The Secret To Real eBay Success

Q. I hear so much about people who started selling on eBay and eventually turned it into their full time business. Is it really possible to build a profitable business just selling junk on eBay? -- Alex K.

ANSWER:

If Fred Sanford were alive today, Alex, I'm sure he'd be earning his ripple money by selling quality junk on eBay. While it's also true that one man's junk is another man's treasure (I have a garage full of treasure to prove this point), your chances of building a profitable business selling "junk" on eBay (or anywhere else, for that matter) are slim to none. While there is a lot of junk/treasure for sale on eBay, it is typically sold by individuals who have "I break for yardsales!" bumper stickers on their cars and not serious business people.

For serious entrepreneurs, however, selling on eBay can be a good way to start a new business if you are willing to put in the time and energy required to make the business a success. eBay is also a good option for existing businesses to expand their reach by selling online. Everyone from small used car dealers to giant companies like Dell Computers have discovered that eBay is an excellent place to hawk their wares simply due to the huge number of folks who visit the eBay site on a daily basis. Nowhere else on earth will you find such a large pool of potential customers.

Consider these numbers:

? There are nearly 69 million eBay users who spend $59 million every day.

? Most eBay sellers are home-based businesses that sell everything from porcelain dolls to locks of Elvis' hair to $100,000 Mercedes convertibles to $5 million dollar vacation homes.

? Every minute of every day more than 150 new items are listed for sale, more than 500 bids are placed, and seven new people register to shop on eBay.

? At any given moment, eBay is conducting some 12 million auctions, divided into about 18,000 different categories

? About two million new items are offered for sale every day, and 62 million registered users scour the site to find them.

? One company is grossing more than $5 million dollars a year selling brand new pool tables on eBay. Their eBay store is so profitable that they have closed their retail location and now sell solely online. That's right, $5 million dollars from the sale of pool tables: proof that you can sell just about anything on eBay if you know how to do it.

Be aware, however, that eBay is no magic bullet. As any eBay Power Seller (a seller who sells a minimum of $10,000 in goods per month) will tell you, building a profitable eBay business takes hard work and requires long hours, and often the financial rewards do not make it worth the effort spent.

When it comes down to the mechanics of it all, running an eBay business is no different than running a brick and mortar business. You still have the same considerations regarding product selection, inventory purchasing, product pricing, inventory management, order processing, fulfillment, customer service, etc.

You must also consider the legal and accounting aspects of the business. Just because you're selling online does not mean that Uncle Sam won't expect his piece of the pie. Revenue generated by an eBay business is just as reportable and taxable as revenue generated from a brick and mortar store. And if you sell to customers within your state you may also be responsible for collecting city, county or state sales tax.

One of the biggest obstacles to building a successful eBay business may be the stiffness of the competition. Many sellers sell identical items and the price wars often get ugly, but that's to be expected in a free market place, which is exactly what eBay is.

You may be the only store in town that's selling that one of a kind, custom made just for you, broke the mold after they made it, Dale Earnhart Memorial Bobble Head Action Figure (Earnhart fans would string me up if I called it a Doll), but do a quick search on eBay and you'll probably find a hundred others just like it.

So, can you build a profitable business selling on eBay? Certainly, thousands of people have done it and so can you. Here are a few tips to help get you started.

Sell Quality Products

Don't sell junk! Leave the knick-knacks and fake leather jackets to the less informed. You should offer only quality products at a fair price.

Research The Competition

Once you have your product in mind, don't invest a dime on inventory until you have spent some time on eBay to see what the competition is doing. If you want to sell motorcycle helmets, for example, you should look at current auctions to see how many others are selling similar helmets and what prices they are charging. This step is vital since you may discover that you can't compete with current sellers on price or there is simply no market for what you have to offer.

Start Slowly

Many people believe that the more items they have for sale on eBay the better. They will invest thousands in inventory and spent hundreds on listing fees (yes, eBay charges you to list items for sale and collects a final fee if the item sells). Those are the folks that usually end up with ten thousand Ginsu knives forever in their garage.

Test, Test, Test

A fair portion of eBay auctions result in no sales, so it's best to test the waters before jumping in with both feet. List a few items and see how they sell. If an item doesn't sell, list it at least twice more. Some items might not sell the first time, but may the second or third, then sell steadily from then on. If an item gets no bids the first time, consider adjusting your price or your terms. If an item sells well, keep it in stock and then experiment with another item.

Do Your Homework

eBay is too broad a subject to be covered fully here, but there are a multitude of books available that can help you start an eBay business. In fact, I bet you'll find most of them for sale at this very moment at eBay.

What's my bid?

Small Business Q&A is written by veteran entrepreneur and syndicated columnist, Tim Knox. Tim's latest books include "Small Business Success Secrets" and "The 30 Day Blueprint For Success!" Related Links: http://www.smallbusinessqa.com http://www.dropshipwholesale.net

---

How To Compete With Amazon.com

If you are selling online,here is the down side of our business....you will never be able to compete with Amazon. (Or Kmart, or Target, or any other big outlet) Here is why, They... Read More

Taxing eBay Part Deux

When my column on paying income tax on eBay profits ran it brought a wave of emails on whether you were required to report income earned from eBay sales to the IRS sparked... Read More

The Drop Shipping Business

You have suddenly found the perfect business and you are all geared up to make lots of money. You have see the ads about Drop shipping and it sounds great.Well of course it... Read More

E Bay.com HTML Auction Templates: Which is Best for Ebay Selling?

