ebay

Chapter 12: Chris Murch—Ebay—The World’s Online Marketplace

Success Secrets of the Online Marketing Superstars

by Mitch Meyerson

Kaplan Professional © 2005

Overview

CHRIS MURCH is an eBay PowerSeller, which means he consistently sells over $1,000 a month on eBay. He has been selling on eBay for over seven years, currently has two seller accounts that include two eBay stores and is the proud producer of eBay’s official talk radio show, “eBay Radio” with host Jim “Griff” Griffith, on his Internet talk radio station, wsRadio.com. Jim Griffith wrote The Official eBay Bible and contributed to this chapter. Over 450,000 individuals and small businesses make a living on eBay as even large companies have added eBay to their sales and marketing channel. The good news for individuals and small businesses is, for the most part, eBay is still a level playing field that translates into a real opportunity.

http://www.wsradio.com/internet-talk-radio.cfm/shows/eBay-Radio.html

What Is Ebay?

Some people are under the misconception that when they are purchasing something from eBay, it somehow gets shipped from the “eBay Warehouse.” Simply stated, eBay is a unique online platform that connects buyers and sellers. Buyers pay nothing to eBay when they place bids and purchase items from sellers. It is the sellers who pay eBay listing fees and final value fees, (a small percentage of the sales price). eBay has done a superior job of setting up the guidelines and rules that make it a safe environment to buy and sell from.

Background of Ebay

Over Labor Day in 1995, Pierre M. Omidyar created a simple auction site and posted it to various bulletin boards. As the site slowly but steadily grew in popularity, it has always been the “eBay Community” that has contributed to and made the site truly “The World’s Online Market Place.” Over the years as the Internet and the technology supporting the Internet improved, eBay, with the vital input of the community, kept pace. Over 96 percent of online auctions are done through eBay. eBay has expanded into eBay Stores along with “Buy It Now” options to augment their very successful auction model. eBay is truly a great business success story and probably one of the most successful online success stories.

Quick Facts About Ebay

• eBay has over 125 million registered users.

• A global presence in 28 international markets, including the United States.

• Over 20 million items on sales at any time, with 2 million added daily.

• eBay members have left nearly 2 billion feedback comments regarding their eBay transactions.

• 1/100th of 1 percent of transactions on eBay result in confirmed cases of fraud.

Five Tips to Selling On Ebay

There is no magic formula for selling on eBay. Successful selling on eBay requires the combination of a proven track record (high feedback ratings from the eBay community); superior, professional listings that stand out from the competition; along with trial and error. One of the reasons eBay has been so successful is buyers essentially set the price they are willing to pay. The end result is rarely are retail prices ever reached on eBay.

1. Obtain positive feedback ratings. The feedback rating system has proven to be one of the key ingredients to eBay’s success. Both buyers and sellers are able to leave positive, neutral, or negative feedback. This feedback is linked to your user ID and stays visible for as long as that user ID is active. It is critical for sellers to have both a high percentage of positive feedback (over 98 percent) and a track record as well. In other words, when you first start selling and your feedback rating is zero or one or two, there is very little for a buyer to judge you on. With that in mind, it is highly recommended that you start by purchasing several items on eBay, low cost if you prefer, to build up your feedback rating. We recommend obtaining at least ten or more feedbacks, which need to be positive, prior to selling.

2. Set up a PayPal account. If you are serious about being a regular seller on eBay, besides opening up a seller account, make sure you have a PayPal account as well. Over 70 percent of the buyers on eBay prefer to pay with PayPal. You can open up a personal account that allows you to accept up to $500 a month in funds. If you exceed that amount, you will need to sign up for a business PayPal account. PayPal is a great service and, although their transaction fees tend to be higher than traditional online credit card payments, it is well worth it. PayPal can also be used to pay and accept funds outside of eBay as well.

3. Start selling something—anything. Start selling by cleaning out your garage or by getting rid of unwanted items. It is true that you can sell just about anything on eBay. You can either start your price out at the minimum selling price you are willing to accept or a better recommendation is use the reserve price option. This means you start the item off at a low price to attract bids but if the bids do not reach your reserve price, you are not obligated to sell and the buyer is not obligated to buy. Make sure you do a little research on eBay to see what the current price is for similar items you want to sell. Use the “Completed Auctions” option of the advance search to see what some items actually sold for.

4. Clear and precise item description and picture. Put yourself in the buyer’s shoes and provide everything they will want to know about the item you are selling including condition, exact dimensions, and shipping price. It is also recommended that you offer a money-back guarantee. It is critical that you include a clear picture of the items.

5. Listen to eBay Radio. eBay Radio is a weekly Internet talk radio show that wsRadio.com broadcasts live via the Internet every Tuesday from 11:00 AM to 1:00 PM Pacific time. The show is hosted by Jim “Griff” Griffith. Griff is eBay’s original customer service representative, Dean of eBay Education, and eBay’s official spokesperson. As previously mentioned, eBay does not offer telephone customer support, but eBay Radio does have open call segments during the live show where you can call in via a toll-free number and ask Griff any question you wish. The show also has a great resource directory and is archived for listening on demand 24/7 by topic segments. To listen, log onto http://www.wsradio.com/eBayRadio.

   Ten Tips And Strategies to Gain Visibility of Your Ebay Listings

   Once you start selling on eBay, the most successful selling comes through experience and plain old trial and error. One of the keys is to be a little more effective than your competition on eBay. Make sure you track your results.

6. See what your competition is doing. It is always a good idea to see what your competition is doing on eBay. Use the advanced searched option “Completed Auctions” to see how your competition sold similar items. Chances are you will always learn from your competition. Take what you think is working for them and put it in your own words to add to your competitive edge.

