Traveling...

I will be traveling to Boise, ID from April 2 through April 5.  If you are in the area and wish to get together and talk shop or thrift, just leave a comment and I will get back to you.  I will be busy Friday, but should have time Saturday and Sunday to hang out.  I will still be posting as I travel, but it will be sporadic as to what time I can post.  It will depend on Internet access.

Strategies

I had someone contact me from a Facebook group, and their question got me to thinking about selling strategies, specifically whether to sell new or used items.  I decided to expand on what I told them and share that information here.  Hopefully it will help you in making a decision on how you want to approach your ebay business.

There are several different approaches to selling on ebay.  The first is often a huge subject of debate, with both camps firmly entrenched in their selling philosophy.  First there is the volume seller.  These sellers make a small amount on each sale, but list a large volume of items.  I call this the McDonald's approach.  McDonald's doesn't make a large amount of profit from each food item.  Actually it's only a few cents.  However, because they sell millions of items per day the volume carries them to some nice profits.  Now this only works because of the volume.  Unless you have access to a huge amount of product, and can list that product quickly, then you are not going to make much.  This normally works only for the new item seller, but I have seen some used sellers accomplish this, but not many.

Next you have the high margin seller.  These sellers are making upwards of $20 profit per item they sell.  They have a fixed range of items they carry, and only back-fill listings when something sells.  Most ebay sellers fall into this category.  Of course there are some who haven't grasped this concept yet and are still making small margins.  Once they figure out that it takes the same amount of work to make a $5 profit as it does to make a $50 profit, they begin to grow their business and get some serious sales.

Next is the new item seller.  They find items they can purchase cheaply and resell on ebay.  They may be sale items from a store or overstocks and liquidations from wholesalers.  Typically, the margins are not as good on these items due to the cost, but there are deals to be had if you are diligent enough.  It takes a lot of time and work to find these deals, and it is not something most new sellers are willing to try because of that.  The up side is that you will normally get several items of the same type/style so listing is much quicker.

Finally, we have the used seller.  These sellers will generally get their inventory from thrift stores, yard sales, estate sales or auctions.  Over time they learn what items are valuable and give them nice margins.  This also usually has the largest group of "variety" stores on ebay.  Most will sell anything and everything that will get them a nice margin.  Most of the items they buy are purchased very cheaply, so the monetary investment is minimal.

Now that I have laid out the different types, let's look at which one best fits your selling model.  The used items can be done with a minimal amount of money invested.  There are several supply chains available to obtain inventory.  The margins are good, and there is demand for a lot of these unique items.  The down side is the time spent visiting the outlets to source the inventory.  Additionally, since everything is a one off, you have to spend time on each and every item to get it ready to list.  You also have to list each one individually.

The new items will cost more to acquire, and the supply chain for them is very narrow.  You will have to invest a substantial amount of money to get the deals.  Your cost per item can be as much as double or triple the cost of a used item.  Typically, you are going to be buying in bulk.  The plus side is new sells better on ebay, if it is in the right category.  You will also typically get several like items so listing them is much quicker.  You also don't have to clean them so your time spent prepping is less.

If you choose to go with new items, make sure you have the cash reserves to do this.  If things don't sell like you expect them to, you could wind up losing money.  If you used credit or the last of your cash reserves to purchase them, you may find yourself in deep water.  This is something I only recommend for people who have the disposable cash to make this gamble.  I typically tell people to start with used items.  Learn ebay, learn what sells.  Don't jump into new until you fully understand how everything works.  You don't want to end your ebay career before you really get started.

No matter which route you take, do your homework.  Make sure you know your numbers and don't get caught not knowing if you are making a profit or not.  What looks like a good sale could wind up having you working for less than minimum wage!

The fast track...

It seems that everyone is after the holy grail of only working a few hours a week, and expecting to make a ton of cash. Well, unless you are independently wealthy this is not going to happen.  Not with ebay, and not with Amazon.  When you are a reseller, or hustler as some call it, you will have to work.  Now that's not to say you will work as hard as a 9 - 5 job, there are benefits to working as a reseller full time.  That being said, there are ways to work less.

First and foremost, ebay is a game of numbers.  If there is one secret that any power seller can tell you it is that fact.  The more listings you have active, the more you are going to sell.  The greater your inventory the better chance you have of attracting a potential buyer.  Think of it this way.  If you put a bag of M&M's into a bowl, chances are good that if you reach into the bowl you will get a brown one.  That's because there are more brown than any other color.  Now if you wanted to increase your chances of getting a green one, you would have to add more green ones to the bowl.  Ebay is no different.

So how do you get your "green" M&M's into the bowl?  You have to list, list list!  And when you are sick of listing, list some more!  The trick to really getting sales moving is to list a lot every day.  The key is to have newly listed items and ending soonest items on rotation every single day.  Your goal should be to start with listing 10 items a day.  As you get comfortable with listing, and your listing time improves increase that to 20 a day.  In 5 days you will list 100 items.  In a month you will have 400 new items listed.  You'll find that as your inventory grows, so will your sales.  Adding that much inventory will get you to a consistent set of daily sales.

