A year in review and whats to come.

January 18, 2010
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Last year at this time, I was listing things on Milbid, and generally just plodding along learning how to blog and market my listings.  It was slow going has some sales and I was moving along at the snails pace I had set for myself.

I had a simple plan when I started.  I was going to slowly list things to sell online, build up my reputation so when my daughter went to school full time in a few years I would be in a better position to work at sales full-time.

About this time last year I also discovered twitter, which then opened an entire new world for me as far as ecommerce is concern and where my business is headed.  Talk about opportunities changing ones plans. I found a great group of people via podcasts and groups showing me all the great ways to move my business forward.

An entire ecommerce world opened up to me, Amazon and Ebay, the giants and the up and coming Bonanzle.  I learned how to list better, what keywords, and attribute were, to make my listing more effective.   How to research items to see what would sell.

I knew that list it and they will buy is a thing of the past, which is part of the reason I had left eBay in 5/08 but also learned that allowing an emotional reaction to rule my business was not effective.

April brought the ECTMA conference in Atlanta, I did not physically attend but listened to all the live broadcasts and followed along on twitter, Tweeting out things that I felt would be relevent to others, some on twitter even thought I was actually there.

In June, I got over myself and went back to listing some things on eBay and I did well, my items sold.  I also opened a booth over at Bonanzle and have been slowly working on it.  It built my confidence that I could actually do this and make some money.

Every time I started making some headway real life would intrude and I would have to slow down for a bit and deal with it, but I discovered if one perseveres you can easily get back on track.

I missed the entire Christmas selling season due to one such glitch but it has given me the time to figure out what I really want and what i need to do to keep moving forward. I have closed my eBay store as it was not cost effective for me.

2010 is going to be huge growth year for me and my various ventures.

I still list and sell on eBay and Amazon and Bonanzle but will be moving full speed ahead with all those venues, getting more books listed on Amazon and running auctions on eBay frequently to move my stock out.  The largest change for me will be on Bonanzle, I am still going to list my one of a kind items and kids clothing, but I also have entered into a licensing agreement with a small manufacturer to provide me with a stable product line, retailing their products.  That should start early February 2010.

The other new venture I have started is I am now working for U.S. Challenge Coins as the operator of there various ecommerce venues including eBay, Amazon and Bonanzle.  I look forward to assisting the companies growth via marketing on the different venues.

I have made some great friends over the last year and some wonderful mentors that I would like to thank here:

Auction Wally – without following him first on twitter I would never have met the rest, he has also provided excellent information via his various podcasts such as Brainstorming Bonanzle where they accepted my input even though I did not sell there, the Selling Circus for great variety and of course his AuctionWally show.

Dave White – for presenting all sorts of information on his ebayandbeyond basics to business podcast, that one show introduced me to the much wider world of ecommerce and allowed me to interact with a great group of people.

John Lawson – his colderICE blog and and B.S walks when money talks show, was always fresh content and helped me learn to cut through the B.S that is provided as information on the internet.  He also told me I could stop calling myself a “newbie” because I wasn’t that anymore and made me realize I knew more than I thought I did.  He Barack 2.0 group was also a wonderful growth experience.

Phaedra Stockstill- for always being there and helping me talk myself out of the corners I talk myself into, she knows just the questions to ask to make me figure things out for myself and for all the help with my Booth and giving me a job on the BonanzleBoardroom to keep me out of trouble.

Marlene Gavins - The Savvy Seller, for all your great informational shows and your friendship, I enjoyed meeting you in Boston and I value your advice and opinions whenever I have a question.

Beth Cherkowsky- for always having Google talk open and being an ear when I am frustrated and great suggestions when I am stuck, also for asking me to join OBS so I can continue to learn from those that have done it longer and all have very different businesses.

Susan Leak and Kat Barton- my twitter buddies, we have lots of fun conversations, plus if I need to know about music or vinyl I know Renagades will know and Gypsytrading is a great resource for antiques.

Cliff Aliperti (andotherstuff)  and Vince Jelenic (Greenspotting) for all our great late night conversations, the advice I have received from both of you has never steered me wrong and you make me look at things from a different point of view.

Kat (Katskloset) and Mel (galleriagifts) – for your great podcast on The River the Ranch and the Bay, along with Beth you all have taught me a lot in the last year.

Cindy Shebley and Dany Byrne – of websellercircle for their great site, with tons of informative webinars, always being available to answer questions in the forum, and especially for helping me set up my Photo blog, when then enabled me to set this one up.  I have learned so much from them.

Henrietta (redinkdiary) for helping me to learn how to negotiate the pitfalls of selling on multiple venues and taking the time when I was new to Bonanzle to advise me on the best ways to use the site.T

Last but not least my friend Adam from Milbid,  he has been my friend since the beginning of my journey off ebay and has presented many opportunities for me along the way.

There are many, many other people that have helped me along the way but to list them all would turn this from a short story to a novel.

