Ebay business the smart way

eBay Business the Smart Way Second Edition Other Books by Joseph T Sinclair eBay the Smart Way eBay Motors the Smart Way eBay Global the Smart Way Building Your eBay Traffic the Smart Way eBay Business the Smart Way Maximize Your Profits on the Web’s #1 Auction Site Second Edition Joseph T Sinclair American Management Association New York • Atlanta • Brussels • Chicago • Mexico City • San Francisco Shanghai • Tokyo • Toronto • Washington, D.C Special discounts on bulk quantities of AMACOM books are available to corporations, professional associations, and other organizations For details, contact Special Sales Department, AMACOM, a division of American Management Association, 1601 Broadway, New York, NY 10019 Tel.: 212-903-8316 Fax: 212-903-8083 Web site: www.amacombooks.org This publication is designed to provide accurate and authoritative information in regard to the subject matter covered It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service If legal advice or other expert assistance is required, the services of a competent professional person should be sought Library of Congress Cataloging-in-Publication Data Sinclair, Joseph T eBay business the smart way : maximize your profits on the web’s #1 auction site / Joseph T Sinclair. 2nd ed p cm Includes index ISBN 0-8144-7267-2 eBay (Firm) Internet auctions I Title HF5478.S4735 2004 658.8’7 dc22 2004016614 CIP © 2004 Joseph T Sinclair All rights reserved Printed in the United States of America This publication may not be reproduced, stored in a retrieval system, or transmitted in whole or in part, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of AMACOM, a division of American Management Association, 1601 Broadway, New York, NY 10019 Printing number 10 To my grandfather, Albert L Hoener, Jr., and grandmother, Margaret Zoe Lorene Fellabaum Hoener, together the light of my life in my early years in Michigan Contents Acknowledgments xvii I Introducing eBay Business 1 Introduction Who Should Read This Book? eBay’s Place You’re in Business Now 11 Customer Service 11 Find Your Niche 12 Work 12 State of Retail 14 Call to Action 15 VII VIII CONTENTS II Getting Started 23 Setting Yourself Up Legally 25 Sole Proprietorship 26 Partnership 30 Corporations 34 Hybrid Business Forms 38 Virtual Businesses 38 And Then You Grow 39 Taxation 40 Resources 41 Conclusion 42 Business Details 43 Sales Tax License 43 Business License 49 Regulations 50 Employees 50 Independent Contractors 51 Insurance 55 Bank Accounts 56 Tax Number 57 Merchant Credit Card Account 57 Trademarks 58 Accounting 58 Branding 60 Inspiration 67 Resources 69 Equipment, Supplies, and Space 71 Hardware 72 CONTENTS IX Software 74 Internet Access 76 Home Router 77 Long Distance Service 78 Business Machines 79 Office Furniture 80 Office Supplies 81 Office Premises 82 Storage, Packing, and Shipping 82 Home Office Tax Deduction 83 Inexpensive Home Office 84 On the Road 86 Finding Inventory 89 Basics 90 The List 92 Go for It! 126 Borrowing Money 127 Business Plan 128 Savings 130 Credit Cards 131 Relatives 132 Angels 133 Banks 133 Other Lending Sources 139 Lenders for eBay Businesses 142 Resources 143 III Business As Usual 145 X CONTENTS Selling on eBay 147 Types of Auctions 147 Listing an Auction 151 Taboo Items 159 Illicit Practices 164 Your Marketplace 164 Passive Endeavor 165 Text-Box and Banner Advertising on eBay 166 Power Sellers 167 The Heart of the Matter 167 Auction Details 169 Advertising 169 Placement 182 Timing 182 Valuation 185 Linking 185 About Me 185 Final Details 186 Where the Work Is 188 Photography 189 Taking Photographs 190 Digital Cameras 198 Image Services 200 10 Using Image Software .207 The Digital Darkroom 208 Image Editing 209 File Formats 216 Summary 217 544 EBAY BUSINESS THE SMART WAY accessories, supplementary products, ancillary products, or otherwise related products (e.g., eBay Store cross-promotion at bottom of Bid Confirm and Confirmation pages) The cross-promotion below is a cross-sell It suggests a supplementary book to the one you are now reading eBay the Smart Way Already in its third