February 14, 2008
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If you think eBay is just about bobblehead dolls and Pez dispensers, think again. While $2.2 billion worth of goods in collectibles were sold on eBay in 2004, antiques and collectibles ranked only No. 6 among eBay’s sales categories. The five highest were: automobiles and auto supplies ($11.1 billion); consumer electronics ($3-5 billion); computers ($3.0 billion); clothes and accessories ($2.9 billion); and books, movies and music ($2.4 billion).
Real people are making big bucks on eBay–and thousands have even reached PowerSeller status by maintaining at least $1,000 per month in sales for three consecutive months. Case in point: Angle Cash, 37, a stay-at-home mom who started selling on eBay nearly six years ago because it was “something I could do and watch the kids at the same time.” Today, her Kennesaw, Georgia, company, Cashco1000 Inc. (www. cashco1000.com), sells thousands of home-decoration and other items each month on eBay and expects to break $500,000 in sales on eBay this year.
Even owners of existing businesses have found success on eBay by using it as an adjunct to their brick-and-mortar operations. Dan Morphy, 33, runs the Adamstown Antique Gallery (www. aagal.com), a 10,000-square-foot antiques mall in Denver, Pennsylvania. After a few successful eBay auctions, he started offering the antiques vendors who rent space in his gallery the opportunity to sell five items a month on eBay, at no charge other than out-of-pocket expenses. Within two years, Morphy not only had a full gallery of dealers, but was also listing 700 pieces a month and had exceeded $2.5 million in eBay sales.
If you dream of building your own eBay business, it’s easier than you think. We’ve distilled what you need to know into five basic steps.
Step 1: Register Your Business
Getting set up as an eBay seller is a simple process that takes just a few minutes. You’ll be required to provide your name, address, e-mail and phone number, as well as a credit card number and your checking account information. This information is used to confirm your identity–which protects the integrity of eBay’s operation–and to collect auction fees.
Since every eBay business is a retail business, you should also register your business with federal, state and local tax authorities and consider forming a corporation or an LLC to protect you against legal liability. (For more legal issues you should know about before you start, go to www. entrepreneur.com/ebay/legaltips.)
Most eBay sellers are also encouraged to open an account with PayPal, an online payment service owned by eBay that enables buyers to pay you by credit card or by debiting their checking accounts, without you having to obtain merchant card accounts.
Step 2: Find Stuff to Sell
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SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective.
The aim of any SWOT analysis is to identify the key internal and external factors that are important to achieving the objective. SWOT analysis groups key pieces of information into two main categories:
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Internal factors - The strengths and weaknesses internal to the organization.
External factors - The opportunities and threats presented by the external environment.
The internal factors may be viewed as strengths or weaknesses depending upon their impact on the organizations objectives. What may represent strengths with respect to one objective may be weaknesses for another objective. The factors may include all of the 4Ps; as well as personnel, finance, manufacturing capabilities, and so on. The external factors may include macroeconomic matters, technological change, legislation, and socio-cultural changes, as well as changes in the marketplace or competitive position. The results are often presented in the form of a matrix.
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A new research report claims that 30 countries around the world now have a greater number of mobile phone subscriptions than the size of their population.
The study from Informa Telecoms and Media, a provider of business intelligence and strategic marketing solutions, says that countries including Hong Kong, Kuwait and the Czech Republic have a mobile phone penetration rate of over 100%, while in some markets such as Sweden, the United Kingdom and Italy the penetration rate is over 110%.
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This reflects a trend for many users to buy second or third subscriptions.