Friday, May 16, 2008

My Internet Business Basics: Selling To Where Online

By Trisha Frauenhofer

Starting a venue for sales on the internet can be a daunting experience if you're just looking at technical requirements. You need a server, a certificate, a merchant services vendor, tested and trusted securityand on top of that, you need something to sell! Putting all the pieces together can be a lot of work.

There are two my internet business sales options we're going to review - eBay (which you've probably heard of) and Etsy. Both give a venue for you to sell to qualified buyers, and both have their ins and outs, including ways to automate product loading. Understand that we're not endorsing either of them - just providing a conduit of information for you to make an informed decision from.

eBay is the second most widely known sales site on the Internet, after Amazon.com. It has millions of visitors each and every day, and uses the "auction" mechanism to keep people coming back. From the perspective of someone selling products on the internet, it has an easy setup procedure, and you can start or stop at any time. If you don't like it, you haven't sunk a lot of money into it to get it running.

The next step up from Caf Press is Amazon Shops. Amazon Shops lets you print books on their Booksurge service, or just sell used books online. My internet business is not limited solely to books - we've sold tee shirts, cookwear and electronics on ours. Amazon Shops charges $40 per month as a listing fee and takes anywhere from 10% to 25% of the sale price of the item. The advantage is that it's a natural destination for selling things online. Millions of customers go to Amazon every day. The setup is more involved than Caf Press is, but the reduced fees probably make it worthwhile once your business grows.

The all time champion for people selling things online is eBay. It effectively defined (and dominates) the online auction business. eBay is more than auctions, however. You can set up your own eBay shop with a lot of custom options, including setting the price, setting shipping options, and more. Plus, there's always the auctions.

So, now that you've picked a sales venue, what next? First, save any item descriptions for things you'll regularly have in stock in a text file or word processing file. It allows you to cut and paste whenever a new item shows up. Next is to figure out what you're going to sell - the most common choice is to buy items at wholesale (or as remaindered goods) and sell lots on eBay. You'll need to do some research to find a supplier (and a good price) and to research what your sales niche is.

Deciding what to sell is the next step - you'll want something that's distinctive, and that you can get at a reasonable price, and can sell for a reasonable markup. Again, Amazon and eBay are good places to do the research. Any time you think of something you might sell, do a search for it on eBay or Amazon and see how many other people are selling it. Also look at how they're selling it; the mistakes of your competition are how you propel yourself in this business.

Finally, keep your options open. Never ever sign an exclusive deal, and always be on the lookout for new products you can sell; not all products have to be made of atoms, Informational products are also a natural product for the Internet, and may be the product type that catapults you into doing your own web shop.

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