While this blog focuses on starting an eBay business a lot of the principles are the same when starting a business online with Amazon, or through setting up your own online e-commerce website.
The most common question when starting a business like this is… “Well where do I start?“ and there is no real answer to that, because there are a lot of starting points, but what you need to be sure of is that you plan and you plan well, the more planning you do the less mistakes you are likely to make (That isn’t to say that you’ll never have a mistake, because of course you will) So I suppose the next question is what do I plan?
Products & Suppliers
Firstly you need to look at the products you would like to sell, if you are a new business then you want to look at beginning with around ten wholesale products. Some people say that its better if you know about these products for example if you’re selling golf equipment you should know something about golf. While I agree with this statement I don’t always believe its true, as there are non-specialist products out there which people with little or no knowledge of could sell.
If you are looking at selling a specialist item such as computers, electronics, sporting equipment ect be sure that you do even more research into the different types of products available, to ensure that you not only get the products that the market are wanting but you don’t get ripped off in the process.
Once you have you’re product range, be sure to shop around there can be drastic price difference between suppliers, and be sure to haggle & enforce to you’re supplier that if you’re customers like this product you will be coming back to them for more!
The online market, especially eBay becomes more competitive each and everyday, as more and more every day people become business moguls through selling items on eBay.
Being new on the market you are going to have little or no customer feedback, knowledge, or a community in which customers savour their loyalty to you. So you need something different, something that sets you apart from the rest, now this can be one of two things.
Plan a: ensure that you’re prices are at least 10% cheaper than the cheapest within you’re market. If this is on eBay look at the product you are selling search by the lowest price inc postage, and note that price down.
You then need to work out if you’re price was 10% cheaper than that would you still make money.
If this is a yes, continue on plan a.
If this is a no, consider plan b or an alternative product.
You then need to decide at what point you will put you’re prices up, or at least re-consider you’re pricing, this could be set by selling so many of each item, receiving so much customer feedback or by a certain date.
You need to do this as you don’t want to be 10% cheaper than everyone else for any longer than you have to, as you want to maximise you’re profits. The more customer feedback you have then of course the more rights you have as to put you’re prices up as you have been seen to offer a more reliable service to customers, and this is something which many customers are willing to pay for.
Click Here for part 2