Question
Hey everyone, I'm a relatively new member here and am just starting out in the auction business. My partner and I have listed items at a few alternative sites, but we know that there is only one site right now that can generate sales... eBay ofcourse.
We deal in Consumer Electronics, and we don't know how to compete. We go to ebay to compare prices, and there are people selling there below wholesale. Now, I know for a fact that distributors have made their way to eBay (if common sense wasn't enough, one has told me already). How am I suppose to compete with these people? We want to sell brand new items, not used or refurbished, but how are we suppose to go about things? I know it's possible to get sales with relatively high prices, as I've seen some people sell much above wholesale, and have a POWERSELLER status (indicating they sell quite a bit). The problem is, we don't have a powerseller status. We don't have one single feedback yet and don't know how to get our footing. How can we draw in sellers without having the lowest prices or good feedback? Is it impossible? I would hope not, but maybe we just got in on the eBay game too late. Before the wholesalers got there it might have been easier to get feedback, which you could use to your benefit once they arrived. Since they're already there in full swing, are we out of luck? Kiss our ebay mission goodbye?
If anyone has any suggestions, or is having similar problems as we are, please post. I know that if this was just regular store fronts it would be about good marketing. But there is so little one can do to market their product on eBay. Unless of course you're willing to spend 30 bucks or whatever it is to be featured, but then how are you suppose to turn a profit? Anyways, I would love to hear what others have to say. Best of luck to you all and talk to you soon!
Answer
This problem exists across most categories on eBay. Unless you have a unique product that almost no one else is selling, these are the problems you will face. Many buyers will shop by price alone.
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I don't have a problem competing, or didn't before I was suspended by eBay for an offense I did not commit.
The only way I can see to survive on eBay is to nurture a dedicated core of repeat buyers. Unfortunately for you, you've chosen consumer electronics, an area where buyers go for the low-low-lowest price. Unless you can do something to distinguish yourself from the pack and add value to the base product, you're hosed.
For competing on price you are five years too late.
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If I told you, I'd have to kill you.
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Niche.
Choose a peripheral product in your area of selling -- one that does not have as many listed -- something a bit odd. Perhaps a hard to get part? Or some sort of add-on item? Build your reputation with absolutely superb CUSTOMER SERVICE.
Then, when you see that you've reached a point where you do have customers who trust you, start adding the other products.
A key problem in selling on eBay is that they are the only ones who get any marketing statistics. The seller has absolutely no way to measure results in their product area overall. In standard marketing research, a manufacturer, or service provider, can commission an independent, anonymously run survey of a sample of the customer base for all the brands. They can then see where they need to improve their management of their product. If you can't measure it, you can't manage it. Surveys before entering a market have saved some of my former clients millions in China.
Yeah, now there's one that's been batted around a lot -- research. I seem to recall somebody trying to offer that once upon a time. A good base for it would have been a strong seller's organization. Probably PESA could get it but again, that only benefits the big guys. Just like the rest of the commercial world.
Roundabout, I strongly suggest you to write yourself a business plan with a budget and a timeline. Before you spend any money at eBay.
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Everyone, thanks for your thoughts. What many of you said is what I've feared, but I'm sure it's true.
Kaitlin, we will look into selling niche products as much as we can. We'll somehow have to set ourselves outside of the pack, I just don't know how. I've seen it done before though, that's the thing. I've seen sellers say for literally double wholesale! Thank you so much for your help, it's given me a lot to think over, and I really appreciate your detailed response.
Anyways, we'll just keep working at it and see where we get. Thanks a lot for the responses everyone. If anyone else has anything to say, suggestions/comments are more than welcome.
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Originally Posted by Roundabout
I know that if this was just regular store fronts it would be about good marketing.
It's always about marketing. Doesn't matter what your venue is. If you guys haven't taken some marketing classes, you really should.
But there is so little one can do to market their product on eBay.
It might seem that way, but there's actually quite a bit you can do, and without spending money on extra fees.
Look, no one had all the answers handed to them. Everyone had to feel their way, going into this business. And we're all still doing exactly that. No one has a sure-fire cash machine in their eBay business.
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Originally Posted by fluffythewondercat1
No one has a sure-fire cash machine in their eBay business.
THAT'S IT. There's what I need to find. Betcha those will sell.
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Not asking for a cash machine. I just want to know, really, if it's possible for someone in MY position to do such. I'm mostly worried about our timing in entering the market. I know noone's going to give me all their answers and secrets, but if anyone could point us down the right path that'd be nice. I'll take your word, fluffythewondercat1,that it can be done, I guses it just takes more research. Thanks for the tips.
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So how much money are you looking to make?