There is no doubt that the birth and growth of eBay has changed the world in many different ways.
It has allowed literally tens of thousands of people to create their own highly successful home business.
It has enabled many elderly and disabled people to bring in extra income to take care of their material needs.
It has made it possible to shop for anything at 11pm while sitting in your underwear.
Ah.. life is good!
As a reader of this newsletter no doubt your interest is in the profit making abilities of eBay.
From speaking and emailing with readers like you, I assume that you are interested in having your own profitable home-based internet business whether it is eBay or some other method of profiting from the web.
To make sure that’s correct, could you make your choice below and you’ll see the results in this live poll.
If you have been reading this newsletter for awhile, you know how I try to keep an open mind concerning making money on eBay and the internet.
eBay is NOT the only way of making money on the web. It is also NOT the only way of making money using your computer from home.
Does it seem strange that I ask the question “Are eBay Profits Still Possible?”
Some might think that since I have used eBay selling to put big profits in my pockets that I would be sounding like a chorus of angels singing how wonderful eBay is.
Well.. It’s not quite like that.
Don’t get me wrong. I’ll always appreciate the incredible opportunities that eBay has produced, but I by no means think that it some sort of utopia. (<– 25 cent word)
eBay, like all HUGELY successful and innovative businesses, is going through a cycle of growth which starts at a grass roots level and quickly expands to a profit driven machine that stomps all over the grass (and people) it started with.
Hey.. don’t take it personal, it’s just business.
Why It’s Getting Tougher
As these markets have become more crowded, it has become more difficult to make a profit in both areas.
Why?
Many reasons. These include:
* Increased competition leading to more sellers chasing less buyers which drops the price and profit of the item.
* Businesses that previously sold their excess stock to liquidators are now setting up their own eBay presence.
* Wholesalers and importers are using eBay as a major distribution channel, making it impossible for the small guy to compete.
* Increased competition from other sellers trying to source liquidated, closeout, and refurbished goods has increased product cost hence lowering profits.
Should You Throw In The Towel?
Many people get frustrated with eBay, and with good reason! They spend countless hours looking for something to sell on eBay and they cannot make consistent profits. Many give up thinking that “It is impossible to make money on eBay!”
Do you feel that way?
Well, let me tell you that it is VERY POSSIBLE to make great money on eBay. Countless tens (if not hundreds) of thousands of people are doing so each day.
But.. you need to know that the “low lying fruit” is getting harder to find.
(Low lying fruit refers to the fruitage that you can easily grab a hold of with little thinking or effort.)
The eBay market has matured and changed, and you may need to do the same.
Although you don’t need throw in the towel, you may need to change your attack plan.
Modifying Your Attack Plan.
Many think of eBay as a get rich quick business.
It isn’t!
Many think that it takes little effort to start and build a successful eBay business.
That isn’t true.
Many think that they can sell anything on eBay and make a great profit.
Sorry, that ain’t gonna happen.
If you think this way, then you need to modify your attack plan.
Wholesale / Dropship Selling on eBay, Road To Riches?
The two most popular ways that people want to sell on eBay is:
Dropshipping: Every day I get emails from people who want to know a “good dropship source” for DVDS, clothing, Video games, etc..
When I ask why, they normally respond is “‘XYZ’ is such a hot item. Everyone wants them!”
Ouch! But you neglect the fact that “Yeah.. but everyone is also selling ‘XYZ’”.
Maybe I’m all washed up on this point, but hear me out….
MikeIsm #1583
“It doesn’t matter how many people are buying if there are too many sellers.”
eBay’s BIGGEST Problem
Here is the BIGGEST problem with eBay (beside the excess fees
Too Much Competition!
This Is A BIG Reason Why So Many People Cannot Make A Profit On eBay!
Too many people are trying to sell the same thing to a limited number of buyers. This naturally causes the price (and profits) to drop.
I can understand why people want to use dropship sources.
In theory…. it solves many seller problems. It requires no inventory investment, no storage required, no touching of merchandise. It truly seems like the best thing since sliced bread.
People imagine they can simply sell several different dropshipped items on eBay, collect the steady stream of money that comes in, take out their profit, pay the supplier, and be done with it.
Isn’t that wonderful thing!
