Sunday, October 31, 2010

How to create a successful online business in eBay

One of the most effective ways to build your wealth and become rich is to set up your own online business. With internet connection, you can get started right away with little money and technical expertise. This is because with established online marketplace like eBay, you don't even need to create your own virtual store.

eBay is an electronic platform for users to buy and sell their products at fixed or auctioned price. I used to view it as a website for people to buy and sell unwanted goods only and did not realise its huge business potential from an entrepreneur's perspective.

Why eBay?
Founded in 1995, eBay empowers people to explore business opportunities and enble e-commerce innovation to fluorish. Home-based online business owners can virtually sell any product or services through eBay without having to set up their own websites and hence, allows them to save huge costs, time and resources. The best thing about eBay is, due to its recognised global brand, you would probably have a higher web traffic viewing your listing in eBay as opposed to your own website. Just ask yourself: if you are sourcing a product from overseas, would you visit eBay first or crawl through the search engine? Chances are, your website would be found at page thousandth of the search engine and potential valuable customers would never know you are there.

What product to sell?
The next question after you decided to set up your online empire in eBay is: what product to sell? Well for a start, you can capitalize on the top ten popular items been transacted in eBay. This would give you a good idea on the market's demand. Once you have decided on your product, the next step would be to do some research, especially the start price, listing format and category. This would help you to develop good listing and obtain best price for your item. Also, remember to check out active and completed listings on eBay based on category, format and selling price.

How to source for goods?
But wait a minute, knowing what products in demand is one thing, how do we obtain the goods to sell in the first place? Depending on your strategies, there are several ways to go about it:

1) Source from your friends and family (not advisable because over the long run, this would not be sustainable).
2) Travel to Asian countries to obtain wholesale goods manufactured at low cost. For example, a lot of Singaporeans bought wholesale clothing from Taiwan's Wu Fen Pu and sold them at good profits in eBay.
3) Another option is to buy wholesale from the manufacturer online and sell them in eBay for a tidy profit. However, there is an element of risk that the supplier may not deliver its goods after you made online payment.

How to sell?
Once you obtain your goods and get them listed on eBay for a fee, you are ready to sell your product. Like all businesses, make sure your listings attract customers by optimizing listings for internet search engine (SEO):

1) Using keywords
2) Use important keywords in title
3) Having a good content


In addition, make sure you do lots of analysis using eBay's function, the Dashboard Seller Report. Gauge your performance, review feedbacks from customers and do profiling of the customer's background so as to plan your selling strategies.