The Business of eBay

(WWEB)  Ebay is without a doubt a phenomenom that has changed the way people buy and sell online.  More than an online classified ad page or an online garage sale - today people are buying and selling new and used items ranging from clothing to office supplies to cars.

There are a growing number of people who make their living selling on Ebay and the proliferation of electronic books promising to teach us their secrets abound.

I've researched about a dozen of these.  Some are nothing more than a basic tutorial on how to use Ebay and a laundry list of wholesalers.  You can find this information for free and so easily that I don't see the added value in paying for it.

However, I found one that I thought contained some solid information - not only about Ebay, but on the steps you'll need to take to set up a credible business - from registering a business name to setting up a home office, how to choose what sorts of products to sell and how to find and talk to suppliers.

I contacted the author Janiece Smith, of Express Profits Online and conducted an interview via email.  Here is the transcript:

(Womanly Web) What was the turning point for you in deciding to try working from home?

(Janiece Smith) I had a one-year-old son––and another on the way––and I was working at a job that required me to commute 2 hours to and from work. I didn’t want someone else raising my sons and to miss all of the big moments in their lives. It was hard decision because I had a very good paying job, but I knew my family was worth the change I had to make.

(WW) What research on other home-based businesses have you done? Did you try any of them? If so, why didn’t they work for you?

(JS) Most of the research I have conducted on other home-based businesses involved actually testing them out. There are just too many to elaborate on each, but I’ve tried everything from MLM, home parties, day-trading, and an investment in becoming a liquidation broker, which turned out to be my greatest loss.

I think the biggest reason none of these businesses succeeded was that, no matter how much time and work someone puts into it, the business concepts (and big money) relied on you trying to get other people to work as hard as you. This just isn’t going to happen. Even though it sounds great, someone else doing all the work and you raking in the cash, it is always best to get paid for your own hard work and efforts. That is why I think my eBay and consulting businesses have seen so much success.

(WW) Can you share a little bit about the course you took for being a liquidation stock broker and why it didn’t work?

(JS) I invested nearly $7,000 to be trained on “how to be a liquidation broker.” I feel the training I got was adequate, but the overall picture was not. Yes, there is a huge market for liquidation products; yes, there are certain ways of obtaining these products and working with these large companies. However, finding the “retail” stores that will work with you, which don’t already have a liquidation broker they deal with, was not properly portrayed in the training.

(WW) What made you decide to try E-Bay? Had you bought or sold anything on E-Bay in the past as an “amateur”?

(JS) I loved eBay! The funny thing is I never really thought about starting an eBay business. The biggest reason I never thought about it was that my concept of eBay included people selling things they didn’t need or use around the house (more like a garage sale). I never realized the huge possibilities it could offer me as a work-from-home mom.

It wasn’t until I was actually in the liquidation business and finding tons of great products, but not finding anything to do with them as far as retailers, that I came up with my idea. If I can get my hands on all of these great products, why couldn’t I sell them on eBay? So, I started my research and the results I came up with proved that I could definitely start and run a successful eBay business using the techniques I had learned through my liquidation business.

(WW) How long did it take you to start realizing a return on your investments?

(JS) Almost immediately! That is the wonderful thing about eBay. You list your products and, if you are listing the right products, the right way, it only takes a matter of days before you’re making your money back on your investment.

(WW) What are some of the “typical” mistakes you’ve seen people makein trying to make a living from selling on E-Bay?

(JS) The two biggest mistakes are––

1. Trying to sell non-name brand merchandise. I’ve had some customers who really have a hard time with this concept. I try to emphasize this in my materials.

As an eBay seller you need to capitalize on eBay’s large mass of current and new coming customers. You don’t want your listings to get lost in the mix. It is important that you sell merchandise that is highly searched for by ‘name’ and most often people are searching by brand name.

For example, I had a customer who made and sold jewelry for a hobby and wanted to do it full time using eBay. The jewelry was beautiful, something I definitely would have bought. BUT, because the jewelry is a not brand name, I recommended that, if anything, she sold it alongside some brand name merchandise. She will get hits/visitors from people looking at her brand name merchandise and then will get them also to see her jewelry at the same time.

2. Not doing their research. It is important that, even when selling name brand merchandise, you do your research. You have to know if the product is selling, what price it is selling for, what conversions the sellers are getting, and much more. When you’re looking for these products to resell, the research helps you to know what price you have to obtain the product for and whether you can make a good profit doing so.