Now you will still have to deal with the ebay "roller coaster" ride, but you will fare better than someone who only has a couple hundred listings.  To realistically have a shot at selling full time on ebay, and making a comfortable living, you should aim for 2,000 listings.  This should get you an average of $2,000 per week in sales.  Of course that is dependent on what you are selling.  If you are selling something no one wants then you are just taking up space.  But if you do your homework and sell the items that are in demand then you should have every expectation of making $2,000 in sales for your weekly average.

Now that does not mean you WILL make $2,000 every week.  It means that will be your average.  You may do $1,500 one week and $2,500 the next.  So the average between those two is $2,000.  If you keep that in mind and not let slow downs bother you, you will have a much easier time handling the ride.  You want to stay focused on the end goal and not get caught up in the small things you cannot control.

The goal here is to get to 2,000 listings as fast as you can.  The quicker you get there the quicker you will have your freedom!  There is no other secret to ebay than this.

Resources

I decided to put links to the equipment and supplies I use.  If you are wanting to get to the next level, these are some of the items you should look at obtaining.  They will make your life easier, and are fairly inexpensive.


Dymo Label Writer 400

This little printer will save you a ton of time! It prints shipping labels quickly and will make you wonder why you waited so long to get one!

Dymo Shipping Labels

These are the labels that fit the Dymo Labelwriter 400.

Shipping scale

This will hold up to 25 pounds. You can get them in higher weights, but I don't generally ship anything over 25 pounds.

HP Laserjet Printer

I love my LaserJet! Quick printing and the ability to connect via wireless!

Garment Bags

If you are hanging clothes like I do, you'll want to cover them with these garment bags. Keeps dirt and dust form getting on the clothing items.

Poly Mailers

I use these to ship lighter weight clothing in. Any clothing item shipping first class should fit in one of these.

Tissue Paper

I like to wrap my clothing items in tissue paper prior to shipping. I think it just adds a bit of a professional touch to it.

Lighting Kit

This is the lighting I use for my pictures. It's cheap but works great!

Terapeak

If you are new and need a research tool, this is the standard and best there is, hands down!

Friday Q & A

I decided to try something new.  On Friday's I want to open up a Q & A for anyone who needs help.  Just post your question and I will do my best to answer it for you.  Hopefully by doing this people will be able to get some help for things they didn't really know how to do.

Returns...

They are going to happen, and we all hate them.  But just like our brick and mortar counterparts it's something we have to deal with.  Unfortunately with the nature of ebay some returns are going to be challenging to say the least.  Inevitably you are going to get that buyer that just hits your nerves just right.  So how to deal with them?

Sometimes the best thing you can do is to just be to the point and leave it at that.  Remember, anything you send via ebay messaging the CSR's can read.  Keep it professional.  I have had buyers that try to bait me into sending nasty messages so they can report me to ebay and thus have a better chance of having ebay side with them.  Don't fall for that trap.  Be polite and state your point.  Nothing further should need to be said.

As an example, I had a buyer who wanted to return a pair of shoes because they did not fit.  I said, sure and gave them the mailing address.  They messaged me back that they didn't think they should have to pay return shipping since the size was obviously wrong, even though the stated size was in the pictures I loaded into the listing.  I messaged back that they were responsible for paying return shipping per my return policy.  They sent another message which I ignored.  I had already stated my position and referenced my policy.  I was all business with my response.  I never got the shoes back.

Of course the other side is when someone opens a case for Item Not As Described.  We all make mistakes, me included, and when I do I own up to them and try to be as gracious to the buyer as I can.  It wasn't their fault and I should be humble in defusing the potential situation.  Now there will also come a time when a case is opened and you did nothing wrong.  Again, handle yourself in a professional manner and be polite.  Some buyers simply don't know how to handle returns so they open a case.  Others are just trying to get out of paying return shipping.  It's not your place to figure out the motive, it's your place to ensure it gets handled properly.

Here is an example.  I had someone buy a dark blue shirt.  I got a notification that a case was opened for it.  the buyer stated they wanted the medium blue shirt in the picture and not the dark blue one he received.  I don't think many buyers fully understand that monitors display colors differently, which was the case with this buyer.  At any rate, I sent him a message stating that the shirt was in fact the one he had ordered, and if he was unhappy with it he could return it for a full refund.  After sending the message I immediately called ebay.  I told them what was going on, and pointed out to them that two times in the listing the shirt was in fact labeled as being dark blue.  Once in the title and once in the description.  They looked at my response and told me I handled it correctly.  Within the hour the buyer closed the case.  Ebay apparently contacted them to point out the error of their ways!

I have had instances where I should have gotten a negative because I royally screwed up, but because I was prompt in responding, polite and accepted the blame, I got positive feedback.  Ultimately that is your goal.  If you treat the buyers the way you expect to be treated then there should never be an instance where you had cause to be nasty to a buyer.

Keep it polite, professional and to the point.  Shrug off the negatives and stay focused.  Your sanity will thank you, and so will your wallet!

How far can you go?

I've posted about being efficient and talked about how I do things.  Being efficient isn't simply about being able to list quickly, it's about being able to grow your business.  I think too many people get discouraged and overwhelmed with the process and never really achieve their potential.  I know when I was growing my business I would see sellers who had well over 1,000 listings and wondered how they got there and how many employees they had that allowed them to do that kind of volume.  Now that I am at that level, I can see it really does not require employees.  It requires work.

