Small,Business,amp,#58,The,Sec DIY Small Business Q & A: The Secrets Of Starting A

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Q: I hear so much about people who started selling on eBay andeventually turned it into their full time business. Is it reallypossible to build a profitable business just selling junk on eBay? -- Alex K.A: If Fred Sanford were alive today, Alex, I'm sure he'd beearning his ripple money by selling quality junk on eBay. While it's also true that one man's junk is another man's treasure(I have a garage full of treasure to prove this point), yourchances of building a profitable business selling "junk" on eBay(or anywhere else, for that matter) are slim to none. While there is a lot of junk reasure for sale on eBay, it is typically sold by individuals who have "I break for yardsales!" bumper stickers on their cars and not serious business people. For serious entrepreneurs, however, selling on eBay can be a goodway to start a new business if you are willing to put in the timeand energy required to make the business a success. eBay isalso a good option for existing businesses to expand their reachby selling online. Everyone from small used car dealers to giant companies like DellComputers have discovered that eBay is an excellent place to hawktheir wares simply due to the huge number of folks who visit theeBay site on a daily basis. Nowhere else on earth will you findsuch a large pool of potential customers. Consider these numbers: · There are nearly 69 million eBay users who spend $59 millionevery day. · Most eBay sellers are home-based businesses that sell every-thing from porcelain dolls to locks of Elvis' hair to $100,000Mercedes convertibles to $5 million dollar vacation homes. · Every minute of every day more than 150 new items are listedfor sale, more than 500 bids are placed, and seven new peopleregister to shop on eBay. · At any given moment, eBay is conducting some 12 millionauctions, divided into about 18,000 different categories.· About two million new items are offered for sale every day,and 62 million registered users scour the site to find them. · One company is grossing more than $5 million dollars a yearselling brand new pool tables on eBay. Their eBay store is soprofitable that they have closed their retail location and nowsell solely online.That's right, $5 million dollars from the sale of pool tables:proof that you can sell just about anything on eBay if you knowhow to do it. Be aware, however, that eBay is no magic bullet. As any eBayPower Seller (a seller who sells a minimum of $10,000 in goodsper month) will tell you, building a profitable eBay businesstakes hard work and requires long hours, and often the financialrewards do not make it worth the effort spent. When it comes down to the mechanics of it all, running an eBaybusiness is no different than running a brick and mortar business.You still have the same considerations regarding product selection,inventory purchasing, product pricing, inventory management, orderprocessing, fulfillment, customer service, etc. You must also consider the legal and accounting aspects of the business. Just because you're selling online does not mean thatUncle Sam won't expect his piece of the pie. Revenue generatedby an eBay business is just as reportable and taxable as revenuegenerated from a brick and mortar store. And if you sell tocustomers within your state you may also be responsible for collecting city, county or state sales tax. One of the biggest obstacles to building a successful eBay business may be the stiffness of the competition. Many sellerssell identical items and the price wars often get ugly, but that's to be expected in a free market place, which is exactly what eBay is. You may be the only store in town that's selling that one of a kind, custom made just for you, broke the mold after they made it,Dale Earnhart Memorial Bobble Head Action Figure (Earnhart fanswould string me up if I called it a Doll), but do a quick searchon eBay and you'll probably find a hundred others just like it.So, can you build a profitable business selling on eBay? Certainly, thousands of people have done it and so can you. Here are a few tips to help get you started.Sell Quality ProductsDon't sell junk! Leave the knick-knacks and fake leather jacketsto the less informed. You should offer only quality products ata fair price. Research The CompetitionOnce you have your product in mind, don't invest a dime on inventory until you have spent some time on eBay to see what the competition is doing. If you want to sell motorcycle helmets,for example, you should look at current auctions to see how manyothers are selling similar helmets and what prices they arecharging. This step is vital since you may discover that youcan't compete with current sellers on price or there is simply no market for what you have to offer. Start SlowlyMany people believe that the more items they have for sale on eBay the better. They will invest thousands in inventory and spent hundreds on listing fees (yes, eBay charges you to list items for sale and collects a final fee if the item sells). Those are the folks that usually end up with ten thousand Ginsu knives forever in their garage. Test, Test, TestA fair portion of eBay auctions result in no sales, so it's bestto test the waters before jumping in with both feet. List a few items and see how they sell. If an item doesn't sell,list it at least twice more. Some items might not sell the firsttime, but may the second or third, then sell steadily from then on.If an item gets no bids the first time, consider adjusting yourprice or your terms. If an item sells well, keep it in stock and then experiment with another item.Do Your HomeworkeBay is too broad a subject to be covered fully here, but thereare a multitude of books available that can help you start aneBay business. In fact, I bet you'll find most of them for saleat this very moment at eBay. What's my bid…Here's to your success.Tim [email protected] For information on starting your own online or eBay business,visit http://www.dropshipwholesale.net