What? You Don’t Have an eBay Store?

In fact, you might not even have heard of eBay stores. Read on to find out what you’ve been missing.

eBay stores come at three levels: Basic for $15.95 per month, Featured for $49.95 per month or Anchor for $499.95 per month (yes, that is typed correctly: almost $500). The best place to start out is with Basic (you can even get a month’s free trial), but if you like what you find then you should upgrade to Featured quickly, simply because it has so many extra features. Note that you must have a feedback rating of at least 20 before you can get an eBay store.

But what is an eBay store? Basically, it lets you list a set of fixed price auctions together on one page for much longer than auctions usually last - and most sellers with eBay stores list the items at a slightly lower price. It’s like a list of your special offers. You can put your logo on the store and write a little about your business and policies, and your customers can search your store for anything they might want. Buyers can click through to your store using the door symbol next to your name.

A good way to look at it is that it’s a little like having your own e-commerce site outside eBay where you can list your items more long term - except it’s all done for you without you having to learn a new system. Items in eBay stores can be listed for 30, 60, 90 or 120 days, or you can list items permanently, paying monthly for each one.

You can visit eBay stores at http://stores.ebay.com. Go there now and click the ‘Open a Store’ button on the right of the screen to start signing up for the free trial. Then there are a few steps to go before your store can open for business.

Step 1: Pick a theme. You can have whatever design you want on your store, but to begin with pick something from eBay’s options that you think would be appropriate.

Step 2: Add your store’s name, description and logo. You can pick one of eBay’s pictures for the logo or upload a logo of your own if you have one. Don’t worry, you can always change this later.

Step 3: Choose your subscription level, and then click ‘Start My Subscription Now’. Your store is ready! Remember that you can customise it more at any time.

Listing items in your store is just like listing items on normal eBay using ‘Buy it Now’, except that the durations you can choose from for the store are much longer.

By now, you’ve probably spent enough time in eBay that you’re starting to get used to it - but then again, you also might have been a victim of fraud by now, or at least seen fraud happening to others. The next email will tell you how to fight eBay fraud.

From everything you’ve heard about the risk of fraud on eBay, you might think it’s only buyers getting scammed - but you couldn’t be more wrong. Here are a few common scams that sellers fall for every day.

This one obviously isn’t limited to eBay - it’s been going on for years in all kinds of business. It works like this: a buyer sends you a cheque that they don’t have the funds to cover and you pay it in your bank. You then send the goods right away, only to find out a few days later that the cheque bounced.

The solution to this is simple: don’t send anything to a buyer until their payment has cleared, no matter how quickly they might say they need it. Advise them to pay electronically if they don’t want to wait so long for their items. Then again, if your items are quite small, you could just take the loss from an occasional bounced cheque. Think of it as a small price to pay for faster and better customer service.

This is one of the riskiest scams to fall victim to. In this case, the credit card’s real owner still has control over it - no-one has stolen their details. They have realised, however, that they can phone up the bank who issued their card to say that it’s being used fraudulently and they never bought any such thing, and the bank will often reverse the transaction without even investigating. The only way to beat this scam is to make all your sales through eBay, as they keep a record of transactions.

It is quite easy to steal PayPal accounts from inexperienced users: all you need, after all, is their email address and password. PayPal tries to protect against credit cards registered on stolen accounts being used to buy things by listing a ‘confirmed address’ for each buyer - an address that matches what is registered with their credit card issuer.

What many scammers will do is ask you to ship to a different address - unless you’re very sure of them, this is a bad idea, as they could be trying to commit credit card fraud. Be especially suspicious of anyone who wants to pay a higher price and get overnight shipping, especially if not even to the same country as the confirmed address. The fraudster is trying to make sure the item reaches them before they are discovered.

It’s up to you to take responsibility for fraud on PayPal, as eBay’s favourite way to refund fraudulent payments to their rightful owner is to just reverse it from you! This is considered an occupational risk of PayPal usage, and sellers who get burned severely sometimes go as far as moving to a rival electronic payment service. See www.nopaypal.com for more.

In the next email, we’ll take a closer look at PayPal, and ask: should it be the only kind of payment you accept?

You may have noticed that many sellers list PayPal as the only payment option they accept - they simply can’t be bothered cashing cheques and money orders, never mind any of the other strange ways some people want to pay. Like all things in life, though, PayPal has its advantages and disadvantages. Let’s take a look at what PayPal can do for you, and what it can’t.

PayPal is very vulnerable to fraud, and it’s you as the seller who’ll be paying the price when it happens. What’s more, they do take a percentage from every transaction that you could be keeping if your buyers were paying by cheque.

You might also have noticed that PayPal come from the eBay school of customer service, enjoying such pastimes as hiding their phone number and only ever sending out automated responses to emailed queries. PayPal has an unusual number of campaigners against it, most of them people who’ve had their accounts frozen and had to chase PayPal for months for thousands of dollars. Some of these people recently filed a class action lawsuit against PayPal, claiming damages for lost business - and they won. This alone should make you cautious about using PayPal.

PayPal is quick and easy for buyers to use, and is certainly a more secure and reassuring way to accept credit cards than signing up for your own merchant account. You’ll probably also find that it’s cheaper for you.

