I think that describes most of us to an extent. You see, I um-and-ah… and generally delay on making decisions. Right now, for example, I’m umming-and-ahhing about finalising my grocery list. And I really need to get out and tidy the back yard….
But I find myself procrastinating once again. There’s always an excuse.
Now, I have to admit: this ‘procrastination problem’ is nowhere near as bad as it used to be, but it’s still not right. You see, I’ve learnt that the less I procrastinate, the more gets done, and the better I do.
What does this have to do with eBay? I’m getting there.
Let me hazard a guess: if you’re reading this, I’m betting you’ve procrastinated on one, two or more of the ideas… and that’s bad. Very bad! Because even if you’d tried something, that ‘something’ would have given you some feedback – even if it was only ‘failure’ feedback, which can be very useful in itself.
But before you decide to do anything on eBay – even before you decide to procrastinate – you need to make a decision, if that… er… makes sense. A decision on which, I hope you won’t procrastinate!
And that which you need to decide is simple: what kind of business you’re going to go into. Or, more specifically (to start with), what type of model you’ll follow.
See, there are only really two main models of business that you can go into on eBay. The first is where you’re selling the same product(s) over and over… and over. .. again. The second relates to buying one-shot items… rare stuff and the like… one-off items that you buy, the onesy-twosy approach. You then resell each individual item in turn for (hopefully) big profits.
You just have to make up your mind which ‘model’ you’re &oing to opt for.
There’s pros and cons to each. As always.Let’s consider, first of all; the onesy-twosy approach. We’ll call this ‘Model 1′.
Model 1: The ‘Ones And Twos’ Approach
This is a perfect part-time approach towards eBay success. You can do it when you want. You can create customers that stay with your forever… apd who will LOVE you. You can virtually see the smiles on your customers’ faces as the latest offers arrive.
And you’ll get great returns (often) on each item that you auction off. Ten times your money is far from uncommon. Even 20… or even 100 (or more). These are all perfectly attainable returns for your auctions. Not much money invested = great return gotten out.
But there’s a downside, too. Your income is more variable and, quite frankly, it’s a much more time dependent business model. You’ll have to know the market, and as such you’ll be the one hunting for ‘product’ every week. Not that there’s anything really wrong with that, especially if you really like what you’re trading in.
There’s a corollary to all this too…
And that’s this: your earnings will probably be capped. Because of the time-dependency factor. And the fact that YOU will virtually ‘be the business’ so you’ll never build a really big business. Probably not, anyway.
So what’s the other approach?
Model 2: The “Sell The Same Items Over And Over Again”Approach
This method involves buying a stock of the same item and floggings said item(s) over and over again. Again, there are pros and cons.
The pros? Well, you can build bigger. Once you’ve got the source of supply, there’s not much work thereafter. You just list, then relist. And then go and sunbathe, particularly at this time of the year. What’s more you can build BIGGER, because the business can be less dependent on you. Sounds great, huh? Actually, it is.
So what are the downsides?
Firstly, there’ll be much more price-based competition. It can be quite cutthroat. If there’s a big market for what you’re selling – and there probably will be if you’re going into that market – then there will probably be people already there who will be competing against you. Unless, of course, you’ve got a truly unique product that no one else has.
Secondly, there’ll be lower returns available. Let me explain what I mean. Let’s say that you’ve got a selection of items for resale with ‘Model 1′. This means that you might have bought these ‘onesy-twosy’ items for £40 each. And you might sell them for £120 each, or one for £300, some for £80, and so on. But the point is that you’ll be getting an outstanding return on your money.
Well, with the ‘other’ approach…well, it’s a lot less likely that you’ll get a big return on your stock investment. You might make 20% on your stock. Invest £500, get back £600… BUT you’ll sell more product, and more often. And you can build very big (in eBay terms).
So Which Approach Is For You?
Depends on you, what your free-time situation is like, what you want to achieve from your eBaying, and so on. So you need to know where you’re coming from, and where you want to go. If you’re short on time, wanting to make money fast, and just want a part-time eBay business, then it’s probably best to start with Model 1 (the one-off approach). If you’ve already gotten some eBay experience under your belt, have more time and are up for the challenge that lies ahead, go for Model 2. Of course, feel free to disagree too!
Here’s something else to think about…
Let’s say that you start with Model 1. You go along nicely, making some profits. You’re still part-time. You can then use that basis to work from, and launch other eBay businesses as you go along. Make sense? You start part-time, build up your knowledge and capital base, and then work from there.
Or how about running two of these side by side? It’s totally doable, believe me. But that again will depend on YOU, and it certainly wouldn’t be recommended if you were just starting out. And, of course, you’d reed the time to do this. There’d certainly be quite a bit of work involved. It wouldn’t be for everyone.
But that would be something, wouldn’t it? That way, you’d be spreading your risk – diversifying if you like because you’d have two separate streams of income. You’d build up two individual supply sources, customers, e-mail lists and so on, and you’d be lowering your risk should the worst happen in one of your ‘mini businesses’ .
Ideally, you’d also trade under separate ID’s for the two trading approaches. It might seem a bit strange to your bidders if you’re telling them to ‘Check your other items!’ when they’re looking at your stereo equipment. They check your other items and find a bunch of old dolls that you’re auctioning in your ‘Model l’ business! Not a very good idea. So you’d (ideally) want two separate ID’s.
But I think I’m getting ahead of myself here. Because, coming back to what I was saying at the start…
None Of This Can Happen if you continue to procrastinate! So what are you waiting for?
You at least need to think about which approach is right for you, in line with your current circumstances, and how maybe you want to see them change too. Just don’t procrastinate too long on the path you want to follow.
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