June 1, 2003
In This Issue:
* ANNOUNCEMENTS:
1. Auction Genius Course CD Sale Ends June 4
2. New Complimentary 11 Day Auction Email Course
3. Win Your Own Professionally Written Digital Product To Sell On eBay
4. Next “Live” Auction Genius Course
* FEATURE ARTICLE: JUST HANGING OUT ON EBAY
#1: Don't Assume That Sellers Know What's Going On
#2: First One Up At Bat Hits A Home Run
#3: Create A Killer Listing And Let It Run For YEARS!
* FINDING WHOLESALE SOURCES FOR CONSUMER ELECTRONICS
* NEWS FROM EBAY
1. Incentives For Using PayPal
2. No PayPal For Adult Items
3. No More 'Personal' Backgrounds On Your Listings
4. Want To Sell Services?
5. One Stop Car Shopping On eBay
6. eBay Previews New Page Look
7. Pay Your eBay Fees Through PayPal
8. Smart Crooks?
9. Controversy 101
* GIVE YOUR KIDS A BIG SLURPY KISS RIGHT NOW
Announcements
1. Auction Genius Course CD Sale Ends June 4
At that time, the price will remain at $297 and there will be no more bonuses. Go here for details:
http://auction-genius-course.com/cd
2. New Complimentary 11 Day Auction Email Course
We have a no-cost-to-you email course that has some cool info in it. To sign up, go to the bottom of the Auction Genius site:
http://auction-genius-course.com
You will get a new edition every two days. Here are the topics:
* Get advice from real life students who have started from nothing - and are steadily climbing the income ladder
* Just A Normal Guy .. Who Happens To Be The Second Biggest Seller On eBay!
* Drop Shipping: Every Auction Seller's Dream
* But, What If I Get ... (Gulp) ... Negative Feedback?
* Why It Pays To Do Your Homework!
* Be Careful About Using “Freebies”
* “How Do I Find ...?"
* Missed Opportunities
* Fake Wholesalers
* Backwards marketing - And Why You Shouldn't Do it
* Conquer The Only Thing That Can Prevent Your Success! (Yes, it's really the only thing you need to worry about)
3. Win Your Own Professionally Written
Digital Product To Sell On eBay
My friend Barbara Ling claims she can write a digital product in 24 hours! Bold words, but she's going to prove it. She is asking for suggestions for products, and she will choose one and actually write an ebook. The winner will receive full rights to the product. Everyone who enters will receive a discount on the 24 hour ebook, so you can't lose – especially if your idea is the one she likes! Enter here:
http://www.barbaraling.com/challenge.html
4. Next “Live” Auction Genius Course
Our next course will begin Saturday, June 21, at 10 AM Eastern time. If you want to join us, go here:
http://auction-genius-course.com
Remember that if you've bought the CD, the regular price of $297 applies towards class tuition.
FEATURE ARTICLE: Just Hanging Out On eBay
There is so much to learn about auctions from just 'hanging out” on eBay and checking the auctions. Let's look at some what we can learn:
#1: Don't Assume That Sellers Know What's Going On
From the “What Was He Thinking Department”:
Here we have a seller with 20 listings in a row, of the same diet pill. These are from the Front Page Featured, and since they're dutch auctions, it cost him $199/listing. This means that he just spent $4,000 to compete against HIMSELF, selling $9.95 diet pills. He has other listings besides, with a total of $5,000 invested in eBay listings as of today. This means he has to sell more than 500 bottles of these pills, just to break even.
Is that going to happen? Based on his past auctions ... not likely! So what is he doing? I haven't a clue!
And a P.S. - just because someone has a Power Seller star by her/his name doesn't mean they're making a lot of money, either.
#2: First One Up At Bat Hits A Home Run
You have most likely heard of the now famous Iraqi cards? They were given to American troops so that they could more easily identify 55 of the "most wanted" Iraqi leaders.
Did you know that the first card deck that appeared on eBay sold for $2,000? The second and third went for $1,800 and $1,500. Notice that they are now selling for $2.49!
http://cgi.ebay.com/ws/eBayISAPI.dll? ViewItem&item=3610102139&category=367
Here's a great example of current demand: a Matrix telephone that sold for only ... $710!
http://auction-genius-course.com/listings/matrix.shtml
I am a Matrix fanatic, and I would love to have this phone. But, $710? No way. Especially when I know that a year or so from now I'll be able to buy it for under $100 (or less). But, the seller is out in front of demand and is profiting for it.
#3: Create A Killer Listing And Let It Run For YEARS!
Here are two amazing auctions:
http://auctionknowhow.com/listing/bcase.shtml
http://auctionknowhow.com/listing/clock.shtml
Why are they amazing? (Glad you asked :-) They're fascinating to me because I have sold these two items many times myself ... FOUR to FIVE YEARS ago.
