How and Where to Locate the Merchandise to Sell on eBay: Insider Information You Need to Know from the Experts Who Do It Every Day

How and Where to Locate the Merchandise to Sell on eBay:

Insider Information You Need to Know from the Experts Who Do It Every Day

Michael P. Lujanac & Dan W. Blacharski

How and Where to Locate the Merchandise to Sell on eBay: Insider Information You Need to Know from the Experts Who Do It Every Day

Copyright © 2007 by Atlantic Publishing Group, Inc.

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ISBN-13: 978-0-910627-87-0

ISBN-10: 0-910627-87-8

Library of Congress Cataloging-in-Publication Data

Lujanac, Michael P., 1955-

How & where to locate the merchandise to buy and sell on eBay : insider information you need to know from the experts who do it every day / by Michael P. Lujanac & Dan W. Blacharski.

—— p. cm.

Includes bibliographical references and index.

ISBN-13: 978-0-910627-87-0 (alk. paper)

ISBN-10: 0-910627-87-8 (alk. paper)

1. eBay (Firm). 2. Internet auctions. 3. Purchasing. I. Blacharski, Dan, 1959- II. Title. III. Title: How and where to locate the merchandise to buy and sell on eBay.

HF5478.L85 2007

381’.177--dc22

2007006823

LIMIT OF LIABILITY/DISCLAIMER OF WARRANTY: The publisher and the author make no representations or warranties with respect to the accuracy or completeness of the contents of this work and specifically disclaim all warranties, including without limitation warranties of fitness for a particular purpose. No warranty may be created or extended by sales or promotional materials. The advice and strategies contained herein may not be suitable for every situation. This work is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional services. If professional assistance is required, the services of a competent professional should be sought. Neither the publisher nor the author shall be liable for damages arising herefrom. The fact that an organization or Web site is referred to in this work as a citation and/or a potential source of further information does not mean that the author or the publisher endorses the information the organization or Web site may provide or recommendations it may make. Further, readers should be aware that Internet Web sites listed in this work may have changed or disappeared between when this work was written and when it is read.

Table of Contents

Featured Contributors

Foreword

Introduction

Chapter 1: Before You Sell Anything

Chapter 2: Where To Begin Looking For A Product

Chapter 3: Now Cast A Wider Net

Chapter 4: Becoming A Trading Assistant

Chapter 5: Pros and Cons of Using a Dropshipper

Chapter 6: B2B, Liquidations, and Dedicated Manufacturers

Chapter 7: Buying Closeout Merchandise

Chapter 8: Wholesale Misconceptions

Chapter 9: Too Much Is Never Enough

Chapter 10: Finding Your Niche

Chapter 11: Your Strategy

Chapter 12: Finding And Selling Limited-Life Goods

Chapter 13: Finding And Selling General Goods

Chapter 14: Finding And Selling Seasonal Items

Chapter 15: Collectibles, Pickers, And Auctions

Chapter 16: Recommended Items To Offer On eBay

Chapter 17: Building Business Relationships

Merchandise Directory

Conclusion

Glossary: eBay Terminology

About the Authors

More Great Titles from Atlantic Publishing

Featured Contributors

Cindy Shebley

eBay PowerSeller

eBay Certified Business Consultant and Educational Specialist

Author of 5 Steps to Success: The eBay Seller’s Guide to Higher Profits and Easy Auction Photography: A Guide for Everyone Who Sells on the Internet

Lecturer on Online Businesses at Community Colleges throughout Puget Sound

Art Sivertsen

Owner www.AuctionsTeacher.com and www.DefCentral.com

Tim Miller

President

www.FLATSIGNED.com

(Company name, Web site, and eBay USER ID)

