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CHAPTER 7: Diversify Your Business Presence
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Tired of what he saw as insufficient profits for too much work from his eBay sales operations, and fed up with eBay customers returning items or demanding refunds for what he saw as trivial reasons, David shut down his store temporarily. At this writing, he was operating a sign-making business out of the same space. Let s honestly look at an eBay drop-off store, he explains. People come in and you spend hours going through their stuff trying to research and find out what is going to sell and what isn t. Then you spend 15 to 45 minutes writing the auction up, taking photos, and listing the sale. Then, you have to answer e-mails from potential bidders, edit the sale, and try to get the winner to pay you. Next, you have to make sure the payment isn t fraudulent, or wait for the personal check to clear. Next, you have to pack up the item (this is harder than it sounds with all the different-shaped items and how fragile some items are). Then you have to hope the item isn t damaged or lost in shipment. Ten percent of the time you have to fight with the winner because the outside of the shipping box was damaged, the item is okay, but still you owe me a partial refund . . . , or there is a small scratch which wasn t shown in the pictures, I want a refund or I will leave you negative feedback . . . and on and on and on. Finally you have to write a check out to the person who dropped off the items. Of course, one or two or three weeks later you might see a chargeback by PayPal or your merchant account and then have to spend more time proving that you shipped the item, your customer received it, and everything is as it was supposed to be. David isn t giving up on eBay, but he admits he is tired of it. And with the flexibility of a true entrepreneur, he s used eBay to launch himself into a new career. I will certainly start doing eBay again, he says. However, it won t be for a while and I will only do items that are extremely profitable.
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FIGURE 7-8 This successful businessperson took a risk and opened a brick-and-mortar drop-off store to supplement his eBay sales.
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All of the hard work has good payoffs and moments of great joy and surprise. When asked about the most memorable thing they ever sold, for instance, both Amy and Ellen mention the tin truck with the logo of the Wrigley s company, a chewing gum manufacturer that has become a famous institution in Chicago. A man brought in a toy truck with the Wrigley s logo, explains Amy. We couldn t find anything else like it on eBay. We had no idea whether or not it would sell. Today, because we have a $50 minimum requirement, I wonder if we would have taken it in the first place. But because we had just opened, we decided to give it a try. The owner decided to pay a little extra for a reserve price. It ended up selling for $5,400. The buyer drove here from Missouri to pick it up in person, and paid in cash! Now, every time we get a box of things someone has to sell, I always look through it carefully and think, What is the Wrigley truck in this box
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CHAPTER 7: Diversify Your Business Presence
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When you build up your inventory, consider selling in more than one place on eBay. Sellers like David Hardin split up their merchandise into two or more User IDs. Don t let the older fixed-price eBay Store items crowd out or overshadow the newer items you have up for auction. At the very least, include a New Arrivals box in your eBay Store to highlight the latest items. Once you have become an experienced eBay seller, you can sell your knowledge by helping others sell, or providing instruction for would-be sellers. A brick-and-mortar store offers new challenges for sellers when it comes to licensing, rent, and employees. But it provides new opportunities to find business and to sell big items like vehicles. Make sure you pick a good location for your business and that you put the time and money into marketing to spread the word in your local area. Rather than starting up your own drop-off store from scratch, consider joining a franchise that can help you with startup costs and branding. If you sell for others, strongly consider putting a disclaimer in your sales descriptions absolving you of liability for problems related to merchandise you sold for someone else.
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