Starting an eBay business has remained a mystery to most people although the process is fairly simple. The registration process at eBay is very simple and there are so many guides that show you how to do it. It is however the crucial strategic side of building the business that presents problems and points of failure for most people. Now, lets look closely at that component of building an eBay business.
Your major goal when starting an eBay business is not to auction a few items that you have although this is probably how you will get a “feel” of how the process works. Your key goal is to build a business that will enable you to create long term virtual equity. Your business must therefore be built on a continuous stream of product supply.
What this means is that, at an early stage of your eBay business development process, you must be on the lookout for manufacturers or wholesalers who are willing to sell to you in small quantities or better still, to drop ship directly to your buyers.
Not only that, the products you select when starting an eBay business must be products that are purchased by your target market repeatedly giving you a continuous stream of income and enabling you to maximize on the lifetime value of each customer. If you look very closely at most businesses, even in the offline world, you will realize that most are built on repeat business.
For example, how many times in a year do you transact with your bank, your local grocery store, your Doctor or even your clothing store? That continuous interaction with your customers is what enables you to built your business effortlessly and is at the heart of a truly successful eBay business.
In addition, a truly successful business cannot be built on a one product line. When starting an eBay business, do not make the often repeated mistake of selling one eBook or some other item as most beginners do. A single product line will severely limit your turnovers and the final income you get unless it is an extremely high volume sales item. What you need to do for your business is to continuously add new products and listings until your sales are huge enough to support a healthy trading profit.
Since, as we stated earlier on, the goal when starting an eBay business is to develop a business, it will therefore be ill advised to limit your business only to eBay listings. We advise that you create a well optimized website that carries the listings that you have on eBay. This is the process of developing virtual equity.
Why is it important to develop a website?
A website gives you several advantages. To begin with, it enables you to develop a business that you can eventually sell at a profit as part of your exit strategy. Secondly, your website allows you to bond with your buyers. You can create quality content on the products that you are selling, thereby developing a continuous stream of visitors who come to you for advice as opposed to buying. Finally, a website allows you to develop a customer base through the search engines and other traffic sources. This creates a more stable business as opposed to one that relies only on eBay listings.
There is so much to learn when developing a business that sells hard goods. However, the above guidelines will kick you off in the right direction.