I am constantly telling my students that it's worth the time to create a great listing with an in-demand product, simply because you can let them run as a stream of income for years, and here is absolute proof.
Members of my Wholesale Database will recognize these items from a source I used for years. So, let's look at the number of one of these auctions, the briefcase.
The seller is charging $8.50 with $15.50 for shipping and handling, for a total of $24/case. The wholesale cost of it is $6.46. Priority mail costs vary, depending on the area of the country, but the weight is 3 pounds, so the cost would be approximately $4.95. Total cost to the seller: $11.41. This makes a per case profit of $12.59.
Of course, we aren't considering eBay costs here, or the price of shipping from the wholesaler to the seller. But, the point is that once you get the listing and source set up, all you need to do is periodically re-list your merchandise. Not a bad deal.
Finding Wholesale Sources For Consumer Electronics
Whenever I start working with new students, the most sought-after product for eBay sales is “electronics”. And why not? They're reliable sellers and often loaded with bids.
The problem is finding sources at a cheap enough price. Frankly, this is one of the roughest source problems on eBay. Skip McGrath, one of the smartest sellers I know, has an interesting article below.
“This is probably the subject of the most emails I get on any one issue. A typical email goes something like this: “Where can I find a wholesale source of Sony Computers?” (or Nikon digital cameras, or Panasonic DVD players, etc.)
The computer and consumer electronics market is one where competition is fierce and margins are thin. Sellers make their money on volume and by selling add-ons such as accessories and extended warranties. For example the profit on a Panasonic DVD player may be as little as $10, but the store makes another $15 on the extended warranty they push you to buy.
I recently met a gentleman (he spoke to me on condition I wouldn’t mention his username) who is a major seller of electronics on eBay. He would not reveal his suppliers, but he agreed to let me pick his brain on “sources and methods.”
Here are some of the tips he gave me:
* You can buy some consumer goods from the national distribution chains, if you purchase in volume. This depends on the product, but for most items that sell for less than $500, you will need to place a minimum order in the $10-15,000 range. If you can’t afford this, try piggybacking your order onto a local store owner’s order, or go in with some friends. You can also approach a local store owner (not one of the chain stores) and volunteer to do a deal where you sell his overstock merchandise on eBay for him or her and in turn he sells you goods at his cost. Store owners today are using eBay more and more, but many of them just don’t have the time –so this presents an opportunity you can fill.
* This is a business that is based on contacts -- who you know. (He has been in the business for over 15 years) It is really difficult –but not impossible for a new comer to get started. The best way to meet people and develop contacts is at the annual consumer electronics show in Vegas in January. You can actually meet both the large and small distributors who are available at the manufacturer’s booths.
* State of the art equipment is really hard to get -- and harder to get good deals on. He buys a lot of goods from overstock dealers and direct from the manufacturers. For US made products, he suggests calling the purchasing managers of the companies and letting them know you are willing to buy their returned merchandise, overstocks, obsolete items, etc. This can be hit and miss, but if you happen to call on the right day you might score a big win.
* Almost all of the computer manufacturers and a lot of the handheld folks (i.e. Palm, etc.) sell refurbished equipment at deeply discounted prices. These usually come with a full warranty. You can often buy direct from the company or from distributors who specialize in this area. Planet ROI is such a firm. When I last looked, they were selling refurbished Compaq Armada’s for as little as $325.00 and 505 model Palm’s for $130.
* Sometimes when you call a company, if they will not deal with you directly, they will put your in touch with their overstock distributor. These distributors will often sell in fairly small quantity
* He also buys from factory outlet stores. You can sometimes find these on the manufacturer’s web site or by calling the company. Sony has several of these stores around the country.
* A final tip –if you live near Canada, you can often buy consumer electronics in Canada in Canadian dollars for what you pay in US dollars. This works out to a 30 to 40% discount."
You can find Skip's great materials here:
http://resource.auctionknowhow.com
1. Incentives For Using PayPal
To encourage sellers to use PayPal, eBay has announced their “Anything Points” program. It has many of the features of all incentive programs and if you want to profit from it, get the details here:
http://anythingpoints. ebay.com/faq/index.html#g1
2. No PayPal For Adult Items
As of June 12, ebay and PayPal are no longer allowing PayPal to be used for the purchase of adult items on ebaY or anywhere else.
3. No More 'Personal' Backgrounds On Your Listings
Have you ever noticed those auctions with backgrounds that are colored, or have a design on them? If you don't know what I'm talking about, you can see one here:
Notice the words “billyland” running through the background?
eBay has recently announced that it will no longer allow these individualized backgrounds. Too bad, because it can add interesting flavors to listings. Just one more example of making everything and everybody just alike. Sigh.
