Beginner’s Guide to Starting an eBay Business – Step by Step Guide – Part 3

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This is more than likely cause of the dollar or they have the item on sale. So how to find any eBay seller’s top selling items in any country. So for those who’ve done their dropship. Cause I know it’s from column C. But those that haven’t, all you do is you go to advanced on here on eBay. To the right of the search box on any page in eBay, it says advanced. starting an ebay business 2020

Go there, click by seller, put the name of the seller in there. This could be any eBay seller, at all, on the planet in all 37 countries different countries that eBay is in. You can look inside any business. When you think about how powerful that is what other bricks and mortar business can you look inside and find their top selling items? starting an ebay business

– [Man] It’s none.

With eBay we can look inside any business

– Yeah exactly. You can’t go to the Chinese restaurant across the road and say, hey guys what’s your top selling product cause they’re not going to tell you. But with eBay we can look inside any business. So you put the name of the seller there, bingo and then it shows you all the items they’ve got listed. This seller’s got 122 items listed today and then you go the next step. Click sold listings, bingo now you can see every item they’ve sold in the last 90 days. EBay will show you 90 days, you want to go a bit further, say 365 days you can use a program called Terapeak.

You can use a program called Terapeak

For those who don’t know what Terapeak is, Terapeak was started by two Canadian brothers and eBay bought it last year, eBay owns it now. It’s called terapeak.com and you get 365 days of data.

– [Man] When you say that though, sometimes if you’re looking at the sellers, you need to login through the site.

– Yes you do.

– [Man] Then you have to put your address as a U.S. address otherwise nothing comes up at all, it’ll just be blank.

Use a VPM, like Hoxx that’s a known VPM if that’s your private network

– You do, yeah that’s right. You can also use a VPM, like Hoxx that’s a known VPM if that’s your private network. We can get a free Google plugin called Hoxx, H-O double X and you can tell Google that you pretend that you’re in the U.S. Okay so then you can sort by the highest price. So when you go here if you sort by highest price which is another option up here it groups them all together so you can see all the items that sold for say, $399.

We sort by highest price cause it groups them all together

That’s what we do, we sort by highest price cause it groups them all together. You can sort by whatever you want. You record all items just sold twice or more in the last 30 days. Just by going through them and you can see the dates they sold. So how to find the best selling items on eBay in any category. So you can do this on any country in the planet. You can go to any category and find the best selling items in any category you like in the world. Now for this one we do have to use third party software.

Use Scarcity Manager and here it shows every single category

For this we use Scarcity Manager and here it shows every single category and you choose whatever category you like and in here this is tools, you have to have a minimum price, the default’s $35, you can put in $1, whatever, choose your country, how many you want to see in the search results, the more you put in there obviously the longer it takes, and bingo it shows you here. This UV flashlight has sold 15,623 times.

– [Woman] How accurate is that?

eBay has a 12 digit number, it’s an ID number

– Spot on, as I’ll show you now. Over here, every item on eBay has a 12 digit number. It’s an ID number, like Amazon has what’s called an ASIN number. On eBay this is number here, it’s 12 digit. Now that’s also a hyperlink, which means you can click on that hyperlink and bingo now you’re in eBay and you can see the same item as it says there on eBay, 15,623 sold.

– [Woman] Is that paid software?

Scarcity Manager is paid software

– Yeah Scarcity Manager is paid. It’ll cost you, it’s got a 30 day trial and to get that data I think is about 10 bucks a month. So there you go, 15,623 and of course that’s a hyperlink. So if you want to see when they sold you can click on that hyperlink and see exactly when they’re sold. The next question comes up to, okay that looks pretty good, is there any money to be made on it? So the next step, of course, is to find a supplier.

