BUILDING AN EBAY BUSINESS? DON’T PUT THE CART BEFORE THE HORSE….DO THESE THINGS WELL BEFORE YOU EVER THINK ABOUT QUITTING YOUR DAY JOB:

I just started looking at some of the message boards and have read the sad lamentations of folks who prematurely quit day jobs to make a living on eBay and are now experiencing the folly of their poor decision. 

Having few feedback in their record, it is obvious to me that most who find them selves desperate for cash on eBay are just beginning on eBay.  They have only begun to understand a very complicated process and what it takes to actually make a living on eBay.  Selling and buying IS easy on eBay but making a reliable living is NOT.

When you have taken the giant step to rely on eBay prematurely, that is a terrible time to figure out that you are mortgaged to the hilt and you're in trouble.  If you have taken the step of quitting your job before the business is stable and are already up to your neck in stock and debt (and sinking fast) you will have to shift your thoughts and your efforts immediately to survive.  In fact, some who have taken this giant leap may have little or no understanding at all about what they have gotten into.  Having quit the day job in this situation is to have clearly gone too far, too fast, a dire but necessary warning to all budding entrepeneurs. 

There are many books and web sites that sell people the “American Dream” (make a million right at home).  They are usually scams motivated by a desire to sell the budding online merchant tons of great ideas and/or inventory, or a business as a drop shipper.  It pays to ALWAYS remember that if it sounds easy – it isn’t, and if it sounds too good to be true -- it generally is.

I don’t like to be a wet blanket BUT I cringe when I see email on the message boards from someone with less than a thousand feedback asking how to get more sales because they quit their job to sell on eBay and are going under fast.  I am sick of seeing people misled into mortgages they cannot afford, credit card debt they are drowning in and a business they cannot make money with.  The following points may not be pleasant to read, but they are necessary and true facts about building a business on eBay.

1.  DON’T jump in and just feel your way through, hoping you will make enough money to survive -- trust me, you won't.  Read the “How to Sell" on eBay Pages and practice by selling items you no longer want or need from your home.  If you are a collector or hobbiest, sell duplicates of items you are OK with passing on.  This gets you real world experience in how to list and in dealing with customers over a computer.  Trust me, you NEED that real experience badly BEFORE you build a business that you can count on as a bill paying job.

2.  Learn about common tricks that are used to scam sellers and learn them early.  If you don’t know about the scams that go on, the precious little money you make as you go along can be gone in an instant because of a stupid but honest mistake in falling for a scam artist.  Learn about Fake or Spoof emails and the common trickery used to scam buyers and sellers.  If you don't want to read about it -- take a class on computer security.  The life of your business and your long term success on eBay is deeply dependent on your basic understanding and appreciation of how to operate safely online and basic computer security.

3.  Learn from the masters.  Find other very experienced and successful sellers who are selling what you are selling (or plan to sell) on eBay.  Scope out what their ads look like, what their policies are regarding sales, payment and returns.  Learning from the masters is a sure way to get it right early.  If you find a seller whose style and philosophy is similar to your own, use their ads as models for your own ad templates.  Recognize that the more experienced a seller is (i.e. Power Sellers with high positive feedback ratings), the higher the price they may get for the same item -- but their start prices are often a good clue for what the market is and what you can ask for your items too.

4.  POSITIVE Feedback equals sales.  There is NO WAY AROUND THIS FACT – the more feedback you have that is positive (and the higher the rating) – the more you sell.  I have looked at this issue over several years of sales reports and it is what it is.  So, your number 1 job as a new merchant building a business will be to build a LOT of positive feedback.  Things start to move much better after 1500 feedback.  So, set that as your first goal.  To get to that 1500 positive feedback level as soon as possible,. On thing that will heko is to buy what you  need or want from eBay whenever possible.  Good bets for regular eBay purchases are things you routinely buy such as CDs, DVDs and books.  They are usually less expensive on eBay anyway, so buying them and getting the needed feedback makes great fiscal and business sense.  When you do buy – be sure to leave feedback for the seller immediately after your item arrives.  If they have not reciprocated within a week, drop an email note and politely ask for reciprocal feedback.  If you are a cook, you can buy e-cookbooks or recipes for a penny apiece.  100 recipes for a dollar means 100 feedback for you.  Don’t do too much of this, but a little now and then will help you get to the first important seller plateau sooner. And finally -- there is MUCH to know about feedback.  I have written a guide specifically on that subject.  Take the time to understand Feedback FULLY because that knowledge is a key one for effective and profitable eBay operations.