That’s before you even consider that eBay buyers are more eager to buy from someone who accepts PayPal, as it saves them all sorts of hassle with posting payment and then waiting around. PayPal lets you give speedier customer service.

The most important thing about only accepting PayPal is, again, a matter of customer service: some of your potential customers might not have or want a PayPal account. Not everyone loves electronic payments - some fear them, and like eBay because it is one of the few places on the Internet where many sellers will accept payment by more traditional methods. Do you want these people as customers, or don’t you?

You might notice that some people are aware of the issues of PayPal and refuse to use it, but still want to pay electronically. For these rare cases, it’s worth opening an account at a well-known PayPal rival that has a better reputation - the current favourite seems to be NoChex (www.nochex.com), which offers free chargeback protection.

NoChex is quite a lot better than PayPal by most standards, but just doesn’t have the same market penetration or convenience of use on eBay. Still, there’s nothing stopping you from accepting both, just as long as you make it clear that you do on your auctions. If you find that you really prefer NoChex to PayPal, then you could offer your buyers a discount for paying through NoChex.

Once you’ve got the payment, the next thing you need to do is ship the items. In the next email, we’ll take a look at what you should write on your eBay shipping boxes.

The quickest answer I feel I should give to this question is this: not your handwriting! Scrawling addresses on boxes with a pen is extremely amateurish, and you shouldn’t do it. Print your own labels instead. But what should you put on them?

The buyer’s address: This might sound obvious, but you need to make sure the full address is there, including country and zip or postal code. Make sure you spell their name correctly, too, as they might be a little insulted if you don’t.

The eBay item number: Write this somewhere discreet and quite small, in this form: ‘Item number: 123456789’. Under the address is a good place. This makes it easy for the buyer to find the auction again if they need to look at it for any reason.

Your logo: Putting your logo on the shipping box looks professional, and lets your buyers see what it is that has arrived. A good logo can make the whole package look very nice, and can help build recognition of your business.

Your address: It’s worth putting your own address on the box in case the item can’t be delivered and needs to be returned to you. It looks good to write this under your logo, as it reinforces the impression that you’re a real business with a real address, not some shady operation.

Stamps: If you start to sell on eBay in a significant quantity, you might consider buying a postage meter. Again, this is a matter of looking professional - it looks much better than having stamps stuck everywhere. It also saves you from having to weigh your items at the post office and buy stamps there.

Some sellers like to mark their shipping boxes with a phrase like ‘eBay items’, while some feel that this is an unsafe practice that could mark their boxes out to get stolen or interfered with in the post. Whether you’re willing to risk it is up to you - it’s probably better to be safe than sorry, though, and there will be few of your customers who get so many packages that they won’t know what yours is.

You’ll probably find it worth printing off a ‘receipt’ from eBay - the confirmation of payment page - and putting it in the envelope. If you want to make your customers feel even better about having ordered from you, you can also include a compliments slip, featuring your logo, your website address and a message like ‘Thank you for your order. Please contact me if there are any problems. [Your name].’

Always remember: the more they like what they get, the more likely they are to come back and order again from you in the future.

In the next email, we’ll look at exactly that, using a strategy you might not have considered. You can make backend sales over and over again, simply by emailing buyers with good offers for things you think they’re going to need. See you there.

It shouldn’t too hard to increase your eBay backend sales - because the chances are you currently aren’t making any! Backend sales are sales to customers who have already bought an item, also known as ‘up-selling’. These are usually easier sales to make than normal sales: in sales-speak, your existing customers are ‘warm leads’.

It’s a technique you’ve probably noticed being used on you in shops: you buy something, and you’re offered a $5 piece of equipment to keep it clean, or make it easier to use. The usual human response is to say to yourself "heck, what’s another five dollars - it might be useful". It’s just another five dollars to them, but they might have just added 20% to your profit margin.

Out of the things you stock, which cheaper things are there that could be useful to someone who now owns one of the more expensive ones? For example, if you sell digital cameras, the backend product is digital camera memory - they never come with enough out of the box. The backend products for a printer would be ink and paper. Try to think laterally!

If you can’t think of anything, take a look around at the cheaper ‘extra’ items that your competitors offer, and see if you can find a supplier for them. There are very few product areas where this technique doesn’t apply.

When you send items out in the post, include a brief sales letter with products you think might be of interest to the customer. It’s like sending out a personalised, targeted catalogue to your customers with every purchase. Again, you’ll find that a significant percentage of people won’t have bothered to look at what else you were selling, and will go back to buy a few more things.

To stop people from just putting such a letter aside and thinking they won’t do anything about it right now, you might like to include some kind of limited time offer - 10% off if you order within the next month, for example.

Each time you sell something to a customer, you get valuable market information about them, and they get to see that they can trust you as a seller. That’s why backend sales are so powerful. Keep your customers updated in your newsletter, making sure you list any new products there that you might have in stock. The chances are that these customers will be far more eager to buy from you.

If the product that the customer bought from you to begin with is consumable (it will run out), then this is a special case. You shouldn’t try to make the backend sale straight away, but should instead wait long enough that the average customer would have just run out of the product. That’s the time to strike.