How do you find a supplier

So how do you find a supplier? Well today it’s really easy. In the old days you had to go and fly to China and whatever and go to trade shows and all that. Not anymore, you don’t need to go leave the country, you don’t need to leave your favorite chair. All you do is you go to one of these sites, there’s many of them. We only use Alibaba but it’s purely up to you guys what you want to use. starting an ebay business

Alibaba, it’s bigger than eBay and Amazon combined

Alibaba we like, it’s bigger than eBay and Amazon combined. If it’s not on Alibaba we’re very, very worried. So you go to Alibaba, just before I get to that, so the reason of course you go to Asia is you’re trying to cut out the middleman. If you’re going to import you obviously want to go close to the supplier as you possibly can. So you go to Alibaba, you type in what you want here. starting an ebay business

Hit search and you dig down and you find what you want just like any other search engine. I did that, I very quickly found exactly the same torch and it’s over here and you can get it from 87 cents. Now like it says on here. You’ve got to negotiate with these prices because the Chinese will never, ever show you their best price. starting an ebay business

Have to negotiate and most of us are not brought up to negotiate

You have to negotiate and most of us are not brought up to negotiate. But if you want to get the best price you’ve got to negotiate and one of my coaches, it was Jim Rohn before he passed away adopt the attitude that everything is negotiable. A world of opportunity will great you. So what that means is, learn to negotiate, it’s not that hard. Just be nice about it, build a relationship and you get the best prices. starting an ebay business

Which countries to import from? We’ve been very guilty of importing too much from China. China imports more Ferarris and Maseratis than any other country now. That should tell you a few things. So we import from China, Malaysia and Vietnam.

China wages, on average, going up 10% a year

China wages, on average, going up 10% a year. Now in Taiwan it’s now $4.65 on average per hour. Vietnam is 59 cents per hour. So in our view Vietnam is the new China. Strategies. There’s many strategies, you guys have got to choose what you want to do. But to give an idea, on average, from the people I always speak to, is to make $1000 profit from importing you need to invest around 36K.

When you order something from China you’ve normally got to pay a 40% deposit

To make $1000 profit per week and the reason it costs that much money is because when you order something from China you’ve normally got to pay a 40% deposit and it takes anywhere from a day to 12 weeks to produce an item. Then when they’ve produced it you then get it inspected and then it gets sent, boxed up and send to a freight forwarder, then it gets onto the next ship. The ship might take anywhere from 11 to 14 days to get to Australia. Then it gets cleared by customs, then the truck delivers the stock to you or to your fulfillment house or wherever and then you list it on eBay, photograph it and sell it.

Stock turn

Then you put the money in the bank. That of course is called a stock turn. And that stock turn takes time and every time you want to do this, you’ve got to invest another around $36,000. So I’m going to show you tonight ways not to do this, this is the importing method. Cause a lot of people have this false sense about how much money they can invest. They’ve heard someone tell them that if you invest $5000, you’ll make 100 grand a year. Yeah well it’s been done but we’ve got to look at reality and the law of averages and it doesn’t happen very often. You can also win lotto. We don’t want to focus on those numbers that don’t fit within the KPIs.

So used products, there is money in used products

So used products, there is money in used products. If you’re passionate about used products there’s good money in it but it takes time to learn it. Now it’s not my cup of tea but I know a lot of people make very good money in used products. You can get used products free from places like clean up campaigns. You can also get it low cost from any place which I’ll show you in a second. It’s a great way to make some quick cash and you get profits used for new items as well. starting an ebay business

You can purchase poorly listed items off eBay and places like Facebook marketplaces, Gumtree

You can purchase poorly listed items off eBay and places like Facebook marketplaces, Gumtree. The cons is limited stock, it takes time to accumulate the stock. It’s harder to automate, you tend to be expert with these items. Very hard to teach someone else who works for you to be an expert because they’ll learn it then they’ll normally go and do it themselves. It’s not impossible though. You need to photograph and write ad copy for every single item that you sell that’s used. That takes time and when it’s sold it’s done, all that work’s out the window. Whereas if you photograph this item you can sell it potentially hundreds of times. It’s harder to automate but not impossible.

So there is money in used products

So there is money in used products. Here’s an example, this is just a screenshot for women’s shoes. The prices are green which means they’ve sold. Now don’t get me wrong, I’m not going to say that you’re getting $150 for every pair of women’s shoes, that’s not the point. What I’m saying here is that there is good money just in women’s shoes alone.

– [Man] Or the sneaker market’s huge.

There’s a lot of markets out there that are very, very good

– There you go, the sneaker market as well. And there’s a lot of markets out there that are very, very good. But if you start doing used items you’ve got to just be patient with yourself. So if you start going to whatever it is, if you go to say garage sales, deceased estates, the first time you go if you’ve got no training you’re not going to have a clue what’s worth money. starting an ebay business

But you go there, you learn about a couple of products and then you get back into it again next week and you do it again and again and again. Six months down the track you’re going to be a lot more experienced but you’ve got to be patient.