My final musings on all of this is if I can go from a tiny newbie seller on a small alternative site to managing 6 stores on 3 venues in 1 year then anyone can do it.  All it takes is the desire to work hard and learning to listen.  Making connections and networking only works if you are willing to put in the time.  There is no such thing as get rich quick, but you can grow and grow fast in the age of ecommerce on the internet.

By Karen | Posted in ecommerce | Tagged , , , , , | Comments (8)

The pricing game. How do I price my item and not end up broke?

September 10, 2009
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I have noticed lately on forums and blog posts that there has been a lot of discussion about pricing of items.
Some people are asking for pricing strategies for various sites, some on shipping and handling, and some on what to do if the shipping is more than the price of the actual item.

It is a very complex issue and the solution is different for every seller depending on item, marketplace and fees but I figured I would ponder it at bit and throw out my thoughts.

Shipping is a relatively fixed cost unless you live close enough to pick it up yourself, which I have been known to do on occasion.  Buyers hate shipping costs we all know that.  I hate shipping cost too, I hate paying them to get something and paying them to ship something but if you want something to get from here to there somebody has to pay for it.  Should a seller have to pay to make sure you get it, I don’t think so and if they are then they are just inflating the cost of the item to cover it.  No one is going to sell at a loss.  

Big companies handle shipping costs by either offering free shipping on purchase over a certain dollar amount or a flat rate shipping.  In the case of flat rate shipping it all evens out in the wash for them.  Sell 1000 items some will be less expensive to ship and other more.  Plus you know they get volume discounts from the shipping companies. 

There is also the currently popular site to store shipping where you can have your item shipped to your local store.   One of the best benefits of that for that company is you have to come into the store to pick it up and on the way to the back of the store, (where pick up is always located) how many other items do you discover you need and since you are there might as well pick up.  It also adds no greater expense as they just stick it on a truck that was going to that location from the warehouse anyways.

So how does the smaller seller compete?  Some just list actual shipping costs and then pay out of pocket all the packing supplies necessary for shipping the item.  Some add a small handling charge and others add it to the price of their item and offer either “free shipping” or shipping and handling included in price.  When it gets really tricky is when it is a small, heavy or lower priced item and the shipping is more than that actual cost.  Do you up the item price and lower shipping by same amount?  Do you list it with actual shipping?  I don’t know the answer you have to do what works for you. 

I am the type of buyer that is out for the best deal.  I am generally your Walmart shopper.  I know when I am researching items online as a buyer I look at item cost and shipping and if it is a number I can live with I buy.  If not I move on or go the the local store.  The type of buyer you want to attract is as important to your pricing strategy as your items.  I don’t go to Macy’s or rarely even Target.  I want the most volume I can get for my money.  Some shoppers want the best value for their money and others want the best customer service.

Which leads me to pricing on various venues, there seems to be a feeling that if it is cheaper to list on a given marketplace then the items should be cheaper.  Everyone thinks because sellers pay so much in fees at for example eBay that the same items should be cheaper on Ecrater or Bonanzle or BISI or wherever else you sell.  But there are several things to consider.

Ebay has made things available to everyone no matter where they are located and with the number of sellers competing on the platform the bottom has dropped out in a lot of categories.  Sellers that really know the value of their items don’t list them on eBay.  Then you have sellers that don’t realize they have something of value, again experienced buyers purchase the items cheap either for themselves or to resell at a more respectable price.  I equate eBay to the Walmart of the internet, you can find most things you need at the lowest price.  The problem is some of the prices have fallen so low that sellers can no longer use it as a viable selling option.

Then as you move up the ladder you have the newer marketplaces like Bonazle and Ecrater, and many many more.  I equate them to the Target of the internet.  I am not always expecting the lowest price there for a variety of reasons.  First of all to really make a go on any of the younger sites you have to make your own traffic, which requires time marketing your items.  That leaves less time for actually listing items so your volume of available sales is already down.  On these smaller sites because of the lack of listing fees it is less expensive to let items wait for the right buyer to come along.  Same thing a lot of eBay sellers do with their stores pay the small listing fee and set the price they actually want and just leave it.  So how does one price their items fairly and does the price at other venues always have to be less then the giant in the room. 

The final step up the ladder at least with antiques and collectibles are place like GOantiques or Rubylane.  You expect to pay more for your items there as they have build their reputation on the quality of their sellers and items.  Many sellers are doing fine listing on those sites also as they are waiting for the buyer that appreciates fine quality items.  Not your bargain basement shopper.

The funniest thing about all of this, is if you look hard enough you can find some of the same item at all 3 levels of selling platforms.  Is the Coronation jar on GoAntiques any better than the one on eBay probably not but the one on eBay will be cheaper.  I can say that for a fact as I sold one on eBay for 24.95 and have seen the same item on GoAntiques for twice as much but it is the reputation of the venue coming into play.