edition and headed for a fourth, eBay the Smart Way covers the eBay basics The book you are now reading assumes you know the eBay basics, and as part of the Smart Way series, it does not repeat much that’s covered in eBay the Smart Way Thus, if you feel you’re missing something in your current reading, you may find it in eBay the Smart Way Here are some of the highlights for eBay business readers: • How eBay works • Reputation (feedback system) • Remedies and recourse for fraud • Selling basics • Creating an eBay auction ad • Handling multiple auctions • Basic customer service • eBay’s Business Marketplace • Using Web authoring software And there you have it, an example of a cross-promotion (a cross-sell) that I hope you will take to heart Index abbreviations (in auction titles), 153–154 About Me webpage, 185–186, 383, 395–396, 402–403, 478 accounting, 58–60 integration of offline/ online, 470–473 and profit/expenses, 420 for purchases, 498 accounting software, 58–60, 317, 337 account management, 326 active bidding, 501 ad copy, changing, 17 addresses, 310 Address Verification System (AVS), 300 administrative fraud remedies, 308 Adobe PhotoShop, 207, 208, 209 advertised prices, 222–223 advertising, 331 banner, 166–167, 392 and branding, 65 with Elance, 467–468 and hidden markets, 408– 409 institutional, 481 545 offline, 392 and profit, 419 of services, 454–455 text-box, 166 see also auction ads AdWords, 392 affiliates, 392 "all caps," 172 alliances, international, 357, 360 Amazon.com, 14–15, 223, 345–346, 374–375, 380 American Small Business Association (ASBA), 69 analytic reports, 331–332 546 Anchored Stores, 387 Andale, 108, 224, 328–333, 399 angels, 133 appraisers, 226–227 archival data, 328 art, selling, 103 artists, getting inventor y from, 101–103 ASBA (American Small Business Association), 69 Ascom Hasler, 254 "as is" guarantees, 367 assumed names, 26–30 ATM cards, 326 auction ads, 151, 154–155, 169–188 arrangements explained in, 179 boilerplate text in, 178–179 completeness of information in, 170 efficient creation of, 175– 179 links in, 176, 185 multimedia, 180–182 photos in, see photos placement of, 182 readability of, 152–153, 170–175 AuctionBytes, 487 AuctionCheckout, 290 auction houses, 240 AuctionIntelligence, 224 auction management services, 22, 204, 294, 315, 328–330, 333–336, 400, 472, 491 INDEX auction management software, 314–318, 333–336, 342–343 auction management tools, 326 Auction123, 490 auctions, 147–149 Dutch, 149 fixed prices vs., 150 liquidation, 124 listing, 151–159 live, 234 local, 123–124, 232–233, 497 normal, 148 as passive selling, 165–166 private, 149 repeat, 479 reserve, 148 restricted-access, 149 setting up, 229–230 special, see special auctions timing of, 182–185 see also auction ads auction titles, 152–154, 180 auction tracking, 500 audio (in auction ads), 180– 182 authentication services, 372 automobiles, 235–238, 490 AVS (Address Verification System), 300 B2B, see business to business Babel Fish, 351, 360, 361– 362, 498 backup, computer, 73–74 Bank Identification Number (BIN), 300 Bankrate.com, 139 banks and banking, 27–28, 30, 56–57, 133–139, 280, 284–285 banner advertising, 166–167, 392 Barr y, Dave, on national economy, 443–444 benefits, employee, 413–417 Bezos, Jeff, 374–375 bidding technique, 501 BIN (Bank Identification Number), 300 BizRate, 222, 346–347 Blue Sky Limited, 142 boilerplate text, 178–179 bold italic type, 172 bold type, 156, 171–172 bonding, 371 bonuses, 37 bookkeeping, 492 borders (in auction ads), 173–174 borrowing dilemma, 134–135 borrowing money, see financing Bplans, 129 branding, 60–67 brightness, adjusting, 209, 212–213 broadband connections, 320, 333 brochure websites, 395–396 bulk supplies, 497 bulleted lists, 173 bundled software, 76 bus, shipping by, 268 business books, 448 business brochures, 395–396 INDEX business buyers, tips for, 509– 510 business cards, 46, 86, 99 BusinessLaw, 41 business machines, 79–80 business name, choosing a, 27, 30, 60–67 business permits and licenses, 26–29, 49–50 Business Plan Pro, 129 business plans, 128–130, 133 business seminars, 447 business to business (B2B), 240–241, 496–497 buyer fraud, see fraud buying, 491 international, 357–360 quantity, 274 see also purchasing Buy It Now, 150, 156, 238, 382–383, 498 BuySafe, 371 cable Internet access, 76–77 cameras, digital, 198–200 cash discounts, 140–141 cashier’s checks, 282–285, 369 cash on delivery (COD), 291 catalogs, 225, 318, 380–381, 398–400 categories, placement of items in proper, 151– 152, 157 CCH (Commerce Clearing House), 41 CD recorders (CD-R), 73, 74, 88 cell phones, 184–185 547 centered text, 174, 175 Certified Public Accountants (CPAs), 40, 60 chairs, 85, 87 chargebacks, 302–303, 365 chart of accounts, 58 CheckFree, 289–290 checking accounts, 28, 30, 56–57 checkout system, 324, 325, 382 Checkout tool, 329 checks, 369 accepting, 285–287 endorsing, 27–28 international, 356 Click-N-Ship, 252 ClickStamp, 251–252 closeouts, 110–116 foreign, 115–116, 125 local, 116 clothes, photographing, 196 Cloud Dome, 194 COD (cash on delivery), 291 collateral, 134 collectibles, 154 college extension courses, 446 combination office machines, 80 Commerce Clearing House (CCH), 41 commercial credit, 292 commodity products, 431– 436 communication(s), 86 with customers, 315, 372– 373 fulfillment, 249–250 and international sales, 351 managing, 491–492 community, 449 community participation, 392 compensating balances, 136– 137 compound payment terms, 141 computer hardware, 72–74, 86, 99–100 concurrent users, 399–400 consignment sales, 123, 483– 489 casual, 484 dedicated, 484–485 operation of, 488 software for, 489 storefront, 486–488 consignment sales management, 317 consignment stores, 123, 261–262 consumer credit, 292–293 continuous visibility, 66 contractors, independent, 270–271, 417 contracts, 53–54 contrast, adjusting, 210, 213 convenience, 267 conversion rates, 356 corporations, 34–37, 56–57 disadvantages of, 37 limited liability of, 34–36 S, 37 sale of stock by, 36 taxation of, 37 cost of buying, 494–496 of goods, 419 548 of services, 457 cost (continued) and value-added products, 439 Costco, 46, 121, 278–280 counters, 328 couriers, 258 CPAs, see Certified Public Accountants craftspeople, getting inventory from, 101–103 Craig's List, 232–233, 242– 243, 348 credit selling on, 291–293 vendor, 140–142 credit cards, 369 accepting, 57–58 and chargebacks, 302–303, 365 financing with, 131–132 fraud with, 300–304 money orders vs., 283 see also merchant credit card accounts credit card verification number (CVV2), 300 creditors, liability to, 35–36 criminal complaints, 309–310 cropping, 209–212 cross-promotion, example of, 543–544 cross-selling, 65, 544 current sales plan, 426–427 customer service, 11–12, 14, 363–376 Amazon.com's, 374–375 and authentication, 372 and bonding, 371 INDEX branding via, 66 and commodity products, 433–434 and communication, 372– 373 and credit cards, 303, 365 and dispute resolution, 371–372 and escrow, 369–371 experimenting with, 374 and feedback, 364–365 and fulfillment, 273–274 and full information, 373 and guarantees, 365–367 integration of offline/ online, 473 offline, 374 outsourcing, 492 and payment methods, 283, 368–369 and returns, 372 software for, 373–374 tracking, 375–376 and value-added products, 440–441 and vehicle sales, 236–237 and warranties, 368 custom payment pages, 325 custom programming, 336– 337 CVV2 (credit card verification number), 300 CyberSource, 306–307 Dangerous Threads, 388–391 database applications, 317 data feed(s), 318, 339–348 Craig's List as, 348 marketing with, 347–348 markets using, 340–348 data transfer, 472–473 Dave's Interactive Calendar, 184 "dba," 30 dead on arrival (DOA), 366 Dealer Assistants, 490 dealer's license, 236 debit cards, 326 DeepAnalysis, 224 delegating, 54–55 dental insurance, 415 desks, 84–85, 87 diffused lighting, 193–194 digital cameras, 198–200, 211 Direct Capital, 142 direct costs, 419 directories, 103–104 disability insurance, 415 discussion groups, 392 display props, 196 display stands, 196 dispute resolution, 371–372 distribution, 331 DOA (dead on arrival), 366 documentation, 316 for corporations, 37 for partnerships, 31–32 drop shipping, 91, 245–247 drop-ship wholesalers, 109, 246 DSI