As the online auction model of business
continues to evolve toward a more com- moditized, corporate
market-place, it is time for online eBay auction sellers
to seize control of their business, before it’s
too late.
In this article we will highlight some effective steps
you can take to shift control back to your own business.
Why is it so important to seize control?
There are 3 trends that have the potential to hurt
online auction sellers...
Increased expenses across all services that
cater to online auction sellers. eBay recently increased
their fees, Yahoo Auctions recently began charging fees
for listing auctions with them. The U.S. Postal Service
recently raised their postage rates. Auction Management
services are increasing their fees. Free photo-hosting
services now charge fees to host photos on their sites.
Payment processing services have also increased their
fees.
It is a post dot-com-bust reality that most services
that used to be free, aren’t anymore. Everywhere
you look, expenses are going up. Taken cumulatively,
they can eat away profits that used to be there. This
fact alone is reason enough to consider developing your
own online presence - apart from the online auctions.
Restrictive policies by eBay. The online auction
community is in an uproar over eBay’s recent strengthening
of their linking policies. These rules essentially eliminate
a seller’s ability to advertise their site and
/ or develop clickthrough traffic from eBay. The links
rules were only a precursor to the new "eBay
Stores", eBay’s way of providing idealistic
havens of e-commerce for their community.
The new eBay Stores allow eBay sellers to set up online
storefronts, which of course, have their own fee schedule!
These storefronts have opened to mixed reviews. There
really is no comparison between having an eBay Store
and having your own online storefront.
An eBay Store is like having a shop open inside of
a gated community. The only traffic you’re likely
to get is from other eBay members. Having your own
website with an online store is like opening up
shop on Main Street. You have all the traffic you are
able to create and more important, you have freedom
to decide exactly how you run your business. You see,
in the gated community there are a lot of rules, rules
designed to benefit the community at large.
Corporate and institutional involvement in online
auctions. This is a growing trend. Many large corporations
are taking advantage of the eBay auction concept to
liquidate unwanted or overrun merchandise to the masses.
Even the U.S. Postal Service is involved in eBay auctions!
They use eBay to liquidate items that were undeliverable
or lost in the mail.
Police departments are selling off seized goods on
eBay. Corporations are getting on the eBay bandwagon
and creating a hyper-competitive environment for some
of the "smaller sellers". Basic economics
dictates that the greater the supply of goods, the lower
the price of those goods.
This triple whammy of higher expenses, a restrictive
selling environment and increased competition will have
the effect of squeezing sellers out, unless they take
action to prevent their demise.
What are some steps you can take to avoid being an
Online auction casualty?
Begin today to "think outside the auction box".
That is, develop an attitude that the online auction
goldmine might end tomorrow, so you are going to take
the right steps TODAY to secure your future.
This is especially important for those sellers who depend
100% on their online auction income!
Begin today to make plans for developing your online
presence, away from the online auctions. Developing
your own website is only the first step towards online
success. Getting traffic to your site is really
the key that many people ignore, to their dismay.
Developing traffic takes time and knowledge.
Build, manage and maintain a customer list.
Every marketing expert worth his or her salt will tell
you that your customer list is EVERYTHING. Maintaining
your customer list and staying in contact with your
customers is one way to explode your sales. (even if
you are selling items not related to what your customer
initially purchased!) So much of selling has to do with
breaking down that trust barrier.
Once you’ve established a successful relationship
with a customer, most of your battle is won. The worst
thing to do would be to drop the ball and not re-contact
that customer in careful, but constant ways, always
affirming the original purchase and informing them of
new opportunities.
Find the tools necessary to take your business to
the next level. This step will take some research,
but it will be well worth it. Today, you can find software
that will dramatically simplify your life, from autoresponders
(automated e-mail response) to bulk e-mail programs
(that help you do a mass e-mail to your customer list)
to search engine submission programs. (that help you
increase your positioning on the search engines)
If you are in any type of business that requires continuous
education of your customers, a Newsletter program (which
not only mails out your Newsletter, but handles unsubscribes
automatically) would be a great benefit. Having a Newsletter
is one of the best ways to stay in constant contact
with your customers and keep them informed about new
trends in your industry and new products that have debuted.
Learn. Learn and learn some more!
When I first got online a few years ago, I was intimidated
by everything Internet. I knew I wanted to bring my
collectible toys business to eBay and I had some
theoretical knowledge about it, but had never done it
before. As I threw myself into books and websites related
to what I needed to know, I came to a very profound
discovery. It’s all there! Everything you
could ever want to know about making your business successful
on the Internet is available all over the Internet!
Some of the information was free, some of the information
cost money and some of it was downright expensive! But
one thing was always true - it was all there. Even more
important, I found out that there are all kinds of people
that are willing to help you with any type of problem
or roadblock you may face, you’ll find them in
the appropriate Message Boards. Everything you need
to know to become successful is there, waiting to be
discovered!
You will only lose at your online business if you
fail to take the steps of:
