Hi all,
I have a client who is self employed. His website his showing well in search engines. He gets around 170 unique visitors per day. Bouncing rate, time on website is good etc etc...
The problem is that he doesn't get many leads. He is down 54% compared to last years sales.
He is advertising on craigslist to get more leads. He is thinking on starting on eBay and is asking me for advices. I have never used eBay, not even personally. From the research I did, I read that it is better to go through a re-seller with a high reputation on eBay and give him/her commission.
Have any of you some experience with eBay?
Any help would be appreciated.
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Ebay For Businesses
Started by
Julien
, Oct 03 2008 11:42 AM
8 replies to this topic
#2
Randy
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Convert Me!
Posted 03 October 2008 - 12:41 PM
By "leads" do you mean conversions? Or are you referring to traffic being down 54%.
Chances are his site is probably simply being adversely affected by the economic downturn. Many, many sites have had revenue falls because people just don't have as much extra cash. Or if they have extra cash they're not spending it and are squirreling it away for whatever is going to happen in the next 6-12 months.
That said, his site may just not be doing a very good job of closing or converting those potential customers he's getting. If his traffic is about the same but conversions have fallen it might be something to look into. Though that said I do have a couple of sites where traffic is pretty steady but sales volume is down around 15-20%, which I chalk up to the economy.
As far as eBay goes, yes there are places that will take on products by consignment. But it really depends upon what he's selling. Some things just aren't very compatible with the eBay format. Others are compatible, but there's already so much competition because the product isn't very unique you'd end up practically giving it away. It can be pretty cutthroat in some markets.
Have you or the client searched on eBay to see if anyone else is selling something similar?
One thing to remember about eBay is that there is a real dollars and cents cost associated with every item you list there. And other costs associated with each item sold. You have to take those costs into account or they'll eat right through your profit margins.
Chances are his site is probably simply being adversely affected by the economic downturn. Many, many sites have had revenue falls because people just don't have as much extra cash. Or if they have extra cash they're not spending it and are squirreling it away for whatever is going to happen in the next 6-12 months.
That said, his site may just not be doing a very good job of closing or converting those potential customers he's getting. If his traffic is about the same but conversions have fallen it might be something to look into. Though that said I do have a couple of sites where traffic is pretty steady but sales volume is down around 15-20%, which I chalk up to the economy.
As far as eBay goes, yes there are places that will take on products by consignment. But it really depends upon what he's selling. Some things just aren't very compatible with the eBay format. Others are compatible, but there's already so much competition because the product isn't very unique you'd end up practically giving it away. It can be pretty cutthroat in some markets.
Have you or the client searched on eBay to see if anyone else is selling something similar?
One thing to remember about eBay is that there is a real dollars and cents cost associated with every item you list there. And other costs associated with each item sold. You have to take those costs into account or they'll eat right through your profit margins.
#3
Julien
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HR 2
Posted 03 October 2008 - 01:26 PM
Hi Randy,
Thanks for your answer. You are always a great help to everyone on this forum.
To answer your question: His traffic is steady if not increasing slowly. His sales are down 54%. I also told him that right now is not a very good time, especially with the bailout going on. (his market is Canada but he also sells quite a bit in the states). The website hasn't change since last year expect starting a blog. I don't think the website itself is the reason of the drop.
eBay: he is selling sofa beds. It's not a very common item. I checked and there are some there but not exactly competition. His are higher quality and higher price.
I didn't know about the costs of listing items and selling items. Are those relative to the price of your product? (like a 5% cost) or is it a flat rate? Considering his products are over $600, I think he would much rather have a flat rate
Do you happen to know any other sites?
Thanks again for your answer. I appreciate it.
Thanks for your answer. You are always a great help to everyone on this forum.
To answer your question: His traffic is steady if not increasing slowly. His sales are down 54%. I also told him that right now is not a very good time, especially with the bailout going on. (his market is Canada but he also sells quite a bit in the states). The website hasn't change since last year expect starting a blog. I don't think the website itself is the reason of the drop.
eBay: he is selling sofa beds. It's not a very common item. I checked and there are some there but not exactly competition. His are higher quality and higher price.
I didn't know about the costs of listing items and selling items. Are those relative to the price of your product? (like a 5% cost) or is it a flat rate? Considering his products are over $600, I think he would much rather have a flat rate
Do you happen to know any other sites?
Thanks again for your answer. I appreciate it.
#4
Randy
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Convert Me!
Posted 03 October 2008 - 02:51 PM
It's been too long since I used it as a seller for me to give you a correct answer on the eBay charges and whether they're flat fee or percentage. Back when I dabbled in it a bit there was a Listing Fee for each auction item that I think was a flat fee. Then when an item sold eBay took a percentage (or possible a combination of flat and percentage) plus Paypal got a piece of the action to process the money.
They should have all of that laid out in their documents somewhere, but I haven't looked in ages. All I know is they've sent me a statement every month for like 2 years telling me they owe me $1.39 or something silly like that.
I don't have a clue how I ended up overpaying them, but at least the do send me a statement every month.
As far as other places, there are lots of 'em. But which would be best probably depends upon a lot of factors. Places like Overstock.com get a ton of traffic because of all of the advertising they do, but I believe they're pretty strict on the pricing side of things. Meaning they're not going to agree to take something at full retail price.
It sounds like you're looking for Shopping Comparison sites. Off the top of my head some of the bigger ones in that line are pricegrabber.com, nextag.com and bizrate.com. There are a ton of these also.
They should have all of that laid out in their documents somewhere, but I haven't looked in ages. All I know is they've sent me a statement every month for like 2 years telling me they owe me $1.39 or something silly like that.
I don't have a clue how I ended up overpaying them, but at least the do send me a statement every month.As far as other places, there are lots of 'em. But which would be best probably depends upon a lot of factors. Places like Overstock.com get a ton of traffic because of all of the advertising they do, but I believe they're pretty strict on the pricing side of things. Meaning they're not going to agree to take something at full retail price.
It sounds like you're looking for Shopping Comparison sites. Off the top of my head some of the bigger ones in that line are pricegrabber.com, nextag.com and bizrate.com. There are a ton of these also.
#5
Julien
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HR 2
Posted 03 October 2008 - 03:59 PM
Hi Randy,
The "help" page or tips for new users definitely needs some improvement.
Anyway, just in case you are curious: pages.ebay.ca/help/sell/fees.html
I don't think eBay is going to work well for my client as you are not allowed to list multiple products or even put your website url there.
Anyway, thanks again for your help and I will have a look at the other websites you listed above.
The "help" page or tips for new users definitely needs some improvement.
Anyway, just in case you are curious: pages.ebay.ca/help/sell/fees.html
I don't think eBay is going to work well for my client as you are not allowed to list multiple products or even put your website url there.
Anyway, thanks again for your help and I will have a look at the other websites you listed above.
#6
rolf
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HR 6
- Location:Suffolk UK
Posted 04 October 2008 - 05:19 AM
QUOTE
I don't think eBay is going to work well for my client as you are not allowed to list multiple products or even put your website url there.
You can list multiple items in one listing, and you can list the same item across several listings as long as you don't go to spam levels with it, but you're right that can't put your URL in the listing - completely daft IMHO, but it's not up to me
#7
nethy
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HR 6
Posted 04 October 2008 - 08:50 PM
Hi,
I'd like to jump in & say that ebay is a whole other can of worms. It's a world in itself. If I was a an e retailer myself, I would definitely want to have an understanding of the dynamics of it. I would also like to have a core ebay presence that would let me keep my ear to the ground while learning. For that reason I'd favour multiple strategies (DIY & listing via a reseller). Why? My reasoning is:
A. It's another channel. A potentially profitable one. It is a similar decision to deciding to take a brick & mortar business online in the first place. A potential to reach a different market.
B. Ebay doesn't have search engines at the bottom of the stack. Most ecommerce sites are very 'Google dependant'. It's almost like having a cafe that is relies on a certain line of tour buses stopping at a particular place. It can be great business, but you need to diversify to be safe. The first step is introducing SEO if you rely too much on PPC or the other way around. Then adding in all sorts of contextual ads, banners/sponsorships, shopping engines, etc. etc. Another (important one) is building up your returning customer base. But very often Google is at the bottom of the stack. Even your returning customers are likely to be SE referrals to start. It's a great ambition to get a stream of viral & referral traffic that doesn't rely on SEs. But that's not as easy as it sounds. Ebay is an large, independent channel.
I'd like to jump in & say that ebay is a whole other can of worms. It's a world in itself. If I was a an e retailer myself, I would definitely want to have an understanding of the dynamics of it. I would also like to have a core ebay presence that would let me keep my ear to the ground while learning. For that reason I'd favour multiple strategies (DIY & listing via a reseller). Why? My reasoning is:
A. It's another channel. A potentially profitable one. It is a similar decision to deciding to take a brick & mortar business online in the first place. A potential to reach a different market.