So sources for used products is council clean ups, gumtree

So sources for used products is council clean ups, gumtree, which is owned by eBay, garage sales, bundling, charity thrift shops, just don’t say that you’re going to sell the stuff on eBay. Deceased estates, divorced, downsize, Gumtree, police auctions, car boot sales, eBay incorrectly listed items, Facebook marketplaces, billboards at shopping centers. When you’re talking about places like billboards at shopping centers and Facebook marketplaces they target just your local area so they’re never going to get, on average, as much money as you can get if you sell it eBay worldwide. Bigger audience, on average, you’re going to make more money.

Warren Buffet says, wealth is a transfer of funds from the impatient to the patient

As Warren Buffet says, wealth is a transfer of funds from the impatient to the patient. If you can buy something that someone’s dying to get rid of and you take time to sell it you’ll make a profit. Anyone who watches American Pickers this is what they hand out. If you want to do second hand stuff from garage sales if you just learn this stuff only, which will take you obviously quite a bit of time, you can start making very good money. You can do the same stuff, obviously not guns cause this is American, but if you just focus on just this stuff you can make very good money but it takes time to learn it.

The difference between failure and success selling these used products

And just like we talked about in the beginning the difference between failure and success selling these used products is this, is to win the game you need to stay in the game long enough to win the game. Most people when they do used stuff, they just do it for a while see the next shiny new object and they give up on that and move to that. But there is good money in it. Okay so what do you sell? Let’s start with the don’ts. Our criteria, cause we only do new products, is no guessing, zero guessing, only proven. If you’re going to use VAs there must be zero guessing.

Don’t sell products or import products the Chinese can ship cheaper

Don’t sell products or import products the Chinese can ship cheaper. In 1966 Australia had a deal with China where if you ship something from China it’s way cheaper if it’s a letter. So if you ship, for example, if you posted this to yourself it would cost $7.50 because it’s over two centimeters thick. If you go to Shenzhen in China and post it I’ll cost you $1.60 to Melbourne. But Melbourne to Melbourne is $7.50. Why, cause they can post it as a letter. We have to post it as a parcel cause it’s over two centimeters thick or weighs more than 500 grams.

Don’t do the small stuff if you’re going to import because the Chinese will blow you out of the water every time

So the moral of that story is don’t do the small stuff if you’re going to import because the Chinese will blow you out of the water every time. So it must less than $10, less? More than $10 profit for a new imported product. Makes less than $20 for used products. And niches, a lot of people say what’s a good niche? We don’t do niches we sell niches.

– [Man] What kind of dropship profit do you want?

What kind of dropship profit do you want?

– For a dropship, $10, minimum $10 profit. If you’re passionate about a niche, sure. But if you’re not passionate why lock yourself into a niche? We focus on profitability, all we care about is profit, not product, we don’t try to ever fall in love with a product. We fall in love with profit and lifestyle.

– [Man] So with that one that weighs more than 500 grams then it’s okay cause we’re shipping from China?

– Exactly, cause they can’t compete with you.

– [Man] Do you know how much it costs them to ship the item that’s more than 500 grams?

Just it all depends on the weight, the dimensions

– Just it all depends on the weight, the dimensions. So category, why restrict yourself to one category? Non seasonal, unless you’re dropshipping. So you don’t want to fill up, you know get a garage full of Easter bunnies or Christmas lights or whatever, Nerf guns or water sport equipment when that season runs out. Just like you don’t want to sell iPhone X cases and all of a sudden the next iPhone comes out. Unless you’re dropshipping.

What dropshipping is

For those who don’t understand what dropshipping is, dropshipping is when you list an item on eBay and then it sells. You get paid and then after you’ve been paid you then order it from the supplier and the supplier ships it direct to your customer. That’s what dropshipping is. So because of that you don’t hold stock. So you can do seasonal items, you can sell Easter bunnies as long as you want because when Easter’s finished you don’t have any spare stock lying around, whereas if you import of course, you’ve got to try and call it spot on so you run out of stock exactly when Easter finishes. Same with Christmas lights et cetera. Is everyone clear what dropshipping means?

– [Man] What are the problems with dropshipping?

