Is it really worth it to run $0.99 auctions?

I love free. I'm the first one to jump on a deal, but are the $0.99 free auctions really worth it?
The answer will be different for everyone and will vary wildly from product to product. It can be very profitable if you have an unlimited source of high demand products that you have access to at no cost. But, if you live in reality, you know how likely that is!
I'll use an example of an item I just sold. I sold a collectible card from the Miami Heat's 2006 NBA championship.

• listing fee $0.00
• final value fee $0.09
  
• paypal fee with a micro account $0.34 (would have been $0.42 with a regular account)
• they paid $2.73 for shipping, actual cost of postage $1.92
• $0.06 for the shipping label
• $0.16 for the tyvek bag
  

If you add that all up and subtract my expenses, I cleared $0.94 on a $0.99 sale. The percentages are pretty good, but if you take into account the time to photograph, list and maintain the auction, $0.94 is a sweat-shop type payrate.

There are more things to take into account too. The item I used as an example was something that I found for free. It cost me nothing to begin with. Had I purchased it with the intention of selling it, that would have to be added to the calculation. Even the time it takes to research and seek out good merchandise to sell needs to be added into the costs. If you spend 2 full days out of your week thrift store hopping, you need to account for that time and gas.

Some of my expenses were offset by the handling fee that I added to the cost of shipping. This is a very easy one to mess up. If you don't know exactly what it is going to cost you to ship the item (including the cost of packing supplies) than even a small miscalculation could wipe out your profit.
Another thought on shipping costs: The paypal fee is accessed on the TOTAL money collected, so if you shipped an item that sold for a dollar but costs $20 to ship, even if the customer covers that shipping cost, your paypal fee is $0.93. Definitely something to think about when using these types of auctions.

Basically, here is my advice on using the free $0.99 starting bid auction listings on eBay: If the item is one that WILL get bids, you can accurately account for the shipping costs AND the cost of shipping isn't so high that the paypal fee will kill you, go for it. Otherwise, don't bother.

Of course, I don't follow my own advice. Mainly just because I'm an eBay junkie, I still list at the $0.99 starting bid for things that fit the above criteria, AND if it is something around my house that I am willing to give away for free and I am listing it at my leisure while watching TV, why not make that dollar :)

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Shameless self promotion:

Items for sale on eBay under user id Shelley-Faye

Items for sale on eBay under user id Love2DressUp

Items for sale on Etsy under user id KitschyAprons

My latest project... Kid's Creatures

Toy Story is heating up!

My almost-4 year old is just getting into the age where the commercials are influencing her opinions and she has jumped right on to the Toy Story hype. Lucky for me, she can't differentiate between the "old" Toy Story stuff and the new. She hasn't noticed the difference in Buzz Lightyear's belt or any of the other simple changes that have been made from one movie to the next. The only thing, she isn't interested in the Barbie & Ken characters (go figure... we already have those!). But, as an eBay seller, paying attention to the trends can pay off! Go search your kid's toy chest and start hawking the Toy Story stuff... right now you'll get top dollar! Check out some of these:

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Shamless self promotion:

Items for sale on eBay under user id Shelley-Faye

Items for sale on eBay under user id Love2DressUp

Items for sale on Etsy under user id KitschyAprons

Twitter twitter everewhere

Twitter seems to be everywhere now-a-days. It is actually kinda a little annoying to me because I really liked being part of something that not everyone "got". Oh well, the secret is out now so I guess it is time to blog about it.

I have been playing around on Twitter for awhile now, I'm not sure exactly how long, but was definitely way before Oprah! Dana Crawford (http://www.powersellingmom.com/) was the one to introduce it to me. I really got into it at eBay live when I discovered what a powerful tool it could be.

I'm not going to tell you how to use twitter because I believe that is part of its value. Twitter can be implemented any way that you want to use it. For those who aren't already in the know, twitter is a micro-blogging site that is free to use and gives you the opportunity to post 140 character posts. Some will post what they are doing. Some post thoughts, ideas, etc. Some post links to their websites or blogs. Basically, there are no rules. Write what you want.

