www.ebook3000.com eBay Business the Smart Way This page intentionally left blank www.ebook3000.com eBay Business the Smart Way Maximize Your Profits on the Web’s #1 Auction Site Joseph T Sinclair American Management Association New York • Atlanta • Boston • Chicago • Kansas City • San Francisco • Washington, D.C Brussels • Mexico City • Tokyo • Toronto 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 p cm Includes index ISBN 0-8144-7202-8 eBay (Firm) Internet auctions Auctions Computer network resources I Title HF5476.S478 2003 381’.17’02854678—dc21 2003004617 CIP © 2003 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 www.ebook3000.com 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 This page intentionally left blank www.ebook3000.com 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 12 Find Your Niche 13 Work 13 State of Retail 14 VII CONTENTS VIII Call to Action 16 II Getting Started 27 Setting Yourself Up Legally 29 Sole Proprietorship 30 Partnership 35 Corporations 39 Hybrid Forms 43 Virtual Businesses 43 And Then You Grow 45 Taxation 45 Resources 46 Conclusion 47 Business Details 49 Sales Tax License 50 Business License 52 Regulations 53 Employees 54 Independent Contractors 54 Insurance 59 Bank Account 60 Tax Number 61 Merchant Credit Card Account 61 Trademark 62 www.ebook3000.com CONTENTS IX Accounting 62 Manual Accounting 63 Branding 64 Resources 69 Equipment, Supplies, and Space 71 Hardware 72 Software 74 Internet Access 76 Home Router 77 Long Distance Service 78 Business Machines 79 Office Furniture 81 Office Supplies 81 Office Premises 82 Storage, Packing, and Shipping 83 Tax Deduction 84 Inexpensive Home Office 85 On the Road 87 Finding Inventory 91 Basics 92 The List 93 Go for It! 121 Borrowing Money 123 Savings 124 534 EBAY BUSINESS THE SMART WAY your original photographs somewhere special on your hard disk When you decide to adjust one, make a copy first Adjust the copy and save it That way you’ll always have the original Sharpen Some image editors have a hybrid control called sharpen Use this instead of using contrast, brightness, and gamma It’s quicker and easier, and it works well For IrfanView, go Image, Sharpen This has become an increasingly popular feature of image editors because it’s so handy You will find this a time-saver for your eBay business should you choose to improve your photographs for your auction ads See Figure A7.1 for the original photograph and Figure A7.2 for the IrfanView sharpen control Figure A7.1 Original photograph www.ebook3000.com APPENDIX VII USING EASY IMAGE SOFTWARE Figure A7.2 535 Sharpen control Resizing and Cropping If you have the software to crop a digital photograph, you don’t have to frame as carefully in your viewfinder when you take photographs In fact, most inexpensive digital cameras take a 640 × 480 image, which is too large for an eBay ad Anything larger that 400 × 300 will take too long to download, might be too large for your HTML work, and is more than you need That means that you have to shrink your digital photographs to 400 × 300 (or smaller), or crop them to 400 × 300 (or smaller) Virtually every graphics editor has a resizer and cropper 536 EBAY BUSINESS THE SMART WAY IrfanView has a resizer wherein you enter the numbers (the dimensions) you want For IrfanView, go Image, Resize/Resample (see Figure A7.3) IrfanView also has a visual cropper, go Edit, Crop selection (see Figure A7.4) File Formats There are many graphics file formats Whatever you start with, you must eventually convert your photograph to a GIF (.gif) or JPEG (.jpg) format You can also use PNG (.png) format, but it doesn’t work in early Web browsers Most graphics editors will convert photographs from one file format to another Simply use Save As to save a