Archive for February, 2009
Introduction to Drop Shipping
Your market research has probably helped you select a product or category of products that you would like to specialize in. The next question is how will you go about obtaining products to resell?
One place you may want to check is the wholesale area of eBay itself. Items can sometimes be bought wholesale on eBay and then resold.
An even simpler solution is drop shipping. Drop shipping is basically selling items you don’t own. Suppliers will ship merchandise directly to your customers. You don’t have to have space for inventory or spend time packaging and shipping products. Your profit is the difference between the wholesale price plus the cost of shipping and any listing fees.
Some companies advertise themselves as drop shipping companies, but they are really middlemen. They don’t actually have any products in stock themselves. They are making their profits from membership fees or handling fees. This is why market research is so important. If you sign up with a drop shipping company that is really a middleman, you will find that they are selling you items at the same price they are being sold at on eBay or Amazon. You will make little or no profit from this type of company.
Working directly with a manufacturer will allow you to get the best price and make the best profit. The question is how do you go about finding manufacturers that will work directly with a small business, such as the one that you own? There are quite a few manufacturers that will drop ship for you, but finding them may not be easy.
The most highly recommended way to obtain sources for drop shipping is through a company called WorldWide Brands. They are not actually a supplier, but they maintain a list of wholesale sources that agree to work with small business owners and eBay sellers. They charge a one-time fee for lifetime access to their database. Once you are a member, you will have access to over 7,000 wholesale suppliers for your business.
Learn more about WorldWide Brands at http://worldwidebrands.com/.
What Should You Sell On eBay
For most new eBay sellers, the first question that comes to mind is “What should I sell?” quickly followed by “Where can I get items to resell?”
Just about any item you can think of is being sold on eBay, from jewelry to clothing to electronic items to computer software to collectibles to toys. How do you choose what you should sell?
For any type of home business, the best thing to focus on is something that you are knowledgeable about or something you are passionate about. Some people will know instantly what that is; for others there may be more of a struggle and a sense of confusion as to what direction to take.
It’s helpful to know what the market potential is for any particular item you may be interested in selling. Spend a good amount of time on market research. Watch trends in what types of items are selling and for how much. What are customers actually searching for and what are they buying?
eBay offers quite a few selling tools that can be very helpful in your research efforts. From eBay’s home page click on “Site Map” on the top right hand corner. Under Selling Resources, click “Seller Central”. To find out what’s in demand, click “What’s Hot”.
Also be sure to review the Hot Items. Here’s how:
- From Seller Central, click “Resources”.
- Under “Seller News”, click Hot Lists by Category.
eBay also offers “Marketplace Research” under Advanced Selling Tools, also from the Seller Central Resources.
Once you have narrowed down what category or what item you may want to sell, spend some time reviewing completed auctions to see how much of a market there is. Under search options, click the box that says “completed listings.” This will show you which items actually sold and for how much.
These are some suggestions as to how to find out what people want. Once you know what you want to sell, the next step is to decide the best way to obtain your inventory.
“I want it that way” by the Backstreet Boys is parodied by the excellent Weird Al Yankovic “Ebay” song - synched to the videoclip. I must admit Ebay is very much the way he describes it in the song. Don’t take it too seriously; just enjoy! btw I actually love ‘Star Wars’. Honours #5 - Most Discussed (All Time) - Australia #3 - Most Discussed (All Time) - Music - Australia #1 - Most Viewed (All Time) - Australia #1 - Most Viewed (All Time) - Music - Australia #1 - Top Favorites (All Time) - Australia #70 - Top Favorites (All Time) #1 - Top Favorites (All Time) - Music - Australia #53 - Top Favorites (All Time) - Music #22 - Top Rated (All Time) - Australia #14 - Top Rated (All Time) - Music - Australia #22 - Most Linked (All Time) - Australia #6 - Most Linked (All Time) - Music - Australia
Duration : 0:3:28
Should You Open An eBay Store
Should you open an eBay store? There are a lot of advantages to opening an eBay store, and if you are serious about using eBay as a vehicle to eventually quit your day job, opening an eBay store is one of the steps you should probably take to help you achieve your goals more quickly.
For one thing, an eBay store allows you additional exposure to your listings. According to eBay, within three months after opening a store, store sellers typically see an increase of 25% in sales. If you have a large number of listings, you will see a dramatic reduction in listing fees.
You will definitely save time by opening your own store. More tasks can be automated with an eBay store. For example, if you have been listing a lot of items individually, having an eBay store will save you time, because store inventory can be set to last for longer periods of time, such as 30, 60, 90 or 120 days, or “good until cancelled.” There is also automatic renewal of unsold items. You can also automate asking for feedback and keeping track of your orders.
Having an eBay store will allow you to have more exposure both on and off eBay. You will have your own web address (URL), so you can establish a web presence and drive traffic to your URL. You can actually establish a relationship with repeat customers by having a store newsletter. By using this tool, you will be able to remind your best customers what items you have available, what items are newly added or on sale.
To open an eBay store, you need a seller’s account and a feedback rating of at least 20. You must be ID verified or have a PayPal account. For anyone who is serious about making a full-time living on eBay, opening an eBay store should seriously be considered. A good rule of thumb is if you’re selling at least 20 items a month, an eBay store will increase your profits and save you time. It will definitely help you grow your business.
Telecommuting Myths
If you are interested in telecommuting, you may have heard some of the following statements, which are completely false. Here are some telecommuting myths you may have heard:
There are nothing but scams available. Finding a telecommuting job is probably harder than finding a day job, but it can be done. It’s true that you may have to screen through a lot of scams to find a telecommuting job, but that doesn’t mean there are no legitimate opportunities available. You should never have to pay for a job. Use freelance bidding sites to get started, or network with others who telecommute.
