Beginner’s Guide to Starting an eBay Business 2020 | Step by Step Guide
Transcribe of “Beginner’s Guide to Starting an eBay Business 2020 | Step by Step Guide”
So, welcome everyone tonight. Got some new faces here. Some faces that have been here many times before which is great to see. Who here has never sold one item on eBay in their life? Quite a few, awesome. Great, so tonight is a beginner night. We do have some experienced people in the room. Russell, I know he’s approaching seven digits this year, all the way from Perth, so we do, apologies, Russell, ’cause it’s going to be beginners’ stuff tonight. So, that’s all right guys.
Tonight is beginners
Tonight is beginners then. And if you guys have any questions during the night. We’ve only got a reasonably small group tonight so we’ll keep it as interactive as possible. So, as many questions as you like. If we start running over time I’ll let everybody know and we’ll have to close down the questions a bit but while we are on time feel free to ask questions.
Beginners’ Guide to Starting on eBay
So for those who haven’t been to one of these events, tonight of course is all about a Beginners’ Guide to Starting on eBay. The slides will be available to everybody here tonight. I’ll put a slide up at the end of tonight. Where you can take a photo with your phone and you can download all the slides. You don’t have to write everything down. All the slides will be available. To those who haven’t been here before, these are our four core values: sharing, networking, learning and community. I firmly do believe in the law of abundance.
We the methodologies and the strategies of how it all works
Where there’s enough to share. We the methodologies and the strategies of how it all works. This is a non-profit group. The money you paid to get in the door here goes towards running the show. Which is paying for the room et cetera. So we are a non-profit. There is nothing ever gets sold from here. Everybody here who presents does it for free, but no one is allowed to sell anything. So anyone who’s got a firm grasp on their credit card, they can let go of it, there’s no $2000 upsell at the end of tonight.
Our mission is to help more people build their own full time, online, automated businesses
So our mission, as it says on the board here, is to help more people build their own full time, online, automated businesses. That’s what it’s all about, and that’s what we try to do. If you are a full time seller in the room, tonight, at the end, if people ask you some questions please take a little bit of time to help them out. I had a lot of help when I got started. And I try to return the favor by doing these presentations et cetera.
Who am I?
Who am I? I’m an eBay, Amazon seller. Started just over 20 years ago, I’ve been importing for just over 30 years. I got into this because I was a divorced, single father. Had two kids. I didn’t want to go out and get a job, I wanted to spend time with my kids as they grew up. I’d already burnt my bridges a bit with my previous marriage ’cause I was working a lot of hours. And I think that was a lot of the problems I had with my first marriage.
I didn’t want to go and get another job, so I looked online and that’s got me started
So I didn’t want to go and get another job. So I looked online and that’s got me started 20 odd years ago on this online journey. We started off in Sydney. We used to live in the Sydney suburbs. Now we moved out of Sydney. Married and we live on a farm. We operate the whole shebang from a farm. We have no staff on the property and we have no inventory on the property. Everything’s done remote.
I always teach what we do, which is to outsource everything
And tonight, and always, I always teach what we do, which is to outsource everything. And that’s what I’ll be teaching a lot about tonight. You learn a task and you outsource it. So tonight, interactive, guys, any questions, please ask. If I use any words tonight that no one understands, please tell me. We all get caught in the, what we call the curse of knowledge. Where it’s if you’re doing something long enough you do tend to get used to using words with your team et cetera and you forget that people who aren’t doing what you do don’t know those words.
Don’t be scared to ask
So if I do any of those words, don’t be scared to ask. A lot of people here have not sold a thing on eBay or even online before. And a lot of people, they’re always trying to find stuff where they already know what to do. But of course, if you want to learn to do something you got to learn something new. And it’s all about baby steps. All of us got here by just little tiny baby steps. And that’s what it’s all about, the old saying of how do you eat an elephant. Tonight we’re going to start with the foundations first. We’re going to go through the foundations firs. And before we get onto the juicy stuff.
