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Ron Bratt went to New Orleans in 2004, but not to attend a football game or party on Bourbon Street. He went there looking for a new entrepreneurial business opportunity which he subsequently found at eBay s annual convention, eBay Live. Bratt and his partner, Jeff Shiller, don t have an entrepreneurial or even a business background. They were both trained as real estate lawyers, and Bratt had a position at Catholic University in Washington, D.C. But Bratt came away inspired by eBay and determined to forge a new type of eBay business one that uses innovative new ways to reach shoppers around the world. There was a certain level of excitement being around all those pajama millionaires, he recalls. They all came out of their basements and were there to share their secrets with everyone. At the Toys Round Table, there was so much sharing and collaboration. Flying back from New Orleans, I thought, we should build an eBay in Howard County. eBay is known for having a worldwide reach. After all, as the auction site s representatives continually claim, selling on eBay puts your merchandise before the eyes of more than 40 million members around the globe. But when you re just starting out, you often receive only one bid for the items you sell: you set a starting bid, and someone bids at the last minute. You sell the item for the minimum you wanted, but you wonder where all the bidders are. You wish some of those overseas bidders would start a bidding war over those items you ve spent so much time putting up for sale. Auction Safari has created a new model for gaining instant exposure for new sellers. It boils down to the principle that impressed Ron Bratt in New Orleans: collaboration. Business name Auction Safari Seller name Ron Bratt Web site Sells http://stores.ebay.com/Auction-Safari
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Clothing, DVDs, and other items listed by its brokers
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Bratt and Shiller (shown in Figure 6-1) have started a new form of eBay business, which they call an eBay brokerage a business that s run like a real estate office, where many individual sellers share facilities and are able to work collaboratively while each selling in his or her own sales niche.
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FIGURE 6-1 These former real estate lawyers have started eBay s first sales brokerage.
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First, Bratt and Shiller became PowerSellers in their own right, learning the ins and outs of selling toys and DVDs on eBay, so they could teach others how to do the same. Then, they purchased a warehouse in Columbia, MD and invested in expensive photography equipment. Once they had a physical space, Bratt and Shiller began interviewing potential brokers people who are eager to sell on eBay and want to start a new business, but who need a helping hand. At this writing, as many as 40 brokers share space in the warehouse. They pay a fee to join Auction Safari, but the company helps them find merchandise to sell, instructs them on how to present the merchandise, and provides them with employees who help pack and ship it.
Secrets of the eBay Millionaires
Our business is all about increasing scalability by working through our brokerage, says Ron. You can work out of your home, but you reach a point where there are only so many e-mails you can send and packages you can stuff each day.
There s So Much Learning and Collaboration : Teaming with Experienced Sellers
eBay sellers have always learned from one another. The eBay community is so open that collaboration is part of the culture. So it s natural for beginning sellers to team up with experienced full-time professionals. Some sellers learn from Trading Assistants. Others network at gatherings like eBay Live and eBay University. eBay University is eBay s educational arm. It helps new users learn the basics about buying and selling through three types of instruction: Classroom instruction is provided by certified instructors in cities around the country; online classes are offered that you can take on your home computer; and instructors are available in selected areas around the country to give classes and provide individual instruction. Find out more at the eBay University home page, http://pages.ebay.com/university. Auction Safari has taken the collaboration model to a new level, giving sellers a space where they can photograph and work together, learning from one another and from Auction Safari itself. When they join Auction Safari, they gain space in Auction Safari s eBay Store (see Figure 6-2). They all sell through the store and they use the User ID Auction-Safari. This means that, as soon as they start out, they are instant PowerSellers. This really lowers the overhead that individual sellers have to spend in order to sell on eBay, Bratt explains. We bought some camera equipment, big light boxes, and spent a couple of thousand dollars, but when some of the overhead costs are shared, you can do a lot of great things like that. The company contracted with Marketworks to upgrade their web site, and Marketworks was happy to do the job because they were helping 20 brokers rather than one individual seller. The collaboration also increases our leverage with liquidators, who act as our suppliers. Because we all share the same User ID, we are able to negotiate much better deals. We also share employees who do the picking and packing. Every five Auction Safari businesses have one warehouse picker and packer; that way, you are able to spread around the cost of employees. Unless you live in the Columbia, Maryland area, you can t be a broker with Auction Safari yourself. But there s a lesson you can learn from Auction Safari s example: don t try to do everything yourself. Find an experienced
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