Insurance, 264 DSL, 76, 77, 86 Dutch auctions, 149 DVD recorders, 74 eBay books about, 445–446 in foreign countries, 125 INDEX hidden market of, 403–404 eBay (continued) as inventory source, 124– 125 learning about, 443–449 linking to, 400–402 programming aids from, 321–325 rules for, 407–408 storing images on, 202 User Agreement for, 482 videos about, 446 WBT tutorials about, 446– 447 eBayBusiness.com, 240–241 eBay Live!, 445 eBay Motors, 235–238 eBay Stores, 238, 383–388, 478 eBay University, 444–445 ecommerce software, 280– 281, 318, 396–400 ecommerce websites, 9–10 efficiencies, creating, 175– 179 EIN, see Employer Identification Number Elance, 464–468, 492, 502, 503 electronic checks, 369 email, 392, 491–492 Email Manager, 329–330 embezzlement, 60 employee benefits, 413–417 employees delegating to, 54–55 hiring, 50–51 independent contractors vs., 51–54 549 of partnerships, 33 and profit, 417 Employer Identification Number (EIN), 34, 37, 45, 57 Endicia, 253 endorsing checks, 27–28 English language, 350 equipment, 418 definition of, 127 for fulfillment, 80 photographic, 190–192, 195, 198–200 from vendors, 139–140 from wholesalers, 107–108 ergonomics, 82 escrow, 369–371 Escrow.com, 370 excess inventory, retail, 118 expenses, 417–420 experimenting, 16–17, 19–21 export, 357 extended service plan, 368 EZCube, 194 fabrics, photographing, 196 Featured Plus! listings, 156 Featured Section listings, 156 Featured Stores, 387 Federal Reserve, 136 FedEx Ground, 263 FedEx Home Delivery, 260 feedback, 139, 364–365 fraud, 310 managing, 316 and purchasing, 501–502 FeeFinder, 158 fees auction-listing, 383 consignment-sales, 489 eBay-Store, 387–388 Elance, 467 and hidden market, 405 and independent websites, 386 listing, 158 online processing, 280 FICA, 417 50 percent rule, 391 file formats, graphics, 216– 217 File Transfer Protocol (FTP), 200–201 filing, 85–86 film, 197–198 film scanning, 197–198 financing, 127–143 from angels, 133 from banks, 133–139 and business plan, 128–130 with credit cards, 131–132 from eBay-aware lenders, 142–143 from relatives, 132–133 from savings, 130 vendor, 107–108 FindLaw, 41 fixed pricing, 150 flash photos, 192 flush left/right, 174–175 Fly Shop, 380 foreign closeouts, 115–116, 125 foreign trade shows, 125 formal business plans, 128– 129 form(s) of business corporation as, 34–37 550 hybrid, 38 form of business (continued) partnership as, 30–34 sole proprietorship as, 26– 30 franchises, 486–488 Francotyp-Postalia, 254 fraud, 297–310 credit card, 300–304 and feedback, 310 international, 304–306 and international sales, 356–357 non-payment, 298 payment, 298–299 remedies for, 307–310 resources about, 306 services for reducing, 306 statistics on, 306–307 by wholesalers, 108–109 fraud services, 306 freightquote.com, 265–267 Froogle, 223, 243–244, 341– 345, 387 FTP, see File Transfer Protocol fulfillment, 245–275, 419, 490 administration of, 271–272 and customer service, 273– 274 drop shipping for, 245–247 equipment for, 80, 249–255 house spouse, 269–271 and inventory, 248 and inventor y control, 272–273 and just in time inventory, 273–275 operational space for, 249 INDEX packing materials for, 255– 257 and quantity buying, 274 resources for, 257 services for, 260 and shelving, 248–249 and warehousing, 248 see also shipping full information, 373, 409 full-time eBay sellers, furniture, 80–81, 84–85 Gale Group, 104 Gallery tool, 329 gamma, 213 GE Business Credit Services, 142 GE Consumer Credit, 292– 293 geographical limitations, 457 GIF files, 216 Gift Service listings, 156–157 global auction sites, 234–235 Google, 223, 243, 340–341 Government Liquidation (auction site), 113 government surplus, 110 GoWholesale, 113–115 graphics, file formats for, 216–217 Greyhound, 268 growth of eBay, 3–5 handling, 435–436 of your business, 39–40 guarantees, 365–367, 440– 441 guest books, 375 Half Zone, 238–239 HammerTap, 158 hardware, see computer hardware Harris Infosource, 105 health insurance, 414–415 hidden markets, 403–404 highlighted listings, 156 hiring employees, 50–51 HitchPack, 268–269 home office, 82–86 Home Page Featured listings, 155 home routers, 