| Since they began in 1995 Online Auctions have | | | | account; |
| changed and are changing the way we shop and | | | | 6. A Valid eMail Address; |
| already are having a huge impact on consumer | | | | Once you have registered with the online auctions |
| shopping habits and the work at home opportunity, | | | | site or sites of your choice, you can begin to sell any |
| by effectively creating a massive virtual marketplace | | | | product you want at a profit. Registration and the |
| where millions of people gather to buy, sell and trade | | | | beginning of a successful business can normally be |
| the hot items of the day. | | | | accomplished within 24/48 hours with: |
| As a business, Online Auctions are probably the only | | | | ⢠No Need for Capital - it costs about $0.30 |
| opportunity that allows everyone the chance to play | | | | to list an auction and the listing fee is normally billed |
| on a level playing field. Everyone involved in online | | | | monthly; |
| auctions and eBay has the same opportunity to | | | | ⢠No overhead or upfront costs; |
| reach and sell to literally millions of people - whether | | | | ⢠No Need for Sales Staff or Distributors; |
| they are just looking to make a few extra bucks a | | | | ⢠No Need for a Website; |
| week as pocket money; hope to develop a thriving | | | | ⢠No Need for Business Premises; |
| and profitable work at home business and earn | | | | ⢠No initial investment required; |
| valuable part-time or full-time income; whether they | | | | ⢠No need to ship products yourself if you |
| are a working Mom making a modest income; or a | | | | use established, professional drop-shippers; |
| big Company with lots of inventory to sell. | | | | ⢠Millions of captive online auctions buying |
| A Conventional Business needs a fair amount of both | | | | customers; |
| Capital and Time to be established and organised | | | | The Strategic Advantages of this business model are |
| before you can really start trading profitably. And if | | | | clear and beyond dispute: |
| you were planning to manufacture your own product | | | | 1. No Time Constraint - Bids can be placed at any |
| - then depending on your product design and | | | | time, 24/7, seven days a week and l65 days a year. |
| manufacturing cycle - there can be a big time lag | | | | Items can be listed for up to 10 days at the |
| before your products are delivered to the buyers | | | | discretion of the seller, thus giving purchasers |
| and consumers and turned into sales and revenues. | | | | adequate time to search, decide and bid. This |
| In order to start-up and run any conventional | | | | convenience increases the number of bidders; |
| business, there are certain minimum requirements | | | | 2. No Geographical Constraints - Buyers and Sellers |
| which must be met before you can open shop and | | | | can participate from anywhere in the world that has |
| start trading including but not limited to: | | | | access to the Internet. This makes the auctions |
| ⢠Capital or Equity; | | | | more accessible, reduces the cost of "attending" an |
| ⢠You - including your managerial and | | | | auction, increases the number of listed items/sellers |
| organisational skills; | | | | and the number of bids/bidders for each item. Also |
| ⢠Time - weeks or months or even years of | | | | there is no need to ship items to a central location, |
| advance preparation; | | | | reducing costs and the seller's minimum acceptable |
| ⢠Business Strategy and Plan; | | | | price; |
| ⢠Financial Plan and Short-term to Mid-term | | | | 3. No Language Barriers - Buyers and Sellers can |
| Budget; | | | | participate from anywhere in the world that has |
| ⢠Marketing Strategy; | | | | access to the Internet and in their own language. |
| ⢠Business Premises including Location and | | | | 4. Intensity of Social Interactions - The social |
| Layout; | | | | interactions involved in the bidding process are very |
| ⢠Manufacturing Premises if you plan to | | | | high as the bidders wait in anticipation hoping to "win" |
| manufacture your own products; | | | | and many bidders bid primarily to "play the game" |
| ⢠Equipment - Office and Manufacturing; | | | | rather than to obtain the and product; |
| ⢠Personnel; | | | | 5. Large Number of Bidders - Online auction sites |
| ⢠An Inventory of Products to sell - either | | | | attract a large amount of traffic making them an |
| manufactured by you or purchased from a supplier; | | | | ideal place to capitalise on readily available, |
| ⢠A Reasonable Advertising Budget; | | | | widespread exposure for your product and/or |
| ⢠Banking Facilities; | | | | company. Because of the potential for obtaining |
| ⢠Trading Licences and Certificate of | | | | highly valued items at a relatively low price, the broad |
| Incorporation; | | | | range of products and services available, the ease of |
| ⢠Customers; | | | | access and the social benefits of the auction process, |
| ⢠Other Requirements depending on your | | | | there are usually a large number of bidders; |
| country and place of business; | | | | 6. Large Number of Sellers - Because of the large |
| But as an Online Auction Seller or Auctioneer there | | | | number of bidders, the potential for a relatively high |
| are really only 6 easy to meet requirements: | | | | price, reduced selling costs and ease of access, there |
| 1. Registration with the online auction house or eBay. | | | | are usually a large number of sellers; |
| It's Free! | | | | 7. Network Economies of Scale - The larger number |
| 2. A Little Computer Knowledge; | | | | of bidders encourages more sellers which, in turn, will |
| 3. A Computer or Access to a Computer; | | | | encourage more bidders, which will encourage more |
| 4. A Good AD; | | | | sellers etc. in a virtual spiral. |
| 5. A Valid Credit Card - for setting up your seller's | | | | |