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Wednesday, October 15, 2008

Some of my thoughts about why people fail at selling online

Yesterday I was "let go" from my part time side job. I'm a little bummed about the loss of extra income but I must admit I saw it coming months ago.
Thankfully, I knew it was coming so I had already re-structured my budget to account for it.
My job with X company (sorry, I'm just way to loyal to say) was to ship out their products for them and keep track of sales. I did not create the stites nor do any marketing for this company other than writing a blog post once a week. I wasn't paid much to do this, but I accepted the job because I already had all of the necessary things in place from my own business that shipping out another companies products was not a big deal. I would say I was paid appropriately for the work I did.
I was laid off because the company just wasn't selling any products. and yes, I mean NONE. The owner sat down with me several times to strategize about things that could be done to increase sales but didn't take action on any of my suggestions. Now, I'd love to say "I told you so" but again, that loyalty thing. Plus, I really like the people who own this company.

So, I've compiled a list of X company's mistakes so that hopefully, someone else can benefit from them:

1. not answering email. If you run an online business (even if it is just selling one product on eBay, treat it as a business!), you simply MUST answer your emails. This is crucial. The acceptable response time for an email question is shrinking. No one should ever have to wait over 24 hours for an email response (with the exception of major holidays). If the question the customer is asking is a difficult one that needs research, respond letting them know that you are on the case.

2. blaming someone else. When you are selling a product, YOU are selling that product. The customer doesn't need to hear about whatever drama you have going on, they just want what they paid for. If something goes awry, make it right. No excuses.

3. product knowledge. I know this can be difficult for those eBay sellers who sell a wide variety of products, but even then, do what you can to get to know what you are selling. Never mis-represent or assume.

4. ill prepared for shipping. Plan how your product will be boxed or packaged before listing it for sale. If you need a certain size box, go ahead and purchase that ahead of time. Know what your shipping will cost you so that you can charge appropriately without undercutting your margins or gouging the customer.

5. lack of commitment. Your products are up for sale 24 hours a day, 7 days a week. You cannot walk away for three weeks at a time. You must be promoting your shop at every opportunity. I'm not saying that you have to work all the time, but being involved is priceless.

6. misunderstanding of the web. The web changes constantly, no one is expecting you to be involved in every new idea or social network that comes out, but having no clue about shopping online is a bad idea. I see this alot with my eBay students. If you have never shopped online or even browsed around, please do not open an online shop without spending some time online first. More than likely, if you are reading this, I'm not talking to you. I'm talking about the folks that have no idea what a blog is.

7. not researching your market. Not knowing what an item is currently selling for online before you commit to selling it can be detrimental. There are plenty of products that sell for one price in a shop and a significantly different price online.

Feel free to add some mistakes that you've seen ................

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