How to find the best selling items on eBay, in any category, in any country
Then we’re going to show you how to find the best selling items on eBay, in any category, in any country. The top selling items. And I’ll be showing you a lot of links tonight. All these links are all stuff that you can do for free. You don’t have to go and buy software. Also how to find the best selling items for any eBay seller all over the world. Again, you don’t have to buy anything you can do all of this for free. There’s several different strategies I’m going to go through tonight. New, used, because there’s no one fits all strategy.
I like just new items
I like just new items. So I like importing and drop-shipping. Which if you don’t know what drop-shipping is I’ll go through that tonight as well. But that’s what I like. Some other people like used items, and that’s fine. Some people like flipping, picking, and garage sales. I don’t, but some people do. So, you guys have got to choose your strategy, what you like, and I’m going to show different varieties to you and you can choose which way you want to go. I’m also going to be showing you how to get started for less than $100.
How you can literally build a seven digit plus business using less than 100 bucks
How you can literally build a seven digit plus business using less than 100 bucks. And I’m going to be talking a lot about outsourcing, about how to get outsource staff from $1 an hour. So, first of all, I ask you guys, what does a perfect home business look like? And it’s really important you’re clear on this because if you’re going to chase something you need to know exactly what you’re chasing. Now I know, for me, so far what a perfect home business is but I’ve been revising this for over 20 years, since I started running out, what kind of a home business I want to…
What kind of a home business I want to
Hi, good to see you. So this is what is kind of come up through the surveys of what the perfect home business is, but, you know, you tell me. Number one for me is always lifestyle. Because a lot of people talk about work from home, but stuff that, when you’re home, you should be at home. It’s not about going home and doing 40 hours a week at home. If you’re going to go home, go home. It provides time and cashflow so you can enjoy your life.
We’re only on this planet once and the older we get, the more we realize how much of a short time we have left on it
We’re only on this planet once and the older we get, the more we realize how much of a short time we have left on it. You make money 24/7, or it makes money 24/7, 365, all by itself. Over 95% of the tasks building a business can be all outsourced. Whether an import business or a drop-ship business. Can manage it from your home, your favorite coffee shop or anywhere on the planet. No staff in your house, no inventory in your house. Requires less than $100 investment.
Get paid before purchasing inventory
Get paid before purchasing inventory. Cashflow positive, no advertising costs. The no pre-purchasing unsold inventory. No packing, wrapping products. The no driving to the post office and queuing, for those who’ve done that before. No waiting at home for couriers to arrive. And the business runs and grows without you. So for everyone looking at this, is there anything else that you’d like to see in a home business? It’s all quiet. Got to be something, come on. Free coffee delivery? Pizza delivery? All right, so, I’m going to show you tonight. I think we could… What was that?
Cash. That’s up here, time and cashflow
– [Audience Man] Cash.
– Cash. That’s up here, time and cashflow. Because it’s–
– [Audience Man] Systematization.
– Yeah it’s systematization, which as automation. Lifestyle, for me is all about cash and time. Because you can’t have one without the other. You can’t have lifestyle, you can, you know, there’s a lot of people out there that are asset rich but cashflow poor, and there’s a lot of other people that they work their asses off but they get no time. So, you need both. So, I hope tonight I’m going to show you a business that meets all these criteria. Yup?
– [Audience Woman] But no advertising cost?
– [Audience Woman] No advertising cost, I think is–
– No advertising cost?
– [Audience Woman] Yes.
– [Audience Woman] Internet shopping, you need advertising as well?
– Not with what I’m going to show you.
– [Audience Woman] Living on a farm.
– [Audience Woman] Living on a farm?
– Our farm is purely a hobby farm. We have a no eat policy of animals, I live with three females so, they name all their animals, so once an animal’s got a name.
– [Audience Man] You can’t eat them?
