How To Sell On eBay – Complete Guide
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Welcome everyone to tonight.. to about How to sell on eBay. Who here in this room has not sold anything on eBay in their whole entire life? Quite a few. Alright. So who here’s got over, say, 1000 feedback?
– [Audience Member] Nearly.
– Okay, alright, good stuff, okay. So, the people who’ve got experience, I do ask, if you could take a little bit of time, after tonight, if anyone asks you questions, please give a little bit of time, we all start off at the beginning, and I do believe, truly, in the law of abundance, I believe there is enough to go around for everybody. Alright, so let’s get rock and rolling, so tonight’s all about how to sell on eBay. The slides will be available tonight, to everyone. So you don’t have to write everything down. I’ll give you a link at the end of tonight where you can download the slides. Nothing is ever allowed to be sold at these events, whether I’m presenting or anyone else. No one is allowed to sell any products, so anyone who’s got a firm grip on their credit card, you can release it, ’cause there’ll be nothing sold at any of these events. Okay. So, our vision, our purpose, for these events, is simply this, to help more people build online businesses. To enjoy the freedom that the internet gives us. Most of us were all brought up to believe that the only way to succeed in life was to do good at school, go to university, get a job, work ’til you’re 65, play bowls and die. And we don’t have to do that, we can actually work from home or from anywhere else. So, like I mentioned here, if you’re a full-time seller, please take a little bit of time out for everyone else. Okay, so who am I, for those of you who don’t know my story, I started wholesaling and importing over 30 years ago. I started selling online in 1998. I started building eBay businesses, pretty much outta desperation because I was a single father, divorced, and I didn’t wanna go get a job, so I started looking around for alternatives to getting a job, and the online, as it was emerging back then, ’cause it was only very very new, that’s my chosen, and that’s what I chose to do. So that’s kinda my story, we started off in Sydney, we now live four hours north of Sydney, on a farm, and we don’t have any inventory, or staff, on the whole property. So it’s all done virtually, I’m gonna go through tonight, about how to do all that now. Alright, so, if I use any words tonight, that you guys aren’t used to, please tell me, because I’ve been doing this for quite a while now, and you do get used to using certain words and you forget that other people don’t have a clue what you’re talking about, so, if I use words you don’t know, please ask. There’s no stupid questions, there’s no silly questions. If I’m at an event, I don’t understand something, I’m the idiot at the front with his hand up asking all the stupid questions, ’cause I know, these little questions is what glues the whole thing together. So please, any questions, please ask. And a lotta people come to me and say, “But Neil, I’ve never done this before.” Well, welcome to the rest of humanity. We’re all born blank. And none of us knew this stuff, so, as it says here, if you want something you’ve never had before, you must be willing to learn something new. It’s amazing how many times people tell me that. And of course, it’s all about baby steps, little, tiny, tiny, tiny steps, to achieve the result you wanna get. Okay, so tonight, how to sell on eBay. Let’s start with why an eBay business. Work from home. You can work from coffee shops all over the planet, yesterday I spent the whole day at Sydney Airport, ’cause I canceled my 7:00 AM flight, and then they re-booked me on a 3:30 which then end up leaving after 4:00 so I spent my whole day working from my computer at the coffee shops at Sydney Airport, and you can do this from literally anywhere on the planet. Can be 99% automated, build in your spare time. 8 billion dollar marketplace, worldwide. It’s 177 million active users, I’ll show you the graphs in a second, I’ll just show you this data. Zero start-up costs, as I’ll show you tonight, how you can get it going, start with zero money. Flexible hours, access to over 177 million active users, from your PC. And from your favorite chair. You can grow up to literally any size. Unlimited products, no office fit out costs. E-commerce, it’s the largest growth market on the planet. There’s no royalties or franchise fees, but there is eBay fees, or for Amazon, Amazon fees, et cetera, I’ll go through those fees tonight. It’s very low operating costs, ’cause you don’t need an office, you don’t need a warehouse. If anyone’s ever fitted out a store, an office, or a warehouse, or a restaurant you know the cost of that can be quite astronomical. Very good tax benefits. You can sell the businesses for capital, which means, you take a niche out, so let’s say you have a lot of pet products, you take the pet products out of one business, put them in another, get 12 months data on it, and then you can sell ’em off. We’ve sold them many times in Australia, Canada, USA, UK, Ireland, Spain, and you can do the