photograph in the file format you want GIF GIF files are compressed as much as 2:1 without loss of quality However, they are only 8-bit files, that is, 256 colors You need at least 256 colors to make a photograph look real, so GIFs work OK JPEG JPEG files can be compressed a little or a lot JPEG compression is “lossy,” which means that quality diminishes during the compression process The greater the compression, the smaller the file and the greater the loss of quality But JPEGs are 24-bit files, that is, 16 million colors Consequently, JPEG files can look good, particularly when they’re not compressed much JPEGs work better than GIFs for photographs because they have more colors www.ebook3000.com APPENDIX VII USING EASY IMAGE SOFTWARE Figure A7.3 Resizing by the numbers Figure A7.4 The cropped image 537 538 EBAY BUSINESS THE SMART WAY There’s More Graphics editors offer a lot more than this chapter covers Some offer much more than others Color is highly technical as is the digital technology that makes color possible on a computer Then too, in order to make good graphics, whether photographs or anything else, you have to have some artistic skills It’s not much fun to get bogged down in digital technology just to create something seemingly simple (i.e., an auction ad photograph) Therefore, a good strategy is to stick with a simple approach Summary The procedure this book recommends for processing your photographs is simple: Take a photograph Digitize it (If already in digital form, transfer it to your hard drive.) Crop it and resize it to a suitable size Adjust it (i.e., brightness, contrast, and perhaps gamma) This step is optional Upload it to your storage place on the Web for your eBay photographs Put it in your auction ad Or, if you’re using your own HTML template, put an image markup in your eBay auction ad to pull it in This is a simple strategy and an easy one that will accomplish your goal of posting photographs to get more bids and, therefore, higher bids on your eBay auction items www.ebook3000.com Index About Me page, 178–179, 359–360, 370, 383, 391 accountants and accounting, 62–63, 314, 419, 461 accounting software, 336–337 active bidding, 464 ad copy, 18 Adobe Photoshop, 191 advertised prices, 205–206 advertising, 164–175 and auction title, 174–175 banner, 366 brand building via, 67–68 complete information in, 164–165 creating effective, 170–174 on Elance, 290 as expense, 418 for off-eBay sales, 388–390 offline, 367 placement of, 175 readability of, 165–170 by selling services, 276–277 see also auction ads affiliate websites, 367 aftermarket, 438 Airborne Express, 239 aliases, 30 all caps (typesetting), 167 AltaVista, 395 AMA (American Management Association), 449 Amazon.com, 15, 206, 350, 356, 369 American Express, 344 American Management Association (AMA), 449 American Small Business Association (ASBA), 69 anchors (HTML), 524–525 539 Andale, 24, 322–331, 361, 377–378, 430 angels, 126 annual meetings, 42 appraisers, 207–208 archives, eBay, 203–204 archive system (accounting), 314 artifacts, 155 artists, 103 artwork, 189 art work, 195 ASBA (American Small Business Association), 69 Ascom Hasler, 235 "as is," 342–343 Associated Bag Company, 237 assumed name, 30–34, 65–67 auction ads, 146, 160, 363 Andale listing service for, 324 entry form for, 144 540 auction ads (continued) links in, 389 and Turbo Lister, 320 URL in, 382–383 see also advertising auction houses, 222–223 auction interception, 157 auction interference, 158 auction management service(s), 24, 91, 312, 380 Andale as, 322–331 for auction tracking, 463–464 checkout devices offered by, 273 customer service software from, 349 displaying photographs with, 198 ecommerce devices from, 379 and marketing information, 173 software assistance