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Understanding Your Investment
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Every marketing strategy and effort you make to improve your eBay business will have two associated costs: time and money. This is your investment. Look over your list of goals and the tasks associated to reach those goals. Whether it is additional eBay fees incurred for extra services, expenses associated with promotions, or costs involved in printed branding materials, just about any marketing effort you make comes with a price tag. Every effort you make also requires an investment of your time. Activities such as crafting persuasive item descriptions, writing a newsletter, or adding personalized touches to customer correspondence might not cost anything in dollars, but it does require that you spend extra time (or your employees time, which you pay for, so it has an associated financial cost, too).
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Understanding Your Return
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Every marketing strategy and effort you make to improve your business will also have two associated outcomes: time and money. This is your return. Take, for example, eBay s Selling Manager Pro. This service costs $15.99 a month, but it has great potential to save you time managing listings, automating correspondence, and generating sales reports. And the time that you gain from this investment has a correlated monetary return, as you now have extra time to spend doing more profitable activities. Investments of time, such as
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writing great item descriptions, have the financial payoff of persuading buyers to bid higher or buy more, thus increasing your profit margins. The key is to test and measure every strategy you implement. This is where it s helpful to have a timeline of tasks and activities. When you stagger your efforts into smaller steps, it s much easier to judge each step s effectiveness. Understand the investment of time and money involved in each effort and then compare those costs to the benefits they generate. It should be noted, however, that ROI calculation is really just an estimate. It is difficult to make the results of these examinations totally quantifiable. Perhaps you ll see a 50 percent profit increase after implementing one strategy or another, but there may be external factors associated with the increase. The increase could also be prompted by seasonal sales peaks, a new demand for or scarcity of what you sell, and other factors outside of the individual strategy you ve implemented. This is definitely more art than science. It s a bit like the story of The Three Bears sometimes it will be too hot and sometimes too cold, and other times it will feel just right (that s when you know you ve uncovered a winning strategy). Large eBay sellers with the resources and bodies to throw at ROI analysis will be able to identify trends and returns more specifically. They can afford to test, test, and retest over long periods of time in much the same way advertisers and advertising agencies do. For example, companies with large transactional databases and business analysis software can slice and dice their sales data by time periods, product categories, seasonality, actual sales, and other factors. They re much more likely to connect a specific marketing activity to a specific bump (or decline) in sales. Small- to medium-sized eBay businesses with large amounts of data can identify these types of trends over time without using fancy software. Some sellers get a feel for what works and what doesn t, but they re really just responding to actual observations of testing over time. It s called experience.
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A Few Tips on Time Management
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Developing a new marketing strategy takes time. So you need to get a handle on how you spend it. Here are a few tips for effective time management: Prioritize your activities. Make a daily To Do list and highlight those tasks that are essential to complete. Create routines. Set specific times for certain tasks that recur daily, such as shipping, customer communication, and item listings and management.
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Find ways to save time. Find and use the services in your Seller s Toolbox that can help you cut corners without compromising quality. Delegate tasks. If you have employees, use them to their fullest. If you work alone, remember that while it s nice to run the show, you don t have to perform every act. Do-it-yourself works only when you enjoy doing the task at hand. Hire a designer if creating your own graphic identity isn t your cup of tea. Open a UPS account if you hate schlepping packages to the post office every day. Beware of time bandits personal phone calls, net surfing, chat rooms, computer games. These distractions are fun, but they seriously eat into money-making time. Schedule downtime into your day. Give yourself a little time to enjoy a few of those time bandits as a guilty pleasure. If necessary, set an egg timer to help limit your downtime, and then get back to work!
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