Power Up Your eBay Profits
Know how to use eBay's tools and services to get the most out of your business on eBay.
By Sheree R. Curry
| March 24, 2006
URL:
http://www.entrepreneur.com/ebusiness/ebaycenter/boostingyoursales/article84192.html
After obtaining a degree in architecture, Sarah Embry went to
work designing commercial buildings for an architectural firm in
Nashville, Tennessee. There was one storefront she never imagined
she'd design, however, let alone quit her job over. But
that's exactly what happened in 2001 after her hobby of selling
equine accessories on eBay grew so quickly it led her to open an
eBay Store that has buyers ponying up nearly $50,000 a month for
her products--more than her first year's salary as an
architect.
"Opening the eBay Store was a big boost for sales,"
says Embry, who, for the fun of it, started selling the horse tack
she used with her own stallions on eBay. Her business, Green River
Discount Tack LLC (eBay User ID: greenrivertack), expanded into
selling new items she purchased wholesale until it grew to the
point that "we were literally moving saddles to get out of our
front door," she says.
Soon, Embry, 30, realized, "My day job was hurting my eBay
sales. There was a lot more happening on eBay, and I saw more
promise in that." So in 2003, she moved the business out of
her home and barn into a Morgantown, Kentucky, warehouse. She now
employs five others, not including her husband, Derrick, 34, who
quit his construction business to oversee the shipping process for
the nearly 1,500 items they sell per week at an average price of
about $25 per item.
An eBay Store is just one of the many marketing strategies and
tools Embry and other PowerSellers use to help increase their
profit margins, whether it's selling $75 horseshoes, $7,000
6-carat diamond tennis necklaces or $6.99 Teen Titans action
figures. Here are some tools that will help you increase traffic,
lower overhead and drive profitability. Pretty soon, you just may
make that jump from Gold PowerSeller to Platinum or Titanium.
Set Up Shop
This online marketplace, which sells more than $1,359 worth of
goods worldwide every second, is about more than selling items to
the highest bidder. Think of it as a shopping mall. There are niche
boutiques and anchor stores. Shoppers who salivate over one of your
items in a listing--perhaps even bid on it--will more than likely
want to seek you out to see what else might catch their eye. It
would be a lot easier for them to find you and be tempted by other
merchandise you offer if you have a store for them to saunter
into--complete with signs directing the way--than it would be if
you were a street peddler, folding up your table at the end of the
day and setting up shop somewhere else tomorrow. Thus the creation
of eBay Stores, which provides just such an online experience. An
eBay Store is one of the best routes to improving your
profitability as an eBay seller. To learn more about setting up an
eBay Store, go to www.ebay.com/stores.
Take It to the Max
Many sellers have found that a completely customizable eBay Store
instantly maximizes their online presence for as little as the cost
of one tall mocha latte per week. Weiser Jewelry, a medium- to
high-end diamond dealer with a brick-and-mortar store in
Manhattan's jewelry district, saw a big increase in sales once
it opened an eBay Store.
David Nativ is owner of KaNa Global, a Kew Gardens, New York,
business management consulting firm that runs Weiser Jewelry on
eBay (eBay User ID: weiserjewelry). Although Nativ occasionally
puts some of the jewelry up for sale in auction-style listings, he
does so primarily to drive traffic back to the eBay Store, since
most eBay purchasers first access the regular eBay search and
browse results instead of conducting a targeted search of eBay
Store Inventory items. Visitors who find Weiser through
auction-style listings can link to the eBay Store items by clicking
on "Visit This Seller's eBay Store!" in the
"Seller Information" box in the listing.
Store sellers get cross-promotion placements on all their
"Item," "Bid Confirm" and "Purchase
Confirmation" pages. Such cross-promotion is advantageous to
Store sellers, who can use this as a tool to draw repeat business.
For example, if Weiser is selling a diamond-and-sapphire bubble
pendant, it could also display other pendants that might interest
the potential buyer. Or after a bid is placed on that pendant, it
might display complementary items, such as matching earrings, on
the "Bid Confirm" and "Purchase Confirmation"
pages.
Make It Personal
Ty Simpson, president and co-founder of Ty's Toy Box with his
wife, Heather, knows all about the positive effects of
cross-promotion. He operates a website along with his eBay Store
(eBay User ID: tystoyboxauctions) to sell hard-to-find preschool
toy brands, such as Strawberry Shortcake wristwatches, tennis shoes
and nightgowns.
After a stint selling Beanie Babies on eBay in 1998, he began
his latest eBay adventure in 2002 as a result of trying to purchase
some The Wiggles-branded items for his young daughter. He ended up
buying a box of goods wholesale, direct from an Australian vendor,
and began selling the items on eBay to other parents he assumed
were also having a hard time locating the products in the U.S.
"From word-of-mouth and repeat buyers, we started
establishing a name on eBay [as the place] to get Wiggles
merchandise. After [the 2003] holiday season, I built a website
while still selling on eBay, and this is how eBay helped jump-start
Ty's Toy Box," says Simpson, 32. "eBay was starting
to complement our website while we were extending the brand beyond
eBay. Then we had two things going: a successful [business on eBay]
and a website that was starting to grow."