from, 333–336 templates from, 170 auction management software, 310– 315 accounting feature of, 314 auction management feature of, 312 customer communication feature of, 312 database applications feature of, 314 documentation feature of, 313 and ecommerce system, 315 follow-up feature of, 312 inventory control feature of, 311– 312 presentation feature of, 312 shipping feature of, 313 transaction checkout feature of, 313 write once data entry feature of, 314 auctions, 139–161, 163–179 advertising for, 164–175 on Elance, 287–290 fixed-price selling vs., 142–143 illicit practices in, 156–160 and linking, 177 listing, 143–150 management of, 376, 465 placement of, 175 prohibited items in, 151–154 restricted items in, 155 taboo items in, 151–156 timing of, 175–177 tips for successful, 160 INDEX tracking of, 463–464 types of, 140–143 and valuation, 177 see also special auction(s) auction title, 145–146, 174–175 authentication services, 347 auto accidents, 37, 41, 59 autographs, 155 auto industry, 254 Babel Fish Translation, 395 background color of, 490–491 of photographs, 186, 187 background information, 178 backup, computer, 72–74 banks and bank accounts, 60, 126–133, 265 banner advertising, 366 Barnes & Noble University, 448 Barry, Dave, on national economy, 446 benefits, 411–415 Bezos, Jeff, 350 bidder's identity, 142 bidding, 464–465 persistent, 159 proxy, 176–177, 458, 464 shill, 156 bidding offenses, 158–159 bid manipulation, 158 BidPay.com, 264–265, 460 bid shielding, 159 bid siphoning, 158 BillPoint, 270, 322 black box, 78 boilerplate, 172–174 bold italic (typesetting), 166 bold (typesetting), 148, 166 bonding, 381–383 bookkeepers and bookkeeping, 63, 127, 419, 461 books about eBay, 448–457 Web, 450–451 borders (in ad text), 168 borrowing dilemma, 128–129, see also capital, source(s) of bounced checks, 297 boxes, cardboard, 237 www.ebook3000.com bragging, 178 branding, 64–69, 386 brightness, 194, 195, 532 broadband, 87, 88, 318, 330, 332 brochure websites, 369–370, 380 browsers, Web, 75, 494 B2B auctions, see business-to-business auctions bubble wrap, 237 bulk ads, 143 bulk sales, 459 bullets (typesetting), 167 bundled software, 76 bus, shipping by, 248 business, form(s) of, 30–43 corporation as, 39–43 hybrid, 43 partnership as, 35–39 sole proprietorship as, 30–35 business books, 449–450 business buyers, tips for, 473–474 business cards, 86 business expenses, 415–418 BusinessLaw, 47 business libraries, 103–106 business licenses, 52–53 business machines, 79–80 business plans, 127 business seminars, 448–449 business-to-business (B2B) auctions, 223–224, 458–459 buyer fraud, see fraud buyers and escrow, 345 and off-eBay sales, 390 tips for, 473–474 buying on eBay, 455–467 and accounting, 461 and auction tracking, 463–464 bidding technique for, 464–465 with Buy It Now!, 461 cost of, 456–458, 462 and feedback, 465 guidelines for, 205, 458 from international sources, 460–461 for inventory, 459–460 with local auctions, 459 from other businesses, 458–459 and payment, 461–462 INDEX buying on eBay (continued) and purchase tracking, 463 and quantity buying, 254, 459 and seller management of auction, 465 of services, 466 Buy It Now!, 141, 142, 148, 458, 461 cable Internet access, 76–77 cameras, 182–184, 189–191 capital, source(s) of, 123–136 angels as, 126 banks as, 126–133 credit cards as, 124–126 leases as, 133–134 relatives as, 126 savings as, 124 vendor credit as, 134–136 capital letters (in ad text), 167 cardboard boxes, 237 cash discount, 134–136 cashier's checks, 262–264, 345 cash on delivery (COD), 270 catalogs, 207, 328, 356–359, 374 category placement, 144, 147, 175 CCH (Commerce Clearing House), 46 CD recorder (CD-R), 74 CDs backing up on, 73, 74 for photography, 188–189 CGI scripts, 350 chairs, 85, 88 chargebacks, 