| Online auction sites are a great way to find | | | | Disadvantages |
| a bargain on almost anything and an excellent | | | | |
| way of getting the best price for selling | | | | Lack of public information on general sales |
| something of your own. Online auctions are | | | | methods and techniques used. |
| different from their real-world counterparts. | | | | |
| You are free to take your time browsing the | | | | This is not passive income system. You should |
| listings and bidding takes place over a | | | | work all the time you want to run your |
| period of days rather than minutes. Online | | | | business. |
| Auctions offer good opportunity for anyone | | | | |
| wishing to start an online business for a | | | | Common mistakes to avoid |
| number of reasons. If you feel you have the | | | | |
| persistence necessary to run your own | | | | 1. Listing an item with wrong auction |
| successful business, this is one opportunity | | | | expiration time. It's a known fact that more |
| you should consider. | | | | buyers browse auction sites on Sunday |
| | | | evenings than any other time during the week. |
| Basic Idea | | | | |
| | | | 2. Not giving your listing the attention it |
| Your business is to sell playing intermediary | | | | deserves. Lots of people place items without |
| role helping people to buy items they need. | | | | photos and even good description. Lots of |
| You do not need stock as you can start by | | | | people use all kinds of flashing animation, |
| placing drop shipper's items on eBay to get | | | | multicolored text and other bells and |
| you started. Drop shipping is used by | | | | whistles in an attempt to entice bidders. |
| intermediary and mail order companies who do | | | | Listings like these are distracting, hard to |
| not wish to stock inventory of the products | | | | read, and will always discourage people from |
| sold for future delivery through mail order, | | | | bidding, resulting in a lower final sales |
| catalogues and internet advertising. You send | | | | price. |
| single unit orders for products to | | | | |
| manufacturers, or major stocking | | | | 3. Using a reserve price. Using a reserve |
| distributors, who in turn drop ship the | | | | price to guarantee thatone will get a minimum |
| merchandise direct to your customers found at | | | | price for an item. People will not bid on |
| online auction. Manufacturers providing drop | | | | "Reserve" auctions as they don't want to get |
| shipping services can gain additional sales, | | | | "Reserve not yet met" message. |
| shift advertising costs to middlemen, offer | | | | |
| advertising material and reduce inventory | | | | 4. Not planning your business activities. It |
| requirements. You shift the risks of stocking | | | | is always better to create business plan and |
| inventory to the supply source, including | | | | start implementing it. Ebay business requires |
| storage, insurance, overhead, and personnel | | | | procedured to be done everyday so plan it |
| by spending nothing on inventory, until after | | | | thoroughly. |
| the product is sold. | | | | |
| | | | 5. Not selecting several good drop shippers. |
| Advantages | | | | Your business should be stable. Drop shippers |
| | | | can quit and also they can kill your business |
| Minimal capital needed to start. You loose a | | | | by not meeting your expectations. So rotate |
| few dollars in eBay fees if your item doesn't | | | | them until you get several good ones for your |
| sell. | | | | business. |
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