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