3415 West End Avenue, #1101

Nashville, TN 37203

Phone 615-292-3528

Fax 615-298-2757

Joyce Banbury

eBay Certified Education Specialist

auctionbbs.com

eBay Selling Account: christmasinthevillage

eBay Buyer Account: danse

e-mail: danse@media-net.net

1 800-654-0381

Donna Bond

eBay Certified Education Specialist, Trading Assistant

Donna’s Fashion Diva Boutique

www.stores.ebay.com

Username: 1968titans

e-mail: donnabond@comcast.net

Table of Contents

FOREWORD

by Joyce Banbury

eBay Certified Education Specialist

auctionbbs.com

eBay Seller ID: christmasinthevillage

eBay Buyer ID: danse

E-mail: danse@media-net.net

eBay is a global market operating in 24 countries and with over 210 million registered users. It can be accessed from anywhere there is an internet connection and used to build a part time or full time business. eBay can be a dream come true (and has been for thousands of sellers) for those willing to learn the ropes.

Would it not be great if success happened easily just by using a secret formula that once adopted guaranteed riches? It is not quite that simple but with a global marketplace the size of eBay and low level entry cost it is possible with a little help.

My eBay experience began in early 1997, and by 1998, I was a PowerSeller, it was exciting, fun, and profitable, but not without a few pitfalls along the way, which often made for a bumpy ride. In my workshops I refer to those days in my classes as the wild west of eBay. It was strictly learn as you go and hope for the best. But I stuck it out, learned, prospered, and still sell on a seasonal basis. I am also a certified eBay Education Specialist teaching eBay workshops across the Midwest. In my classes I hear my students say, I asked my friend (who sells on eBay) where she finds things to sell, but she will not share that information with me. (It is true that many sellers are protective of their merchandise sources—perhaps leery of competition.) Often that comment is followed by a barrage of questions such as:

Where do I find merchandise to sell on eBay?

How do I know how to buy and price items?

Is consignment a good way to find merchandise? How do I know how negotiate with a consignment vendor?

"What about dropshipping? How do I find a dropshipper?

How do I know if their merchandise will sell on eBay or if they are dependable?

How do I compete with all those other sellers on eBay?

Fortunately, How and Where to Locate the Merchandise to Sell on eBay: Insider Information You Need to Know from the Experts Who Do It Every Day answers those questions and more—not just generic information, but details for locating, negotiating, buying, pricing, and shipping. It goes the extra mile and gives the reader expert information on branding a business, developing exceptional customer service, and about everything any seller needs to know. Even experienced eBay sellers will benefit by the information in this book. It is the book that will be kept right at your fingertips so you can look it up and know you will find the answers. It may not be a secret formula to riches but insider information on where and how to find merchandising sources is about as close as it gets. This book is recommended reading for my workshops, no doubt about it.

Table of Contents

INTRODUCTION

Why eBay?

eBay bills itself as Your Personal Trading Community™ and hosts well over 800,000 online auctions per day in 1,086 categories. Every day the site gets about 20 million hits resulting in an average of $86 million changing hands. More than 200 million eBay members create a frantic competition for the fortunes awaiting anyone willing to sit at a computer and earn some money.

Why is eBay so attractive to entrepreneurs? Is it the lure of easy money? It is true that eBay can provide a second income or bloom into a full-time business.

Is it the idea of being your own boss? Studies have shown that the highest levels of life’s stress occur at work. (Even bosses would like to be their own boss.)

Is it the freedom from the eight to five routine? Who would not want to set their own hours and goals with an eBay business? Who would not want to have their business on a computer they already own, avoid the time clock, work when, where, and as much as they choose?

Is it because people already have the skills? Anyone—you!—can start a business this afternoon without going to school, getting special training, or even combing your hair.

Is it because there is very little risk? Your first salable products may actually be within your reach at this moment, or in the attic or closet already bought and paid for.

Where do you find other things to sell and make a profit? That is what this book is about. Read on.

Is it because the marketplace is huge? Your market is literally the world.

Is it because you can deal with products you know and love? If you love what you sell, online auctions are more than profitable. They are exciting.

By the time you finish this book you will have hundreds of tips for making money on this booming resource and having fun at the same time.

