Tracking Revenues and Costs

Every business should keep detailed records, and your online auction business is no exception. Whether you use an auction management service that offers report generation, a financial-management program like Quicken or QuickBooks, or your own homemade spreadsheet or database, you need to track what you're doing.

In particular, you want to track unit cost and final selling price for every auction you list. You should also track all your ancillary costsshipping, PayPal fees, eBay listing and final value fees, and so on. By tracking all your costs and revenues, you can generate an accurate profit and loss statement, and thus determine how much money (if any) you're generating from your online auction activities.

It also helps to track information about the buyers of your auction itemsname, shipping address, email address, and so on. The name and shipping address are necessary in case an item gets lost in transit; the email address is necessary not only for auction- related communication but also for promotional purposeswhich we'll discuss next .

Promoting Your Online Auctions

If you're running a hundred or more auctions a week, you want to draw attention to your auctions. That might mean splurging for some of eBay's listing enhancements (boldface, gallery, and so on), although these extras typically aren't worth the extra cost. Better to promote your auctions on your personal website, via message board postings, and in all your emails.

Probably the most important type of promotion, however, is word of mouthbased on your good reputation. You want to encourage repeat bidders and drive buyers into your online store (if you have one) for additional sales. That means treating your buyers fairly and with respect, and going the extra mile to ensure their satisfaction. It also means sending previous buyers emails when you have items up for auction that they might be interested in. (Which argues, of course, for keeping comprehensive records of all your eBay auctions.)

The Absolute Minimum

Here are the key points to remember from this chapter:

If you're selling more than $1,000 per month, you may be eligible for eBay's PowerSeller program.
To turn your eBay hobby into a money-making profession, you need to start with some detailed business and financial planning.
Most PowerSellers specialize in a specific type of itemand buy it in bulk.
Successful eBay businesses keep detailed records and perform regular analyses of their auction activities.
The more auctions you list, the more value you'll get from third-party auction management sites and services.
When you start making a living from your eBay auctions, be sure to engage the services of a qualified accountantto manage your tax liabilities, if nothing else.

Index

[SYMBOL] [A] [B] [C] [D] [E] [F] [G] [H] [I] [J] [L] [M] [N] [O] [P] [Q] [R] [S] [T] [U] [V] [W] [Y] [Z]

Index

[SYMBOL] [A] [B] [C] [D] [E] [F] [G] [H] [I] [J] [L] [M] [N] [O] [P] [Q] [R] [S] [T] [U] [V] [W] [Y] [Z]

10-day auction fees

Index

[SYMBOL] [A] [B] [C] [D] [E] [F] [G] [H] [I] [J] [L] [M] [N] [O] [P] [Q] [R] [S] [T] [U] [V] [W] [Y] [Z]

abbreviations
     grading abbreviations
     item listing titles
About Me pages
     accessing
     Choose Your Editing Options page
     Create Your Page button
     Enter Page Content page
     Preview and Submit page
     searches
accounts
     checking accounts
    credit card accounts
         billing options
         payments
         updating information
     eBay accounts, registration
acronyms, item listing titles
Add More Items button (Turbo Lister)
Add Pictures window
     Describe Your Item page
     Picture Services
Add to My Favorite Searches link (All Items Matching page)
Add to Upload dialog (Turbo Lister)
Advanced Edit button (Add Pictures window)
Advanced Search page (Find It Now page)
All Buying view (My eBay)
All Favorites view (My eBay)
All Items Matching page, Add to My Favorite Searches link
All My Auctions auction management software
All Selling view (My eBay)
alternate spellings/wordings (item listings)
Andale Images website
Andale Research marketing research service (Andale)
archiving completed auctions (Selling Manager)
ask seller a question link (seller information box) 2nd
At a Glance graphs (Selling Manager)
Auction Details section (item listings)
Auction Lizard auction management software
Auction Pix Image Hosting website
Auction Sentry software website
auction template websites
Auction Wizard 2000 auction management software
AuctionDrop website
auctions
    bidding [See bidding.]
     browsing
     Buy It Now (BIN) feature 2nd 3rd 4th
     cancelling
     categorizing
     collectibles
         authentication services
         grading abbreviations 2nd
         grading services
         grading systems
     completed auctions, market research
     Dutch auctions
     end-of-auction notifications 2nd
     example of
     feedback 2nd
         bidding tips
         leaving comments, guidelines
         negative feedback
         ratings 2nd 3rd
         reading comments
         Selling Manager
    fees
         refunding (deadbeat bidders)
         selling fees
     final prices, calculating
     fixed-price auctions 2nd 3rd
     fraud protection
     guidelines
     insurance
    international auctions
         communication
         shipping 2nd
    item listings [See item listings.]
    managing
         HammerTap software
         Selling Manager
         Selling Manager Pro
         Trading Assistants
     overview of
    payments
         bidding tips
         cashier's checks
         checking accounts
         credit cards
         eCheck payments (PayPal)
         insurance
         money orders
         PayPal
     pictures
     placing bids
     post-auction processes 2nd 3rd
     prohibited items
     real estate auctions
     receiving items
     reserve price auctions 2nd
    searches
         Advanced Search page (Find It Now page)
         auction notifications
         Basic Search function
         Boolean operators
         browsing versus
         eBay Store searches
         Find It Now page
         fine-tuning
         notifications
         repeating
         saving
         search commands
     Selling Manager (Pro)
         archiving completed auctions
         buyer notifications
         buyer sales records
         editing invoices
         leaving feedback
         printing invoices
         printing shipping labels
    shipping and handling [See shipping and handling .]
     strategies
         About Me page
         bidding frenzies (auction strategies)
         communication 2nd
         competition
         customer satisfaction
         documentation
         email 2nd
         ending auctions
         expensive items
         extended durations
         Fridays
         honesty
         IRS
         middlemen
         multiple auctions
         PayPal
         pictures
         promotion
         recycling text
         researching prices
         reserve auctions
         Saturdays
         scheduling auctions
         seasonal traffic
         Selling Manager
         shipping and handling
         short- term durations
         single versus multiple item auctions
         starting auctions
         Sundays
         timing auctions
     tracking, bidding tips
     "traditional" auctions
     winning bidder notifications
AuctionSage auction management software
AuctionSniper website
AuctionStealer website
AuctionTamer auction management software 2nd
Auctionworks [See Marketworks .]
authentication services (collectibles)
Auto fix button (Add Pictures window)
automating item listing construction
average shipping fees, calculating