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Pierre Omidyar talk about his view of the World and its effect on his
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Start an eBay-based business
The
rise of Internet auction site eBay has seen it become a popular
destination for people wanting to get rid of unwanted items. But the
website has also spawned a number of small businesses that make money by
buying items and selling them online for a profit.
Pierre Omidyar started EBay in September 1995 in response to a request
from his wife, who wanted to add to her collection of sweet dispensers.
The growing popularity of eBay is undeniable; the site now has over 114
million customers worldwide, 7.4 million in the UK, with up to 2.7 million
British items on sale every day.
It’s unsurprising that some entrepreneurs have decided to use the
website to generate a full-time business.
Entrepreneurs have found that they can buy products cheaply from
wholesalers, or other sources, and sell them on for a profit on eBay. This
has proved to be so profitable that both part and full-time businesses
have become established purely through eBay.
An
eBay business is much like a normal home-based business, you don’t really
need anything other than a computer and some storage space. If you can
find a supply of low cost products that you can sell on at a profit, you
should be on a winner. Alternately many eBay businesses are just affiliate
programs or mirror copies of various partnerships.
If
you strike an agreement with a wholesaler, you should be able to get a
constant supply of warehouse stock for your new business. “Sellers don’t
really like to divulge where they source their products as this is where
they make their profits,” explains Azita Qadri, small business adviser at
eBay. “For the older items, people go to markets and charity shops. For
newer items, they go to wholesalers, manufacturers and liquidators.”
You
may have a collection of items that you wish to get rid of to start with,
or there may be a bric-a-brac shop down the road that sells products at a
low price. Make sure you explore each avenue to ensure that you achieve
the best possible profit margins.
What
do you need to start up? , Starting up an eBay business is relatively
inexpensive to do, To start, you just need a computer, preferably with
broadband connection, and a digital camera or access to images of the
products you are selling.
Storage space initially shouldn’t be a problem. Once you have a profitable
business up and running, you may then want to rent out space to store your
items.
“Don’t rush into buying storage space,” advises Qadri. “If you start off
in a small manner, you can use your living room, garage or loft for
storage. You’ll know when sales demand that you need more storage space.”
Signing up to eBay Becoming an eBay member is relatively hassle-free – one
of the reasons the site has over 114 millions across the globe. Choose a
name and a password and include your details and links to other products
in the descriptions page of each item.
Upload a picture from a digital camera, or one off the web, to illustrate
your product. For around £6 a month, you can set up an online shop, making
your business look more official and you like a professional seller.
There are various options to make you stand out from the crowd, such as
premium listings and titles in bold. Although these options do not cost
much by themselves, the amount can grow if you are listing many items.
Work out which items need pushing by trial and error – you can always take
action in the future if an item needs to stand out more.
Although eBay itself is user-friendly and a pleasingly accessible
marketplace for your products, it does have several rules, which you have
to abide by, you will be able to learn these easily when you sign up.
BE WARNED!!
EBay promises tough action against those breaking the rules and you could
find yourself barred if you persistently flout the code of conduct. Not
delivering items on time or not paying for goods is frowned upon – not
only can this get you in trouble with eBay, it will impact on your image
as a reputable business.
CRUCIAL FACTOR,
your user ID on eBay contains a comments (Feedback) section from customers
and buyers. You are rated for your reliability and honesty and comments
stretching back for a year are displayed. Although you have a public right
to reply to comments, a long list of negative comments could prove
disastrous. New eBay users, in particular, will be cautious when parting
with their money and if you’ve gained a reputation for poor service they
are unlikely to turn to you.
There is no sure-fire way to make a profit, but by sourcing goods at a low
price and selling them at the going rate, with prompt delivery, you should
begin building up your takings. There are certainly plenty of people out
there looking to buy. With 114 million users across the world, eBay offers
s large marketplace.
“There are 10,000 businesses in the UK selling on eBay,” explains Azita
Qadri, the site’s small business adviser. “They are attracted to it
because eBay is a ready-made ecommerce solution – everything is taken care
of, all you need is a computer and a digital camera.
“With the ability to set out your own shop for £6 a month, and PayPal,
which ensures payments are secure, the potential buying power is
colossal.”
Costs, It costs just cents to list an item on eBay. The site takes a slice
of the selling fee once an item is sold, depending on how much the item is
worth. Setting up an online shop that displays all of your goods is very
cost effective and eBay gives you the first 30 days free. Making and
receiving payments through PayPal, eBay’s online payment system of choice,
also incurs a small transaction charge.
EBay’s Qadri says that, like many businesses, there is no guaranteed ways
of making a profit on the site. “It’s all about the market. Buyers love
the chance of getting a bargain – do your research to see what you are
likely to get, look at your profit margin and go for it.
Wilmamae Ward, of eBay clothing business The Gathering Goddess has
attracted a huge amount of interest from the fashion world since putting
her collection online. Here she gives her tips on how to set up and run an
eBay business:
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Start with selling something that you know about and/or love doing.
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Research the eBay market in your particular sector as well as on the
Internet to see what the competition is doing and what is being offered.
Find a point of difference that will set you apart from your competitors.
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Be committed to it. It is not easy but it can be extremely rewarding.
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Build up your positive feedback. This is the bedrock of eBay and what sets
you apart as a good seller. Excellent customer service = great positive
feedback. Never slack on good customer service.
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Always keep track of your competition. Don't just research them once or
occasionally. Remember they are looking at you and as your business steams
ahead; they are plotting and planning to take over. Half of my eBay time
is spent researching competitors and new marketing techniques.
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Be as transparent as you can with your potential customers. Don't hide
costs and describe your items clearly and honestly. Building trust builds
business on eBay.
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Don't spend huge amounts of money on stock and setting up. Start small and
grow it slowly. The world of eBay can be complex and the best way of
discovering this world is by experiencing it. If you plough in with a huge
store full of lots of stock and you don’t know about it then you risk
falling quickly on your face.
Read the Silent Sales Machine
the best selling book about
eBay
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