5.  Great Customer Service means returning customers and more sales (a business essential for long term success on eBay).  Inexperienced sellers love to dream up a bunch of policies that make prospective buyers nervous or angry.  Needless to say, customers can choose where to spend their money and they are NOT attracted to negatives and unrealistic demands.   Negative presentation in your ad content (i.e. “Payment MUST be within three days or you will be reported to eBay” or “DON'T BID IF YOU WON’T PAY”) is unprofessional and off putting – don’t do it.  Keep it light and positive ALWAYS.  The same is necessary in ALL customer communication too -- no matter what!  Yes, you will put up with short tempered people demanding things.  As a business owner anywhere, this is life – get used to it.  If you can’t deal with it or tend to take things very personally -- an eBay business might not be the right choice for you.  Excellence in customer care is another one of the key elements of eBay success.  Ignore the requirement at your peril.  In fact, quality Customer care is so important, I have written a guide entirely on that subject too!

6.  Another area I would consider very carefully is your return policy.  "All sales final" is a tough demand because opinions on condition or what the buyer thought they were receiving are VERY subjective.  Frankly, some people can be absolute asses about things.  The fact of the matter is that if they complain to PayPal or their credit card company the customer WILL be getting their money back anyway because the respective payment services will deduct it from your account and give it to them.  So, you might as well understand that and deal with it up front yourself by having a reasonable return policy.  It is scary to consider you will sometimes have to take an item back and refund, but my experience is that happens rarely if your descriptions are good and honest.  Keep in mind you can resell the returned item (often for more than the first purchaser paid any way).  You may also reclaim your final value fee on returns too.  The small lost cost of listing the item a second time is a reasonable price to pay for not getting negative feedback (that often causes your sales to slow while it appears up front in your feedback profile.

7.  Provide customers plenty of information.  There are those who would tell you that you should keep ads short, and that less information is a good thing.  I have a LOT of experience that is in total disagreement with that "keep it short and sweet" philosophy for ads.  You SHOULD put your most important information up front.  Then, you can share other information that might be interesting to the purchaser further down in the ad.  You put it out there in order of importance and let your customers decide what or how much they need or want to know to feel secure in dealing with you.  I have written several guides on writing ad copy and other forms of communication and information to support your eBay presence.  Do check them out.

8.  Don't waste money -- check your ads before posting and make sure you put your items into the correct eBay categories.  If in doubt, a few minutes searching for like items on eBay to get a good category makes all the difference in selling them first time out. 

9.  Search engine optimization (the process by which your ads show up in any given item search) RELIES on the count of item names in the ad itself.  To get a sale, and a good price for your merchandise, you must have many potential customers.  To gather customers, you must be optimized for search engines.  Study SEO techniques and learn how to optimize your ads.  Ebay has great free information, but SEO is tough to understand.  So, if you need to ask for help to understand this essential skill, do so and implement what you learn.

10.  To truly build a business you must study business and eBay processes constantly.  You must also become smart in the ways of computer based businesses.  There is NO way around educating yourself.  Ignorance is a consistent vulnerability and opens the door to large losses.  If you are short of cash, borrow books from the library and use the thousands of very helpful Guides posted on eBay.  I cannot begin to tell you the CRITICAL information you can get anytime you want it -- absolutely FREE of charge from the eBay site itself or through the guides published by eBay sellers and even Power Sellers like me (also FREE).  I made it a hobby to read three or four guides on doing business on eBay a week.  I learned a TON, and course corrected as I learned.  It DID make a huge difference in moving forward for me and it will for you too.  As I learned and the system became more sophisticated, I tried to pay back those who helped me by sharing what I know in my many guides.  Today, I have more than 80 guides and almost ALL are geared to selling on eBay as a hobby or a business.  Each tells you the truth as I know it and  (most importantly) have experienced it.  I visit and edit them as things change too.  I assure you,  I am not imparting the information to clean out your pocket book, I do it simply to help you --period.

11.  A major rule for success on eBay is that you MUST understand your costs and your profits -- and be all over that information, ALL the time.  It is easy to be sucked into bleeding money you desperately need through ignorance.  It is also critical to keep the cash flow on a solid footing!  Do NOT open an eBay store until such time as your routine and reliable profit/income can support the monthly cost of $15.99 for the basic store.  Once you begin eBaying you should plan to be running at least a few auctions EVERY day.  Once you have a store, learn to move your unsold merchandise from the ended auctions into your store to keep the items available to prospective customers.  If you have a night when you do not have auctions prepared, move some items from your store out to the auctions to be sure you have auctions closing every night.  The auctions are key -- they draw customers to you and then into your store. Offer combined shipping and you increase the liklihood of more sales as customers take advantage of combined shipping and/or your sale merchandise in your online store. 