(WW) How much capital do people need to follow the plan laid out in your book and/or to get suppliers to take them seriously?

(JS) Product capital will vary depending on personal situations. I’ve had customers start off with $200 and I’ve had some start off with $5,000. If you have limited funds, you might have to start off selling something different than what you had hoped. For example, if you want to sell electronics, you have higher minimum requirements. So, you might have to start off with apparel until you build up enough capital to sell electronics.

(WW) If someone only had a modest amount of start up capital (say a hundred dollars), could she still start up a business and make a decent profit on E-Bay with your book?

(JS) Yes, you can start up a business with a modest amount of capital. The biggest thing to remember is that your product investment is going to reflect your monthly income. So, even if you have to start small, you just need to remember that you will need to take the profits you make and roll them over. This will enable you to keep increasing your monthly investment until you’ve reached an overall monthly investment that brings you in the monthly income you desire.

(WW) How long after your business was up and running did you write your book? Besides as another income stream, why did you write your book?

(JS) I guess it was probably just at two years… I wrote my book because I always had people emailing me (who saw my auctions) asking for my advise. I thought if I wrote a book and sold it through my about me page I would bring in some good side income. WOW… I didn’t realize how many people would actually want MY help?. It was very exciting; I just love helping people with their eBay businesses!

(WW) You also offer an advanced home study course that builds on the information in the book and promises to give thousands of tips and tricks to help people find a shortcut to success. Aren’t you afraid that some people might think the book is not so much an information guide as an infomercial for this course?

(JS) No, I’m not afraid. But, yes, this does happen. This is why I offer a 100% money back guarantee. I know I can’t write a book that will help everyone. And some people may not like the fact that I also offer my consultation services on top of the book (which are only available through my Home Study Course). I don’t want anyone to keep the book that isn’t going to benefit from it alone. But, I can say I have had hundreds of customers buy my book, and only my book. I have testimonials from customers who read my book and used it to build successful eBay businesses, some of which are new eBayers and others veteran eBayers.

(WW) The business start up information in your book as well as the supplier information that you provide in your advanced course are naturally US-based. What sort of benefits can people living outside North America get from your book and course?

(JS) The book and course are written toward those in the United States, so some of the information contained will not apply. However, I have several international customers and students of my course who have found the information to be pretty much all they needed to get started. You’ll find most of the differences in the actual “business set-up” process (i.e., licenses, checking accounts, etc.).

(WW) We counsel people to dig deep before trying or buying courses or e-books. What proof can you offer that you actually do make a living selling on E-Bay?

(JS) I no longer sell on eBay, but I have feedback that shows that I have sold as a power seller and in high volume. Because of the overwhelming response to my e-Book, for almost a year now, I have worked solely on my e-Book and course and helping others start their eBay businesses.

(WW) What advice would you give to someone who isn’t very computer savvy, has never visited E-Bay but is looking to either supplement their income or replace it entirely by working from home?

(JS) Hmmm... This is tough. Although I have worked with some people who knew nothing about their computer, you’re definitely at an advantage if you can at least work email, navigate the Internet, and have a basic understanding of some programs. But, this doesn’t mean it is out of the question if you don’t know.

One thing I learned through personal experience is practice makes perfect (or close to it?). I’ve taught myself how to use most of the programs I use through trial and error. The longer you use it, the better you get. So, I guess my advise would be to start tinkering around with your computer––don’t worry you cannot hurt it––and, before you know it, you’ll be an expert.

(WW) Robert Kiyosaki, author of “Rich Dad, Poor Dad” defines a business as something you could walk away from for months, come back to and it would still be ticking over. Otherwise, he says, a person is self-employed rather than the owner of a business.

Based on this, would you define yourself as being a business owner or self-employed? If you are self-employed, do you plan on changing your business down the road?

(JS) I am self-employed. This was my goal. Instead of being employed by someone else and working hours required by someone else, I am making those decisions on my own.

If I have an event with one of my sons’ schools, a doctors appointment, an extra day or week off around the holidays, or I just want the day to myself to go shopping, I don’t have to answer to anyone but me. I like it how it is, so for now, I don’t have any plans on changing it.

For more information on Janiece's book and/or her home study course, visit her Express Profits Online web site.

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