Product research, listing items, ordering items, customer service, bookkeeping, virtual assistants from a dollar an hour, and you can buy an hour of life and this is the critical thing you can buy a whole hour of life for $1
– You can’t eat it, yeah. Anyway, I won’t even go there. And sorry, missed the last one, no talking to customers. Okay, so let’s keep rolling. All right, outsourcing the tasks, let’s talk about this first. So, this is the normal task that you outsource. Product research, listing items, ordering items, customer service, bookkeeping, virtual assistants from a dollar an hour, and you can buy an hour of life and this is the critical thing you can buy a whole hour of life for $1. So if you’ve got a task that you’re doing, you should always be able to record your screen and do the task, put a headset on, talk into your screen and record your screen while you’re doing it, and pretend you’re talking to a ten year old.
You can get rid of that task, for $1 you can go and buy an hour of life and then you can do whatever you want to do in life
If you can record your screen, you can get rid of that task, for $1 you can go and buy an hour of life and then you can do whatever you want to do in life. Like, for instance, on Wednesdays I go and fly my model planes, I’m into radio controlled planes as my hobby, so that’s what I do on Wednesdays. And how do I do it? I pay staff to do my all tasks, for $1. Okay, so you learn each task and outsource it. Now, I’m not going to go into outsourcing tonight because we’ve done a whole night on that, but if you want to see that event, its all here. You can just go to this link, again, its all free, you can go and watch, and you can learn how to get outsource staff, $1 an hour, and also how to train them.
Allocate 10% of your profits always to outsourcing
Allocate 10% of your profits always to outsourcing. So, whatever your profits are every month, 10% of it should be going to your VA’s, and before anyone starts thinking, “You must make money from these VAs,” no I don’t. I got no use in taking part of their dollar from ’em. This is all, I’m just telling you how to do it. So what would you, I ask you guys, what would you do on your days when you can go and spend a dollar an hour, what would you do on those days, on those hours that you can buy? ‘Cause you can never get that time back. Today, once it’s midnight this day’s gone forever. So, this is where your free outsourcing course is, at the bottom of the slides again, a bit backwards.
“What’s better, eBay or Amazon, or your own website?”
Okay, so why an eBay, Amazon business, and website? ‘Cause a lot of people say to me, “What’s better, eBay or Amazon, or your own website?” And my answer’s always been, for the last 10 years, all three. If you sell these, why don’t you sell them on eBay, Amazon, and your own website? Its three different audiences. So, and you can use software to feed too, this is more of an advanced strategy and I realize tonight is a beginner night, but you can use software, we use a program called Magento on M2E, it feeds automatically to eBay, Amazon, your own website, and also things like comparison shopping engines like getpriceshopping.com.
So, why an eBay business?
So, I know it’s advanced but just letting you know what you can do. Why an eBay business? It’s easy to outsource. ‘Cause it’s all done online, you can record your screen. You can use programs like Snagit, which records your screen, you do your tasks, you hit the record button, and you just give it to a VA and say “Watch this” and they do your task. You can operate from home, coffee shops, or anywhere in the world, anywhere that you can get the internet.
With satphones these days, you can get internet almost everywhere
With satphones these days, you can get internet almost everywhere. All the new planes, trains, and automobiles are coming out with WiFi. So, your flight from here or there, you’ve still got WiFi. Cruise ships, you’ve got WiFi. Can be 99% automated, you can build up your spare time, its a 25 billion dollar global marketplace. 182 million active users worldwide, zero startup costs, outsource your tasks, and you can literally grow it to literally any size. Yep?
You don’t have to advertise through Facebook ’cause that’s a whole science of its own
– [Audience Man] Just correct me if I’m wrong, eBay ya know, is something we can not ever target through Facebook campaigns?
– [Audience Man] Whereas if you’ve got a website–
– Yeah, I’m going to get on talking about it tonight, its a very important point because it gets left off a lot.
– [Audience Man] Just seems much easier than the first one.
– [Audience Man 2] That’s one, one of the main attractions to eBay, for me, is you don’t have to advertise through Facebook ’cause that’s a whole science of its own.
– It totally, 100% it’s a science, and it’s an expensive science. We have, our Facebook person’s full time, so it’s full time and it’s, you always spend a fair wack of money on that.
