eBay is by far the easiest way to start a home based business and make a living online. More than 1.2 million people are making a part time or full time selling on eBay. Yet, 90% of the people who tries to start an eBay business fail.
Why so many people fail?
Because they make 5 common mistakes that make it difficult for them to build a successful business on eBay. So I am going outline these common mistakes so that you can avoid them and start on the right foot.
Not having a business plan
Mistake #1: Choosing the Wrong Product
Most new sellers try to sell items that are either hot sellers or something that they are emotionally attached to-something they like.
Before they start selling, they don’t take the time to research the market properly to determine whether they can sell an item consistently and make money from it.
This is a wrong mindset to have if you want to be successful on eBay.
Let’s think about it for a second.
Just because a product is selling well doesn’t mean you too can sell that product and make money on eBay. What if you can’t buy that product at a cheap enough price? Or the market is cornered by a handful of seller and new comers are having a hard time selling that product.
Also, just because you like a product doesn’t mean other people like that product.
So, consider carefully before you decide to sell an item. Ask yourself, is it something that you can sell profitably on a consistent basis.
So, what type of product should you sell? I always recommend that you should sell products that people need in their everyday life and are willing to spend money on. Why? Because these are products that have consistent demand and people don’t always look for the best deal when they are buying these products.
Mistake #2 Lack of Market Research
You should always research the market before you decide to sell an item. Sounds like a no brainer. But you will be amazed how few people actually take the time to research the market.
Before you decide to sell an item, take the time and find out how many items are selling per day, what is the sale through rate and what is the average price they are selling for? With this information you can easily find out whether it is worth selling an item in the first place.
Mistake #3 Sell too many items
Most new sellers fall into what I call “volume trap”, meaning they try to run 100s of auction. This is a sure fire way of losing a lot of money fast on eBay. First, not all your listing will results in sales. If most of your items don’t results in sales, then you are giving all the profit you made back to eBay as an initial fee.
Also, when you run large number of auctions, you spend all your time in customer support. You are either answering emails or scrambling to ship everything out.
In the end you don’t have time to analyze your business; you don’t have the time improve your listing or improve your sales.
When you are starting out, concentrate on selling a handful of items only.
Most of the successful eBay sellers like Skip McGrath or Terry Gibbs run only a handful of auction a week. They spend more time to write better description, improve their pictures and provide superb customer support.
By improving their description, they improve their total number of sales and total profit.
Mistake #4 No Focus on improving your sales through rate
In eBay your auction description is your sales rep. If you want to make a lot of sales and get higher bid price then you have to convince your potential buyers that your item is the one they are looking for. And you do that by creating a compelling description that grabs the reader’s attention and motivate them to place a bid.
Writing a compelling description takes time and several trials. You will have to test different options and see which one results in most sales. Most eBay seller doesn’t take the time to write a good description let alone testing and improving it.
Then they wonder why their items don’t get any bids.
Don’t do that. Make it habit to work on your description regularly and improve it. If you do that then you will your success rate and profit margin increase.
Mistake #5 Don’t put any effort on maximizing profit
Most people just concentrate on selling to new customers alone. They don’t try to concentrate on existing customer and increase their profit by selling to the existing customer multiple times.
It is very hard to build a successful business on eBay just by selling to the new customers alone. If you want to be successful, then you have to concentrate on selling more to your existing customers and increase your profits.
Remember it is much easier to sell to your existing customer base than trying to sell to new customer all the time. Do you think big business like Target rely on new customers all the time? Or do they rely on the fact that their existing customers will keep buying from that all the time?
All successful eBay sellers spend a considerable effort to build customer relationship to whether their customers turn to repeat customer. Why? Because they know that’s where the money is. So, you should make it a point to turn your existing customer into a repeat customer.
Golam Moinuddin is a successful eBay seller who teaches people how to start an eBay business that earns ,000 or more in 90 days and less and then turn it into a real business earning ,000/month in 6 months or less. Receive his special report “7 Steps to Earn Your First 0 of eBay” along with having access to his blog where he posts 2 to 3 times a week at:
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