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

---

Do You Sell Tires By Mail? Maybe You Should eBay

I just received an interesting email from eBay and it... Read More

Nine Simple eBay Selling Hints

Some of these eBay hints will save you money, others... Read More

Everything You Need To Know About Ebay Money Making Opportunities

Ebay money making opportunities are simply the best thing to... Read More

Profitable Paper Piecing on eBay -- Part 2

Basic Paper Piecing TipsHere are some tips that will help... Read More

How I Was Nearly Conned On Ebay

I am not sure how many people have had bad... Read More

How To Sell Santa?s Slip-Ups

Shoppers spent more than $15.5 billion this Christmas on gifts... Read More

Instructions on How to Put Picture on Ebay

Like many folks, you have heard of online auctions. Heck,... Read More

How Pop-Culture Collectibles Can Increase Your Online Auction Profits

How Pop Culture collectibles can increase your Online Auction profitsWith... Read More

Louis Vuitton -- Avoiding the Ebay Nightmare Fakes

Without a doubt, eBay was one of the cleverest on-line... Read More

The Powerful eBay Bidding Strategy That Claims A 99% Success Rate

Don't you just love it?You've found that special item on... Read More

Can You Really Make Money Selling New Release CDs & DVDs On eBay?

Being an active eBayer, I am often being asked about... Read More

5 Secrets for Increasing Auction Profits

1. Include your ebay seller name, store, and website information... Read More

Save on EBay Fees with Free Image Hosting

Experienced sellers at online auction sites such as EBay will... Read More

How To Find Tons of Hot Items Selling On EBay ...In Less Than 10 Minutes

There are many ways to start a home business online,... Read More

12 Items You CANT Sell On EBay

Millions of would-be entrepreneurs want to sell things on ebay.... Read More

Boosting Your EBay Auction Profits: Just Add Audio

According to a recent report, adding audio to your eBay... Read More

An eBay Computer Purchase

An eBay purchase that turned sour.A story of fraud, deceit,... Read More

Top 10 Free Online Wholesale Resources

By the time that a product has made it to... Read More

Why Its a BAD Idea To Promote Hot Selling Products on eBay

Do a quick search on Google, Yahoo, or your favorite... Read More

Ebay Auction Selling Secrets - Using Ebay to Launch Your Very Own Highly Successful Website

Launching your very own successful website is the dream of... Read More

3 Unusual Formats For Auctions on EBay

eBay users are accustomed to only two "standard" formats for... Read More

What to Sell on eBay - 7 REAL Tips for Finding Successful Products

This question has become one for the ages. There are... Read More

Are You an Ebay Shopper?

As I write this article, I am keeping an eye... Read More

Fed Up With eBay?

For many people, their first experience of working online involves... Read More

Search... Search... Search Your Way To eBay Cash!

One of the most valuable things in life is the... Read More

Police Auctions & Government Auctions Professional Resource Information

Police Auctions Information:No, a police auction is not where you... Read More

How to Locate Drop Shippers for Your Success

Like the human heart, drop shippers can keep the blood... Read More

Selling on eBay - Have You Found the Magic Formula Yet?

Selling on eBay can be very profitable and a great... Read More

From Ebay Zero to Power-Selling Hero: The Devil Is In The Details

If you've ever heard the expression "the devil is in... Read More

eBay Auction Bidding Strategies--Overcoming the most Frustrating Situation on eBay

The Problem...It's happened to the best of us.You've been watching... Read More

Maria?s New Lifestyle: Short Story About The Benefits Shopping On The Net Has Given

I've got this strange friend; her name is Maria. Maria's... Read More

The Top Ten Antique Categories On eBay!

Knowledge is Power! And this statement could not be more... Read More

How to Generate Extra Cash in an Instant

With so many out of work, laid off or staying... Read More