While selling a few items per month and making some extra cash is ok for some people, others want to either replace their current income, or need an income.  The question is, how much can you really make?  How many items can you realistically handle on your own?  It really is all up to you.  You are only limited by your own processes and abilities.  Ebay is not a get rich quick scheme.  Unfortunately the scammers who have put out books claiming to reveal the "power seller secrets" have given ebay selling a bad reputation.  Don't get sucked into believing any of that crap.

Ebay is a numbers game.  The more you list, the more you sell.  There is no secret sauce contrary to what other sellers who are trying to sell books tell you.  You alone control the amount of income you want to make.  A general rule of thumb is you will make $500 per week in sales for every 500 items you have listed.  Of course this also depends on your average selling price, but that is the basic rule.  If you want to make $2,000 a week then you should have at least 2,000 items listed.

So many people get caught up in the mind set that there is something missing that is holding back their sales.  Take a look at your amount of active listings.  That is the best indicator of what you can expect.  Of course there are other factors that play into this, but having a large amount of inventory really is the biggest determining factor.

So, the question you need to ask yourself is how far can I go?  How many items can I list?  Set your goal and stick with it.  If your goal is to have 1,000 items listed, break that down into manageable chunks.  Figure out how much time you want to allocate to reaching that number, and divide it by 1,000.  That will give you the number of listings per day you need to get done.  Don't try and do 100 listings a day and get yourself burned out.  Be realistic and stick to your goals.

As the old saying goes, how do you eat and elephant?  One bite at a time.

It's just business...

If you are like many new sellers, you quickly catch the "I want to do this full time" bug.  But as you see the sales dip and surge you start to question if it is really feasible.  You question if you really can make a full time living selling on ebay.  But before you throw in the towel from being to scared to jump, or jump too soon, there are some things you need to take into consideration.

First, there are thousands of people who make their living selling on ebay so it is doable.  But it takes a special breed of person to be able to carry this for any length of time.  The slow sales days can really prey on your sanity.  It's easy to get discouraged and begin to question if you made the right move.  Stress can be a real detriment if you don't take steps to control your business.  So what can you do to make it a little easier to deal with?  How can you keep your sanity in a business of extremes?  It's easy if you treat this like a real business.

One thing you need to do right from the beginning is to determine how much profit you need to make in order to be able to sell full time.  You also need a few months of a consistent track record on sales to ensure you are on the right track and doing things the way they should be done.  One good month doesn't mean you are ready to go full time.  Take the time to really analyze your business.  It's one thing to have $8,000 in sales and have a 60% profit margin.  It's a whole other ball game to do $8,000 in sales and have a 30% profit margin.  The latter will probably not get you to a full time seller.

Once you have identified what kind of profit margin you need, you still need to ask yourself if you will have access to the type of inventory you sell for the long term.  Is it something that will always be in good supply, or is it a time limited resource?  Are depending on one off items that are scarce?  These are important factors to consider.  If you run out of scarce or rare items to sell, your business just died.  Be honest with yourself.  Pretending you have access to all you need and not having it is a sure path to failure.

Next you need to set yourself up with a paycheck system.  Get yourself a bank account strictly for ebay.  All of the profits you make should go into this account.  Any purchases for the business should also come out of this account.  You want to have a nice revenue stream and you want it to grow.  Don't get caught in the trap of spending everything you make and counting on the next week's sales to fill the void.  You will get caught with your pants down sooner or later.  Be prepared with this step to mitigate any negative impacts a slow sales week would cause.

Now that you have your bank account set up, determine how much money you need to make on a weekly basis.  For me, it was replacing what I made at my real job.  This is going to be your paycheck each week.  Start with the lowest amount you can so you can use the excess funds to grow your business.  A basic rule of thumb is for every 500 items you have listed, your sales will increase by $500.  So if you have 1,000 items in your store, you should expect $1,000 a week in sales.  Some weeks will be higher, and some will be lower.  But the average should be about $1,000 per week.  If your margins are at 60% that translates into $600 profit per week on average.  You should be able to use about 20% of that to reinvest in new inventory.  You will not always spend that 20%, so any excess should remain in the account.

As you move forward you will see the amount in your business account grow.  This doesn't mean you pull out a lot of the funds simply because it is there.  You want to keep that as reserves for the weeks when sales are slow.  It's what allows you to continue to have a weekly paycheck that is always the same amount.  Let's do some numbers here.  Let's say you need $400 a week to make it.  It's tight, but doable for you.  At 1,000 listings, and a 60% profit margin that means you will have $200 left over each week.  You're reinvesting 20% of that $600 back into the business, so that's $120.  That leaves $80 a week left over.  Now at the end of the month you will have accumulated $320 or more depending on your purchases.  That's almost enough to give you an extra paycheck.  If you have a slow week, and your profits are only $300 you can fill in the gap for the other $100 from this reserve.  See how that works?  It make things a little less painful and relieves a lot of stress that you would otherwise have if you were taking 100% of the profits.

Run your ebay store like a business.  By following the formula above, you are running it like any normal brick and mortar business would run theirs.  Don't get comfortable and start taking 100% of the profits.  Sooner or later you will have those down weeks and not having the cash reserves to fill the void could spell the end of your selling career!