Staying Power

Your choice of product is important if you want staying power on online auctions. We will explore how to find products in-depth in this book. A more important question at this point is, How do I establish my products on eBay for the long-term?

We have found that the most successful online auction sellers understand that making money on eBay is achieved the same way as success in a brick and mortar business. Like any smart seller, you

Research the marketplace and the competition to determine the salability and profitability of the product. You can accomplish this on your computer without even getting dressed. Look at eBay’s completed listings, compare the selling price to your buying price and related costs, and project your profits.

Test the market with one or two items before committing to a product line and tying up cash.

Adjust product offerings until you find a product or product line that sells consistently while you constantly research new possibilities for long-term income.

Sell quality items. If your product does not hold up, you will be off eBay faster than a local store that sells sorry merchandise.

Why is your choice of product so important? For the private citizen, selling a product on eBay is not the same as selling that product at a flea market, farmer’s market, or small shop, primarily because of the extreme nature of the competition. When you go to the flea market to set up a weekend booth you might have 100 other vendors competing for that dollar. Out of that 100, maybe two or three have the same things you do. On eBay, you may have thousands of competitors selling the same things you do. That is great for the buyer, but what will make your product better than others that are similar?

The answer is in having a better price, a better quality, a no-questions-asked return policy, a realistic mailing cost, excellent customer service (fast replies to e-mails and questions), truth in advertising that establishes trust and assures return customers, detailed descriptions, anecdotes about the items that will make the owner proud, and knowing your product better than most people. This book helps you find items that sell on eBay and tackles honing your skills as an online seller.

The thing to remember about selling on eBay is that, except in rare cases, it is not a get rich quick scheme. Like almost any type of successful business, it takes time to build, but you can build a profitable business just by selling on eBay. You can turn your eBay business into a profitable secondary income stream or even your primary income. All it takes is a little bit of work, good research, time and effort, an eye for the unusual, and good customer service—and you will be rewarded. If you just want to sell a few items to make a little extra money, or if you want to sell many items and make a living selling on eBay, this book can help you do just that. Using the sources and ideas provided here, you will be able to find good products that will sell on eBay.

When you are searching for your goods to sell through eBay auctions or in your eBay store, there is more to it than going through a directory. Although we do include a directory in the back of this book, finding a good-selling product is only half the battle. You will need to establish your particular niche in the market for that product. We will go into niche marketing in detail, but for now, consider this:

Making a small margin on something that sells for more than $500 is fine, but let us say you are selling a $50 item and are only making 10 percent after expenses. You have to sell many items to make $500 a week. If you are selling anything for under $100, you will want to make a 25 percent net margin after cost, shipping, and eBay and PayPal fees.

Why Research?

You want to make money! We will explore the research you will be doing to determine whether an item will be profitable. The best place to do your research is on eBay itself. This example illustrates the importance of checking out any given item on eBay before listing.

Suppose you want to sell charm bracelets. They are popular and trendy, and local shops sell them well at a good profit. If you are selling them in your shop or at a local festival, you will do very well. However, as of this writing, there are almost 120,000 listings on eBay for charms and charm bracelets, so chances are your own listing will not even get noticed. If it does, your competition will be so stiff that your profit margin will be negligible. If you bought 100 of them to get a bulk price and sell maybe two or three, you will have only gifts for friends and relatives. Obviously, another item will work better for you.

Be Ready To Switch Products

When defeat comes, accept it as a signal that your plans are not sound, rebuild those plans, and set sail once more toward your coveted goal.

-Napolean Hill

Finding good products means constantly being on alert. Having a variety of goods listed on eBay will determine whether you make a little cash for a few weeks or have an income for the rest of your life, and the search will be a big part of your eBay business for as long as you are involved. Find a great product that no one else is selling, but do not stop there. Keep on doing it, again and again.

Once you find an item that makes money, you will need to go against conventional wisdom and continue to search