Simpson is one of many eBay sellers who create and manage their
own keyword-targeted advertising campaigns on eBay through the eBay
Keywords program. When a user searches for particular terms, the
results will show the advertiser's ad unit at the top of the
eBay search results. This prime placement drives traffic to the
seller's items or eBay Store, often resulting in increased
sales. "You appear above all the other listings, and you have
an opportunity there to grab a buyer before they start searching
the listings," says Simpson.
Simpson targets terms like "Wiggles" and
"Strawberry Shortcake" to boost traffic to his site.
"Whenever anyone searches [those terms], it brings people to
our eBay Store. It is pay-per-click and could run between 10 cents
per click and 50 cents per click," he says. But as a
PowerSeller and eBay Store owner, Simpson receives a monthly
allotment from eBay to help cover the costs of his Keyword
campaign.
eBay also encourages Store sellers to set up links to their
Stores from other sites. For every visitor who enters an eBay Store
from a promotional link on an outside website--whether it's the
eBay seller's site or a third party's--store owners can
receive a 75 percent credit toward some fees when that referral
results in a sale through eBay during that visit. Plus, when buyers
type in a Store's URL in their web browser, eBay's system
automatically interprets this as a user coming in from an off-eBay
promotion, thus making Store owners eligible for a Store Referral
credit.
Simpson makes use of many such eBay Store owner perks, which
help increase the profitability of Ty's Toy Box. Other eBay
perks available to Store owners include promotional fliers and
e-mail marketing, both great ways to reach repeat buyers. The
e-mail marketing tool allows Store owners to send customized
e-mails to buyers, manage e-mail lists, and create and send e-mail
campaigns--between 100 and 4,000 individual e-mails, depending on
whether the seller operates a Basic, Featured or Anchor Store.
Whether it's for a particular promotion or a regular
newsletter, the e-mail marketing tool makes it easy to merchandise
specific items via e-mail. "It drives repeat traffic to the
website," says Carole Alvarado, director of eBay Stores.
"We built that tool in a way that is safe for buyers. We have
limits in that sellers can't send to the same e-mail list more
than once a week." And buyers have to opt in from a check box
on the "Save This Seller as a Favorite" page.
All levels of eBay Store owners can also further brand their
Stores and increase profit margins with the free promotional fliers
tool. Go to http://pages.ebay.com/storefronts/promoting.html to
download templates for customizable and printable promotional
fliers emblazoned with eBay Stores logos and space for sellers'
logos, and insert them into shipments to buyers to encourage repeat
shopping.
Using various communications to stay in touch with the horse
enthusiasts who visit Green River Discount Tack is an important
part of business, says Sarah Embry, who answers many e-mails from
new riders looking for the right equipment for their horses. But
she also puts phone and fax numbers on all communications and has
found it has helped increase sales. Says Embry, "Excellent
customer service brings a lot of people back."
The Tool Chest
eBay tools can help you save time and increase profitability. Once
you start selling a high volume and variety of goods, it's
imperative that the timing of each listing is optimal, the price is
right and the title hits the mark. Try these selling tools to help
you increase productivity and profitability:
- Accounting Assistant allows you to reduce
manual processing by pulling eBay or PayPal transaction data,
including fees, into QuickBooks financial management software. It
also allows you to track sales and fees by customer.
- Blackthorne Basic and Blackthorne Pro
(formerly seller's assistant) allow users to create listings,
organize inventory, track listings' status, process sales, send
e-mails and manage shipping offline, making these tools great for
easy access anywhere. Key features let you manage your pictures and
save and reuse common information, such as shipping and payment
details.
- Picture Manager, eBay's picture hosting
service, allows you to add and edit pictures for each listing. You
can also see which listings each picture is associated with to
determine whether it's safe to delete an image.
- Sales Reports Plus help you identify which
items to source and sell by analyzing your historical sales
performance.
- Sales Traffic Reports for eBay Store
subscribers offer real-time reporting on page views for each of the
listings and Store pages, including the display of the seller's
most popular pages. Sellers can also view keywords used by buyers
to get to their listings. Featured and Anchor Store subscribers
receive additional information in their Traffic Reports, including
path analysis showing how visitors move within their Store and
Bid/Buy It Now tracking to help optimize their Store for bidders
and buyers.
- Selling Manager and Selling Manager Pro
give you an at-a-glance snapshot of your selling activities and
help you manage your sales. Features include bulk relist, which
allows you to relist multiple items from the "Unsold"
view of Selling Manager with just one click; e-mail templates,
which let you e-mail buyers directly using templates for winning
buyer notifications, payment reminders, shipping notifications and
feedback reminders; and more.
- Turbo Lister is a free listing tool for
medium- to high-volume sellers that allows you to create
professional-looking listings and upload thousands of items in bulk
in one shot.
Sheree R. Curry is a suburban
Minneapolis-based freelance business journalist who often writes on
business best practices. Her work has appeared in Advertising
Age, Fortune and The Wall Street Journal.
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