77–78 Hoover's, 105 host ISP, 204 house spouse fulfillment, 269–271 HTML, see Hypertext Markup Language hybrid business forms, 38 hyperlinks, 401–403 H y p e r te x t M a r k u p L a n guage (HTML), 186, 187, 511–542 ideal product, 422–424 illicit practices, 164–165 image editors, 207–217 image services, 200–205, 328 imported items, selling, 125 income taxes for corporations, 37 for partnerships, 34 for sole proprietorships, 30 independent contractors, 51– 55, 270–271, 417 India, 350 informal business plans, 130 INDEX information products, 458 initial trial, 15–16, 21 inspiration, 67–69 Instant Payment Notification, 325 institutional advertising, 481 insurance, 55–56 dental, 415 disability, 415 health, 414–415 life, 416 for partnerships, 32 shipping, 262–264 unemployment, 416 international alliances, 357, 360 international buying, 497– 498 international money orders, 356 international sales, 349–362 buying aspect of, 360 buying-to-sell aspect of, 357–360 fraud with, 304–306 and merged markets, 360– 362 selling aspect of, 350–357 Internet access, 76–77 Internet Ser vice Providers (ISPs), 77, 87, 200, 204 introductions, 406–407 Intuit, 337 inventory, 35 buying, 497 from closeouts, 110–116 from consignment sales/ stores, 123 551 from craftspeople and artists, 101–103 definition of, 127 from eBay, 124–125 financing purchases of, see inventory finding, 89–90, 92, 427– 431 from foreign sources, 125– 126 and fulfillment, 248 from government surplus, 110 from local auctions, 123– 124 local sources of, 121 from manufacturers, 117– 118, 126 negotiating for, 92 newspaper as source of, 122 off-season, 119 resources on, 103–106 retail excess, 118 s ea rc h i n g f o r, a t t r ad e shows, 93–101 from small manufacturers, 106–107 storing, 82–83 and trade organizations, 101 from wholesalers, 107–109 inventory control, 272–273, 315 IrfanView, 76, 208–210, 213, 214 iShip, 260 ISP hosting, 396, 398 ISPs, see Internet Ser vice Providers italic type, 171 JJW Logistics, 267–268 JPEG files, 216–217 just in time, 273–275 Kitchner, Bob, 187 kits, selling, 121–122 Kodak Photo CD, 198 Kodak Picture CD, 198 labels, shipping, 249, 260, 271–272 language, 350, 351, 358, 359, 361, 498 laptop computer, 73–74, 99– 100 lawyers, 40 learning about eBay, 443–449 leasing, vendor, 139–140 legal issue(s), 25–42 business growth as, 39–40 form of business as, 26–38 fraud as, 308–309 resources on, 41–42 taxation as, 40 legal notices, 122 liability(-ies) for employees, 50–51 and insurance, 55–56 limited, 34–36 of partners, 32 libraries, 103–106 licensed dealers, 370–371 licenses for auto dealers, 236 business, 26–29, 49–50 sales tax, 43–46, 91, 430 life insurance, 416 552 Light Bulk Wholesale Directory, 108 lighting, 82, 192–194 limited guarantees, 366 limited liability companies (LLCs), 38 linking to eBay, 400–402, 477–479, 482 links (in auction ads), 176, 185 liquidation auctions, 124 Liquidation (auction site), 113–115 Liquidity Services Inc, 113– 114 Lister Pro, 332–333, 399 listings, auction, 151–159, 315, 328 list prices, 221–222 live auctions, 234 LLCs (limited liability companies), 38 loans paying back, 134–135 risks of, 133 SBA, 137–138 short-term, 135, 136, 138 timing of, 137 see also financing local auctions, 123–124, 232– 233, 242–243, 497 local closeouts, 116 local eBay groups, 68–69 local permits and licenses, 27–29 location of services, 462 logos, 64–65, 177 long-term guarantees, 366 Luxury Brands, 114 INDEX magazines, 221, 225 mail-order wholesalers, special, 108–109 malls, Web, 394–395 mannequins, 196 manufacturers, 117–118 foreign, 126 product information from, 176–177 small, 106–107 market, knowing the, 91 marketing, 9, 391–393, 475– 482 boilerplate text for, 178 data-feed, 347–348 50 percent rule of, 391 plan for, 476–480 retail plan vs., 476–477, 480–481 with storefronts, 385–386 marketing studies, 21–22 mass pay, 326 mass-produced products, 436–437 MaxMind, 306 Mazziott Direct Inc, 126 McGraw Hill, 105 Medicare, 417 merchant credit card accounts, 57–58, 278– 281 merchants, 332–333 merged markets, 360–362 Microsoft Office, 209 mileage, 83–84 Miva Merchant, 280, 281, 396–398 