– [Audience Man] You still need to optimize your product list–
E-commerce of course is the largest growth market on the planet
– Well, yes you do, but just take the list of things you’ve already got on eBay and you can just feed it through, and just put it on your website. Then you’ve got to drive traffic, but hold that thought were going to get to it. Okay, now obviously that cost, which can get very expensive. E-commerce of course is the largest growth market on the planet. You know, we see over and over, more and more bricks and mortar stores going out of business. K-Mart just announced they are shutting down another 150 stores. In America they have whole websites about all the death of all the shopping malls all over the country, and we just follow suit. More and more people buy online, to the detriment of bricks and mortar.
You can sell the same products on multiple platforms
You can sell the same products on multiple platforms like I mentioned, low operating costs, to open an eBay account is free. To list your first 40 items is free. Yes, you get charged final value fees, but only when the items sell. There’s no office or store to rent or lease, good tax benefits from running a home business, Lincoln is an accountant here, Lincoln did a great presentation for us late last year, wasn’t it? All about Business Structures 101, about how to set it all up, so, it was a great presentation.
You can sell the businesses for capital, you can not sell the whole business but you can take out a certain amount of listings and sell them off
You can sell the businesses for capital, you can not sell the whole business but you can take out a certain amount of listings and sell them off. When I was, I think about 15, I had a lawn mowing run while I was at school, and I used to go and put fliers in people’s letter boxes and get through all my runs, I would go around the local neighborhood pushin’ my lawn mower around, and then I noticed one of the guys, another guy in the local paper which, our local paper called the “Maily Daily”, was doing the same.
The “Maily Daily”
But it also, in the businesses for sale section, he was selling off his runs, and that gave me the idea back when I was 15 about, hey, could we do the same thing? Where he would build up like a 100 lawn mower runs, then sell off a chunk of 50, and then, he’d just kept doing it and doing it. And you can do exactly the same thing with this, is you build up a whole, take out all your pet products or your baby products or whatever and sell off that niche. There’s a huge demand for it.
You don’t need a website to start on eBay
So, you don’t need a website to start on eBay, you don’t need social media, no SEO which is Search Engine Optimization. No pay-per-click advertising like Google AdWords. You can be a hobby or professional, difference is a hobby business makes less then the award wage, professional business makes the award wage or greater. We talked a little bit about, a moment ago about advertising your website, and this is a big thing because things like Shopify stores which are awesome, are just like your own website.
There’s many ways of having your own website.
There’s many ways of having your own website. It can be a Shopify store, can be a WooCommerce store, there’s Wix or whatever, a website but you must draw traffic to it and this is the bit that gets left out a lot. If you just open up a website, put products on there, I can guarantee that virtually nobody will find your website. It’ll be the drop in the ocean. No one will find it. So you must have a mechanism of driving traffic, you can do SEO, which is Search Engine Optimization, you can drive traffic through Facebook, through Google, there’s a whole multitude of other ways of doing it, but it all costs money, and even SEO, which is Search Engine Optimization, takes a lot of time.
Time is money
Time is money. Here, it shows the average cost-per-click of Google AdWords. And you’ll see here, and these are all the different groups whether it’s home accessories, gifts, whatever, and they vary from a $1.70, but on average you’re looking at about a $1.50 for most clicks. Things like home loans, you’re talking around about $30 per click. So if you’re talking about a $1.50 per click, you might need a 100 clicks to get one sale and you don’t, whether you sell or not, you’ve got to pay, unlike eBay. So, you might have a, in your campaign you might have 50 keywords, you might have a 100, you might have a 1000. As you can see it can cost you a lot of money. Yep?
What good is an eBay store
– [Audience Man] What good is an eBay store, or does an actual eBay store fit into this?
– It doesn’t, most people don’t go to eBay stores.
– [Audience Man] It’s not like a website, is it?
– No, it’s just, you can just put all your products in a store, but the thing with on eBay is, most people’s buying cycle is, if you want to buy one of these, you go to eBay. You search for it, you know, powerpoint presentation tool, you find it, you buy it, you go on. You do not go to anyone’s store.