Shipping...

When you list and item, you will have to make some decisions on shipping.  Is it going to be free shipping, flat rate or calculated?  How do I know which service to use?  Where do I get shipping material?  Hopefully I can provide you some guidance to make this a little less painful.

There is a never ending debate over free shipping.  Some people like it, so hate it.  Personally I don't like it, but as the market shifts, it's becoming a necessity.  This is one area where you have to make the best decision for your business model.  Keep in mind though that if you are not doing free shipping, ebay will charge you a fee for collecting shipping fees.  It sucks, but it is a reality you have to deal with.

Regardless of your shipping choice, you still need to get the item to the buyer as fast and as cheaply as possible.  So what are some of the options for accomplishing this?  This is where keeping track of your items size and weight comes in handy.  Since the majority of what I sell is smaller in size, I can generally ship either First class or Flat rate padded envelope.  A lot will depend on the weight of your item.  If it weighs less than 13 ounces, then first class is the way to go.  Most zip codes will cost $3.47 to ship 13 ounces first class.  Once you go over 13 ounces you will have to ship priority.  Don't even try to do parcel.  The cost between the two is pennies, but takes a lot longer to deliver parcel.  You want speed above all.

If your item weighs more than 13 ounces, you will need to ship priority mail.  If the item is small, or not a breakable item, then consider using a padded flat rate mailer.  The shipping cost is $5.35 if you are a top rated seller.  I think the non TRS rate is $5.95.  If you item is larger or fragile, then you are going to have to ship in a larger box.  Depending on the weight and where it is going, you may have to use either a Medium or Large flat rate box.  The latter are more expensive and should only be used if the item is heavy and going to a different mail zone.  You'll know when you go to ship the item as it will tell you the cost to ship the item.

Shipping supplies are easy to get since most any size box can be obtained from the Postal Service.  You can order supplies online and have them delivered to your door.  Unless you are buying the pre-paid postage material, the rest are free.  I would recommend ordering a sampling of different sizes/types until you can get an idea of which ones are going to work for you.

Just remember that a good shipping experience is as important to the buyer as the value of the product they purchased.  Don't wait to ship an item.  If you get paid, ship it.  Just put yourself in the buyers shoes.  If it would pleases you, then it will most likely please the buyer.

The limits...

You've signed up for an ebay seller account, and now you are ready to list.  You get everything ready to go, pictures, descriptions, etc.  But as you are listing you noticing something.  You have a limit on how many items you can sell.  For most new sellers this can be frustrating.  You get a minimal amount of items you can sell, and you have to wait 90 days to have that number increased.  There is a reason for this.  I know I talked about this in another post, but I wanted to dive a little deeper into it.

In addition to having limits placed on your ebay selling account, you will also have holds placed on your paypal account.  Paypal is just as paranoid as ebay when it comes to new sellers.  They want to ensure you are delivering what the buyer purchased and not scamming them.  Funds are generally released 3 days after delivery confirmation.  Don't stress over it.  Shipping fees are allowed to be deducted from the amount so you are not out of pocket for anything.

Some new sellers have been able to get their limits raised after 30 days, others have not.  I don't know what ebay uses for criteria when deciding who to raise and when, but I suspect it has to do what category you are selling in.  The hardest category to break into is the Clothing, Shoes and Accessories category.  It is one of the most counterfeited areas on ebay.  For that reason they are extremely cautious of any new seller in that category.  It will take considerable time to get your limits up high enough to make a substantial income.

I know it can be frustrating having limits impeding your growth, but stick with it.  The rewards are worth it.  Once you get your limits raised the first time, you will automatically get them raised each month.  Ebay will evaluate your account based on number of sales, number of feedback and any issues you have had in the previous month.  It is imperative that you give outstanding customer service if you want those limits to grow quickly.  Opening a basic store can help as it shows your commitment to a long term partnership with ebay.  I'm not saying it will definitely cause your limits to be raised any earlier, but it doesn't hurt.

Stick to your guns and be patient.  Anything worth having is going to require work.  Do the right things and you will be rewarded.

Are you motivated?

People get sucked into ebay fairly easily.  Once they get the hang of listing and selling, they generally do one of two things.  They either see it as a fun thing to do once in a while, or they see the long term potential and strive to do more.    If you fall into the latter category, congratulations.  You are joining the ranks of sellers who want to control their income.  They want their freedom from corporate America, and to live life on their own terms.  But it does come with a price.  You cannot be lazy and expect to succeed in this business.

I often hear from sellers who constantly complain.  Ebay changes a policy, and the world is suddenly coming to an end.  The ebay community boards are full of people who do nothing but bash and trash talk.  They will even go at each other over things that really don't matter in the whole scheme of things.  These are the same people who cannot figure out why they don't get a lot of sales, and why they constantly have issues with buyers.  If they treat their buyers with the same mentality that they do on the discussion boards, it's no wonder.

Being self employed is not for everyone, and unfortunately too many people think because they sold a couple items they had around the house fairly easily that this is the norm for ebay.  When they set out to grow and try to earn substantial income, the reality of work hits them square in the face.  Most fail at that point and never push through to be successful.  You have to work at ebay as if it were your full time job in order to have a full time income.  There are no shortcuts.  There are stories all over the internet of someone who made millions on ebay.  What they don't say is how hard they worked at it and how long it took them.  It didn't happen overnight.