models, changing, 17 modStop, 397–398 money, borrowing, see financing money orders, 282–285, 356, 369 Monster.com, 468 motivation, 67–69 motor sales, 235–238, 490 multimedia auction ads, 180– 182 multi-user access, 326 municipal taxes, 28, 49–50 My eBay, 321 MyLawyer, 41 NAA (National Auctioneers Association), 123 NAFTA (North American Free Trade Agreement), 126 NAIC S (North American Industry Classification System), 103 name affidavits, 26–30 National Auctioneers Association (NAA), 123 negligence, 36 negotiation, 92 Neopost, 253 net payment terms, 141 Netscape, 75–76, 187 NetStamps, 253 network interface card (NIC), 77 net worth statement, 134 NEW Customer Ser vice Companies, Inc., 368 newspapers, as source of inventory, 122 INDEX niche, finding a, 12, 19–20, 90, 428–429, 434–435 NIC (network interface card), 77 Nolo Press, 41, 129 non-paying buyer (NPB), 298 non-payment fraud, 298 "no obligation," 457 North American Free Trade Agreement (NAFTA), 126 North American Industr y Classification System (NAICS), 103 Not DOA guarantee, 366 NPB (non-paying buyer), 298 numbers (in auction ads), 173 off-eBay sales, 403–409 office furniture, 80–81, 84–85 office hours, 460 office supplies, 81, 85 offline advertising, 392 offline customer service, 374 offline retail, 10, 469–473 off-season inventory, 119 online appraisals, 226–227 online payment ser vices, 287–290 open mind, keeping an, 19– 20 operating statement, 133–134 operational space, 249 other operating capital, 127– 128 553 outside, taking photos, 194– 195 overhead costs, 419 packages, selling, 121–122 packing materials, 255–257 packing slips, 271 paDepot, 261 painless service packaging, 457 Paint Shop Photo Album (software program), 209 paperless office, 79 partnership agreements, 30– 32 partnerships, 30–34, 56 avoiding inadvertent, 33– 34 with computer-illiterate retailers, 122 documentation for, 31–32 employees of, 33 liability of partners in, 32 taxation of, 34 trust as basis of, 31 payment, receiving, 277–294 and bidding qualification, 291 changing methods of, 17 by check, 285–287 by COD, 291 by credit card, 278–282 importance of, 277 by money order or cashier's check, 282–285 and selling on credit, 291– 293 via online payment services, 287–290 via PayPal, 287–289 payment fraud, 298–299 payment methods, 368–369 international, 352–356 for postage, 250 for purchases, 499 payment ser vices, online, 287–290 PayPal, 158, 287–289, 325– 326, 352–356, 368–369, 498 countries using, 353–355 and fraud prevention, 301– 302 PayPal Consumer Credit, 292–293 payroll, 337 Pelouze, 254 pension funds, 416–417 permits, 26–29 personal business plans, 130 personal finances, 422 photos, 189–205, 490 backgrounds for, 192 display props in, 196 equipment for taking, 190– 192, 195, 198–200 film for, 197–198 flash, 192 image software for editing, 207–217 lighting for, 192–194 necessity of, in auction ads, 189 outside, 194–195 presenting/displaying, 203–204 storing, 200–204 uploading, 200–201, 204 554 Photoshop Elements, 209 PhotosStorage, 204 picking, 119–121, 490–491 pickup, 264 Picture Gallery listings, 156 picture service, 321 Pitney Bowes, 251–252 Pocket Auctions, 185 point-of-sales (POS) system, 471 Post, Karen, 66 postage, 250 postage meters, 250–252, 254 postage scales, 250, 254 Postal Service, 284 posting, 151–157 PostNet, 487–488 PowerHomeBiz, 42 PowerSellers, 167 Price Finder tool, 327 price(s), 19, 152, 219–230 advertised, 222–223 changing the, 17, 18 fixed, 150 list, 221–222 researching, 221–226 and selling strategy, 228– 230 of services, 460–461 trial-and-error method of setting, 227–228 for used goods, 223–224 using appraisers to set, 226–227 and valuation, 185, 219– 220, 229–230 and vehicle sales, 238 printers, 86 print scanning, 197 INDEX private auctions, 149 product information, manufacturers', 176–177 product profit model, 422– 427 assumptions for, 422 calculating profit with, 425–426 changes in, 427 and current sales, 426–427 example of, 425 and the ideal product, 422– 424 and personal finances, 422 product(s), like, 179 mass-produced vs unique, 436–438 special, 116–117 Professional eBay Sellers Alliance, 68–69 