B. Ebay doesn't have search engines at the bottom of the stack. Most ecommerce sites are very 'Google dependant'. It's almost like having a cafe that is relies on a certain line of tour buses stopping at a particular place. It can be great business, but you need to diversify to be safe. The first step is introducing SEO if you rely too much on PPC or the other way around. Then adding in all sorts of contextual ads, banners/sponsorships, shopping engines, etc. etc. Another (important one) is building up your returning customer base. But very often Google is at the bottom of the stack. Even your returning customers are likely to be SE referrals to start. It's a great ambition to get a stream of viral & referral traffic that doesn't rely on SEs. But that's not as easy as it sounds. Ebay is an large, independent channel.
#8
Julien
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HR 2
Posted 07 October 2008 - 01:17 PM
QUOTE(rolf @ Oct 4 2008, 03:19 AM) 
You can list multiple items in one listing, and you can list the same item across several listings as long as you don't go to spam levels with it, but you're right that can't put your URL in the listing - completely daft IMHO, but it's not up to me
It specifically says in the "rules" that you cannot and if people flag you, it could be deleted. The only time you are allowed to list multiple product if is the product has different variation of colors, material etc...
QUOTE(nethy @ Oct 4 2008, 06:50 PM)
Hi,
I'd like to jump in & say that ebay is a whole other can of worms. It's a world in itself. If I was a an e retailer myself, I would definitely want to have an understanding of the dynamics of it. I would also like to have a core ebay presence that would let me keep my ear to the ground while learning. For that reason I'd favour multiple strategies (DIY & listing via a reseller). Why? My reasoning is:
A. It's another channel. A potentially profitable one. It is a similar decision to deciding to take a brick & mortar business online in the first place. A potential to reach a different market.
B. Ebay doesn't have search engines at the bottom of the stack. Most ecommerce sites are very 'Google dependant'. It's almost like having a cafe that is relies on a certain line of tour buses stopping at a particular place. It can be great business, but you need to diversify to be safe. The first step is introducing SEO if you rely too much on PPC or the other way around. Then adding in all sorts of contextual ads, banners/sponsorships, shopping engines, etc. etc. Another (important one) is building up your returning customer base. But very often Google is at the bottom of the stack. Even your returning customers are likely to be SE referrals to start. It's a great ambition to get a stream of viral & referral traffic that doesn't rely on SEs. But that's not as easy as it sounds. Ebay is an large, independent channel.
I'd like to jump in & say that ebay is a whole other can of worms. It's a world in itself. If I was a an e retailer myself, I would definitely want to have an understanding of the dynamics of it. I would also like to have a core ebay presence that would let me keep my ear to the ground while learning. For that reason I'd favour multiple strategies (DIY & listing via a reseller). Why? My reasoning is:
A. It's another channel. A potentially profitable one. It is a similar decision to deciding to take a brick & mortar business online in the first place. A potential to reach a different market.
B. Ebay doesn't have search engines at the bottom of the stack. Most ecommerce sites are very 'Google dependant'. It's almost like having a cafe that is relies on a certain line of tour buses stopping at a particular place. It can be great business, but you need to diversify to be safe. The first step is introducing SEO if you rely too much on PPC or the other way around. Then adding in all sorts of contextual ads, banners/sponsorships, shopping engines, etc. etc. Another (important one) is building up your returning customer base. But very often Google is at the bottom of the stack. Even your returning customers are likely to be SE referrals to start. It's a great ambition to get a stream of viral & referral traffic that doesn't rely on SEs. But that's not as easy as it sounds. Ebay is an large, independent channel.
Thanks for the feedback. I definitely think eBay is worth giving it a try, especially in the current economy when leads are going down because people are getting scared. (bail out, real estate market crisis etc...)
Right now I am looking into finding a reseller but it's not that easy. You seem to know eBay, do you think it makes a big difference to put the listing yourself or go through a reseller?
Do you have any tips on how to find a good reliable reseller?
#9
phoenix212
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Posted 01 December 2008 - 06:53 PM
In my opinion, it'll all depend on ehat his product/service is. Ebay can be fantastic in some aspects, but can abolutely suck balls (pardon my language) for other things. in some markets, there is just too much competition on Ebay unless you can sell your product/servcie at a whole lot less than everyone els.e
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