My new eBook that I will be selling on eBay - How to create a budget in Excel 2007

This last month I have been working on an eBook that details how to create a budget in Excel 2007.  This is a simple step by step eBook that will walk you through the entire process of setting up the budget and explain not only how to use it but why it will help you achieve financial success by using it.  The budget is easy to understand yet powerful in its application.  Learn the steps you need to take to increase your financial well being.  I will be selling it on eBay and ClickBank next month (April 2011).  My eBay name is VantageSellers if you are interested.

You can sell almost anything on eBay

One of the greatest things about eBay is that it doesn't cost a lot of money to start selling stuff.  In fact you don't necessarily have to spend a dime more than you already have!  Just start going through your closets, toy boxes, kids clothes they no longer wear, etc...  Research the item on eBay to make sure it is selling and at a price point you will be happy with.  Then if the item is selling well list it.

The key to a successful listing of a used item is to start the auction price out low like at $0.99.  Most anyone will bid on an item for so little if they are even mildly interested.  The bid price will of course increase and many times you will sell  a product for more by starting the price at $0.99 than if you tried to get $5 for the item.  It is called escalation of commitment.  Once someone has bid on your item they feel they have a certain amount of ownership for that item.   Then someone steals their ownership away by bidding higher than they were willing to go.  The war is on!  Finally one of them wins the item because his opponent has no more money to bid.  The winner takes all.  The more bidding wars people have on your items the richer you become!

It's important to find a niche on eBay

When you are deciding what you want to sell on eBay think about your interests and hobbies.  What do you know the most about?  What types of products would you be comfortable selling?  This may seem odd as you might think that as long as something sells what difference does it make if you actually like the product?  The point is that if you know and understand a product then you understand its value and are therefore better able to describe it and understand what price you should ask for.

When you list your item on eBay you have to provide a description along with one or more pictures.  The description will either excite your prospective buyer or will turn them away.  If you are really into your product and love it then buyers will flock to you because they feel your positive energy when you describe the product.  If you aren't interested in your product then that lack of interest will also show in your description.

So find a product or group of products you are interested in.  Make sure that there is a market for them on eBay and then create your own niche and start selling those types of products.  You can even open an eBay store and list several similar products that you can suggest to buyers after they have bought one of your products in an auction.

Nine things to define your eBay transactions as a business to the IRS

Below are the nine things that you need to focus on when doing business on eBay.  These items are what the IRS looks for to verify that you have an actual business (reference Skip McGrath's The Complete eBay Marketing System).

1. You must run your operation in a business-like manner.

·         Keep good records of all transactions

·         Create a separate bank account for your business

·         Get an entity for your business eventually.

o   Get a business license.

·         Charge sales tax when applicable

o   Get a Sales Tax License or Number

·         Get an EIN number from the IRS

·         Hire an accountant

2.  Track the time you spend on your business.

3.   Write out a business plan to show how to plan to quit your job and make your business you main source of income at some point.

4.   If you have losses you must be doing something reasonable to change that.

5.   You must make a concerted effort to generate a profit.

·         Go to seminars

·         Study your marketplace

·         Try different strategies

6.   Hire and meet with professional advisors who can aid your business.

7.   You must be striving to become an expert in your field of business.

·         Learn more about your field

·         Buy books

·         Work with advisors

8.   You business needs to become profitable at some point.

9.   Your business must be an asset that is appreciating.

Create a business plan for your eBay sales

eBay is very easy to do and many people may simply treat it as a fun hobby listing things they have in their home that they want to get rid of or maybe even purchasing something at a garage sale or thrift store that they know will bring a profit on eBay.  If you really want to get serious about making eBay your business however you need to come up with a strategy for your products and sales.  You should ask yourself the following questions:

1.  Where am I going to get my product?
2.  Can I sell my product in mass quantities or will I be selling rare items?
3.  Who are my customers?
4.  Why would people want to buy my product(s)?
5.  Are my products seasonal?
6.  Are my products easy to ship?
7.  What are my shipping and handling costs?
8.  What competition do I have for my product?
9.  What is my target price for my product?
10.  What is my target profit margin?
11.  How can I systematize my eBay business?
12.  What parts of my eBay business can be automated?

In answering these and other similar questions you will have the basis for a solid business plan.  To be successful you should have your business plan in place as soon as possible so you will be clear on where you are headed with your eBay business and how you are going to get there.  Don't let the business plan stop you from setting up your eBay business but make it a goal to get your plan in place so you can start measuring your success.  Remember, what can be measured can be improved upon!

Advantages of an eBay business

In the traditional business world you would spend thousands getting your store set up and filling it with inventory so you have something to sell when you open your doors for the first time.  You could potentially work yourself too much because you don't feel comfortable leaving the store and possibly can't find employees who are responsible enough to deal with a situation while you are gone.  Also, you may never brake even.  There are no guarantees that you will sell enough product to make up for your investment into the business.

There are several advantages of an eBay business over a brick and mortar operation.  First you can do business any time and any where by simply bringing your laptop with you.  You can automate your shipping via either drop shipping or a third party shipping company that can also warehouse your products.  You aren't restricted to a schedule of operations since eBay is available all over the world and you literally have potential customers online 24/7.

eBay also has a very low investment to get started.  You can start for less than a dollar if you truly wanted to.  Just look for something in your house to list and start the listing price at $0.99.  The listing fee is $0.30 and depending on what you are selling you will almost certainly make more than your initial investment on the first sale.  Worst casing it, you don't sell your first item and you lose $0.30 and you have to invest another $0.30 to either relist the first item or find another to sell that more people are looking to find.  Even if you went through ten different items before finally selling one you have only invested $3.00 in your business before you brake even (providing you sell your first product for more than $3.00).

Of course there is the very best advantage: once you have found one or more products that sell consistently and you have a good supplier for your productions you can automate most of your business and just manage it as the money comes in.  Instead of buying yourself another job as in the brick and mortar operation you have bought your freedom and can now lead the life you have always wanted!

Accounting is an essential part to any business

It is easy to get caught up in the fun of selling things on eBay.  Auctions are great entertainment and you will find yourself anticipating their outcome when you are selling as much as those who are anxious to purchase the product you are selling.  It is easy to get distracted but dedicate a little time every day to recording what you spend and how much money you have made.  This will do wonders for helping you prepare for doing your taxes but it will also help you to gauge how well your business is doing.  My favorite saying is, "What can be measured, can be improved upon!"