298–299, 341, 346 charge to account, notice of, 313 chart of accounts, 63 checkout, transaction, 313, 322, 326– 327 checkout device, 357, 374 checks, 344 accepting payment via, 266–268 cashier's, 262–264 electronic, 302, 344 foreign, 401 and shipping, 296–297 civil complaints, 303–304 classifieds, 118 Click-N-Ship, 234 ClickStamp, 233 closeouts, 108–112 541 clothing, used, 155 COD (cash on delivery), 270 collateral, 127 color, background, 490–491 combination machines, 80 comma-delimited data files, 320–321 Commerce Clearing House (CCH), 46 commodity products, 422–437 and being flexible, 432–437 and handling growth, 436–437 and niche marketing, 429–432 and product profit model, 422–428 and wheeling/dealing, 428–429 communication with bidders, 160 with customers, 312 and selling internationally, 395, 405–406 communities, online, 367–368 compensating balances, 130 competition/competitors, 22, 432–434 Completed Items, 203 Composer, 75, 484–487 compound payment terms, 135–136 Computer Digital Expo Las Vegas, 95 computers, 72–74, 86 concurrent users, 378 conferences, 447 consignment sales, 118–120 consultants, 366 contact information, 158 contracts (with independent contractors), 56–58 contrast, 532 copiers, 79 corporate fees, 42 corporations, 39–43, 60 Costco, 116–117, 258–260, 356 cost of goods, 418 cost(s) of benefits, 411–415 of buying on eBay, 456–458, 462 direct, 418 overhead, 415–418 shipping, 357, 418 counterfeit money orders, 264 counters, 325 countries to avoid, 300–301 craftspeople, 101–102 credibility, 346 credit selling on, 270–271 vendor, 134–136 credit cards, 61 accepting payment via, 258–262 chargebacks on, 298–299, 341, 346 checklist for handling of, 302 and customer service, 344 financing with, 124–126 and fraud, 297–300 international payments made with, 460 creditors, 40–41 criminal complaints, 304–305 criminal violations, 156–157 cropping, 192–194, 535–537 cross-selling, 68, 173, 326 csv files, 320 customers communication with, 312 email offers to, 329 receipts for, 313 customer service, 12, 339–351 as added value, 442 and authentication services, 347 brand building via, 69 brochure websites as form of, 370 and credit card chargebacks, 341 credit cards and, 299 eBay devices for, 350 on eBay Motors, 218–220 experimenting with, 349–350 and feedback system, 340–341 and forms of payment, 263, 267–268 and full information, 348 as goal of fulfillment, 253 and guarantees, 341–344 and off-eBay sales, 386 offline, 349 and payment, 344–345 protecting your business with, 434– 435 and returns, 347–348 and shipping, 297 software for, 348–349 and Square Trade, 347 and timeliness, 348 custom programming, 336 542 CVV2 number, 298 Dangerous Threads, 361–363 database managers, 377 database(s), 150 and auction management services, 314 custom, 475–482 ecommerce, 377–379 and Lister Pro program, 330 and Turbo Lister, 321 data entry, 314, 330 data files, comma-delimited, 320–321 dba (doing business as), 30 DeepAnalysis, 24, 324 defective merchandise, 348 delegating, 58–59 delivery, proof of, 243 dental insurance, 413 deposits, sales tax, 51 deposit stamps, 31–32 desks, 85 DHL, 239, 240 dial-up Internet access, 76 digital cameras, 189–191 direct costs, 418 disability insurance, 413–414 discounts, cash, 134–136 Discover, 344 discussion groups, 367 display props/stands, 186–187 distributors drop shipping, 228–229 mail-order, 108 documentation, 313 doing business as (dba), 30 domain names, 370–374, 379–381 dress (for trade shows), 100 drop shipping, 93, 228–229 DSL, 76–77, 87 Dutch auctions, 17, 141 eBayBusiness.com, 223–224 eBay Gallery, 103, 148 eBay ID (login name), 359, 373 eBay Live!, 447 eBay Magazine, 323–324 eBay Motors, 149, 218–221 eBay Premier, 222 INDEX eBay Shipping Center, 237 eBay Store, 177, 221, 360, 