Most
people reading this column will fall into one of two categories:
- Those who already have a business, with products and/or services that
they already sell… and
- Those who would like to have their own business and are evaluating
Internet auctions as a possible business option.
(article continued below ...)
If you already have a business, then there are a vast number of ways to
use Internet auctions to enhance that business. For example, there is the
obvious: selling your current products and/or services at an online auction
site. However, there are many other creative ways to use auctions to enhance
your business. Online auctions can be used to drive potential customers to
your web site, to generate qualified leads that you subsequently use to
direct market your products and/or services, as a means to analyze the
competition, to gather price, demand and other marketing data, and many
more.
The concept of using online auctions to grow an existing business is
detailed enough to fill several chapters of a book, and thus they will be
covered in several, future articles.
This article is intended for those of you who are intrigued by the idea
of working from home selling at online auctions, but have no idea what to
sell. The following seven suggestions can be used alone or in combination to
start your successful Internet auction business.
Sell consumable
products. What kinds of
things do people buy, use up and buy again? Try to think of things that
people refill or replace. Your goal as a seller should be to provide
exceptional service and a good value, so that those customers come back to
you for all of their future purchases. To say there is a tremendous
potential for backend sales would be an understatement. Some examples of
consumable products are toner and ink jet cartridges, office supplies, and
health and beauty aids.
Sell to your
fellow online auctioneers.
I believe this strategy is commonly referred to as "Selling pans to
prospectors." During the gold rush, many prospectors never made any
real money… but the merchants who sold them pans, wheel barrels, and other
tools did very well! Millions of people are buying and selling on eBay and
other auction sites. Those people need envelopes, boxes, labels, packing
materials, tracking software, and other similar products. When I first
started selling software I needed bubble-wrap envelopes to ship my CDs in. I
looked on eBay, to compare prices with those of the office supply chains,
and came across one of the most successful eBay PowerSellers who did just
that… he sold bubble-wrap envelopes. His impressive feedback rating (over
10,000) intrigued me. I checked to see how long he had been on eBay and what
else he was selling … because I wanted to know what it took to build that
kind of eBay reputation. It was about that time that the light bulbs started
going off in my head. This guy was making a living… selling to people who
were trying to make a living at online auctions! Perhaps the shipping
supplies market on eBay is now pretty well tapped and you don't have a
source for low cost bubble-wrap envelopes. However, you can apply the
"selling pans to prospectors" concept in other areas.
Sell what you
know. If you have a hobby
or passion or expertise in a particular subject area, capitalize on that.
You may think that your hobby is obscure, but remember that auction sites
like eBay have over 50 million users. No matter how obscure your area of
specialization is, you're going to find others who share your interest and
are looking for just what you have to offer. Being an "expert" (or
at least very knowledgeable) about the items you sell helps you to better
serve your customers when they contact you with questions (both before and
after the sale). Product knowledge will give you an edge over the competitor
who picked up an item at a garage sale… who may not necessarily know it's
value, or what it is for… and certainly can not answer questions about the
item.
Sell items you
find at garage sales, yard sales, church rummage sales, etc.
Speaking of the guy who picked up an item at a garage sale… that's not
necessarily a bad idea! The fact is that items at a garage sale, no matter
how nice, will rarely sell for more than a couple of dollars. Think about it…
suppose you had a Donna Karan blazer, size 42L, to sell at a garage sale.
What are the chances that a person who
- is looking for a blazer,
- who happens to be a 42L,
- who's wardrobe colors happen to complement the color of the blazer you
are selling, and
- who happens to know the value of a good Donna Karan separate
will come strolling up your driveway? The odds aren't good. Even if you
were so lucky, most people won't pay more than $5 or $10 for clothing at a
garage sale… even if it says "Donna Karan" on the label.
However, this very item sold for $79.95 on eBay recently. The reason? An
auction site like eBay reaches millions of people and you're much more
likely to find the person who is looking for exactly that size, color,
style, etc. What's even better… you may find two or more people who want
the item and are willing to bid against each other to drive the selling
price up even higher.
