Monday, March 27, 2006

How to make money on ebay

That's the question that everyone seems to be asking lately. How to make money on ebay. Well, this article will hopefully answer that question for you. I will tell you how to find hot selling items for you to trade and some of my tips for you to make as much money as you can on ebay.

The first thing to do is to find out what the hottest selling items on ebay are. There are a few steps to take when doing this. Sit down with a pen and paper and write down a list of all the products you think would be good sellers. Write down as many as you like but I would suggest at least twenty. The more you have then the more chance there is of finding a really hot seller. When you have your list, you should go to ebay and search to see how many people are selling the items on your list and how much feedback they have. Do this for every item on your list and see which ones are being sold by the most sellers, then take a look and see if the sellers have got a lot of feedback as this would indicate that they have sold a lot of items. As you are searching for the hot sellers on ebay, you should be noticing which items are getting bids. If an item has a lot of bids then it shows that people are interested in it.

Narrow down the list to about five items. With your five products, do a search on ebay for each one but this time tick the completed listings box on the left hand side and this will show exactly how many of each item has sold and for how much. By now you should have a very good idea of which items are hot sellers on ebay. If you are unsure just research into this deeper and for longer until you are sure.

Now that you have a good selling product. You should look into getting yourself some inventory. There are many wholesalers and drop shippers on the net, simply search google until you find one that you are happy with and that can supply you with the product you need to sell to make money on ebay.

When you have your stock you should understand that it's not just as easy as getting items and putting them up for auction. You have to promote your auctions with every chance you get. Here are a few tips to help you make money on ebay.

Write articles on a topic relevant to your items. Write good quality information and submit it to article directories. Doing this should drive targeted visitors to your auctions as you can include a link to them in your resource box. However, you should write good quality articles and offer people good advice with every article you submit.

List a few lower priced, but also good selling, items as this will bring in visitors to your higher priced auctions on ebay. If you link to your items through the lower priced auctions you should get some extra visitors.

When you are just starting out selling on ebay, you should list quite a lot of items as you will want to build your feedback up and try to get power seller status. When you have a good amount of feedback you will see an increase in sales and when you become a power seller you should see another increase in sales.

Start a free blog . In your blog you can record your progress and give readers good information. This will help you in a few ways as recording your progress will help you keep track of how well you are doing, posting good, original information to your blog will result in more visitors from the search engines and you can link to your auctions from your blog therefore generating visitors to your ebay auctions and hopefully sales.

Friday, November 04, 2005

What Is Drop Shipping?

People have been distributing products since before the first mastodon skinner traded a fur coat for a flint axe.

Here’s how it works.

Let’s say ABC Manufacturers makes a product called Mom’s Ankle Wax. We’ll say that Mom’s Ankle Wax has been around for years. It’s a very well known brand name product. It will without a doubt give you the shiniest ankles on your block, and everybody wants some.

ABC Manufacturers makes Mom’s Ankle Wax, but they don’t sell it directly to the public. They’re a manufacturing operation. They’re far too busy melting paraffin and waxing test ankles to go around building stores all over the place. They need distributors; companies who will take their product and distribute it to the places that will sell it.

For years, ABC Manufacturers has sold Mom’s Ankle Wax to a company called DEF Distributors. The founder of DEF Distributors knew Mom herself, back in the old days when she made her Ankle Wax by hand, out in the turkey barn.

Today, DEF Distributors buys Mom’s Ankle Wax by the truckload. They pay $5.00 a case for it, which is a very good price. It’s such a good price, it has it’s own name: the Manufacturer’s Wholesale Price.

However, DEF Distributors does not sell it to the general public either. They are a distributor. They distribute Mom’s Ankle Wax.

DEF Distributors works with a chain of retail stores called Wax R Us. This place was founded by a retail business visionary who saw the incredible potential of Mom’s Ankle Wax a long time ago. Today there are Wax R Us retail stores on every street corner in every major city in the country. Wax R Us buys truckloads of Mom’s Ankle Wax from DEF Distributors for $10.00 a case.

So, DEF Distributors makes $5.00 on every case of Mom’s Ankle Wax they sell to Wax R Us retail stores. This makes DEF Distributors very happy.

Cases and cases of Mom’s Ankle Wax arrive in the stockrooms of Wax R Us stores everywhere. The Wax R Us employees open those cases, and pull 12 cans of Mom’s Ankle Wax out of each case. With their pricing guns, they stick a price of $4.50 on each and every can.

Wax R Us stores make a total of $44.00 on each case of Mom’s Ankle Wax. (12 cans x 4.50 per can = 54.00, minus the 10.00 they paid for the case = 44.00).

Wax R Us is even happier than DEF Distributors.

However, the happiest people of all are the people who can stroll into Wax R Us and purchase a can of Mom’s Ankle Wax for only $4.50. They think this is a great price, and they’re walking around with the shiniest ankles in town.

Well, that’s it…basic product distribution. The manufacturer sells to the distributor, the distributor sells to the retailer, and the retailer sells to the end user (the customer). The manufacturer, the distributor and the retailer all make money because the customer is willing to spend money for the product.

Drop Shipping has been around for a long time, too. Probably as long as mail order catalogs; maybe longer. If you want to use a buzzword to impress a corporate type, call it “second party addressing”.

Above, we talked about the manufacturer-distributor-retailer relationship. When you use drop shipping to sell products on the Internet, (or anywhere else), YOU become the RETAILER in that relationship.

It should be noted here, if only to keep the Punctuation Police happy, that if you use the method of drop shipping in your business, YOU are not the “drop shipper”. The company(s) who supply the products to your customers for you is the drop shipper. YOU become a “Stockless Retailer”.

Here’s how drop shipping works.

1.) You open an Internet Store, with a shopping cart and the ability to accept credit cards.

2.) You find a distributor who is willing to drop ship the products you want to sell. The best place on the Internet for this is www.WorldwideBrands.com. This is our website, and our Drop Ship Source Directory and Light Bulk Wholesale Directory are recognized as the best sources for legitimate Wholesale Suppliers on the Internet.

3.) You establish an account as a retailer with the Wholesale Supplier you choose.

4.) You receive images and descriptions of the products you want to sell from the Wholesale Supplier and post them on your Internet Store.

5.) A customer surfs into your Internet Store, and falls in love with a product that you have priced at, say, $80. They purchase the item with their credit card. Your Store charges their credit card $80 plus your shipping fee.

6.) You turn around and email the order to your Wholesale Supplier, along with the customer’s name and address.

7.) The Wholesale Supplier sends the product directly to your customer, with YOUR Store’s name on the package.

8.) The Wholesale Supplier charges you the wholesale price of, say, $45.00, plus shipping.

9.) Your customer gets a cool product from your store shipped to their door, and they tell all their friends about you, and you make even more money.

There you have it. You just made a $35.00 profit on one item. You didn’t have to buy a whole bunch of the product and keep it in your warehouse, hoping you would sell it. You didn’t have to pay to have it shipped to you, and then pay to ship it to your customer. All you did was send an email to your Wholesale Supplier.

That’s the drop shipping process in a nutshell!


Chris Malta
Worldwide Brands, Inc.
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