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Secrets of the eBay Millionaires
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FIGURE 3-2 White Mountain Trading Company deals in hard-to-find, unique merchandise, including these fountain pens.
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Seals of Approval: Do They Really Work
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The first thing that appears at the top of each of Drew Friedman s sales descriptions is a logo from a company called buySAFE. buySAFE (http://www.buysafe.com) is one of several organizations that provides a seal of approval for businesspeople who sell online. If you click on the link supplied beneath the buySAFE logo ( Click here to verify ), you go to a page on the buySAFE web site such as the one shown next. The page informs you that transactions from this seller are insured by buySAFE for up to $25,000: if the seller doesn t follow through with the sale and you don t get what was ordered, buySAFE will reimburse the buyer (as long as the buyer lives in the United States and has lived up to his or her part of the bargain).
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CHAPTER 3: Connect with Your Customers
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Should you, as a would-be PowerSeller, try to obtain a seal of approval from buySAFE, SquareTrade (http://www.squaretrade.com), or TRUSTe (http://www.truste.org) for either your eBay sales or your web site The first thing to keep in mind is that buySAFE is different from the other seals mentioned. It specializes in certifying eBay sellers it doesn t provide its protection for web sites. But you don t obtain the seal for free. You have to pay one percent of the price of each item sold. You also have to go through an application process and submit financial information to buySAFE, including your checking account balances and your monthly eBay sales volume. In return, buySAFE provides you with a dispute resolution process, a keyword search program that helps you publicize your eBay sales, reimbursement in case you ship an item and the buyer fails to pay, and the seal of approval which, the company claims, makes it as much as 15 percent more likely that you ll make a sale. (continued)
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The SquareTrade seal program doesn t require as much information, but it isn t free, either. A prepaid year s membership in the program costs $67.50 at this writing. I heard a fair amount of skepticism from PowerSellers, who seemed willing to try the buySAFE seal for a while to see if it really brings them more purchases and higher purchase prices. (At this writing, six months after the original meeting, Drew is still in the buySAFE program, as well as many of the other sellers I profile in this book.) These sellers, after all, have already proved that they are trustworthy by obtaining eBay s own seal of approval in the form of the PowerSeller logo. That s the seal you should try to obtain before you think of adding on third-party logos as well. Still, Drew says of buySAFE: Adding a service like buySAFE allows us to provide an even higher level of purchase protection to our customers while differentiating ourselves from our competition. As a member of the Professional eBay Sellers Alliance (PESA), I was able to utilize the service at half the normal cost, which made it too appealing to refuse. Although anecdotal only for now, our customers seem to appreciate the added touch.
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Instead of Building a $60,000 Web Site, We Bought Inventory
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White Mountain Trading Company does have a web site at http://www .whitemountaintrading.com. But like other PowerSellers, Drew uses his web site to point visitors to his eBay Store. The site contains only the single web page shown in Figure 3-3, and that s by design. My wife Candy and I dedicated $60,000 to the business, Drew explains. Instead of building a $60,000 web site, we bought inventory. I may only have 40 items up for sale at any one time on eBay. But the market value of what I have online is usually in excess of $100,000. Drew also puts money into advertising. In March 2005 we initiated paid search on Overture and Google. He also attends trade shows where pen sellers and collectors congregate. See 6 for more about marketing your business and your eBay sales by purchasing keywords from Overture and Google. Essentially, you tell these services how much you will pay to display an ad with a link to your site in response to a keyword search. For example, if you sell Michel Perchin pens, you would tell Google you might pay, say, 10 cents every time someone clicks on the ad Google displays and goes to your web site. Your web site, then, can direct visitors to your eBay sales.
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