same. No website unless you want one, no social media, no pay-per-click advertising, no Google advertising. You can build a business hobby or professional, so a hobby business makes less than the award wage. A professional business makes the award wage or more. Is that correct, actually? Link is an accountant down here, so he’s gonna check everything I say. Okay, so, abundant free traffic, what is Amazon and eBay, it’s simply this. It’s abundant free traffic. So, what I mean by that is. If you go, you can advertise in many places, a lotta people say, “Oh yeah, but eBay, it’s expensive”, and we’ll go through the fees tonight. But, look how many people you’ve got to view your items. So if you get a website, anyone who’s got a website will know, if you just get a website, you’re gonna pretty much get zero traffic to it, unless you got some methodology in place to drive traffic. Whether that’s social media, it’s Google AdWords, it’s Facebook Marketing, whatever, you have to have some medium to get traffic to your website, otherwise this is just the drop in the ocean. Amazon and eBay is free abundant traffic, you can list something right now, and it costs you zero to list it, and you get all this traffic to it. So, eBay, as you as can see here, up to, in the last data I’ve got, 177 million active users. In Australia, latest data I can get, is eBay’s still way ahead, Amazon is growing, and we’d be crazy not to think that Amazon could not grow a lot more than that. Australia’s been quite slow to take it on, but, they are a Goliath, so we’ll just sit back and watch. A lot of people say, “Well should I sell on eBay, “should I sell on Amazon, should I sell on my website?” The answer is you should sell on all three. But not at the beginning, master one. So, there’s over eight million unique visitors on ebay.com.au. Is there any questions so far? It’s always very quiet at the beginning, then it’ll ramp up. Yep, first person.
– [Audience Member] Shopify, what’s that, and how does that–
– What is Shopify, okay, so Shopify, if you wanna sell stuff on your own website, you’ve got a choice of just buying a domain name, building that website. Or the shortcut is, you go by Shopify store. And change your domain name to your Shopify store, basically it’s a simple way to put your products on a website. Alright, so it’s about 25 bucks a month, and it goes up from there, so if you got 10, 100, whatever number products, a thousand, whatever, you can start up a Shopify site, and being able to list ’em all on there. Now, the only thing is, ’cause it’s a website, you’re gonna get virtually no traffic to it. Unless you’ve got some methodology in place. I say this ’cause a lot of people think, “Oh, let’s put a Shopify store, “everyone on the planet will find it.” No they won’t. Anyone tried that? So you gotta have some medium in place. Does that answer your question?
– [Audience Member] Yes, please.
– Cool, okay. So, what we do, and I’m gonna be talking a lot about this tonight. There’s two ways, first thing I’m gonna start with is product research. ‘Cause there’s two ways of doing product research, you can research products. Or you research sellers to find their top-selling products. And I’m a huge fan of that, because you can find proven products. So what we do, is we let everybody list everything on eBay, and then we come along and we find out what stuff is selling. And there’s two things we wanna look for: profit margins, and velocity. Velocity is how many times an item sells per month. I’ll be referring to that tonight, a lot. So we want profit margins, times how many times an item sells. So we come along, and we just, look to see what’s sticking, this is the child friendly version of course. So, most businesses on the planet, all operate on the the 80/20 rule. 80% of their revenue, comes from only 20% of their products. And, what I’m gonna be teaching you tonight is all about how to outsource everything. So you wanna use outsource VAs, and a VA is a virtual assistant. So we can get virtual assistants from $1 to $2 per hour, and they run the whole shebang for you. All the different tasks, so you master a task, then you outsource it. Now, when you run VAs, if they have to guess, there’s a greater than 50% chance they’ll screw it up. So everything is a yes or no, very dialectic thinking, there’s no But box, so when they come to you and say “Yes Neil, but…”, nope, sorry, there’s no But box, there’s either yes or no. So everything I’m showing you tonight is certain numbers, or KPIs, key performance indicators. So no guessing. Don’t guess, only use data. All tasks must be duplicatable. If you learn to be the most whiz-bang product research person, the problem with that is, you can’t replace yourself. Unless you pay someone like 100 grand a year or plus. So you don’t want to be someone like that, you wanna make sure that you are duplicatable. So I really do believe, in 2019, this is the glory days. It’s never been easier to do these businesses. So, today, there’s no need to guess. You don’t need any capital at all, as I’ll show you tonight. It’s very easy to outsource everything. Very easy to automate. The tools and software simply wasn’t there two