7. Make sure you have good keywords in your item description title. For the most part, buyers find your listing through the basic eBay search feature, which keys on the item description title. A listing appears when all of the key words the buyer places in the search feature are included in the item description. As an example, if you are selling a car wax, make sure your listing includes the words “car wax.” If your listing says “automotive wax” without the word “car” in it, and the buyer searches for “car wax,” your listing will not show up because you did not have “car” in it. It is imperative that you have all the key words listed in the title. If you don’t, buyers will not be able to find what you are trying to sell. The item description allows for up to 55 characters. Use all 55. Add a hit counter to all of your auctions and test different key words in your listing title and descriptions to see if some auctions do better than others.

8. Try one or more Listing Upgrades. See http://pages.ebay.com/sellercentral/tools.html.

   • Home Page Featured. The eBay.com home page receives tremendous traffic and listing your item as a home page featured item can be a real bargain and is worth testing.

   • Featured Plus. Your listing is placed within the featured items located in the top section of the listing and search results pages that buyers see first. Your item also appears in the general listings and search results for double the exposure. Featured listings are 28 percent more likely to sell!

   • Highlight. Employs a colored band to emphasize the listing in the search results. If you’re listing in a crowded field, anything to make your item stand out is helpful.

   • Bold text. Draws additional attention to a listing by bolding the text when the listing is part of search results. Bold listings are shown to increase final price by an average of 25 percent.

   • Gallery. Attracts attention by adding a thumbnail photo next to your listings on the Category Listings or Search Results page. Gallery listings are shown to increase final price by an average of 11 percent.

   • List in two categories. Occasionally, buyers only search by specific categories, so by adding an additional category, it will provide additional visibility. Use the hit counters on all of your listings and keep track of the traffic to determine if adding more than one category is helpful.

   • Gift Services. Some buyers are looking specifically for gift services, which may include direct shipping to a gift recipient, gift wrapping, or express shipments. By adding the gift icon to your listing you are suggesting that the item for sale makes a great gift and you as the seller may be willing to provide some extra services as well.

9. Use “Subtitle” feature to indicate special offers like free shipping or “No Reserve.” The subtitle is a great feature that shows in the eBay buyer search. It provides additional information that increases the chances a buyer will click on your item over others that do not use this feature

10. Open an eBay store and cross merchandise your store items in your nonstore eBay listings. See http://pages.ebay.com/merchandisingmanager/. The eBay Store showcases your listings in one customized, searchable showcase with a unique URL. With an eBay Store, buyers can only search within your items. The store offers listings in multiple quantities for longer durations and the ability to create custom categories. It also comes with advanced merchandising tools that allow you to control which of your items are displayed on key buyer pages. The basic eBay store is only $9.95 a month and lists auction items as well as “Buy It Now” items.

    Once you have your eBay store in place, promote the store and individual store items in your auction listings. Because each eBay Store has its own unique URL, it can be used as a possible “online shopping cart” for your current Web site; however, buyers need to be eBay registered users to purchase and bid.

11. Add your eBay Store listings to other third-party vendors or search engines at http://pages.ebay.com/help/sell/contextual/exportlistings.html. Set up partnerships with third parties, such as product search engines, to drive traffic to your eBay Store listings. This capability provides your partners with up-to-date information of your listings and their URLs. If you choose to do this, eBay can make a file of information about your Store Inventory listings available for your partners to download.

12. Gain banner placement on keyword search pages with eBay Keywords. See https://ebay.admarketplace.net/ebay/servlet/ebay. By purchasing keywords, a banner is created that brings more buyers to your listings through keywords matched to search terms. Buyers see your banner and text ad when they search on a term you’ve selected.

13. Co-op advertising program. See http://www.ebaycoopadvertising.com/. This is an advanced program created to provide PowerSellers and Trading Assistants with a scalable marketing tool to grow their business. As a qualified co-op participant, eBay will reimburse 25 percent of print advertising costs each quarter up to $8,000. Certain conditions apply, but if you qualify it is an excellent program that could provide tremendous exposure through a wide range of traditional print media options.

14. Bundling of complementary products and accessories. Because it is perfectly legal to cross promote items within auction listings, Buy It Now and eBay Store items offer as many complementary products and accessories as possible. If you sell cameras, offer camera bags, batteries, photography books, or any accessories that make sense. Make sure these complementary products or accessories are fully cross-promoted. Another example is if you are selling gold-plating equipment, offer some gold-plated items with full cross-promotions from those items that state, “If you wish to purchase gold-plating equipment to gold-plate items yourself, visit our eBay Store” or link to appropriate auction listings.

15. Sell Popular items at http://www.Pulse.ebay.com. Selling the most popular items viewed on eBay is made easier with a feature called Pulse. At pulse.ebay.com, you will be able to see the most viewed items that are obviously in demand. These lists are based on actual buying activities and are updated every day. The eBay marketplace is always changing and growing.

• The Official eBay Bible. To put selling on eBay in high gear, purchase The Official eBay Bible, by Jim Griffith. Griff was very helpful in assisting with the content in this chapter.

• eBay Turbo Lister. This feature is a desktop download that is highly recommended if you are listing the same type of items over and over, or you wish to develop a template that contains your basic information that does not change. Turbo Lister is free and can be downloaded via the “download” links on the bottom of any eBay page. Simple to use, this program will save time in quickly changing and uploading listings to eBay.

• Nine-Segment Listing Tips Audio Series. A free nine-segment audio series available at http://www.wsradio.com/listingtips. This audio series takes a product never sold on eBay before and over a three-month period, with the mentoring of Griff, gives advice and insight on tweaking the listings, creating an eBay Store, and incorporating many of the mentioned tips into a successful eBay sales campaign. Each segment is about ten minutes long and is available in Windows Media Player, Real Player, and MP3 downloadable formats.