If you want to succeed at anything, you have to have drive and discipline.  You have to find ways to keep yourself motivated.  Sitting back and taking the low road will only lead to frustration, and possibly the end of your ebay selling career.  You have to think positive and enjoy the freedom that being an online seller provides.  Work hard when required and you will succeed.  Relax and you will fail.  I often see new sellers joining Facebook groups or following youtube videos.  It's ok to be with like minded people, just don't let them influence how you do business.  In order to do this full time and be successful at it requires you to earn your knowledge.  You can't expect other sellers to hold your hand and tell you everything you need to know.  Sooner or later you will get bad advice, and it can have dire consequences for your business.  Do your own research.  Use google and other resources to find answers.  These groups should only be there for support and friendship, not to be your business babysitter.

Another important detail that I think needs to be addressed is sales consistency.  When you are growing your ebay business, you will see a steady increase in sales.  It feels good, you are making money and you see the potential.  But inevitably you will hit that barrier where sales all of a sudden dry up.  Nothing for a day or two, or just a trickle.  You start to panic, and you try anything you can think of (or worse, what others are telling you to do) for fear of failing.  This is the exact time NOT to panic!

Ebay selling is a roller coaster.  You will have up days, you will have down days.  All that matters is the final numbers at the end of the month.  I have had weeks where it seemed things just crawled.  Yet at the end of the week I had really done decent in sales.  You have to average things out.  If you don't, it will drive you crazy.  I still get frustrated when sales are slow, it's just our nature to do so.  But I remind myself (or friends do it for me) that it's a cycle.  It will end and sales will pick up once again.

Thousands of people make a good full time income selling on ebay.  You can be one of them, but you have to stay focused and motivated.  When things seem to be going the wrong direction, that is the time to really dig in and focus on your business.  Stay the course and push through.  Thousands of successful sellers do it every day and so can you.  Enjoy the freedom that selling offers you and don't sweat the small stuff.  You can be your own worst enemy in this business.  I know several sellers who have shot themselves in the foot because they lost their motivation and focus.

You can do this.  You just have to have the desire, drive and confidence.  It really is as simple as that.

Efficiency is king...

Let's face it, listing is the most tedious part of selling on ebay.  There is nothing glamorous or fun about it.  Most new sellers struggle with how to list a lot of items in a single day.  Doing your work up front can save a lot of time when listing and allow you to list much quicker, thereby increasing your inventory at a much faster rate.  This is the method I use, and I have listed as much as 77 items in 3 hours this way.  It's nothing for me to list 20 - 30 items per hour.  So how do I do it?  I'm glad you asked.  Let's get right to it, shall we?

First, you must have a spreadsheet.  If you don't have Microsoft Office, get Open Office or use Google Docs.  I have a demo spreadsheet you can download which will give you a head start on how to do this.  Download the spreadsheet HERE.  As you can see, I have everything broken down and simplified.  At a glance I can know anything about my inventory and my sales.  So let's break down each part of the spreadsheet so you have a full understanding of how to use it.

On the first workbook, I keep track of my buying.  I have routes that I follow when sourcing.  I put in the date, the name of my route, the mileage, how many items were purchased and the amount spent.  The spreadsheet calculates my average cost per item.  As an item sells, I increase the number count, and also add the price it sold for.  The spreadsheet deducts the ebay fees and shows my my gross profit from that route.  This allows me to see which routes are giving me the best inventory at the best prices.

The next workbook is Other Expenses.  This is where I keep track of things like office supplies, shipping supplies, etc.  Anything that is not being sold goes into this workbook.  Notice there is a date for each purchase.  This will come in handy if I ever get audited by the IRS.  I also have envelopes for each month of the year, and I put the receipts for purchases in that month into the envelope.  Again, if I get audited I know where the receipt is.

The next workbook is for my shoe details.  I put the date purchased, The route, the gender, brand, style, size, stock number (I assign numbers to all of my items for inventory purposes), item description and purchase price.  There are additional fields for the listing date, sale price and sold date.  Again, the workbook deducts ebay fees and shows the gross profit for that item.  The clothing tab is pretty much identical to the shoe details workbook.

The miscellaneous workbook is for items that are not in my primary categories.  Again you can see almost the same details as the other workbooks.  By keeping the format similar, it is much easier to fill these out.  Since the items here are going to be across the board when it comes to their weight, I have a column for that.  I weigh the item in the packaging it is going to ship in.  I always round up my weight to the next pound.

So now that you have seen the spreadsheet, what is my flow or process for completing this?  It's quite simple.  As I make purchases, I put the receipts in the bag.  This keeps everything together so it will be easier to track.  When I get home, I take the bag, pull the receipt and enter the information.  I manually add all the receipts together to get my total for that day.  As I pull items out of the bag, I fill in the details tab for that item.  As an example, if it is a pair of shoes, I input the brand, style, size and assign it an inventory number.  I then fill out the description field and include the color, style number, material and any special markings such as style name.  I then measure the length, width and heel height and add it to the description.  The last thing I do is to put the price paid.

