Wednesday, April 30, 2014
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!
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!
Tuesday, April 29, 2014
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.
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.
Monday, April 28, 2014
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!
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, April 25, 2014
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.
Thursday, April 24, 2014
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!
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!
Wednesday, April 23, 2014
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.
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.
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