The problem is that millions of other people have the same idea. This requires that you select dropship suppliers AND items that aren’t already being listed by a gazillion other people!
The Trick To Dropshipping Is..
The trick to successful dropshipping is to avoid the big boy suppliers (who are over fished), and instead find lesser known suppliers AND less commodity like items to sell.
Dropshipping is not without it’s dangers either. These include keeping an eye on BACKORDERS! (Check out the solutions in: 12 Killer Dropship SECRETS For eBay Sellers)
Please… don’t attempt to sell “common”, “general” items on eBay like DVDs, DVD players, digital cameras, laptop computers, Cell-phones, etc…, unless you have VERY deep pockets and are a sizable business.
The mistake that many people make is signing up for a dropship list supplier/service and immediately going to the largest supplier of the most common “commodity” items. (BTW, I only recommend two different dropship source companies. This one and that one)
Instead.. Look for a smaller, though reliable and trustworthy supplier that has items that are more difficult to find in a corporate retail store. For example, when you think of the item, can you think of a major chain (ie.. Walmart, Target, Bed & Bath, Home Depot, etc..) that you can easily find the item? Is the item seasonal? For example, I’ve had GREAT success selling dropshipped dehumidifiers. These aren’t too easy to find retail, and they are generally only found during a few months of the year. A dehumidifier is a totally unglamorous, “un-HOT” item.
Remember.. It only takes one person to buy your item!
The Trick To Wholesale Sourcing Is..
In wholesale sourcing, you should follow the same line of thinking. Find a non-commodity “line” of items that you can carry. Something that is not too easy to locate at a local retail store.
Become an expert on that item, and if technical give them additional information in your ad that no one else does. For example, does the item require some assembly? Why not take a quick video of yourself assembling it, burn it to CD and include it free with each purchase. Chances are none of your competition will have such a video so you’ll stand out like a superstar.
If you personally use the item, that gives you a HUMONGOUS ADVANTAGE! Explain how you use it, why you like it, how much time it saves, any special inside secrets, etc…
More Techniques Beside Sourcing..
Of course there is much more to eBay selling profits then just sourcing. You need to look at anything you can do to improve the shopper’s experience. Take off your selling hat, and put on a buying hat. Look at your auctions from the eyes of a potential buyer.
Optimize Titles
This includes making it easier to find your auction. In the introduction of this newsletter I mentioned the technique of refining your auction titles. It makes sense that the more people who can find your auction will result in more sales.
Bonuses & Free Gifts
Everyone loves a free gift. Is there something you can offer as a bonus to people who buy from you? For example, say you sell “Hot Wheels” cars. Could you put together a report that contains a list of all the Hot Wheels cars ever produced? Or the “Top Ten” websites to buy hot wheels cars from. (Note: Check if these websites have affiliate programs. If they do, be sure to include your affiliate link so you get a commission if the person purchases. You can then set up an income stream just by recommending the web site!)
(Sidepoint: Do you have an interest that others share? It could be travel, hobby, collectible, even medically oriented. Anything where people would have to spend many hours of research to find more info on. Could you put together a resource report where you give a ton of quality info and sell it for a few bucks on eBay? Don’t forget the affiliate links! )
Digital reports are great because they cost nothing to reproduce or ship, but have a high perceived value.
Testimonials
While having great eBay feedback is a powerful thing, I am amazed at how many sellers fully overlook the power of product specific feedback. If you are a buyer, what would mean more to you, to read a feedback like: “Fast shipping AAA Seller” or “I love my widget! Best Widget deal on eBay!”. If you are in the market for a widget, wouldn’t the second one just jump out and grab your wallet!
Now make a list of these and put them RIGHT INSIDE YOUR AD, and you have a powerful tool! The problem is that it takes a good amount of work and knowledge of HTML to do it right. That’s why I came out with a tool called FAME (Feedback Ad Maker for Ebay) that automates the entire process. It’s worth taking a look at.
Bonded Shopping
One of the secret weapons used by leading eBay sellers is BuySafe. It is a service where an eBay seller becomes bonded. This makes it impossible for the buyer to get ripped off. I use this myself on all of my auctions. Instead of reinventing the wheel to describe it, I swiped the next few paragraphs from BuySafe’s website.