Once I have done this, I put the item into it's package and put the inventory number on the box.  I will stage these items so they are ready for me to take pictures.  If the item needs cleaned, I do that first, then return the item to it's package.  Having staging areas for each process is also key so you don't get clean items mixed up with the unclean.  Once everything is clean, I take pictures.  I take pictures with multiple angles of each item.  I then move the item to the finished area.  Once I have a batch completed, I move them to their appropriate shelf.  I keep like items together, and in numerical order by inventory number.  So, for shoes I have them broken out by size, then number.  So all size 7's go on a shelf, and then are in order numerically.  When I list an item, I put the stock number in the listing so when the item sells, I only have to look for the number.

I know it sounds like a lot of work up front, but trust me.  I have tried every method I could think of to be efficient at listing, and this is the best one.  I can inventory, clean and finish over 80 items in one day, and that includes the sourcing trip.  I now have the rest of the week to do nothing but list.  I look at the photo of the item and then find it on my spreadsheet.  All of the details are there for me to do the listing.

By following this process, you will find you have more time available.  If you don't have to clean an item, take pictures, edit, measure and describe each item every time you go to list, you will find yourself able to list 20 or more items in an hour.

Oh Snap!

An important part of listing items for sale is the pictures.  But what makes a good picture?  What's the best way to take one?  How many should I have of my item?  It can be a little confusing for the beginner, so let's get the basics right out there.

First, you don't need a fancy set up.  Just an area free of clutter and a digital camera.  I would recommend at least 5 mega Pixels.  No need to go wild and spend $800 on a new DSLR.  It's not the camera that makes great pictures, but rather the photographer and the set used.  I would go out and get either a flat white sheet, or white poster board to use as a back drop.  You are also going to want a white base to match.  The best lighting is of course natural light, but if that isn't an option, then spend $50 and go to Home Depot and pick up a couple clamp lights and a couple daylight CFL bulbs.  That's about it for the set up.

What you are going for is a nice, crisp image with very little shadows.  Set your lights at a 45 degree angle to your object.  Next, you are either going to use portrait mode or macro depending on the size of the item.  Don't be afraid to test different settings as not all cameras are equal and you will get different results from different cameras.  Be sure to play with the white balance.  You want to make sure you get a pure white and not the yellowish or blueish tint.  Also make sure when you are taking pictures to fill the frame as much as you can with your image.  Get as close as possible.  This will save you time by not having to crop every image.  You will have to crop some, but not all.

So now that you have your camera settings, you are going to want to get the best angles of your object.  Take a lot of pictures, making sure you capture every side of your object.  If there is a flaw, make sure to get a close up of that flaw.  I will normally take a front, back, each side and top/bottom when available.  Clothing can be a challenge due to the nature of the item.  I will normally take a shot of the item folded, then front, back, close up of the pattern/texture and the tags.  It is very important to get a picture of the size/material tags.  If someone files a claim saying you listed the size incorrectly, you will win that battle with an image of the size tag in your listing.  Now that you have your images, it's time to edit.

I use Picasa from google as it is pretty easy to use and you can batch export for the right sizing that ebay likes.  Open Picasa and click the import button.  It will connect to whatever medium you have your images on.  Click the import all button.  It will take a few minutes to get them all imported.  Once imported, picasa will switch back to gallery view and your images will be there.  Double click the first image, and you will be taken to the editing section.  One button that can be very useful is the I Feel Lucky button.  It will normally do a great job of correcting the image, but not always.  Use your best judgement on this.  Make your edits and click Return to Gallery.

Now you are going to resize all of your images.  Click the first image, and then while holding down the shift key, click the last image.  This will select all images in that folder.  Click the Save button to save your edits.  Once it finishes saving your images, click File - > Export to folder.  Select the folder you want to save your images to.  There is also a box for the size of your images.  I would recommend 1600 pixels.  Enter than  and click Export.  Picasa will open your saved folder once export is finished.

Voila!  You now have your images for listing.

Details, details...

So you've found items laying around the house that you want to list.  Where do you go from here?  Where to list it?  How much should I charge?  Auction or buy it now?  This can be a little intimidating the first time.  I'll try my best to get you headed in the right direction.

The first thing you need to find out is if your item is selling, is it selling well, and for how much.  This can be time consuming, especially if you are selling one off items.  Research is really the key to being a profitable seller.  Notice I didn't say successful.  You can be a successful seller and not make a lot of profit.  What we want to focus on is getting as much profit from your items as possible.  So let's dive right in.

First, open ebay on your computer.  Now type in the name of the items you are searching for.  For our example, we are going to search for a Kodak Disc 4000 camera.  When your results show up, you will notice some options on the left side of the page.  Unless you camera is brand new, never opened you will want to select used.  The next thing we want to know is how many have been through the selling cycle.  Check the completed listings box.  At the top of the results, you will see a number in bold print.   This is the number of items that have ended.  For this camera, the number is 17.  Now we want to check the box that says sold.  We want to know how many of these 17 cameras sold.  5 of them sold.  So now we divide 5 by 17 to give us the sell through rate, which is almost 30%.  My rule of thumb is the item has to have at least a 25% sell through rate in order to make it viable.  Of course a lot of this can hinge on condition, accessories and anything extra that would make it stand out.

