How to Become an Official Retailer on eBay


As noted earlier in this chapter, the hardest part of the official retailer model is becoming an authorized dealer. When you pursue this model, it's especially important to do your homework ahead of time, and prepare a detailed business plan. This model is most like that of a traditional business, so you should pattern your business on other businesses in the product category you choose.

This advance planning is necessary because this is one business model you can't just ease into. You have to make big commitments up front, in order to achieve authorized status and make the necessary inventory purchases. With this model you start bigwhich also means you can fail big. Make sure you know what you're doing before you commit.

Seller Spotlight: bobbibopstuff

eBay seller bobbibopstuff is a business run by John and Sandi Larson, from Beaverton, Oregon. They're both in their late 50s and think of themselves as semi-retired. The Larsons began their eBay business when they were downsized from their jobs several years ago; they decided to pursue an independent business again, instead of trying to find new jobs.

The Larsons settled on running an eBay business because of the great flexibility in working hours and pace. Today, they use their eBay business and related online store (www.bobbibopstuff.com) to generate income while they work with their church, giving financial advice and training to those in debt. Their online store supplements their eBay Store (stores.ebay.com/BobbiBopStuff), which is shown in Figure 11.1.

Figure 11.1. The BobbiBopStuffeBay Store.


John and Sandi specialize in selling scrapbooking and craft supplies, stationery, greeting cards, and similar items. Sandi had been a regional manager for a chain of gift and stationery stores, and that experience helped the Larsons to build their eBay business.

They do most of their purchasing direct from select manufacturers and distributors. They don't do any selling through drop shippers, preferring to buy and carry their own inventory. (Their garage is their warehouse.) John notes that he wants to be in full control of their fulfillment process, and this is the only way to do that.

The Larsons' purchasing process consists of reviewing various catalogs and analyzing the business's sales history. They then make projections of what their product mix should be. It's a skill John and Sandi learned from their years of owning or managing various retail stores. They tend to place orders of $500 or more, and try to work deals with shipping whenever they can.

The Larsons augment their normal inventory by purchasing from several closeout distributors. These contacts are made at the various gift industry trade shows they attend each year. John says he particularly likes the Associated Surplus Dealers/Associated Merchandise Dealers show, held in Las Vegas every August. (You can find out more about the ASD/ASM trade show at www.merchandisegroup.com.)

John and Sandi achieved PowerSeller status in the spring of 2004. Today, the Larsons average $2,000 per month in sales over much of the year, with sales increasing to $4,000 per month over the holiday season. Their average sale is in the $8 range, which means they have to work hard to clear a small profit. On the other hand, their sales are consistent and predictable.

John offers quite a bit of useful advice to potential sellers:

"First, treat your eBay business like a real business. Be serious about making it a success. If you don't have any business background, check out some books from the library and learn about marketing, customer service, keeping books, and organization. Answer all your mail. Be professional.

"Second, buy your products for a great price. Be a frugal shopper. Don't load up with inventory before testing to see if it will sell.

"Third, list, list, list. Customers can't view or buy anything if the products are not present when they are browsing. Experiment with timing, pricing, wording, and products.

"Fourth, do all you can to make your customers happy. Remember that they are the customer and, though not always right, always the customer. Stay in touch with them through frequent email updates. Pack products well and ship them quickly.

"Fifth, go the extra mile with your customers. We include an inexpensive free gift with every order. It isn't much, but we get enough comments that we keep doing it. When you make a mistake (and you will), fess up and tuck in a little something extra for the customer's trouble.

"Sixth, keep track of your inventory. One of my most embarrassing moments is to tell a buyer that I didn't really have the item in stock that they bought. Don't run out of best-sellers. Don't load up on slow sellers.

"Finally, work out standard processes for your business. Make an auction template and keep it up-to-date. Decide how many listings you'll do each day, and do them. Make email templates or get an auction management program to help you stay on top of your communications and shipping. Be organized in your approach to getting things done. Make checklists, use tickler files, and pre-print your forms. Have your shipping materials on hand and organized."

Lots of advice, and all of it good. It's what's propelled bobbibopstuff to PowerSeller status, and made John and Sandi successful eBay businesspeople.





Making a Living from Your eBay Business
Making a Living from Your eBay Business (2nd Edition)
ISBN: 0789736462
EAN: 2147483647
Year: 2004
Pages: 208

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