profit, 411–420 and accounting, 420 and expenses, 417–420 and employee benefits, 414–417 and growth, 436 s e e a l s o p r o d u c t p r o f it model programming custom, 336–337 eBay, 321–325 prohibited items, 159–163 promotions, 325 proof of delivery, 263 props, display, 196 proxy bidding, 501 purchasing, 493–504 and accounting, 498 B2B, 496–497 of bulk supplies, 497 for business, 494–498 with Buy It Now, 498 cost of, 494–496 and feedback, 501–502 international, 360, 497–498 for inventory, 497 at local auctions, 497 organization of, 498–502 and payment, 499 of services, 502–503 software for, 503 and tracking of shipments, 500 quantity buying, 274 QuickBooks, 58, 337 Quicken, 58 readability, 152–153, 170–175 real estate, 233, 418 recurring offerings, 457 regulations, 50 reintroductions, 406–407 relatives, getting financing from, 132–133 relisting, 157 remanufacturing, 118 repeat auctions, 479 Research Pro, 333 research tools, 327–328 reserve auctions, 148 resizing, 210, 214 restricted-access auctions, 149 restricted items, 163 restrictive covenants, 29 retail, current state of, 14 INDEX retail excess inventory, 118 retail picking, 120–121 retail sales, 476–477, 480–481 return links, 479 returns, 372 review packages, 459–461 road, working on the, 86–88 ROI Reports, 331 rollovers, pension, 416–417 routers, 77–78 rules, eBay, 164, 165, 407–408 rules (typesetting), 174 saleability, 457 Sales Analyzer tool, 328 sales program, 15–16, 18–19 sales reporting, 317 sales tax, 43–49, 325 sales tax licenses, 43–46, 91, 430 satisfaction guarantees, 367 savings, financing with, 130 SBA, see Small Business Administration scams, see fraud scanning, 197–198 SCORE, 69 S corporations, 37 search engines and eBay Stores, 387 and marketing, 391–392 searches, eBay, 383–384 Secure Electronic Transactions (SET), 302 Sellathon, 184, 375 sellers, verifying, 91–92 Seller's Assistant Basic, 322 Seller's Assistant Pro, 322 selling, 555 international, 350–357 pricing and strategy for, 228–230 and taboo items, 159–164 see also auctions Selling Manager, 322 Selling Manager Pro, 322 seminars, business, 447 service packages, 455–462 services (sales of), 453–468 advertising of, 454–455 Elance auction of, 464–468 and information products, 458 packaging, 457 as products, 455–456 purchasing, 502–503 "review packages" of, 459– 461 specific, 457 strategy for selling, 462– 464 task packages of, 461–462 websites for, 462–464 SET (Secure Electronic Transactions), 302 7-Eleven, 284 sharpness, adjusting, 210, 214–215 shelving, 248–249 Shippertools.com, 261 shipping, 258–269, 419 and auction management software, 316 by bus, 268 certainty of, 262 changing arrangements for, 17 drop, 91, 245–247 and fraud, 299 with HitchPack, 268–269 insurance for, 262–264 international, 351–352 of inventory, 92 PayPal integration of, 325 and pickup, 264 rates for, 259 services for, 259–260 by truck, 265–268 Shipping Center, 262 ShipWorks, 261 shopping cart, 325, 382 short-term guarantees, 366 short-term loans, 135, 136, 138 shrink wrap, 140 SIC (Standard Industrial Classification), 103 Slap, Stan, 66 Slide Tour, 203 Small Business Administration (SBA), 69, 129, 137–138 Small Business Notes, 69 small manufacturers, getting inventory from, 106–107 Social Security, 417 social security number, 57 software, 74–76, 313–318, 319–337 accounting, 58–60, 317, 337 Andale, 326–333 auction management, 333– 336 bundled, 76 buyer, 503 buying, 75 556 software (continued) consignment-sales, 489 customer service, 373–374 custom programming, 336–337 eBay programming, 321– 325 ecommerce, 280–281 free, 75–76 image, 207–217 PayPal, 325–326 Web vs desktop, 320–321 sole proprietorship(s), 26–30, 56 assumed name for, 26, 27, 30 filing as, 27–30 taxation of, 30 Solutions Directory, 325 SPAM, 329–330 spamming, 392 special auctions, 231–244 and auction houses, 240 changing nature of, 233– 234 eBay Stores as, 238 for global markets, 234– 235 live, 234 non-eBay, 242–244 separate, 233–241 of services, 241 of vehicles, 235–238 special mail-order wholesalers, 108–109 special manufacturing, 117 special products, 116–117 Spillane, Don, 20 Square Trade, 