By working at home, you won’t have to work as many hours and you won’t have to work as hard. Chances are, you will have to work just as many hours as you did when you worked outside the home and maybe more. You will have to be self-motivating, organized and disciplined. You may find yourself working a lot harder, just because of having to deal with distractions and demands for attention from family that you didn’t have to deal with in an office.
You will be able to make a full-time income right away. The potential to make better money than you made at a full-time job is there, but it will take time. There are a lot of lessons to learn when you begin to work at home, including how to balance your time, and how to line up enough work to have a steady income.
You won’t be able to make this work. This statement is often made by someone who is afraid to take this kind of risk, and is trying to discourage you before you get started. The truth is a lot of people succeed as telecommuters. There is no reason you can’t succeed too. All you need is persistence, determination and faith in yourself.
Getting Jobs on Bidding Sites
How do you improve your chances of getting jobs on bidding sites? Usually you’re competing against several other freelancers, some of whom may have more experience and more testimonials. Keep in mind that freelancers with a great deal of experience are probably going to place high bids. On the low end of the scale will be people from third world countries, who often don’t speak English as their native language. The new freelancer will probably fit somewhere in between these two extremes.
Write the best profile you can and make sure it doesn’t have spelling or grammatical errors. Spend some time reading the profiles of successful freelancers to get ideas on what to emphasize. You could even hire one of the very successful freelancers to help you write your profile. Be sure to include a variety of samples of your work for potential buyers to read.
For ideas on how much to bid, watch what other freelancers are bidding. Some ghostwriters post their rates on their own websites. Some bidding sites allow you to see what other people are bidding, like http://www.rent-a-ghostwriter.com. Even on sites where bidding is sealed, there is often a way to see the range of bids.
Top Freelance Bidding Sites
If you want to get started working as a freelancer, the best place to start is with freelance bidding sites. These sites are usually free to register. Each site then has different requirements, often with different levels of membership. Depending on the site, a fee might be charged to the buyer or the service provider or both. Choose a membership level, build a profile and start bidding on jobs.
Bidding sites are a great way to begin to develop a portfolio. They allow a new freelancer to gain valuable experience as well as testimonials to the quality of their work. Projects are usually posted daily, so they offer a great opportunity for a new service provider to find work. There is also some protection for new service providers in the sense that buyers pay up front for projects and the bidding site holds the money in an escrow account. This takes away the fear of not getting paid for projects you complete.
There are several bidding sites to choose from. Take your time exploring the sites and evaluating what membership options there are. These are the top freelance bidding sites:
- http://www.elance.com is one of the largest bidding sites and offers quite a few new job postings every day. Opportunities are available in programming, design, writing, engineering, administrative support, sales and marketing.
- http://www.getafreelancer.com offers opportunities in programming, web design, copywriting and technical writing.
- http://www.rentacoder.com is a great source of opportunity for software coders. There are also opportunities for graphic designers, writers and virtual assistants.
- http://www.guru.com has opportunities in web and graphic design, writing, programming, sales and telemarketing, engineering, finance and accounting and administrative support.
- http://www.ifreelance.com is one of the lower priced bidding sites and does not charge commission on the money you earn. Opportunities are available for writers, photographers, artists and programmers.
Check out these bidding sites and start bidding on jobs. To improve your chances of getting jobs on these sites, read my next post.
Great Chance to Win a Flip Mino HD
Ryan McLean from Smarter Wealth is giving away a brand new Flip Mino HD to one lucky reader. This will be the easiest Flip Mino HD to win because barely anyone is going to enter meaning more chances that you can win.
The Flip Mino HD is the coolest gadget around. You can shoot one hour of video in HD (so you can play it on your plasma) and you can even edit your footage right on your device. This device is so small that it will fit in your pocket so you will never miss capturing a moment ever again.
To enter all you have to do is sign up for Ryan’s newsletter and post about the competition.
Check out all the details of how you can enter the Win a Flip Mino HD competition now.
Advantages and Disadvantages of Freelancing
For those seeking work at home opportunities, what most people are really looking for is freedom. Freedom from time clocks, nerve-wracking commutes, performance reviews, asking permission to go to the restroom, etc.
One path to freedom is working as a freelancer. Freelancing means contracting a particular skill or service, often on a per project basis. You are contracted to do a particular job, but you are not employed by the person who contracts you. Some of the skills that are offered on a freelance basis are writing, photography, graphic design, editing and computer programming.
Some of the advantages of freelancing include:
- Variety of projects and people you work for. When a project is complete, you have no obligation to continue working for a particular company. You can work for more than one company or client.
- Control over what your time is worth. At a regular job, your income is limited to what your employer thinks you are worth. As a freelancer, you charge what you feel your services are worth, and you can adjust your bids at any time.
- Scheduling freedom. If you are a night person, you have the freedom to do the bulk of your work at 10 p.m. or later. Likewise, you can work at 5 a.m. if you’re most alert in the morning, and you can take the afternoon off to do errands or spend time with your kids.
The disadvantages of freelancing include:
- Lack of steady income. There is something to be said for knowing where your next paycheck is coming from. In the freelancing world, until you have established yourself with several steady clients, there is an absence of a steady paycheck.
- Time required finding jobs. For a freelancer, part of your business plan has to include spending part of your work day marketing yourself and looking for more work.
- Income taxes. Being self-employed means being responsible for your own record-keeping and income taxes. If you are single, you also need to worry about health insurance and retirement planning.
If you believe the advantages outweigh the disadvantages, learn more about freelance bidding sites in my next post.