12. Turbolister 2 (free from eBay), is based on excel spreadsheets and a vast improvement over listing things individually.  Take a spreadsheet (Excel or Access) class so you can use it effectively.

13.  If you are married, try to get your spouse to take a role in the business.  One man (or woman) businesses (when you still have your day job) are very hard.  Building a business requires a ton of dedication and energy.  So, help from a reliable source makes the work lighter and the satisfaction and business growth come faster.  If your spouse is not computer savvy, he or she can help with pulling merchandise, packing, shipping, post office runs and/or other errands related to the business -- all making faster growth possible -- which benefits the entire family in a positive way.

14.  Give it time.  You cannot just decide to become an eBay millionaire, quit your day job and expect to remain financially solvent….  Anyone who wants to tell you otherwise is looking to empty your pockets and will NOT be there when you discover it is all a big lie.  If you are flush with cash (i.e. have a half a million to live on while you build your income on eBay), you might be able to quit your day job as you start on eBay.  If you have a unique product that has been market tested and is flying out the door so fast suppliers can't keep up with the demand -- you might be far ahead in that case also.  However, if you are like most of us, you have to take time to learn and grow the business and to remain solvent while you do it.  My goal was to be able to make a living in 5 years so I can retire from my day job and still live comfortably.  The jury is still out on whether I will make it in that timeframe or not.  Part of the reason is that it is a slow build for me in selling what I sell.   It takes a tremendous amount of time to sell on eBay. With a day job, there is a limit to the time I have to add a higher volume of merchandise -- which would be my best solution for growth.  To determine  when you actually can quit your day job, add up all your monthly bills including money you spend on hobbies and entertainment (be honest with yourself and don't forget insurances).  Then, add the cost of merchandise, the cost to sell per week (on average), the cost of your eBay store (if you have one).  These costs will be what you MUST consistently support with your eBay income EVERY MONTH OF EVERY YEAR.  It is daunting!  So, some months, you will be sweating bullets to meet those costs with your eBay income if you quit your day job, some months you just won't make it.  After you have a year of data that proves you can pay the bills on your eBay profit AND you are regularly putting money in savings to support slow months that may occur naturally or as the result of a disaster or to provide a much needed and richly deserved vacation for you and your family.

15.  Having your own business and being your own boss is only 100% bliss to those who have never done it.  The truth of the matter is that when it is up to you to make the profits work for you, you will work harder than ever before in most cases.  The reality is that because the business is yours you are completely and unendingly responsible for doing what needs to be done.  If you are on your own, there is no such thing as "sick leave" or calling in disinterested.  The business, if it is to succeed, is ever present and ever demanding.  Having said that, the satisfaction in incorporating your own good ideas and seeing them pay off is remarkable.  That fact alone provides job satisfaction as rare in the corporate world as are huge but perfect canary yellow diamonds in the world.

15.  Finally, I do believe you will find this guide useful even if you are already out of a job through circumstances beyond your control.  The unvarnished truth is always more helpful.  To know3 the task ahead of you gets you to it faster.  It will be a monumental struggle to build from nothing, but if you dedicate yourself to learning and building a little at a time while being disciplined to work full time {60 hours or so a week} at it, you can succeed.  It may be very tough for a long while but establish goals to use as milestones -- when you meet them you have a sense of success and will be aware that you are succeeding.  So, accept that you will have to have another job, even if it is part time.  I do believe that you may have to augment your eBay work with a job until such time as the business has grown to the point where it can sustain yourself as discussed above.  You will need a reserve of cash to maintain your accounts in times when sales are few and income from eBay is slow or non-existent -- and it happens.  Be realistic when dreaming the American Dream!

I hope you have found this information useful and will heed it carefully.  I feel so sad when I see blogs and emails talking about quitting a job to do eBay full time only to find it sounded a lot easier than it is and folks are about to loose their homes, etc.  I hate seeing folks so desperate for sales to avoid foreclosure or other catastrophies.  Bad choices and being in a hurry put such people and their entire families in jeopardy. 

If you have questions, I will be happy to try to answer them but it is important that you step up to the plate and approach your dreams realistically.

Kind Regards,
Pepper120851  (The Write Stuff)