eBay PowerSeller & TRS
CEO of SpicyAuctionTemplates.com Contact Me | FAQ
One of the biggest problems for eBay sellers is – how to make a decent profit while everyone is trying to sell products ridiculously cheap? There are sellers making a 5 quid profit on a £200 item. And they call it a viable business model!
There are many Hong Kong based sellers who can offer lower prices because they don’t have to pay VAT (buyers do instead). There are UK sellers who do not pay taxes when importing commercial goods with a low declared value. There are sellers who use eBay only as a lead generation platform by selling stuff at a loss, insuring a back-end profit.
Last but not at least – in the majority of eBay markets there are simply too many sellers automatically driving the prices down (remember the supply & demand!).
The problem is that all those factors are making it much harder for ordinary people to make any profit by selling on eBay.co.uk
BUT only if you don't know how to take advantage of it!
Let’s say you have found a good supplier for video games. You can get the latest PS3 games for £30 each. Now, you go to eBay.co.uk site and have a look at the average price in the market. Wow – there are sellers who sell the same game for only £25! You start wondering – how can I make any profit at all?
BUT take a closer look @ those cheap £25 auctions:
In most cases these will be HK based sellers
Shipping will be very high, around £10 or even higher (to offset the low item's price)
Shipping will be slow
There's a great chance of the game being an Asian version
There's a great chance for customers in European Union to get an extra VAT bill
Now, look at this from the customer's perspective?
Does this offer seams very attractive? What about the following fears:
I can get scammed (let’s face it – if a seller comes from Asia, there's a greater chance of being involved in some kind of fraudsters’ plot)
How long will the delivery take? Sometimes Air Mail can be really slow and take up to 30 days from HK to the UK.
Is it a UK PAL game? Will it play on my PS3?
Are there any additional charges?
Will I receive a proper customer support if problems arise?
Many experienced eBay buyers are aware of these potential problems when dealing with Asian sellers. And there's nothing wrong about it. Yes, in many cases they can offer a better pricing for people who look for bargains. But the important thing to understand for you as a seller is:
You don't have to compete with Asian sellers! Instead, take advantage of it and make customers want to spend more WITH YOU by offering security for their minds!
It doesn't matter which products we're talking about there. The thing is that there are many buyers who prefer spending a little bit more to receive a quick & quality service (that would be me too!).
You can still source those games and sell for £35 – £40 and make on average £5 – £8 profit per item!
Take a look at this example:
As you can clearly see – the actual price (the item + shipping) isn't that much different, but still the UK seller makes at least £5 more profit on the game than his HK based competitor. Sales numbers are almost identical + UK seller gets higher in search results by offering Fast & FREE shipping!
Why sell item cheaper if you can sell it for a higher price? Why?
I hear you say – no one will buy it for a higher price… Wrong! Implement these exact steps and results will truly amaze you:
Get a professional eBay template. It won't cost you a fortune! Of course, it's good if you can spend money on a custom designed template, but even if you're on a short budget, you can create outstanding listings by using SpicyAuctionTemplates.com services, for example.
Create listing that SELLS! If you don't have the necessary experience, just browse eBay and take a look at the listings you like and try to “copy it”. By saying “copy it”, I do not mean “copy the HTML code”! Just copy idea/layout – there's nothing wrong about this approach! If you can't come up with your own ideas, borrow from others who are successful in the market!
Format your listings at the highest standards. Clearly visible and eye-catching headline, description, payment and shipping information can make a huge difference in how your item will sell. Do not use the ‘Comic Sans’ font style and hard to read, pastel colored text. Use Verdana or Arial font, black color on white background. Headline's size should be between 24pt. – 36 pt. Description 10 pt. – 14 pt. (depending on the font style).
LET the buyers know that you're a UK seller! This one is very important! Clearly display a graphical image or at least textual information that you're based in the UK and the item is in the UK with you, in stock.
Do not use stock photos! Take a picture of the product by yourself, preferably including your eBay user ID. Take several pictures for a better presentation.
Offer fast & reasonably priced shipping. Make it stand out from your listing! Don't wait on the buyer to seek that info, give it to them instead! A graphical image will always do a better job than just a plain text.
Offer a guarantee! It won't cost you a cent and a chance to receive a return is very slight but it will make the customer feel much safer. A good choice to go with would be a “14 Days return policy”, meaning the customer can return the items (sealed, un-opened) within 14 days of purchase date. By eBay rules, all Business sellers must offer 14 day returns anyway, so you don't lose anything!
Build confidence by including a feedback box straight into your listing. You have to prove to buyer that you're a trustable person – not the other way around. A feedback embedded into the listing will definitely help build your credibility.
If you follow all these steps, I'm 100% confident you'll be able to sell products above the average eBay's price and make a nice profit along the way! This may seem like a very simple plan but trust me – small things make a big difference!
Andrew Minalto is founder and CEO of the Web's largest auction templates company SpicyAuctionTemplates.com. Andrew runs successful information publishing business as well as an eBay store and an online retail store.
At the age of just 28 he has achieved a phenomenal success in selling both physical and information products online. Hard work and belief in his dreams enabled him to leave a dusty Dublin warehouse to go full-time online.
The recently launched EasyAuctionBusiness.com website is dedicated for all people trying to achieve financial freedom or just to make some extra money by selling on eBay!