years ago that’s available today. It’s so much easier, you know, when I started off, I used to continually fly to the US, I used to go to the eBay events in Chicago, the eBay live events, I used to go to the Channel Advisor Catalyst Events, in North Carolina, in the UK, in London. And that’s the only way I could hang around with successful eBay sellers, so we could swap ideas. You don’t need to do that anymore. The path literally has already been laid. So, buyers today, now are spending, on average, over $4000 per annum. That’s keeps growing and growing and growing every month. It’s never been that high. Buyers trust E-commerce, more than ever. People prefer to buy with PayPal than they do with credit card, ’cause they know if something goes wrong, they can just send it back, get their money back. So people trust the system much more than they do with credit cards. This is a big thing. Over 90% of sellers use best guess marketing. In other words they’re just winging it all. Over 90% of ’em. Now so, if you learn how to optimize listings, you can beat over 90% of the sellers. And if you look at the data, here’s an example of one product. This particular product, the seller at number 10, has sold 659 of these, giving a gross revenue of 56K. Where the number one seller, has done 2089, and done 278K. If this person here tuned their listing, there’s no reason they can’t get up here. But they don’t, hardly anyone tunes listings. Hardly anyone, I find it quite amazing. So, there’s loads of automation software out there. Yes?
– [Audience Member] Were they over the same time period?
– Yes, exactly the same time period. 90 days. A question at the back?
– [Audience Member] What do you mean by tuning?
– Tuning is when you list an item, you fully optimize it when you list it, 30 days later, you come and look at your listing and you look at your competitor, and you compare, if you’ve outsold your competitor, you do nothing. If you haven’t outsold, you make one adjustment. It’s really critical you do that, ’cause what a lotta people do is, they go 30 days later, make five adjustments. And you can’t do that, because, do you remember back to school days, there’s a thing called statistical significance. And that means that if you run the same test again, there’s a greater than 98% chance you’ll get the same result. So if you make two changes, you don’t know, was one good, one one bad. Which is why you must fully optimize first. Then 30 days later tune. Okay, so there’s loads of software, we’re gonna go through bits of it tonight, that are pertinent and relevant. I’m not gonna go through all of them, but there’s tons of software, if you can think of a task, you can either use software or you can use a virtual assistant. Today, we’re blessed with third-party logistics companies. Which means, you don’t have to fill up your house and your garage and your attic and everything else with inventory, if you wanna carry inventory, I’m gonna show you tonight how not to carry inventory, but if you do want to do inventory, you can send the inventory to these places, they hold it for you, then when the item sells, they pick it, pack it, and ship it for you. So you don’t have to drive to the post office, you can be in Paris and this is all happening for ya. So, starting off. It’s critical, like all businesses, to start with an exit strategy. Always build an exist strategy in case you wanna sell the business. You have a big second benefit of doing this. If you build a business with an exit strategy, it means you build a business that works without you. Totally runs without you. And of course, the big bonus of that is, you have a business that works without you, so you can have a life. So if you’re gonna sell the business, it must work without you. ‘Cause if someone’s gonna buy it, they’re gonna obviously investigate it, do their due diligence, and if you are an integral part of it, you’re not gonna get much money for it. It must be outgrowing the attrition rate. So, you need to spend 10% of your profits on virtual assistants. So as you get bigger, your 10% grows and grows and grows. And that way you’re always outdoing your attrition rate. ‘Cause how many people flatline their business, they might have a hundred products, a thousand, 10,000, whatever, and their business is not growing anymore. And then the reason why, is ’cause they’ve hit their attrition rate, every business on the planet has an attrition rate. No product lasts forever. Same as eBay and Amazon. Some products might last a month, some might last ten years. But they’re never gonna last forever. So you always gotta outdo your attrition rate, so you spend 10% of your profits on virtual assistants. Then you’ll always get the exponential growth. Keep clear records. Use an automated accounting system, we use Xero, there’s plenty of other ones out there, that’s the one we use, which is spelt X-E-R-O. You can sell the business for one to four times the annual profit. Last one we sold, it was 2.8 times. And of course, yeah the 10% always spend 10% on virtual assistants, which’ll cost you $1-2 per hour. Alright, so this is another place a lotta people get bogged down with. So many people come to me