My opinion is that if you have done your research and an item is worth a certain amount you should price it accordingly and the buyer will find it.  I expect the stuff I get at Walmart or the local to not last very long and is cheap enough to replace.  If I want value for my money I move up the ladder, but if I purchase something of better quality I expect it to last longer.
Sellers need to price their items by the type of buyer they want and find venues that fit that buyer, and at margins that they can still afford to be sellers next year.

So the final question becomes do the newer sites want to be Walmart, Target or Saks.  Only time will tell what type of buyers each site will actually attract.

Let me know your thoughts on pricing and shipping in the comments below.

Catch you all on twitter.

 

By Karen | Posted in ecommerce | Tagged , , , | Comments (4)

Logic or Emotion what drives your business plan?

September 8, 2009
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When you engage in an action are you reacting due to an emotion or acting based on a strategy?  I ask this question because, I read a blog post today by my friend @Auctionwally talking about how politics is getting a little crazy in this country.  The middle ground appears to have disappeared from news media and everywhere else. It seems everyone is reacting to fears and finding facts to fit their feeling both on the left and right.

Which then got me to thinking tonight about how there seems to be a similar issue in the e-commerce world. You have eBay lovers, eBay hater, and eBay users.  Then you have the lovers and haters of all the various and other sites however I do have to say that the strongest emotions tend to come out about Bonanzle it seems to have both the loudest supporters and detractors of all the smaller sites.

So here I sit at my computer tonight contemplating e-commerce and its role in my life and find myself sitting smack dab in the middle of all the controversy.  I have twitter friends and online friends that fall into every category listed above and I can understand the points made by each and everyone of them.  But my thoughts are that for your business you need to rule with your logic center not your emotional one.  Sure a passion for something can drive you forward but can also drive you right into a brick wall.

Bonanzle is an up and coming site, that I can see.  There are a lot of professional sellers there that are busy doing the work required to sell and then there are others.  I myself just started listing there as it does have great potential for growth.  I also committed to being a premier seller on Bonanzle because I feel you need to make a commitment to your plans.  Commitment gives me more information as I move forward in my work there.  Did I do it because someone told me to?  No, did I do it because my friends did? NO. Do I love it, hate it or have any other emotional attachment to it?  again NO it is simply a venue.  Have I met a lot of good people there?  yes.  So I will take what works for me there and build on it.

Now eBay is going through some changes.  Do they have a plan?  I am sure they do.  Does it make sense to all the sellers there?  Probably not.  Are sellers going to be upset no matter what they do?  I would say yes and people hate change whether it is for the good or bad.  Do I love eBay?  No and never have.  Do I hate it? somedays when dealing with illogical buyers that still have all the power.  I am still a small seller with little feedback and one disenchanted buyer can still greatly harm my reputation.   I have also realized you can not please all of the people all of the time and I need to get over it.  Did I just open and eBay store? yes for the same reasons I became a premiere member on it gives me more information to move forward e-commerce my business.

The problem becomes if I am having an I hate eBay day, rather than being acknowledged for my feelings, people tell me, I need to stop listening to my Bonanzle friends as they haven’t sold on eBay and can not give me the best advice on how to use eBay. 
I am not the type of person that changes my spots depending on who I am talking to and I sometimes get irritated that I feel like I have to pick sides. 

There are no sides in business.  You have to take stock of your own situation and make your decisions from there.
Loving Bonanzle and chatting in the forums with all the great people is not going to make you long term sales.  Hating eBay when you need traffic and buyers to get you off the ground is not a way to build your business.  Loving eBay because you have been there for so long and you watch your fees increase and your bottom line dwindle is not going to feed you.  Hating Bonanzle as some people there tend to be vocal is possibly closing a door on a site that has not reached it potential and may take years to do so just as eBay did in the beginning.

Can I say what will happen a year from now or longer with either site?  No my crystal ball is broken.  ebay will survive the latest round of changes it always does and it is a site that works for many.  Bonanzle will continue to grow and evolve and that is a good thing. 

Google’s latest changes may be one of the largest factors for both sites, the changes may either move them both forward or leave them dead in the water.  The one advantage eBay has in this particular drama is they are a household name and get buyers without google shopping whereas Bonanzle sellers rely on that feed to get their items seen.

I was told the other night on @colderICE’s late night Beta show, that I need to stop playing the newbie at e-commerce, so tonight I drop that label and acknowledge that I am a seller who is still gaining experience in the complicated e-commerce world. 

These are my final thoughts:  eBay and it’s auction listings are great for quick cash flow, and inventory turnover if you have inventory that sells there.    If I have something I know will sell in 7 days or even 30 days I will list it there at a reasonable price as the listing fees are justified by the traffic.  If I think something will take a little longer why stuff an eBay store full of merchandise with the higher final value fees and listing fees when another fixed price site will do. 
So for my business both sites have a place in the plan

Now lets see if I have any friends left on either side of the after they read my long winded post.  Everyone has value to me no matter where they sell.

Catch you all later on twitter. :)

By Karen | Posted in eBay, ecommerce | Tagged , , , | Comments (4)