What is eBay? Its abundant free traffic, there’s a 182 million global buyers
– It’s cheaper, we’ll get to that, yeah. All right so, what is eBay? Its abundant free traffic, there’s a 182 million global buyers. So if you listen up you’ve got the opportunity of a 182 million global buyers seeing it. As you can see here, it just keeps going up, and up, and up. In Australia, this is the latest data I’ve got. eBay as a percentage up here, Amazon, Bunnings, etc. Amazon also, latest data I’ve got, 44% market share goes to eBay, 9% to Amazon. But Amazon is growing, was anyone here, back in 2015, when Amazon? Yeah one of you.
EBay, eight million unique visitors on eBay, each month
So when Amazon first came to Australia, I did the road show with Neil, I was asked by him, I did the road show around Australia with them, and we brought them here and we did the first road show here just before they opened up in Australia. All right so, eBay, eight million unique visitors on eBay, each month. From your notebook, wherever your notebook is whether it’s at home or in your favorite coffee shop or wherever.
Today, building an online business is a lot different to what it used to be
Today, building an online business is a lot different to what it used to be. Today, you don’t have to guess anything. When I started you had to guess everything there just wasn’t the data, there was no proven path. So we’re all, back days, we’re all pioneers tryin’ to figure it all out. These days you don’t have to be a pioneer, the path’s been laid. There’s tools and software I’m going to show you tonight which wasn’t even available just two years ago, so today really is the glory days, we can get all this information, no guessing. If you’re going to use VAs, which I highly recommend you do. If they can guess, there’s a greater than 50% chance they’ll screw it up, so they’re not allowed to guess. Everything has to be proven data only.
Buyers are trusting eCommerce more than ever
It’s so much easier to do it today. Okay, so buyers are spending more than ever. Last year, over $4000 dollars per person in Australia. Buyers are trusting eCommerce more than ever, they’re spending more on eCommerce, they’re trusting things like PayPal, they’re buying expensive items, they’re buying things like cars and helicopters and God knows what. Back in, ya know, 10 years ago the maximum that we’d ever list an item for on eBay was $150 because we knew people wouldn’t trust the system any more than $150.
Now they trust PayPal more than they trust buying things on credit card
Now they trust PayPal more than they trust buying things on credit card. There’s WiFi everywhere. Cruise ships, planes, it’s just going everywhere. This is just back in December last year on a cruise ship in the South Pacific, we could only dream about that we could monitor and run our business from a cruise ship in the middle of the South Pacific and getting full WiFi service. 20 years ago, that was like something out of “Star Trek”, but today it’s a reality.
Key Performance Indicators
So, tonight we’re going to talk about KPIs, Key Performance Indicators. Every business, should fit into a square. eBay businesses and Amazon businesses, importing businesses, drop-shipping businesses, they should all fit into a square, and if they don’t, then we can always spot what’s different. And that’s the awesome thing about it, back in those days we didn’t have squares where we could pigeonhole a business.
So if someone is not growing their business, it means they’re not adding enough products
So if someone is not growing their business, it means they’re not adding enough products. If their margins are too low, they don’t have enough, it’s a supplier issue. So we can pigeonhole and find out exactly if there’s any errors with any business today. One of my favorite ways for beginners to get started is this, you look at eBay or Amazon and you find what’s already selling well, and they’re the items that you focus on. So you don’t guess products, you look at what’s already selling well, and then use the same products that are already selling well. Later on when you get experience, we can do it just think about one in 10 which I’ll talk about tonight but when you’re learning, just look at proven products.
Operating in the cream, the 80/20 rule
It’s like, ya know what heats the fan? What stick to the wall? That’s what we do with eBay. We let everyone on the planet list stuff, and then we come along and see what stuff actually is selling over and over and over again, and that’s what we focus on. So its called operating in the cream, the 80/20 rule. 80% of most businesses’ turnover comes from 20% of their products. I’m going to show you tonight how we can look inside any eBay sales account and see what their top selling item is, to see what their 80% is, or that 80% of their revenue comes from 20% of their products. I’ll show you tonight exactly how to do that for free.