A new business. Advice Needed

[Harris-Electronics]

Hey Guys,

My name is Charlie I just turned 18 and I recently set up a small business on Ebay selling electronics that I have imported from China. My first listing has only been active for two days but I still haven't managed to sell anything, I have sold on eBay before but not on this scale. Here is a link to my listing:

Item Number : 110557732254

http: //cgi.ebay .co.uk/ws/eBayISAPI.dll?ViewItem&item=110557732254&ssPageName=STRK:MESELX:IT

In my opinion the listing is very professional even when compared to eBay power sellers who pages often look cluttered.

Im basically looking for advice and constructive criticism (If people are willing to give it)

Charlie

 

[Vision]

Hey charlie

Have you checked the prices other people are selling these for on ebay and also have you done a search for completed items to see if these cables are actually selling and if so how much for?

Good luck

Mark

 

[Harris-Electronics]

I have Mark, yes they are selling the average price is around 1.99 but some people sell for up to 3.50 but that is mostly people with featured listings.

I have just noticed someone has started watching my listing...

The main problem with eBay is the fact you have to use papyal and both ebay and paypal rob sellers at any point possible; my ebay and paypal fees combined work out at around 38p per sale! Its one of my biggest overheads. If it wasn't so expensive I would be able to drop my asking price reduce profits but most likely sell more.

Charlie

 

[AndyP]

OK, firstly you are new to eBay with only a small number of feedbacks albeit that they are positive.....your sales due to customer confidence will increase as your feedback increases. Secondly, you are in a highy competitive and famously tricky (read dodgy) market area. Customers or potential customers will treat sellers in these markets with a degree of suspicion, certainly until you have a proven rack record. The listing itself, well, there is nothing particularly wrong with it...but, honestly, it's pretty dull. yes, it's professional to a degree but it isn't about to set the world on fire or win any design awards...it's all a bit "so what" really. That said, it isn't bad and it certainly won't be stopping people actually bidding and buying. Basically you need to keep chiselling away....two days is nothing. Give it time. But, do bear in mind the market in which you have chosen to operate. Your age is irrelevent so I am not sure why you chose to mention it.

 

[eog]

You will find it very hard to make money selling low priced items like this on eBay. The main reason for this is that ALOT of high value item sellers will sell items like this at a loss, as part of there selling strategy on ebay.

Main reasons for this would be for diluting feedback or bringing them over the minimum 3 month sales target to get evaluated based on 3 months of sales rather than 12 months.

You cannot compete with someone selling at a loss.

 

[Harris-Electronics]

Thanks for the feedback AndyP, I shall take that into account from my next listing. Eog, I can imagine why sellers would sell low cost items at a loss? As the average market price for these cables is around 1.99 with some sellers going as low as 95p for the lower quality cables, When importing them in bulk it is possible to get them for as low as 4 pence a piece.

C

 

[eog]

i doubt 4p a piece would include delivery from china. Regardless, you will find that the sellers selling this at a loss won't buy in massive quantities. The will buy a few hundred of a number of differant products at a higher wholesale price.

I will give you an example why these sellers will sell at a loss.

A seller sells high value goods, £200 - £1000. He sells approx 50 of these items turning over £25k with profit of about £5k.

This seller on average receives 1 feedback with low DSRs a month. This would put the seller well over the 1% threshold and gets demoted in search leading to the seller only selling 10 of these items, with a profit of £1k over the month, if lucky.

Sellers as part of his strategy sells 400 low value items a month, with an average loss £0.75 per item, or a total of £300, which if done properly, will dilute the low dsrs and keeps there profit at £4.7k

Small price to pay to keep sales up!

 

[Harris-Electronics]

I understand what you saying, What really annoys me is the fact I am doing everything above the book; yet there are hundreds of sellers selling fake earphones/headphones etc making a tidy profit and getting away with it!

Charlie

 

[Billmccallum]

http://cgi.ebay.co.uk/USB-Data-Sync..._MobilePhoneDataCables_JN&hash=item439fe63e58

Same product for only 99p, when buying cables most people will take the low cost option.

 

[MH1]

Your returns policy would stop many people ever buying from you, you will have to abide with the law, so why not make it a feature?

 

[Harris-Electronics]

Well I managed to sell two cables tonight, so I must be doing something right. MH1 What exactly is Ilegal about my returns policy could you please elaborate.

Thanks

Charlie