There are a plenty of free e bay.com free auction template services out there and I would like to help you find the service that will best suit your needs by comparing what... Read More

Online Auctions: 10 Secrets You Should Know Before Bidding At An Online Auction

You may have heard about ebay and other online auctions.You may have participated in some of the biddings.But before you do the next bidding for a product or service, here are some few... Read More

Start Selling On eBay - Getting Started On The Right Foot

You've started your own eBay business and, even though it's part time right now, you know it's going to become a huge success. You are able to see the day when you can... Read More

eBay - Tapping Into The Japanese Collector Market

If you owned a skateboard shop in your local mall would you put a big sign in the window saying "No Baggy Pants Allowed"? Of course not. If you did you would be... Read More

From Ebay Zero to Power-Selling Hero: How To Learn New Tricks Without Spending

The Internet is the fastest-changing marketplace on earth. Million-dollar ideas from one year ago might not generate a single penny today. And the best search engine optimization strategies from months ago may be... Read More

Seven Steps to eBay Selling Success

More and more people try their luck at selling on eBay everyday. With all of that growing competition it is important that you do everything possible to make sure that you stand out... Read More

Using Online Ebay Auctions to Promote Your Website - Confessions of a True Traffic Junkie

If you are looking for traffic to your e-commerce site, you should look no further than Ebay. The reason for this is Ebay is an online auction site that has a huge following... Read More

Make BIG MONEY on eBay - Your Unlimited Cash Cow

Let me be brutally honest; until recently, I had never bought anything on eBay, I'd never sold anything on eBay, and, dang-nab-it, I disdained auctions. (Bidding wars just weren't my bag. I was... Read More

A New Definition of Buyer Beware

"Who's Suzie?"My wife Katrina had been acting strangely ever since I had returned home from my Native American cultural class, not to mention the weird phone call I received just before I left,... Read More

Why Ebay Is The Best Place To Make Your First $1000 Online

I'd like to begin with a question ? and I'll bet the answer is going to surprise you (it sure did surprise me!).Q. What percentage of the worlds population do you think is... Read More

The Effects of eBay on American Merchandising

With one brilliantly simple idea, eBay was born just a few short years ago.From its humble beginnings in the Collectibles business, it went on to achieve the lofty heights it enjoys today.As eBay... Read More

Do You Sell Tires By Mail? Maybe You Should eBay

I just received an interesting email from eBay and it got me thinking... Do you sell tires by mail? Maybe you should 'eBay' (yes it's now a verb as well as a noun)I... Read More

How To Convert eBay Surfers into Bidders!

Do you know the phrase "A Call To Action"? Well, using "A Call To Action" on your eBay Auction could help increase your sales almost immediately. As outlined in my book "eBay Marketing... Read More

So, Can You Really Sell EBooks On EBay And Make Cold Hard Cash?

Selling eBooks on eBay, and making any worthwhile profit from doing so, is becoming more and more difficult.Gone are the days when you could sell someone else's books on eBay, and it's becoming... Read More

eBay - Profiting With Books By Janette Oke

Janette Oke is a Christian writer whose books about life, love, values and faith have a huge following among women today. Each of her Christian books for adults falls into one of six... Read More

The 3 Minute Auction and Minute Auction Explained

Am I the only person who doesn't know what a 3 minute auction is? Looking for fresh content for my site, I discover that "minute auction," or even a 5, 10 and 30... Read More

Buying & Selling Gently Used Baby Clothing, Strollers, Toys, and Other Baby Items & Products on eBay

Need Extra Money? Buy and Sell Your Gently Used Baby Clothing, Car Seats, Strollers, Toys, Books and Products on eBay! Hi Moms, So, you had your precious baby, and you couldn't resist --... Read More

Finding Antiques And Collectibles To Sell On eBay

Many people who decide to make a living selling collectibles on eBay soon fail. I meet them in the line at the post office. They tell me they just quit their job in... Read More

eBay - The Basics

I began selling on eBay in 1999 and have found it to be an enjoyable and profitable experience. I had owned a retail computer store for a few years and decided to close... Read More

So What Are YOU Going To Do About eBays Fee Increases?

Unless you have been hiding under a rock, I am sure that by now you have heard that eBay is raising its fees. So what's a small merchant to do? Here are some... Read More

How To List Your Items On eBay

Listing your items on eBay can be very confusing if you don't know where to start. Here are a few tips on getting your items listed so that they sell.AccuracyWhen you list your... Read More

Making Your Auction Business Stand Out From The Crowd

When my sons were growing up they started playing hockey when they were 6 years old. Each of them, in their first year, scored more goals than the rest of their team combined.... Read More

eBay Online Auction Sniping Secrets

Since their introduction several years ago, online auctions, such as eBay, have been one of the hottest destinations on the World Wide Web. Auction sellers are attracted by the prospect of a broad... Read More

How to Survive the Jungles of Ebay Selling

Come with me, we are going to take a safari into the jungles of eBay selling, sometimes wrought with danger but most often rewarded with treasure.Beware of non-paying bidders, beware of auction snipers... Read More

Ten Sure Fire Ways To Lose Bidders

The way some auction sellers approach their auctions, it's clear there are as many ways to lose bidders as there are to skin a cat. If you spend enough time in the auctions... Read More

How To Sell Internationally On eBay Without Risk

Many people just getting started on eBay have reservations when it comes to selling to International buyers. Possibly they've heard a few second-hand horror stories, or they feel it's simply not worth the... Read More