Ebay Traffic Falling

EBay traffic is falling fast. According to Ina Steiner from auction bytes, eBay traffic declined by 32% from a year ago and 40% compared to four years ago. I’ve seen a massive drop in sales from my own store and I’m not alone.

A quick look around the eBay forums tells the same story. Storeowners are complaining about falling sales and less customer visitors. Complaints to eBay are met with the usual “nothing’s changed” response.

Things are changing though. There’s no doubt that traffic is falling fast. How much of this is due to the current economic situation and how much is due to the changes eBay has been implementing over the last few years is unclear.  There’s no doubt that the trend is downwards, and it’s also certain that the ever rising costs of selling on eBay is driving sellers away.

Ebay seems to want to attract the big retailers to the site at the expense of smaller sellers. The constant rule changes are forcing many small sellers off the site, these combined with the high cost of selling on eBay are making it more difficult for small sellers to survive on the auction site.

It takes time and effort to sell on eBay, if the returns are low then more and more small sellers will leave the site.  Personally, if I stop reaching my profit margins I’ll be one of them.

There’s no need to despair, eBay is just one avenue to use to make a second income online, there’s plenty of other ways. Don’t forget Amazon is a growing marketplace and direct marketing is a proven technique.

As eBay continues on its downward slide, it’s important that online sellers look for other venues to sell on. Don’t put all your eggs on eBay, on present trends they’ll get scrambled.

Well it’s a wet Sunday here in Leeds, I think I’ll go for a pint.

Cheers

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.

It’s In The Picture

Whether you are posting on EBay, another auction site or your website, don’t underestimate the importance of a good picture. We are a visual culture. We make instant judgements about something from a picture associated with it. Advertisers are well aware of this which is why they invest a large part of their budgets on getting good pictures.
You should also invest some time and effort in getting a good picture of your product. Don’t rely solely on the manufacturer’s standard pictures. These are usually excellent quality but they are standard. A competitor selling the same item as you will probably be using the same pictures.

You need to give yourself an edge that will help to turn a prospective customer your way. I would definitely recommend using an offsite picture hosting company like photo bucket to add more free pictures to your auctions. These make all the difference and add information and value to your listing. They also add a personal touch which standard manufacturer’s pictures lack.

Taking a good picture has never been easier or cheaper than it is today. Equipment is cheap and there are many excellent photo-editing packages, which you can use to manipulate your pictures. I would recommend you get to grips with a photo editing software package. It will take a little time to learn the basics, but it will be time well spent if it results in well-taken pictures. And, like everything else, once you have learned the process it becomes second nature to you and won’t take long to edit your pics.

Good lighting is crucial to a good picture. Trying to take a photo under bad light will result in a poor image, which will put people off when they come to your auctions. Many people use light boxes, placing their item inside and taking the picture. These ensure the light is evenly spaced. A good place to take a picture is inside of a white bath. Place some white linen at the bottom and lay your item on it. Bathrooms are usually well lit, and the whiteness of the bath will diffuse the light.

Show your item from a number of angles. Use a pen or ruler to show its scale. If the item has any blemishes or is damaged, point them out. By using offsite picture hosting it won’t cost you any more to have a number of pictures on your auctions. EBay hasn’t figured out how to charge for this yet, no doubt in the future they will. For now, however make use of them. Here’s a few tips for ensuring a good clean picture:

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Avoid background mess. Have nothing in the background. If you take your picture on a desk strewn with papers and books then use a photo editing software package to cut it out. Your prospective buyers don’t want to see what’s on your desk.

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Make the item stand out. A plain white background is always good

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Use a pen or ruler to show scale.

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Don’t set the resolution of your camera too high or it will be slow to load. People are impatient and will click away rather than wait seconds for a picture file to up load.

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Point out any damage or flaws in the item. It’s always better to be honest and upfront.

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If you have a website, or are going to be selling online on a regular basis. Consider investing in a light box and tripod.

A little extra time spent producing a good picture will enhance your chances of selling your product. People will make a judgement about the picture. If they can see you have taken the time to create a nice and clean looking picture they will know you are a serious and professional seller. Someone who takes time over the taking of a picture will be just as professional in other aspects of their business. So don’t skimp on the pictures.

Busy Week

It’s been a busy week on EBay and my website, sales have been going well. I’m especially pleased with the ever growing sales from my website. My SEO is paying off. I’m constantly working at promoting my site using classic SEO strategies and they are working, I’m seeing more and more regular visitors and what’s even better is that they are buying. The real beauty of having your own site is that when you make a sale you get to keep all the profits, no feebay to take a chunk of it.

In the long term having your own site is what you should be aiming for. You can use eBay to drive traffic to it. When I make a sale on eBay I can then contact the customer and give them details of my site. This is when the real promotion begins. With each sale I get the full details of the customer. These details are logged in a database which I can use to send monthly offers to.

This growing list of customers is a gold mine. It doesn’t take long to build a large list up. You can soon get the lists into the thousands and then begin marketing to them monthly. Think about it, if you have a list for arguments sake of 1000 customers and you mail them some offers, if 5% take it up that’s 50 sales instantly.

By examining the customer’s buying habits you can target specific products to them. You already have the priceless advantage that the customer already knows you and trusts you. It’s a well known fact in marketing that it is easier to sell to a past customer than a new one. The list you can build through eBay and your website is valuable to your future success. It will, when it is big enough become a source of regular monthly income and should be guarded.

When I make a sale on eBay it is just the beginning. I then seek to lead the customer to my website with the aim of getting them to use it regularly. It takes time and eBay is essential to the development of a young site. It can be done without eBay but you can promote it much faster by selling on eBay.

It’s a common strategy used by businesses. Many even sell items at cost price just so they can get the name on their list which they will up sell to later. It’s not a strategy I would use. I always price to achieve my margin once all eBay’s fees have been deducted.

I’m going to be spending some time over the next few days adding some new products and ensuring the prices are right on products already listed. You should ensure you factor in all the costs associated with selling on eBay not forgetting PayPal costs before setting your price. I’ve read a few cases of sellers discovering after months of selling that they have not been making a profit because they did not factor in all the fees. Don’t let this happen to you. Until next time….

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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