What are the problems with dropshipping?

– I’ll get to that. Non seasonal and this is dropshipping. Okay so no trends or fads, talked about that. Now with eBay the first ever item sold on eBay by Pierre Omidyar who’s the founder of eBay was a broken laser pointer. So eBay got a big reputation for selling used items but today, around 90% of all items sold on eBay today are brand new. So it’s all changed. Narrowing down. You’ve got to choose what you guys want to do. New, used, purchased locally from retailers. Purchase locally from wholesalers. Import, picking, flipping, like picking from garage sales.

Flipping means buying and reselling straight away

Flipping means buying and reselling straight away. Dropshipping, spot trends and fads, everyone’s different. For us, I just personally like doing new items. I’ve got friends of mine who specialize in doing antiques and that kind of stuff but I don’t get antiques, I don’t understand them. I can’t look at a painting and go that’s a whoever. I can’t look at gold and go it’s worth X amount of dollars. Some people love that stuff, it’s not my cup of tea. starting an ebay business

I have to show you these links, these are the eBay links to what’s hot

So eBay, I have to show you these links, these are the eBay links to what’s hot. Now just be a little cautious of this because a lot of people just, a lot of times it’ll just come up with the iPhone cases and USB cables and that’s what everyone, beginners focus on. Instead of doing that, do things that are a bit different. Kmart is an example. Shows you what’s popular. And what’s happened here is in the industry, majority of websites written in a language called PHP and everyone’s been forced to upgrade their websites to the latest PHP for security reasons.

Majority of websites written in a language called PHP

We have as well, we’ve spent a fortune over the last four months I’ve been talking. Because all the security, and everyone else has been in the same boat for PHP. What it’s forced people to do now is to have these websites that show what’s popular and also what’s in stock and that’s really good news for dropshippers.

So more and more these sites are coming along

So more and more these sites are coming along so you can now go to places like Kmart and click on there, bingo you can see exactly what the hottest selling items are in Kmart. And you can do it with so many other companies. Supercheap Auto, Meijers, you name them. You can also use companies like Pinterest. So you put in heart rate monitor, it’ll show you the hottest heart rate monitor there is today so whatever keyword you use it’ll show you the hottest ones that get the most traffic.

Pinterest you just put in keywords

Pinterest you just put in keywords, you know hot heart rate monitor, heart rate monitor reviews, best heart rate monitor, heart rate monitor for sale. You can do the same with things in like Google, MerchantWords as I’ll show you in a minute. Shows the hottest keywords, what’s getting the most traffic. Google Ad Planner is free.

Google Ad Planner is owned by Google, of course, and it’ll share the hottest keywords

Google Ad Planner is owned by Google, of course, and it’ll share the hottest keywords so you can type in things like, you know, PowerPoint presentation tool, it’ll show you the hottest keywords around that. Use best and reviews. If you’re putting best heart rate monitor, heart rate monitor reviews, it’ll show you the hottest keywords. So on MerchantWords will also do the same thing but it’s a paid service.

Google is not, you don’t have to pay it’s free

Google is not, you don’t have to pay it’s free. Google trends is also free. You can put in there, heart rate monitor, and it will show you a line of all the traffic and that’s awesome. Because what you want to try to avoid, unless you’re highly skilled, is anything that’s got a spike, in the industry it’s called the bigger the party the bigger the hangover. So anything in life which goes up with a high spike, we all know what’s going to happen next. We don’t have to be a genius to know that. You know home prices do this, what’s next? Exactly, iPhone X comes out, and we all know what happens next. So things like this awesome, it’s just going to keep on going.

We call it evergreen

– [Man] We call it evergreen.

– Yeah evergreen exactly, yeah. We could call it flat lining but probably bad for the heart rate monitor, anyway. I changed that slide. Like I mentioned before, you can use things like Scarcity Manager as well to show you the hottest categories, yeah?

– [Man] With that line, are there any exceptions? What about new products that we don’t know?

Every product’s different

– Well every product’s different. Most products, some products are going to be going up, you know heart rate monitor is obviously going to be around forever. They’re all different, there’s no real answer to that. You look up a particular model Toshiba notebook. You know it’s obviously going to spike then it’s going to fall.

– [Lincoln] Product life cycles basically.