390 eBay the Smart Way (Sinclair), 448, 464 eBay University, 447 ecommerce, 356, 366–391 domain names for, 370–374, 379– 380 and eBay links, 381–383 eBay stores for, 390 host ISP for, 380–381 marketing for, 366–368 and off-eBay sales, 383–390 software for, 260–261, 314–315, 327, 374–379 websites for, 368–370 editing, image, 191–195 Edmunds, 221 EIN, see Employer Identification Number Elance, 224, 287–291, 466 electrical requirements, 82 electronic checks, 302, 344 email marketing via, 367 receipts via, 313 email address in auction ads, 389 invalid, 157 and website, 372 email offer service (Andale), 329 embezzlement, 462 employees, 54, 337 and buying on eBay, 456–458, 462 as expense, 416 and fraud, 462 partnership, 37–38 Employer Identification Number (EIN), 39, 43, 52, 61 entry form, auction ad, 144 equipment as expense, 417 for fulfillment, 231–236 photography, 182–187 ergonomics, 81, 82, 86 escrow.com, 345–346 escrow service, 345 eSupplyStore, 237 expenses, business, 415–418 expensive items, bidding on, 464–465 www.ebook3000.com export rules, 402 Express Mail, 239 external hard disks, 73 extortion, 156 fabrics, 187 fax machines, 79 Featured Plus!, 147 Federal Express (FedEx), 239, 463 Federal Reserve, 130 FedEx Ground, 241, 244 FedEx Home Delivery, 241 fee avoidance, 157 feedback, 156 and bank loans, 133 on bounced checks, 297 on buyers, 303, 306 and buying on eBay, 465 and fraud, 303, 306 management services for, 327 on non-payers, 296 on sellers, 340–341 fees, listing, 149, 359 FICA, 415 fictitious name, 30 50 percent rule, 366 files, hanging, 86 File Transfer Protocol (FTP), 196 filler, packing, 237 film, 187–189 film scanning, 188 final value fee, 149 financing your business, see capital, source(s) of FindLaw for Business, 47 fixed prices, 142–143, 360 flash photography, 184 flexible, being, 432–437 floodlights, 184–185, 186 flush left (typesetting), 169–170 The Fly Shop, 356 folding tables, 86, 87 followup, 160, 312 food, 155 foreign customers, selling to, see international sales foreign eBay sites, 217–218 Francotyp-Postalia, 236 fraud, 295–306 INDEX fraud (continued) civil complaints about, 303–304 and counterfeit money orders, 264 credit card, 297–300 and credit card chargebacks, 298– 299 criminal complaints about, 304–305 and different addresses, 305 and eBay administration, 303 employee, 462 and feedback, 303, 306 international, 300–301, 401–402 legal remedies for, 303–305 non-payment, 296 payment, 296–297 resources for information on, 302 freightquote.com, 245–246 FTP (File Transfer Protocol), 196 fulfillment, 227–255 administration for, 251–252 drop-shipping, 228–229 equipment needed for, 80, 231–236 as expense, 418 house spouse, 249–250 by independent contractors, 57 and insurance needs, 243 and inventory control, 252–255 inventory needed for, 229–231 packing materials needed for, 237– 238 resources for, 238–239 and shipping, 239–248 fulfillment services, 241 furniture, office, 81 Gale Group, 104 Gallery (Andale feature), 325–326, 361 Gallery Featured, 148 gamma, 532–533 general offenses, 156–157 GIF files, 536 Gift Service (listing feature), 148, 149 Global Industrial Equipment, 238–239 Google, 206 government surplus, 108 graphics, 488–489 Greyhound, 248 growth of eBay, 3–6 543 handling, 427, 436–437 guarantees and customer service, 341–344 and return policy, 347–348 guest books, 350 guidelines, rules vs., 173–174 Half.com, 206, 221–222 Halogen lights, 185 HammerTap, 24, 324, 430 hanging files, 86 hard disks, external, 73 hardware requirements, 72–74 Harris Infosource, 104–105 hazardous materials, 155 health insurance, 413 Highlight (listing feature), 147 high-value items, insurance for, 244 home offices, 82, 84–87 Home Page Featured, 147 home routers, 77 Hoover's, 105 host ISP, 198, 350, 