So we know 30% of the Kodak Disc 4000 cameras have sold.  So how do we determine the price?  Look through the prices these sold for and try to estimate the average selling price.  It doesn't have to be perfect, we just want a ballpark.  As we can see, these average around $10.  If you have accessories such as a case or the manual, then we know from the results we can charge more.  Find one that matches your item as close as possible.  Hover your mouse over that item, and you will see a link just below the picture that says sell one like this.  When you click the link, it will open a listing page with most of the data you will need to list this item.

As you can see, the title is pre-filled as are some specifics.  You will want to adjust these to match your item.  In the condition field, you will want to list any condition issues.  Put terms like Good condition, or great or excellent.  List any flaws such as small scuff marks on the side.  End it by saying see pictures.  If your home is smoke and pet free, ensure you add that as well.  Click the drop down box next to condition and select the appropriate selection.  Don't try to pass off a used item as new unless you know for sure it is in fact new.  Scroll down and click the add picture box.  Find your images and add them, then click upload.  Scroll down to the next area and add any specifics not checked.  If you have accessories, they will be listed under bundled items.  Add as necessary.

Details is where you can embellish.  Tell your story about the item, but don't over do it.  You can say something like "I used this only a few times and it worked great".  Add other pertinent information such as the height, length and width.  Just imagine trying to describe your item to a blind person.  What details can you include to give them as clear a picture of your item as you can.  Details can really make your listing stand out from the crowd.

Now you need to decide how you are going to sell it.  Are you going to list it as an auction, or as buy it now?  Typically, auctions will get you a quicker sale, but it will also get you a lower price.  If you choose auction, list the item either Saturday or Sunday night around 9pm EST and for 7 days.  That will give you the greatest exposure to auction buyers.  They know that is the prime time for auction endings.  If you are using buy it now, it really doesn't matter when you list it.  Set the duration for 30 days.  It costs the same whether you list for 3 days or 30 days, so take advantage of the time to get the most bang for your buck.  If using buy it now, you have the option of requiring payment when they click the purchase button.  It's up to you whether to use this or not.

You will also need to specify how payments will be made to you.  If you do not have a paypal account, now would be a good time to sign up.  99% of transactions on ebay use paypal.  It's quick and easy to sign up.  Once you have created your account, put your paypal email address into the required field, and check the paypal box.

Next comes shipping.  There are two schools of thought, and the jury is out as to which one works best.  Just follow your instincts on this one.  I will only do free shipping on items I can ship via first class mail.  It is usually around $3.00 for first class.  If shipping priority, try to use flat rate packaging to minimize the cost.  Most items can ship in either a small flat rate box, or a padded flat rate envelope.  Figure out what works best for the items you are selling.  There are a number of youtube videos that will teach you about shipping.  It will probably be worth your while to watch a few of them.  As a side note, any shipping packages you need can be ordered from the USPS.com website.  Most of them are free.  Order a sampling of their packaging until you figure out which ones meet your needs.

International shipping is also another area that has two schools of thought.  You can opt into the Global Shipping program, or ship yourself.  If you are new to selling, I would go with the GSP program until you get more familiar with shipping.  Then I would just move to shipping on your own.  If you decide to do the latter, make sure you sign up for Shipsaver insurance program.  You will find it under the applications link on your my ebay page.  It costs $1 for insurance to ship international packages.  Follow their guide to exclude nations they will not insure to.  If your items are under 4 lbs, then use First Class International as your shipping method.

Next, put your item in the package you will be shipping it in and weigh it.  You can pick up a postal scale fairly cheaply at Walmart or Staples.  Choose your weight range from the drop down menu.  If you guess at the weight you run the risk of having to pay more for shipping than what the buyer paid you.  It will happen, and could cause you to lose money on a sale.  Don't try to take short cuts on this.  This is the one thing that bites people.

Next you need a return policy.  In order to qualify for Top Rated seller status, you must accept returns.  It's a  good idea to do this at any rate just so you stand apart from any other seller selling the same thing you do, but don't accept returns.  I use 14 days, and specify the buyer has to pay return shipping.  You can also opt to charge a restocking fee.  I don't typically charge this unless it is a very expensive or new item.

Now just click continue.  This will take you to a review page where you can click a link to preview your listing.  This is your chance to make sure your listing has no errors prior to listing.  It also shows you any fees incurred for this listing.  If you are satisfied with your listing, click the submit listing link.

Congratulations!  You have just listed your first item!

It's all about the buyer...

Over the years ebay has evolved in such a way that they favor the buyer over the seller, and with good reason.  Without buyers, ebay just wouldn't work.  It's in their best interest to keep buyers happy.  Now that's not to say that they are never on the side of the seller, but more often than not they favor the buyer.  So what does this mean for you the seller?  Is there anything you can do to mitigate the chances of you having issues?  Certainly!

In this day and age, consumers are more demanding than ever.  With e-commerce, we no longer have that face to face interaction.  We resort to text messages and emails.  One cannot easily translate their tone and intentions through text.  This is where you have the power to control more than you think.  More than ever, great customer service becomes an important factor.  Just remember, it's business.