371–372 INDEX SSTP, see Streamlined Sales Tax Project stamps.com, 252–253 Standard Industrial Classification (SIC), 103 standard service plan, 368 stands, display, 196 Startup Nation, 69 state use tax, 49 statistics, eBay, 4–5 stock, selling, 36 storage, 82–83 storefront(s), 379–391 About Me feature of, 383 and catalogs, 381–382 checkout feature of, 382 consignment, 486–488 customized design of, 384 definition of, 379–380 eBay, 383–388 example of, 388–391 and hidden market, 409 informal eBay, 382–383 internal marketing via, 385–386 Internet marketing via, 385 levels of, 387–388 linking to, 477–479 reporting feature of, 386– 387 search customization feature of, 384 and shopping carts, 382 traffic feature of, 384 strategy, 421–441 commodity-product, 431– 436 inventory, 427–431 product-profit-model, 422– 427 value-added-product, 436– 441 S t r e a m l i n e d S a l e s Ta x Project (SSTP), 46–49 subscriptions, 326 subscripts, 173 subtitles, 180 success, elements of, 12–13 Sun Microsystems, 20 superscripts, 173 suppliers, 328 supplies, 81, 85, 418, 497 taboo items, 159–164 task packages, 461–462 taxation, 40 taxes and home office deduction, 83–84 income, 30 municipal, 28, 49–50 sales, 43–49 use, 49 tax ID number, see Employer Identification Number (EIN) telephones, 351 templates, auction ad, 175– 176 text-box advertising, 166 Thomas Regional, 105–106 timeliness, 460 timing, 426, 441, 495 of auctions, 155, 182–185 of credit card purchases, 131–132 of loans, 137 INDEX tips for beg in nin g an eB ay business, 505–506 for business buyers, 509– 510 for seasoned eBay businesses, 507–508 tracking of customers, 375–376 of purchases, 500 Trade Assistants, 489 trademarks, 30, 58 trade organizations, 101, 226 trade shows, 46, 93–101, 434– 435 finding, 94–98 foreign, 125 working, 99–100 trading links, 392 traffic, 384 translators, 351 transportation, 418 travel, 86–88 trial selling period, 15–16, 21 tripods, 195 truck, shipping by, 265–268 trust in partnerships, 31 with your banker, 138–139 TurboCheck, 286 Turbo Lister, 158–159, 322– 324 turnover rate, 35–36 two-stamp deposit system, 27–28 typefaces, 186–187 typesetting, 171–177 type size, 171, 174 557 underlined text, 174 unemployment insurance, 416 Universal Parcel Insurance Coverage (U-PIC), 264 UPS, 261, 263 UPS Stores, 260, 487, 488 used goods, prices for, 223– 224 User Agreement, 482 use tax, 49 US Postal Service, 250–252, 257 utilities, 419 valuation, 185, 219–220, 229– 230, see also price(s) value-added products, 436– 441 vehicles, 235–238, 490 vendor credit, 140–142 vendor financing, 107–108 vendor leasing, 139–140 vFinance Investments Inc, 142 videos in auction ads, 180–182 training, 446 ViewTracker, 184, 375–376 virtual businesses, 38–39 visibility, continuous, 66 voice-over-IP (VoIP) telephone service, 78, 86 volume selling, 16 Vonage, 78–79, 351 Wall Street Journal, warehousing, 248 warranties, 368 web-based training (WBT), 446–447 web development, 448–449 Web malls, 394–395 websites, 394–396 independent vs mall, 394– 395 marketing with, 478 see also storefront(s) Web software services, 320 Western Union, 284, 352, 371 What's Hot tool, 327 WhatsItWorthToYou, 227 wheeler-dealers, 427–428 Whitman, Meg, WhizAnalysis, 224 Wholesale Central, 113 Wholesale Marketer, 109 wholesale-retail online networks, 108 wholesalers drop-ship, 109 special mail-order, 108–109 at trade shows, 99, 101 wireless home routers, 77 workers' compensation, 415 Worldwide Brands Inc, 108, 109 write-once system, 317, 471 Yahoo Shopping, 345 Yellow Pages, 92 zoning, 29 ...Other Books by Joseph T Sinclair eBay the Smart Way eBay Motors the Smart Way eBay Global the Smart Way Building Your eBay Traffic the Smart Way eBay Business the Smart Way Maximize... clear eBay is as much a cornerstone of American business as the New York Stock Exchange According to eBay CEO Meg Whitman, the Wall Street Journal finally recognized EBAY BUSINESS THE SMART WAY eBay. .. expand the series eBay the Smart Way This is now the basic book Originally it contained eBay business information as well as basic information but in the Fourth Edition will cover only the basics