saying, “Oh, I’m not a Windows expert, “I’m not a Chrome expert, I’m not an eBay expert, “I’m not a Word expert, Excel expert.” Well, you don’t need to be. Like, take this one. iPad for dummies. Who here can use an iPad? Be pretty much everyone, like most people right? How many people know everything in this book? Probably no one. Right, so, the point of this is, to use an iPad, you don’t need to know hardly any of that. If you get stuck, just go find a ten year old, they’ll sort you out. Or maybe even a five year old these days. The same with a phone, you don’t need to read this book to run an iPhone. If you can do, say, five things on an iPhone you’ve pretty much got it cracked. You know, make a call, receive a call, send an SMS, receive an SMS. Take a photo. If you can do that you’ve pretty much got it cracked and everything else is just a bonus. It’s the same with all this, do not get bogged down tryin’ to master Windows, to try to master Word, and master all this stuff, because, that procrastination, you can either have profit or procrastination, you can’t have both. And, tonight you’ll see the barriers to entry this is another huge thing that bogs people down. Everything in life, doesn’t matter what you do, there’s barriers to entry, as soon as you start any task, you see, “Oh, it’s grandiose”, then you start going, and then instantly, almost instantly, there’s a barrier to entry, there’s a hurdle. And the more hurdles you get through, the more of your competitors you leave behind. ‘Cause most people, might tackle one hurdle, maybe two, maybe three. And then they go and look for the next shiny new object. If you’ve just got the tenacity to just keep going, you’ll leave so many of your competitors behind. And of course, that’s how movies are made. Movies are all about, what’s a movie, Star Wars. Luke Skywalker starts off, he gets given this grandiose thing, then straight away, there’s a hurdle there, anyway, and that’s how they make movies, it’s just how everyone gets through the hurdle. So, barriers to entry, awesome. Every time you see a barrier to entry, that’s an awesome thing to find. ‘Cause you know a lotta your competitors, are not gonna get through it. I.E., tuning listings. So, let’s start with the foundations. The first thing is, how do you just register for eBay? Someone have a question, no? ‘Cause someone once came to me and said “Oh, you never showed me how to sign up”, well there, you go, it’s right there. Can’t go wrong. So any questions so far? It’s all quiet so far, nope. So that’s how you register, now. After you do that, the next thing you should do, is you should go to Site Preferences, and turn on the out-of-stock function. And what this does, is allows you to keep the social proof. So when you go into eBay, you can see how many times an item has sold. Now if you don’t turn it on, people won’t know how many are sold, so, here’s an example, this particular item here, is sold 1386 times. If you do not have the out-of-stock function turned on, soon as you sell the last one, you lose all that sales history. Which is your social proof. All gone forever. If you do have it turned on, if you sell the last one it goes to zero, but the listing does not end. And social proof is very very powerful. Just like you go past the Chinese restaurant at night, it’s got 50 people in it, the one next door’s got none, which one do you choose? It’s very powerful, everyone clear on that? All good? Alright. Then, open up a second eBay account, always have at least one spare eBay account, this becomes your purchasing account. So whenever you wanna buy something, you just go and use that to purchase with. eBay sellers can only leave positive feedback. So your spare account has always got 100% positive feedback. Around 40% of the people you buy from, will leave you positive feedback. So then if anything goes wrong, you can jump to your spare eBay account, park the other one, and all your negative feedbacks drop off after 12 months. You can also use it to sell your business, so if you got a lot of pet products, as an example, you can take all those pet products, drop in your spare eBay account, and bingo it’s up and running. So it’s 100% guaranteed feedback, negative feedbacks delete after 12 months. A lotta people when they start, they think “Oh, gotta maintain 100%!” Don’t, if you wanna try and maintain 100, first thing you need to do is go to your doctor, sign up for some more blood pressure medication, ’cause you’ll need it. ‘Cause every day you’ll get out of bed, you’ll open up your computer, you’ll go, “Oh my god, it’s saying I’ve got 99.9, “holy crap, that’s terrible!” No it’s not. eBay knows, every professional seller gets negative feedback, everybody. And all you gotta do is be average. It’s like that old saying about how fast do you need to be to outrun a lion? Just faster than your friend. Alright, and it’s the same deal, you’ve just gotta be average or a little bit better. Okay, you should have, you don’t need, you should have at least 25 feedback when you get started. Because it looks a lot better when you sell something if you’ve got at least 25 feedback. Now you don’t have to, but to get 25 feedback, it’s not hard.