OK, so the fees went up (AGAIN) and here we are, small sellers in a big mall.  As little sellers what can do about  high fees?.  We can plan a new strategy to mitigate some of those higher costs, while still running a profitable business. 

The greatest cost saver I found is a simple one; don't list too many items for sale using the eBay auction format.  In the environment of ever increasing fees, the greater  bargain is to set up and fill an eBay store with your merchandise.  The store format starts at $15.99 per month.  I truly believe this works best for those with high feedback of 1000 more but, to be honest, I didn't try it with less -- so I don't know for sure it wouldn't pay off for any level of feedback.

So, you wonder, with store fees on top of listing fees, what makes this a good idea?  Let's do the math:
If you list an item for sale using the auction format, the listing cost is anywhere from $.35 to several dollars PER AUCTION, depending on starting price and added features.  Once made, auction listings only last for 3, 5, 7, or 10 days maximum for this price.

On the other hand, if you sell the same item in your eBay store, the listing price is just 16 cents per item per month with similar features (much lower cost per item).  Your merchandise is also in a "Buy It Now" format.  The  shopper finds the item and then may purchase it at that time, rather than having to be available for the auction end.  The best part is that, at that small store listing price (.16), the ad is out there for a FULL 30 days (and can be kept there month to month for an addition $.16 per month)!  I recently sold a $45 item listed in my eBay store.  The listing cost me a whopping 16 cents (Plus FVF)!  The same item, if I'd sold it using the auction format, would have cost me several dollars for the listing (plus FVF)!

So, using eBay's Auction format to list 500 items at a minimum of $.65 each = $325.00 (and these listings) are only good for 7 days each.  So items must be listed 4 times each to cover the same 30 days) $325 x 4 = $1300.00 total auction listing fees.

List the same 500 items in your eBay store @ just $.16 each = $80.  Add the $15.99 monthly store fee to your total costs for the store, and you are set back a mere $95.99 for the same 30 days.  Bargain enough to be sure, and those ads are automatically renewable on a monthly basis if issued as "Good Till Cancelled" (GTC)!  This approach saves you $1204.01 per month in listing fees and inventory management time too! AMAZING!!  So, you see, the cost savings and longer audience exposure are the chief benefits of using this strategy. 

To make this strategy work though, it is important to understand the way the eBay search engines search.  The Searches find auction results first and offers store merchandise as secondary sourcing.  That is, the store results of the search come up at the end of the list of auction matches.  So, you must put some auctions up daily (if at all possible) to drive customers to your store. 

I make it a practice to keep some auctions running daily to continually bring consumers into my store.  I find that sales slow when I am not auctioning.  Offer combined shipping - Once in your auctions, your customers have incentive to shop in your store because they will find they can make purchases to take advantage of your combined shipping. 

My approach is to sell 10 or so of my lower priced items as auctions daily (@ $9.99 or less usually to save on auction fees)  --just enough to get some traffic to my store on a daily basis.

An additional strategy is to make sure you provide linkage between your auctions, eBay store and personal website (if you have one) so customers can see the entire story.  It is important that every auction listing contains a link to your eBay store (you can do this by clicking on the "inserts" drop down box when setting up your ad text). 

OK, you say, "I have a store, and run a few auctions daily to draw an audience for it.  Now, what is it that the REALLY successful Power Sellers do from there?"

The real, long term goal is lots of new customers, repeat customers and referrals.  Retailers call this maximizing the "back-end" sale.  This is when you have successfully gained a customer (someone purchased from you for the first time and liked the experience).  At that point you know you must keep the customer and their interest long term.  The customer tends to come back if they have purchased from you and were satisfied with the product and service, and indicated it in feedback.  The toughest part is done -- they can TRUST you to deliver the goods.  Now you want to work hard to get that customer to buy from you again & again.

The next steps to keeping the customer can include fliers and product catalogues in each package you send, email advertisements in your shipping confirmation, special promotions and sales for store subscribers; special holiday celebration sales and events and/or a "freebee" thank you gift enclosed in the package.  The right combination, depends on the products you sell.  The key point of any of it is to maintain a positive link with your all important customer base.  While the single sale is important, you cannot be truly successful unless and until you have a well developed list of regulars who refer others and return to buy from you again & again.

How to keep customers?  There are many aspects to the proper care and feeding of your customer base.  I have written a other guides specifically on that subject.  However, the following is a summing up of critical aspects of the proper care and feeding of your customers:

-  Offer exceptional and prompt communication (and use good manners, no matter how trying a customer is).  If they are really a problem -- you can block them later.

-  Offer good value products for hard earned money (you must beat out Bricks and Mortar stores on price because the customer must wait to receive the item in the mail)

-  Provide factual and accurate advertisements (tell what you know, and be honest about condition and flaws)

-  Offer a fair return and/or replacement policy and then honor it every time.

-  Offer and provide fast and fair shipping (the faster the shipping, the better [see good value product, above] and fair shipping means within a few dollars of the actual cost of shipping and acknowledgement of additional as handling fee)

-  Always send a thank-you note in the package or in confirmation of shipments eMail to every customer.  Use that opportunity to sell them more and keep them coming back to your store.

-  Assure the largest customer pool possible --ship worldwide

Obviously, the happier your customer and the more consumable the item you sell, the more you will have return buyers (consumables are items that people need to order fairly often including socks, underwear, toiletries, work items, food items, towels & linens, printer ink cartridges, or shipping materials to other eBay sellers).  If you sell consumables and provide a consistent quality service with a great attitide, you can easily pick up repeat orders from these loyal customers for months and even years to come. Now THAT is  SUCCESS!

Please visit my store (The Write Place) for bargains where you name the price you pay!  Visit my auctions (Pepper120851) and my many other guides to help you with your journey to being an independent business man or woman.  I have more than 40 Guides to assist buyers and sellers too!  This is my newest!