The fun part (or at least in my opinion) is in the follow. I follow all sorts of people. It feels kinda voyeuristic because some (most) of the people I follow are the types that post about their personal life. I feel like I've gotten to know complete strangers. Complete strangers that I wouldn't even recognize if I saw them on the street. This is totally useless from a business sense, but because I get my twitter stream on my cell phone, is just something fun to pass the time.
Work. For work, I use twitter in a couple different ways. One, I post updates of things that I am selling or handmades that I'm creating. Two, I use the twitter search to keep up to date on trends or find out un-biased opinions on things. It is very powerful in that sense. You can type in a word or phrase and see exactly what people are saying about it in real time. I get most of my news from Twitter too. Of course, it usually comes in pieces, but it will at least alert me to the fact that there is something going on.
And, there are ways that you can make money on twitter using sponsored tweets. You can pimp out your twitter background or sell tweets. Neither make a ton of money, but like all things, it depends on how much work you put into it. Below is one such company that will pay for your tweets...

oh, and if you want to follow me on twitter, my handle is shelleyfaye

Why "Hot Sellers" aren't so hot for sellers

Just about any time people contact me about learning to sell on eBay or starting an eBay business they are wanting to sell what is "hot". I don't have the hard numbers in front of me, but I would estimate that about 80% to 90% of my students have been people wanting to sell designer handbags or jewelry. I see posts on discussion boards time and time again from people wanting to sell the latest electronic do-hickey or ipods. why?
eBay has done a fantastic job marketing this to people. They publish a list of the hot selling items and popular searches (eBay Pulse). They tell success stories about sellers that have a million feedback from selling cell phone accessories. The list goes on. All this makes new and potential sellers believe that this is where they will find success selling on eBay.
Ever heard the rule of Supply and Demand? The more that is available (supply) the less demand for the product therefore the price goes down. From eBay's point of view, an abundant supply is a good thing. They get more fees from more sellers listing the product, the saturated market pushes down the price therefore more buyers come to their marketplace to buy stuff at the cheaper price, leading to more money again for eBay in final value fees.
Now, look at it from a sellers point of view. Selling the "hot item" isn't so hot. The model I just explained doesn't benefit the seller. The seller is better off selling the item that is scarce, therefore in demand, so that the price goes UP!
This doesn't necessarily make eBay bad, they are just doing a damn good job of looking out for their shareholders. Now.... you go and look out for yourself and find something scarce to sell.

I heart Vista Print

Using current events as promotion for your eBay - Piggybacking

Around the time of the summer Olympics there were tons of shows about the Olypmics but there was one radio program that really stood out to me. It was on NPR but I don't remember the show in order to give them credit, sorry. It was about the advertisers and who were "official sponsors" and what they paid and such. They discussed all aspects of marketing during the Olympics but what struck me was when they talked about the advertisers who "piggybacked" the Olympics.

This concept is basically like running along side. It isn't direct advertising with the event (that is expensive) but uses the hype and excitement to their advantage. Mainly by using heavy targeted advertising before and after the event (or on another channel) without directly siting the event.

eBay sellers can use this sort of momentum to their advantage too. For example, right now I've been hearing a bunch about how Barbie will turn 50 on March 9th. We all know how popular Barbie is and how she is a staple on eBay. Wouldn't it be a good time to jump on the bandwagon?

You can do this with any event that is getting publicity on its own accord. Obviously you'll need to pick something that connects to your niche. I mean, I love Barbie and have a small collection of my own, but I'm not a Barbie seller so her birthday doesn't really help me much, but maybe it would be a good time to do a little closet cleaning!

eBay makes a much needed change committing to withdraw bad feedback regarding customs fees

Burried 11 pages back into my feedback is a neutral with this comment:

ottimi oggetti, ma spedisce come commerciante e bisogna pagare tasse doganali

which according to an online language translator, means this:

optimal objects, but send as trader and must pay customs taxes

I wasn't too overly concerned about it, but it does go to show that this customs issue is one that can effect eBay sellers' feedback and DSR scores. Which in turn, can effect an eBay sellers' ability to rise higher in searches and earn powerseller discounts. So yes, it does matter.

I am happy to hear that eBay is now willing to consider taking off neutral or negative feedback that is explicitly about customs fees. However, there are certain things that you have to do. (Click here for eBay's page on the new policy) You must have clear text in your description about the possibility for customs fees and charges. eBay has a standard line they would like you to use and although they say "or very similar", I'll be working tonight to update my template with eBay's standard text.

Which by the way is this:

International Buyers – Please Note:
- Import duties, taxes and charges are not included in the item price or shipping charges. These charges are the buyer's responsibility.
-Please check with your country's customs office to determine what these additional costs will be prior to bidding/buying.

This new policy won't solve all the issues, it won't stop customers from getting upset about the fees, it won't stop buyers from asking sellers if they will mark something as a gift. But in my opinion, it is a step in the right direction. And had it been enacted a few months ago, I would have nothing but positives. That one neutral is the only neutral I have!