The Game

I used to spend hours playing computer games. I loved them, especially the strategy games.  A few years ago, I was hooked on a game about building a business empire, I can’t remember what it was called now, I just remember how engrossing it was. I used to make plans on bits of paper about what strategy I was going to pursue in the, then spend hours trying to enact them in the game.

The success or failure of each strategy was measured by the number of points accumulated or lost. While the game itself was addictive, the result was always an anticlimax. Just earning some points, which was supposed to represent money.

I started to think about the game, and thought to myself, instead of playing a computer game, why don’t I play the game for real. Set up a real business and treat it like a game.

I thought about all the hours I’d spent playing the computer game, and wondered what I could really achieve if I devoted all that time to a real business. This became my game. A game I play every day.

The game is building a business on a part-time basis while working in a full-time job. The objective of the game is to create a business that will support me when I decide to leave full-time employment. A business that will help me to build my own wealth, my own pension fund.

Although I’m playing for real, in the real world, subject to real business conditions, I look at it like a game. My game. I’m the main character. I stand or fall by my decisions. I have times of elation when a strategy I deploy is successful and times of despondency when things start to slow down and don’t respond to my efforts to kick-start it all.

What I get most of all though is a feeling that I’m accomplishing something. Creating something, moving forward and achieving something. When I turn off my computer at night. I look forward to the next day when I can get back into the game.

I look forward to the challenges it will bring, the highs and lows. I look forward to learning and practicing what I’ve learned.  My objective each day is to do something that will move my business forward, strengthen my position, and increase my knowledge. Because growing is what the game’s about. Not just the business, but myself, mentally, spiritually and psychologically.

This is my game. I love it. Why don’t you start your game? It’s more fulfilling than a computer game. By the way, I haven’t played a computer game for nearly two years. I’m too busy.

How To Combat The Asian Sellers On Ebay

Sellers from Asia are everywhere on EBay. Selling in every category for prices that are much lower than UK sellers can source products for. For example, I’ve seen sellers from Hong Kong selling products for £15.00 that I can’t source for £20.00. If you’re new to EBay, you can look at these prices and become disheartened, believing you can’t compete. Don’t despair.

You have many advantages in your favour. First, forget about trying to competing on price. You cannot. Nor should you even try. I’ve seen guys in business forums bragging that they make £5.00 on a hundred pound sale. I wouldn’t even bother. It’s not worth the effort, such a low profit margin is not a viable business model, it’s more like a hobby that pays some pocket money.

The objective of a business is to make a decent profit for the effort you expend. 5% in my book is not a decent profit. I like to look for at least 30% upwards. So how can you compete against the Asian sellers?

It’s easy really. The sellers from Hong Kong will be charging very high shipping costs. They might be charging £12.00 for example for a product you can ship for £2.00 that adds £10.00 to the cost of their product.

You can also wipe the floor with them for speed of delivery. Shipping from Hong Kong can be slow and unreliable. You, on the other hand, can get your item delivered the next day by Royal Mail first class.

There’s also the possibility of buyers buying from Hong Kong of being hit with a VAT bill. And there’s the added problems of returning the product if it is faulty.

You can offer your customers something they will be willing to pay for: security. If you are selling in a market where there are many sellers from Hong Kong make it clear in your listing that you are a British seller.

Emphasise the quick and safe delivery and the ease of access to you should anything go wrong. Make a point of stating that there is no additional cost associated with buying from you. The price you see is the price you pay.

All these things will negate the cheaper priced product from Hong Kong and ensure you maintain your profit margin.

Never try to compete on price on EBay or you won’t be able to create a viable business model. It’s not only the Asian sellers who sell cheap. You also have companies who are dumping stock, companies who use products as loss leaders, to get people to their websites, where they will up sell to them. And of course, you have some people who just don’t know what they are doing and sell too cheap to make a realistic profit.