Bonded Shopping protects shoppers before and after their purchase. It is the only service that comprehensively qualifies merchants, making it easy for shoppers to know which sellers are among the best anywhere, so that they can avoid problems in the first place. And, Bonded Shopping provides shoppers with the highest level of financial protection available to online buyers — up to $25,000 on each bonded purchase.
Bonded Shopping gives Bonded Sellers™ a marketing advantage over their competition.
Bonded Sellers are able to offer buyers a surety bond — a guarantee of financial protection. Shoppers know that Bonded Shopping is safe shopping . . . so they are far more likely to buy. Bonded Sellers have exclusive access to the Bonded Shopping Network, a site where shoppers know that every transaction will be satisfying.
BuySafe is a great way to make yourself stand above the crowd. Not everyone qualifies for the service, but it’s worth checking out to see how it can help you make more sales.
Professional Logo & Template
Adding a professional quality logo and ad layout template can go a long way in helping people feel more confident about you as a professional seller.
Friendly & Interesting Ad Copy
When describing your item, do more than including a bunch of facts, figures, and bullet list of features.
Make it an interesting description to read. Describe to them how much they’ll enjoy the item. Or tell them about the benefits they’ll enjoy when they use it. Make it seem like they already have it in their hands.
For example, When I first started selling on eBay, I tried using a regular bathroom scale to weigh my packages. (Hey.. Stop laughing at me! You know you did too!) What drove me nuts about this approach was that when you placed the box on the scale, you couldn’t see the dial. So you had to stand on the scale holding the package in a position so you could read the scale. Then you had to subtract your own weight. Oh yeah.. that was a lot of fun. So, I shopped eBay for a digital scale with a remote display. The display was attached to the scale section by a coiled cord so you could put it in a better position. In the ad, I described the frustration and pain of trying to use an inaccurate bathroom scale. I then described how I had weighed hundreds of packages using this scale and I LOVED IT! It didn’t require an AC adapter so I could easily move it around. The battery lasted forever. It was very accurate and could handle packages up to 300lb. It was a great scale at a great price. When you get yours you are going to think “How did I ever get along without this?”. In the ad I also put a ton of feedback received from other people who also loved the scale. It practically sold itself and that same ad that I wrote over 3 years ago has sold 793 units (over $50,000 in sales) so far.
Another item I sold was a Turkish bathrobe. It was emerald green (not my favorite color), but it was a very high quality, very heavy bathrobe. Now I never wear pajamas, nor do I ever wear a bathrobe. So I couldn’t take the same approach since I wasn’t going to lie about loving it. What I did know was that this WAS quite luxurious and warm, so I focused on that. “Just imagine you and your loved one relaxing in front of the fireplace toasty warm wrapped up in this wonderful bathrobe.”
I even had some fun with it and highlighted how the pockets were perfect for holding a TV remote and cordless phone. The ad also included a warning to not wear it near a Jacuzzi or bathtub. “This terry cloth robe is so thick that if you fell in the water while wearing it, it will soak up so much water that you may have difficulty getting back out! Please be careful wearing this!” You couldn’t read the warning without visualizing yourself wearing the robe in this situation! (Result? Over $15,000 of bathrobes sold from that one ad)
Once you can get a person to visualize wearing, using, or owning your product, then you have just made the sale! Cha-Ching!
When someone visits your eBay ads, give them an experience not a sales pitch!
eBay Is Changing, You Must Too!
As a seller, you need to keep on your toes and adjust your methods of sourcing product and selling on eBay.
Points to remember:
* Avoid the same BIG suppliers and same “Me Too” items that others are selling.
* Watch out and ignore the distributors/wholesalers who also sell through eBay.
* Don’t sell commodity items easily found at Walmart or other retail outlets.
* To help make you stand above the competition, add value to the item you selling. Include personal usage notes, installation instructions or help.
* Do your homework when looking for product to sell.
* Use smaller less-known suppliers to lessen your chance of competition.
Other Methods Of Making Money On eBay..
Many people ONLY think of dropship and wholesale sources for eBay selling. In our next newsletter, we’re going to investigate several other ways that people are making huge money on eBay!
Stay Tuned!