Most products have got a product life cycle

– Yeah, exactly like Lincoln says. Most products have got a product life cycle. Some go for years, some go for months.

– [Lincoln] Or some will go up and come down, some will just plateau and keep going, stays in a line.

– Some are seasonal.

– [Man] Probably things like chairs, tables, that’s evergreen isn’t it?

– It is yeah, yes exactly. Chairs, table yeah. Sorry?

– [Man] They’re replacement goods.

Everything has pros and cons

– Yeah consumables. Okay so new products, pros and cons. Everything’s got pros and cons. Everything has pros and cons. Unlimited stock with new products, you can photograph it once, write the ad copy once, just keep selling it over and over and over again. Everything has a cycle though and we have an attrition rate. Nearly 90% of all items on eBay are brand spanking new and the cons is the risk of purchasing an item and it doesn’t sell. Obviously with dropship it doesn’t matter cause you didn’t purchase it because it didn’t sell.

With dropshipping you only purchase after it sells

With dropshipping you only purchase after it sells but the way to mitigate a lot of the risk of this is to only use products that have got a proven history. Don’t go and buy things that have not got a proven history. With import goods we want a minimum of 90 days history and a minimum of 45 sales over the last 90 days, or minimum of 15 sales per month to create the 45 and that’s the way you get rid of a lot of your risk. It, of course, doesn’t eliminate your risk but it reduces it a lot.

Our import criteria is this

So our import criteria is this. We want a minimum of 35% profit after all expenses. An absolute minium 15 sales per month, last 90 days. We want a sell price of greater than $20. A minimum profit of $10. And we don’t want to do any brand names unless we are 110% verified they are not a rip off cause everyone knows about China, you know Gucci handbags and Rolex watches but it goes much deeper than that. starting an ebay business

You can literally buy things like Logitech products that look identical in the Logitech boxes that are ripoffs. If their price is radically cheaper than it should be bells and whistles should go off but you always get things like this verified by someone who is certified to verify.

Alibaba you can get plenty of people on there who can verify the authenticity of any product

If you go to like Alibaba you can get plenty of people on there who can verify the authenticity of any product . It’s not very expensive. So minimum 90 days proven history, no trends or fads for importing. Okay so we talked about what’s your holy grail or what the majority of people’s holy grail of a home business was at the beginning. And it’s something I’ve been monitoring for over 20 years trying to always find the best kind of home business that provides a lifestyle and I really today believe what it is is dropshipping. This wasn’t on the table four years ago because we always had the big risk of overselling products and I’m going to show you what’s changed.

So dropshipping, another way of looking at it is called virtual inventories.

So we have virtual staff, in other words the staff work in say the Philippines, virtually from their homes. That’s your virtual assistants, your virtual staff. Virtual inventories is when you use other companies’ inventory and it’s used more and more in the industry today. What’s an example, the Iconic which is a bricks and mortar store. They do a lot of dropshipping these days so instead of getting another warehouse they sell items and then when they sell they have their suppliers ship the item direct to the buyer. That’s called a virtual inventory.

And it’s much cheaper

And it’s much cheaper because you don’t have to buy all that stock, you don’t have to get a warehouse, you don’t have to have staff to run your warehouse, you don’t have to buy forklifts. Racking, insurances, all the stuff that goes with running a warehouse, none of it. So as you get bigger, your suppliers work harder, not you. They’re the ones that do all the picking and packing and shipping, not you. So dropshipping, there’s no capital requirement which is obviously a huge barrier for so many people.

When we started off we did so many different creative ways of funding

When we started off we did so many different creative ways of funding. I won’t go into them but we had to find all different ways to try to fund buying containers. And containers used to cost us, when we started, we started off with cheap products and a cheap container would be around about 10 to 12 grand. So if it had something like kids ride on cars it would be 10 to 12 grand, but other containers would cost close to 100 grand for a 20 foot container, cause it all depends on what’s known in the industry as density. So if you fill a container up with these and they cost you $50 a pop and it’s in a box this big it’s obviously going to cost you a lot of money to fill a 20 foot container. But if you’ve got like kayaks which might cost you $150 each, 20 kayaks and your container’s full.

