Resale Stores & the Web

I read a post on a Resale message board today which spoke to how they “tried” eBay out and they’d not sold anything but instead only made eBay richer through the fees. This truly brings to mind that not everything that makes other people money will make you money unless homework is done.

My first buying experience with eBay was in the latter part of 1997 and then I began selling in 1998. Digital cameras cost an arm and a leg, so I utilized my scanner and scanned postcards and sold those. Once I made some money through that I then saved enough money to purchase a digital camera – it was one of the lower end cameras but rated well for being lower end. Batteries cost $5 each so I always did shoots when I’d not have to use the flash. Its a little bit easier to throw something up on eBay now days with digital cameras so prolific.

What worked for me. I lurked on the eBay message boards to learn the ins and outs of what to do and what not to do in order to achieve success. This was through reading buyer complaints vs that information other sellers provided: High shipping costs, bad packaging, reserves, bad photos, stock photos from another website, and nonexistent descriptions. So, in my mind, I figured if I could attract a buyer through the things they were looking for that I’d develop a level of sales success. The answer for me was to offer what no one else was offering in addition to the product I was selling. I truly believe that the model is still viable today, not only on eBay but also website stores and the brick and mortar stores.

The next thing I did was educate myself on the buying trends within major categories. Gradually I’d whittle down my searches to specific categories. Searching was basically all keywords and then I attempted to search as a buyer would, but then I’d also search completed auctions in the same manner and learn the bidding traits of the best and highest selling auctions.

I always searched the auctions looking at the highest ending price. I “knew” I could make my auctions more attractive and my goal was to always sell my product at a higher or equal price than the most recent prices. So I’d dissect through categories and then list appropriately, studying, studying and then studying even more . My product source were yard sales and thrift stores, later it became the kid’s store and then the women’s store. I looked closely at fees and built those fees into my beginning auction amounts, generally always beginning under $9.99 and be willing to take a gamble on my product and presentation. I had a sell through rate for years of 99%. I didn’t have to use eBay stores to sell my product, because I was selling it all. Things have changed between 1998 and 2007. It’s not the place it used to be, but that doesn’t mean things have changed too much. The model is essentially the same. But, there are additional tools. The eBay store is one of them.

eBay has messed around with search results and stores and it’s not always been easy to get the average buyer into ones eBay store, but again… present it, in your auctions, in your emails, on your website. Make it visible and EASY for the consumer to navigate there. If something doesn’t sell the first time out on auction, put it in your store and then through visibility consumers will go there. The eBay store is great for seasonal items. It’s not winter or whatever season it is where you are, worldwide.

Key points -
Research how something you want to sell, is actually selling on eBay. Use search terms customers would use. Is it cardigan or sweater or both? What is the sell through rate and what is the average selling price of that item? Differentiate your product in the mix be it through the gallery photo option or the title of your auction. What are other successful sellers doing that you can capitalize on? What are buyers most complaining about? Offer a solution.

Take these things into consideration and see how they work for you. But it does take time and effort. It’s not as easy as it used to be and there’s always a cost to sell something, always. So, take those costs into account when listing. If you are sourcing, buy low – I never purchased anything unless I believed I could sell it for at least 5 times what I paid for it.

My sourcing story I like best is about men’s ties. I was visiting a friend in the San Francisco Bay area and went thrifting while she was working. I was faced with this bin of men’s designer ties for $1 each. I ran back to her house, did some brand searching, checked out average prices, took out all key words related to “new”, NIP, etc., trying to strip down the category to only used mens ties without using “used” as a search term. Well, I ultimately purchased 46 ties and the average selling price of those ties was $56. Three(3) Brooks Brothers Bow Ties sold for the most at $80 each. Yup… gotta love those men’s ties. But, I wasn’t willing to spend even $1 unless I knew I could make at least 5 times what my cost was.

Do things the eBay way… For example, back a number of years ago, one used to be able to see completed auctions going back 3 months or more. eBay had to know that sellers were using this information just through their stats and bandwidth usage. eBay recognized the value, then limited that information and then finally began a service to access that information. Find something potential buyers want or could want and then offer that.

Another example is to find a niche area on eBay where demand is high and then offer that product. Find a product you’ve got in your store that doesn’t seem to sell locally and check eBay. A nice example. The Kid’s store used to get Baby B’air (toddler and baby harnesses for airplane travel) in periodically and those things would sit and sit and sit. We could have practically given them away had there been any takers. Our area has the Lemoore Naval Air Station and it was typically a Navy wife who’d traveled with her children who’d bring one of those in to consign.

We couldn’t give them away locally, but on eBay they were selling for $25 one right after the other. This was a product one could list at .99 cents and know it would go even higher than the one with a BIN at $25. The .99 cent one would create auction fever with the bidders. We had one sell for almost $30 using that method. But like anything, the market stabilized with that one as it will with almost any product out there. So, continual research must take place on your product mix as well as consumer buying trends. The more unique and more in demand a product is the more you will be able to sell that item for, but you’ve got to know that information first.

Know that you will make eBay just a little bit richer if you simply list things with no knowledge of the market. So, the key is to make informed decisions about what to sell, when to sell it and how to sell it.

If you’d like more information about eBay I am an education specialist trained by eBay and teach classes locally about how to sell on eBay.

Here’s to a happy and prosperous 2008!

Deb

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