end-all of selling online -- although it is one of the best ways to start. As soon as you can, though, try thinking of other ways you can increase your Web presence. Perhaps you could place a classified ad in Yahoo! or write about your auctions in a MySpace blog. There are plenty of cheap and easy ways to build up your profile.
6. Do keep a constant lookout for other products to sell, while also monitoring carefully what you are already selling.
Don't become complacent! Even if your items appear to be stock standard -- such as chairs, for instance -- make sure you keep looking at what other sellers are doing, emerging trends, magazine articles, home decor programs, and more. There may be another related product opportunity just waiting to happen that you completely overlook if you keep your blinkers on.
7. Do keep in contact with your wholesale supplier regularly to ensure you are aware of any stock issues.
A backorder can create a lot of extra work for you, soothing customers' ruffled feathers. And if they want their order refunded, it costs you money, too. So, make life easier for yourself by regularly touching base with your suppliers, and ensuring that communication lines stay open.
8. Do carry out regular keyword and market research.
Keyword research is the way to ensure that your potential customers find you successfully. Set aside some time each day for marketing and research, to ensure that you're keeping at the top of your game.
9. Do use software to help organize your sales.
It's hard to part with the initial investment when the business is still finding its feet, but the right software will make life so much easier. My eBay quickly becomes unwieldy when you are selling more than 15 items, and software ensures that you avoid making costly mistakes -- such as under-ordering stock, forgetting to ship to a customer, and so on.
10. Don't offer free shipping as a gimmick unless you can afford it.
Free shipping is a very effective way of attracting more people to your listings. However, before you consider offering free shipping, think carefully about your profit margins, how much your item weighs, and the fact that shipping will vary depending on how far away you are sending it. Offering free shipping is a good move if you can absorb the cost in your profit margin -- but it could easily become crippling if you apply it to a variety of items of different shapes and sizes.
About the author: Jimmy Huber manages SaleHoo -- one of the fastest-growing product sourcing portals on the Internet. It contains a database of drop ship, wholesale, closeout and manufacturing suppliers offering thousands of product suppliers to consumers! SaleHoo visitors are allowed to sign up for unlimited and lifetime access to its completely searchable database of products and suppliers. The database is regularly updated -- ensuring that the latest retail products are always available for purchase. SaleHoo proudly carries the BBB Reliability Seal! ____________________
Editor's note: In the interest of helping our entrepreneurial readers grow their wealth, we're posting a series of articles to inspire folks to optimize eBay -- the world's greatest online auctionplace for myriad goods and services. Here, SaleHoo's Jimmy Huber offers up pragmatic advice on what to avoid selling on eBay...