You’re on EBay to make money so avoid getting into a price war. Set your margin and stick to it. Most buyers don’t just buy on price; they also want reliability and security.

Moving Your Business To The Next Level

Many people make a decent income by just trading on Ebay and they are happy to keep their business strictly on Ebay. This is a business model that suits many and provides them with the extra income they are seeking. In my opinion this business model is flawed and fraught with danger.The biggest problem with relying on Ebay for your entire business is Ebay itself.

Over the last 12 months the current Ebay management team have implemented a number of policy changes. many of which have been detromental to sellers and I’m not just talking about the ever increasing fees, which have led Ebay to be come known as “Feebay”. The rising fees have forced many sellers to shut up shop and leave and many are still on the edge. One more fee rise will push them over.

Ebay has been very high handed and arrogant with its treatment of sellers. bahaving with all the arrogance of a monopoly, it has treated sellers with disdain. believing they will always have to stay with Ebay if they wish to sell online.
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The reason why I don’t advise relying solely on Ebay for your business is because you are at the mercy of decisions made by Ebay’s management. if the management is incompetent and make bad business calls then they will have a detrimental affect on your business. You could spend years building up your business and a few bad decisions by incompetent managers can ruin it.

The ideal online business model in my opinion is to have your own website running alongside of your Ebay shop.This should be your long term goal. Ebay can then become a marketing tool for your website. By putting most of your energies in your website you will have an escape capsul if Ebay’s management decides to increase fees again. This is the model most Ebay sellers are using. Every time I make a sale I send a confirmation email with my website address on. With the order I send a personal letter with my web address on. My objective is to get the buyer to become a regular customer to my website. why? Because it doeasn’t cost me anything to sell from my website. No Ebay fees, no big chunk off the profits to feed Ebay. The only cost is the cost of paypal and this doesn’t always apply because many people prefer to pay by cheque, in which case there are no fees.

By getting a website and devoting time to building traffic to it you will have an independant business from Ebay. This is not easy. it takes time to build a website up, to get customers and establish a trusting relationship with them. It is however, time well spent and will give you an extra dimension to your business not to mention extra profits. When you get your website your relationship with Ebay changes. You are not totally dependant on Ebay for your income. you are using Ebay as part of a wider stratergy. You will still need Ebay in the early days, and even when your website is established, Ebay will still be a source of new customers for your site. You will not however, be totally dependant on the auction house.

Buying a website is not cheap and should only be done once you have gained some experience trading on Ebay. After you’ve built some profits you should consider investing some in your own website and moving your business to the next level. With good promotion and marketing you will soon recoup the investment and move into profit.

Cut your online trading teeth on Ebay. Build up your customer base and when you’ve gained enough experience and accummulated enough profit, give serious consideration to moving up a level and investing in a website. You will then become an independant online trader.

Changing A Negative into A Positive

How To Turn Negative Feedback to Your Advantage

In my experience the vast majority of people are well balanced and fair minded. If you make a mistake in your eBay business by sending out the wrong product or some other error, the majority of people will inform you and be quiet happy with an apology and wait for the replacement.

You may however, in your eBay business come into contact with one of the antisocial group people who delight in being obnoxious and disagreeable. One seller complained that someone who bought one of his products sent him an email saying “if you send me 50% of my money back I won’t leave you negative feedback.” The seller refused; the buyer left negative feedback.

Most sellers go out of their way to please to avoid negative feedback. Since EBay, in another of their rule changes have now prevented sellers from leaving negative feedback we can’t even retaliate. So what can we do if someone leaves us a negative?

We can turn it to our advantage. The way we respond to negative feedback says a lot about us. If for example, we respond with a stream of expletives and abuse then buyers reading our feedback will soon move away from our shop. Would you go into a shop where the owner may start abusing you if you upset him? For this reason I would strongly recommend that you resist the temptation to respond immediately.