When I resigned from my corporate position, to join the ranks of
stay-at-home moms and home-based entrepreneurs, I had a closet full of
suits, dresses and professional clothes. I decided to sell many of the items
at a garage sale and I was thrilled when I got $5 for each item. When the
sale was over I netted more than $100 from the sale of 20 dresses and felt
very good about that. One year later, after discovering eBay, I decided to
clean out my closet a bit more. Each dress sold for at least $20… and some
sold for as much as $65. I am still amazed by this because I bought most of
my "designer" clothes on clearance, with discount coupons, from a
department store. Some dresses I bought new for $30, wore them for three of
four years, and then sold them on eBay for $65! I cringe when I think of how
much money I could have made if I never sold those first 20 items at my
garage sale!
Now, not everybody has a closet full of clothes that they can sell on
eBay. Even if you do, you will eventually run out of items to sell and will
need to obtain more. This is why I suggest shopping for auction merchandise
at garage sales. It is true that at many garage sales you'll find dirty,
broken junk. However, I've found that for every five garage sales I attend,
I can find quality items at one of them. Check the newspapers for
neighborhood or community-wide sales… then you can get to more sales in
less time. The more you go to, the more decent merchandise you'll find.
After my amazing success selling the dresses from my closet, I decided to
hit as many garage sales as possible, looking for nice, clean clothes with
well-known labels. I found so many items, most for $1 or $2, which I turned
around and sold for $15 to $40 each. That's a terrific return on a small
investment.
Clothes aren't the only things that you can find great deals on at garage
sales. Again, this goes back to "selling what you know." I have a
relative who knows a great deal about antique radios and televisions. He has
looked around on eBay enough to know what sells and how much it sells for.
He has picked up many radios and televisions at garage sale for $10 or $15,
then turned around and sold them for over $300. Again, that's a great return
for a small investment.
Other common finds at garage sales include books, music CDs, videos and
video games. These items resell well on eBay, Amazon.com and Half.com. I
suggest searching in these categories first, to familiarize yourself with
what is out there and which items are in demand.
Sell
information. Any product
you would email, download or receive by floppy or CD is considered to be an
info-product. Have you spent time researching an idea or finding answers to
a commonly asked question? Write a report or an e-book, and sell it on eBay.
There are no inventory costs and no delivery costs. Your success will be
determined by how effectively you can market your report or e-book… and by
how many other people out there are interested in the particular subject
matter you're selling. The e-book market on eBay is booming, and I will
provide more specific suggestions about how to take advantage of this in
future articles.
Sell on
consignment. You can sell
other people's antiques, electronics, collectibles, or even a local retail
business's inventory… all for a percentage of the profits. You may find
many small gift shops or specialty shops whose owners do not have the
computer skills necessary to do this themselves… and they would welcome
the opportunity for someone to move their products for them. You can charge
a percentage of the sale price, or negotiate a fixed price with the shop
owner and you keep whatever you get over that. When negotiating your fees,
just be certain to factor in the listing fees and final-value fees you'll
pay to the online auction site.
I suggest using this technique only after you've gained experience
selling your own merchandise. Then, this becomes a win-win deal… you have
the technical expertise selling on auction, and they have the merchandise!
Sell Closeout
Merchandise. There are
hundreds of firms who are in the business of buying "close-out"
merchandise from manufacturers, importers, bankrupt businesses, and auction
houses around the country. These companies purchase large lots of perfectly
good merchandise at prices usually well below wholesale. Although you can't
always get exactly what you want, because their stock turns over quickly and
changes from week to week, you will find some incredible bargains that can
be sold very profitably on eBay.
Conclusion.
Each of these product recommendations has the potential to make a lot of
money for you. You can put two or more together to take advantage of your
personal expertise and interests. The most important thing to remember when
starting out is that you do not have to spend a lot of money to get started
in this business. Never spend more than a few dollars per item in the
beginning. Gain experience selling and following up on the sale. I suggest
starting out with items from your own home first to gain experience with the
auction-selling process. (But beware! As my husband will testify… this can
be dangerous and addicting. Your family may start to hide their prized
possessions, for fear that they'll end up sold to the highest bidder!)
Terri Cook is an eBay Power Seller and the President of Net Auctions,
Inc. She was previously featured in PowerHomebiz.com. Learn more about
Terri's auction business at http://members.ebay.com/aboutme/terric2000/
. If you have questions for Terri, or would like to suggest a topic for a
future column, you can contact her at netauctions@a-znet.com.
|
If
you are thinking of selling at online auctions but have no idea what to sell,
here are seven suggestions that can be used alone or in combination to start
your successful Internet auction business. 