Sellers will still be able to use HTML is in the description block itself.
As far as I know, there is no specifed time for ending the personal listings.
4. Want To Sell Services?
Since the very beginning, eBay has had a small – very small – percentage of its sellers offering services for sale. For an example of a service, see here:
http://auction-genius-course.com/listings/service.shtml
Apparently, this segment of eBay is growing because they've recently added a new discussion board has been created for members who sell services rather than, or in addition to, products.
According to eBay, services “may range from custom manufacture to individually personalized items, from calligraphy to clothing design, from web design to music or art, from repair and restoration to graphic design for businesses.”]
http://forums.ebay.com /db2/forum.jsp?forum=145
5. One Stop Car Shopping On eBay
There are some things I don't like about eBay, but you've gotta hand it to them when it comes to marketing and finding new ways to increase their profits.
They have teamed up with Household Finance to offer the eBay Financing Center. Buyers can get an auto loan and “other financing services”.
financing at competitive rates. After purchasing a car on eBay Motors, buyers will be able to go directly to the eBay Financing Center and apply for financing through Household.
According to eBay, the benefits to buyers are:
* It’s simple – One-stop convenience for post-purchase financing services
* Apply online – It’s fast, easy and secure -- receive a response within 60 seconds of applying
* Service-oriented – Get transaction settlement assistance from experienced account executives
* High quality – Obtain financing at competitive rates from a trusted lender
* Peace of mind – Know that hassle-free services and financing are available
They claim the benefits to sellers are:
* Increase Sales – Sell more cars on eBay because buyers now have a hassle-free financing option
* Faster Payment – Registered Financing Center dealers are paid directly by the lender
* Close Sales Faster – Convenient financing for buyers will resolve payment issues sooner, and our lending partner helps buyers through the process
http://pages.ebay.com/ebaymotors /services/financing.html
6. eBay Previews New Page Look
eBay is experimenting with a new page look:
http://pages.ebay.com/viewitem/preview/
Send comments to:
preview@ebay.com
7. Pay Your eBay Fees Through PayPal
eBay has finally added the ability to make payments to eBay through your PayPal account. Good move, eBay.
http://pages.ebay.com/paypal_SF/FAQ.html
8. Smart Crooks?
From the “what'll they think of next” department: I recently read an article that the Internet slimeballs have a tactic a way of stealing eBay IDs by buying up domains. Every day, thousands upon thousands of domains become available for sale. Some of these have eBay IDs attached, and the owners never thought to cancel them. These IDs may have very positive feedback attached. So, the new dishonest owners take advantage by posting a host of bogus auctions, taking the money and vanishing. How they know if a domain has an eBay ID attached is a mystery to me, but it's apparently not uncommon.
The moral to the story: cancel old IDs that you're not using. eBay ought to do that anyway, but they don't. I'm sure this is because they want their membership list to be as large as possible.
For information on how to protect your identity:
http://pages.ebay.com/help/index_popup.html? confidence=problems-account-theft.html
9. Controversy 101
Many eBay sellers want to add “handling” charges to their sales. But, many eBay buyers object to these charges. When they receive a package showing a postage of say, $4.90, and they paid $6.00, they may object strongly, resulting in negative feedback and unwanted customer hassles.
But, sellers who use Internet postage services can hide their actual USPS shipping costs, minimizing potential complaints from buyers.
Stamps.com and Endicia.com both the ability to hide USPS postage costs on packages.
Stamps.com recently added a “Hidden Postage” feature which allows sellers to print shipping labels without printing the actual value of the postage on the label. The down side: you can only do this if you're a Power Plan customer, which costs 15.99/month.
Endicia has offered this for about a year, but only to its Premium service which costs $15.99/month or $174.05 for the year.
Give Your Kids A Big Slurpy Kiss Right Now!
Subject: Repeat after me...
I will never complain about MY kids again.
I will never complain about MY kids again.
I will never complain about MY kids again.
I will never complain about MY kids again.
I will never complain about MY kids again.
I will never complain about MY kids again.
I will never complain about MY kids again.
I will never complain about MY kids again.
I will never complain about MY kids again.
I will never complain about MY kids again.
I will never complain about MY kids again.
I will never complain about MY kids again.
I will never complain about MY kids again.
I will never complain about MY kids again.
I will never complain about MY kids again.
I will never complain about MY kids again.
I will never complain about MY kids again.
I will never complain about MY kids again.
I will never complain about MY kids again.
I will never complain about MY kids again.
I will never complain about MY kids again.
I will never complain about MY kids again.
I will never complain about MY kids again.
I will never complain about MY kids again.