When I started selling, I took a lot of buyer messages out of context, and probably responded in an angry manner.  This item was awesome!  Why would anyone want to return it?  Why are they acting like I made a mistake on purpose?  It's one of the reasons I took so long to get serious about selling.  It wasn't until I really sat back and thought about the buyer that things really cleared up for me.  They don't know me, and they cannot see me face to face to know if my messages are sincere or not.  They bought a product and trusted the information I listed about the item was accurate.  After all, they were not able to touch it and look at it in person.

As a seller you will always get returns.  You will inevitably get a nasty buyer, but it is up to you to remain professional and not get sucked into a messaging war.  The more professional you are, the more likely it is that ebay will side with you should there be an issue that gets escalated.  Should you run into an issue that makes you feel uneasy, don't be afraid to call ebay and ask their advice.  You are paying them and they are more than willing to step in and guide you to a satisfactory resolution to your issue.

There are times when killing them with kindness works in your favor, even when you are yelling at your screen from the other side!  There are also times when you simply do not need to respond any further.  State your position clearly, and in a professional manner and leave it at that.  I once had a buyer that bought something with free shipping.  The item did not fit, and they wanted to return it.  No problem, I told them to ship it back and I would refund them as soon as I received the item.  They wanted me to pay return shipping because they felt it was labeled wrong.  I stated that I could not control how the manufacturer labeled their product.  They responded again in the same manner, and I could tell it was about to get out of control.  I simply sent a message stating our return policy and left it at that.  I never heard anything further and they did not return the product.  I never indicated I was irritated, and kept the messages polite and to the point.  That's the best you can do.

Just remember to think like a buyer.  Be polite and professional at all times.  And when in doubt, don't hesitate to get ebay involved in the issue.  If they outcome does not land in your favor, shrug it off and move on.  Yes it sucks to lose some of these battles, but in the grand scheme of things, it is just a tiny drop in the bucket.

So, you want to sell on ebay...

A lot of people see others selling on ebay and decide they want to get in on the action.  Most just jump in and try to figure out how it all works.  But before you jump right into selling, you really need to ask yourself a few questions up front.  Is this going to be a casual thing, a hobby or are you looking to build a full time business out of it?  These really are important questions because if your intention is to go full gusto and start a business, then you really need to be prepared right from the get go.

So, how do you prepare?  Well for starters, before you can become a viable seller on ebay you have to overcome a few hurdles.  Some will take time, others not so much.  Ebay imposes selling limits on new sellers.  The limits depend on the category or categories you will be selling in.  Ebay imposes these limits to ensure you are serious about selling, and are not out to rip people off.   After all, their reputation is at stake with every new seller that comes on board.  These limits will not get raised for at least 90 days.  Ebay wants to see good feedback and good customer service.  Once you get past that, things start to open up.

Next issue is going to be your feedback.  Until you get into the hundreds, or maybe even thousands depending on your category, you will not have a great deal of success selling higher priced items.  Initially, you want to stick with low to mid range priced items.  They are usually quick sellers and can get your feedback up relatively quickly.

Finally, you need to know what you are going to sell.  The majority of sellers started by selling items from their homes.  Think of items you would most likely sell in a yard sale, and that is what you want to list.  This does a couple of things.  First, it allows you to dabble in ebay without any out of pocket expenses.  Secondly, it gives you exposure to several different categories which can help you narrow down what it is you want to sell.

One thing to keep in mind as you go through this process is, do you have access to enough of your product to be able to sustain a business?  It's great if something you own sells for $200, but if you can't find any more of it, or more of it at a decent price, then it's not going to be a good item to try and sell.

Keep these tips in mind and your selling experience on ebay will be a lot less painful than if you were to ignore them.

The beginning...

My story starts about 12 years ago.  I was turned on to ebay by a co-worker.  I started selling stuff from around the house and graduated to thrift store and yard sale finds.  I floated in and out of ebay for the next 9 years.  If I needed some extra cash, I would start selling.  It wasn't until 2012 that I decided to really make a hard push at it.

I spent 2012 really learning the whole ebay process.  I kept around 100 items in my store, and never really went too far beyond that.  I had decided to sell in a niche category, and really wanted to learn the products there before branching out.  I also wanted to learn what worked or didn't work with listings and searches in ebay.

In 2013 I decided it was time to make a push and really grow my inventory.  My goal was 500 listings.  It took me a few months to get there, but I finally made in around the middle of July.  I spent the next 6 months really just maintaining my levels.  In January of 2014, I decided to push hard and get over 1,000 listings.  I finally got there in March of 2014.

So what was the progression with sales like while I was growing?  Well, it was pretty good actually.  When I was around 100 listings, my monthly average was around $800.  When I got to the 500 level, my average went to about $4,000 a month.  Now that I am over 1,000 it will be interesting to see if that $4,000 doubles to $8,000.  I have a feeling it will as March was nearly $9,000!  Being consistent at $8,000 is my goal.  Once I see a couple months at the $8,000 level, my new goal will be to once again double my inventory to 2,000 items and shoot for $20,000 a month.  Is it possible?  Sure, but the question is can I sustain it.

You see, I do this part time.  I work a full time job during the week.  So far at 1,000 listings I am able to keep up with it and not spend every spare moment working my ebay business.  How much further I can go before that happens remains to be seen.  One thing is for sure, it will be a fun journey!