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