The way to turn a negative into a positive is to respond in a rational and friendly way. If the buyer complains about the slow delivery. Just respond with something like: “Sorry about that. I did post it the day after ordering.” Or if the buyer complains about the product. Again, apologise and mention you are happy to exchange it or offer a refund.

Under no circumstances get involved in a slanging match. It will only damage you. You may be fuming at the negative feedback especially if you believe it is unjustified. Don’t show this in your response. Respond calmly and friendly. This will show future buyers that you’re only human and may make mistakes. You do however seek to put them right.

Once you’ve responded in a reasonable and objective way. Leave your computer and go to the gym. Start pounding the treadmill imagining that the negative feedback reader is under your feet. You’ll feel much better.

Surviving On Ebay

I’m becoming less and less a fan of eBay as its current management continue on their determined quest to destroy a monopoly. It’s difficult but it can be done, with constant bad decisions, showing no respect for the people (sellers) who make the money and by arrogant indifference. The cost of selling on eBay when it is all calculated is almost 10% of your selling price. That’s an awful lot of money snatched from your profit margin. Many have already shut up shop and left to concentrate on their websites and other selling venues.

I’me seeing more and more people complaining about Feebay in the forums, many have given it up as a bad job and gone. I have to admit this is tempting but I would advise against it for people who are just starting a business. Your ideal model as an ecommerce business is to have your own website selling your products.

There is no selling or listing fees on your website and you get to keep all the profits. You will still have to pay PayPal fees if you choose to use PayPal, but apart from that, you get to keep all the money. Your goal has got to be to get a website established as soon as possible. Getting a website is easy. A simple matter of getting someone to create one for you. There’s no shortage of people willing to do this.

The problem is getting it established. This requires a lot of work and a lot of knowledge about search engine optimization (SEO) The sole objective of SEO is to get people to your site. A site without traffic is pointless, you need visitors who will come and buy. And here lies the problem with EBay at the moment, traffic is falling. The very thing we pay for is collapsing.

So is EBay still worth it? I have to say yes, just. With careful planning and disciplined business diligence ,there are measures you can take to get yourself established on eBay and run a profitable business. It’s not easy but you can do it. The first thing you need to get under control is the fees. Everywhere you turn on eBay there is a fee slapped on you.

Keep a close eye on your listings. If something is not selling after you’ve relisted it a number of times then you will have to think whether it’s worth listing it again. Every time you relist it, it costs you money. Relist a number of non-selling items constantly and all you are doing is paying eBay and getting nothing back yourself. Any profit you make on other items will be eaten up paying fees for non-selling items.

I say this all the time but I’ll say it again. Do not absorb the ridiculous eBay fees into your profit margin. Add them to the price of your item along with the PayPal fees. If this means the price of your item is too much for eBay buyers then move it somewhere else. Sell it on another site or your website. It’s not sellers fault that they are having to increase their prices it’s eBay’s fault for increasing their fees. We as sellers must cover our costs before we can make a profit. There’s a lot of work involved in running a shop and we need paying for it.

When it becomes unprofitable then it’s time to leave. Many have already taken this option and eBay is losing its once proud reputation of being a marketplace where bargains could be found. The cost of selling on eBay makes it impossible for sellers to sell cheap and make a profit.

Choose your product carefully. There’s no point selling DVDs. The market is saturated and the margins are too slim. I read of one guy on a forum who make fifty pence on each DVD he sells. What’s the point of that? All that work for fifty pence. Ideally, you need to look for a niche market.

Do some market research on eBay to see what sells and for how much. Also how fast items sell. You should factor the listing fees into the price. If you have to relist an item, add the relisting fee to the price. Maintain your margins. This is the whole point of running a business to build wealth for you.

EBay is no longer a market where you can sell your good cheap. The current management have destroyed that concept. At the moment, it’s still a good place to sell goods and you should use it if you are just starting out but lay long-term plans as well. Your long term objective is to get a website, and become independent of eBay, until then hone your skills on ebay.

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