Dropshipping, you can build a business in 37 different countries

Dropshipping, you can build a business in 37 different countries. We’ve built and sold them all over the planet. We’ve done them in many times Australia, where we sold them off, U.S., Canada, Ireland, U.K., Spain and South Africa. South Africa wasn’t eBay it was BizBuySell but very similar, you can do exactly the same thing. Unlimited products to list. More and more suppliers are using these dynamic websites. Dynamic website means it’s a website that shows if they have inventory and they didn’t exist four years ago, there was hardly any websites that did that.

Using inventory checking

Using inventory checking so today we have software which can go and check supplier inventory and if they run out it makes sure eBay can go to zero. That wasn’t on the cards only like four years ago. Three years ago that wasn’t on the cards, they couldn’t do it. Now with these programs like Scarcity Manager automatically check your suppliers, runs out of stock, your eBay goes to zero. So you can sell of these business. If you’ve got a lot of say pet items, like I mentioned before, you can take all your items off and sell them off, there’s a huge demand. So what’s changed with dropshipping? More suppliers, this is what changed the rules.

More suppliers, this is what changed the rules.

– [Woman] Excuse me a minute. What about the money side of it with dropshipping? I’ve noticed that a lot of the stuff even like with Alibaba is like Western Union and this stuff like how do you get around that?

– You never ship from Alibaba. There’s five criteria for a dropship supplier and the first one is you only use suppliers in your country. So if you’re building a business in Australia you only use Australian suppliers. You’re building a business in the U.S. you only use U.S. suppliers.

Never ever use overseas suppliers

Never ever use overseas suppliers. Cause when it takes three weeks to arrive it’s your account that gets nailed. I know there’s a lot of people out there teaching to use AliExpress and everything else and you can if you want but when they arrive late it’s your eBay account that gets nailed.

– [Man] If there is a return it can go back to the supplier?

There is a return it can go back to the supplier

– Yes it does. Cause things get delayed, you know. Customs in China gets delayed, customs in Australia gets delayed. Volcanic ash, you name it, all these things happen and next thing you know it’s three weeks till it arrives. Customer, they get irate, leave you negative feedback.

Next thing is automatic supplier inventory checking connected to eBay is the other big game changer. So now you can fully automate, you don’t have to sit there yourself and continually check your supplier’s inventory. Dropshipping pros and cons. starting an ebay business

So dropshipping pros and cons.

Positive cashflow, get started as soon as you have a template and logo. You get a logo done for $5 and you can get a template done for less than 100 bucks. You can get them done from $25. A place like Fiver.com with is F-I-V-E double R dot com. Soon as you’ve got those two things you’re up and running. You’ve got unlimited products. You’ve got thousands and thousands and thousands of products you can list all over the planet. There’s no packing, no warehousing, easier to automate. You can run it literally from anywhere and you can build and sell dropship businesses in all 37 different countries. starting an ebay business

Cons, it does require inventory checking seven days a week

Cons, it does require inventory checking seven days a week. When you start off you may check the inventory yourself seven days a week. You might then implement a VA, a part time VA that works for you part time for $1 an hour or you put in software to do it all automatic for you. Requires ordering seven days a week. So when an item sells you need to order it straight away. And again, do it yourself, or even better get a VA to do it for you.

– [Man] Initially you do it yourself.

– Do it yourself. But you know, a VA’s only going to cost you a buck an hour. They’re more than happy to work seven days a week. More than happy, you’re going to get two VAs.

More than happy, you’re going to get two VAs

– [Man] Have you got links to VAs?

– Coming up.

– [Man] At a dollar an hour?

– Yep, coming up tonight.

– [Man] I pay like six.

– Oh no don’t pay six. You can get a very high end program for $6 an hour, very high end. I’ll give you a link shortly. So lower margins. So a lot of people say this. Can you make more money with importing that dropshipping cause you’ve got higher margins with importing? Often you do, but if you run out of money and you can no longer import anymore items then your business has hit the glass ceiling, you can’t get any more.

Whereas dropshipping you can just keep listing more items, more, more, more, more

Whereas dropshipping you can just keep listing more items, more, more, more, more. If you’ve run out of money or you’re not willing to invest any more money in inventory then you can’t grow your business any more with importing. But dropshipping there’s no limit.

Dropshipping is a whole nighttime thing it takes a whole load but if you want to know any more about dropshipping there’s a free workshop there you can do it. This is all about starting an ebay business.

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