376–377, 380–381 house spouse fulfillment, 249–250 HTML, see HyperText Markup Language hybrid business form, 43 hype, 164, 175 hyperlinks, see links HyperText Markup Language (HTML), 391, 450, 484–486 and About Me webpage, 179 tutorial on, 497–527 identity, bidder's, 142 identity offenses, 157 illicit practices, 156–160 image editing, 191–195 image file management, 192 images, 100 image services, 196–199, 324 image software, 529–538 digitizing photographs with, 530 file formats used by, 536 increasing brightness with, 532–533 increasing contrast with, 532 resizing/cropping with, 535–537 sharpening with, 534–535 image storage services, 197 income taxes, 45–46 for corporations, 42–43 for partnerships, 39 for sole proprietorships, 35 incorporation laws, 42 independent contractors, 54–59 as expense, 416 for fulfillment, 249–250 India, 394 information, 161 about "as is" items, 343 in ads, 164–165 background, 178 contact, 158 full, 348 manufacturer's, 171–172 marketing, 172–173 providing, 286–287 information products, 280–281 insertion fee, 149 insurance, 59–60 dental, 413 disability, 413–414 health, 413 liability, 37 life, 414 unemployment, 414 interest-free financing, using credit cards for, 125 interference, 158 international markets, 460–461 international money orders, 401 international sales, 393–407 and buying abroad for sale back home, 403–405 communication problems with, 395 escrow for, 346 and export laws, 402 and fraud, 401–402 language issues with, 405–406 receiving payment from, 396–402 shipping issues with, 396 Internet access, 76–77 Internet Service Providers (ISPs), 77, 88, 196, 380–381 Intuit, 62 invalid email address, 157 inventory, 83, 229–231, 459–460 from artists, 103 544 inventory (continued) business library as resource for getting, 103–106 from classified ads, 118 from closeouts, 109–112 from consignment sales, 118–120 control of, 252–255, 311–312 from craftspeople, 101–102 from eBay, 120–121 from government surplus, 108 from local auctions, 120 from local retail stores, 114 from manufacturers, 113 off-season buying of, 114 operational space for packing/ labeling, 231 packaging of, 117 and partnering with noncomputerized retailers, 118 picking of, 115–117 from remanufacturers, 113–114 shelving of, 230 from small manufacturers, 106 from special manufacturers, 113 from special product sources, 112 from trade shows, 94–101 warehouse for, 230 wheeling and dealing for, 428–429 from wholesalers, 106–108 invoices, 326 IrfanView, 76, 194, 531–537 IRS, independent contractor guidelines of, 55–56 iShip, 242 ISPs, see Internet Service Providers italics, 165–166 JavaScripts, 350 JPEG files, 536 just-in-time inventory control, 252–255 Kelly Blue Book, 221 Kitchener, Bob, 179 Kodak Photo CD, 188–189 Kodak Picture CD, 188 labels, shipping, 241, 326 language(s), 405–406 foreign, 460 INDEX vulgar, 158 laptop hard disks, 73 Late and Multiple Bidding in Second Price Internet Auctions, 446 laws and regulations, 53 lawsuits, 57–58 learning about eBay, 445–451 leases (as lending source), 133–134 legal remedies (for fraud), 303–305 lenses, photographic, 182 letters, and customer service, 349 liability(-ies), 37, 39–41, 59, 172 libraries, 103–106 licensed dealers, escrow for, 346 license(s) business, 52–53 sales tax, 50–52, 93, 432 for selling on eBay Motors, 220 life insurance, 414 lighting, 82, 184–185 limited guarantees, 343 link-exchange groups, 367 links (hyperlinks), 177, 489–490, 524– 525 from About Me page, 391 from auction ads, 381–382, 389 cross-selling with, 173 to eBay Stores, 360, 390 to manufacturers' websites, 171 trading, 367 Lister Pro, 330, 331, 377–378 listing(s), 143–150 and auction ads, 146 auction title, 145–146 category of, 144, 147 common mistakes with, 146–147 fees for, 149 Master Lister for, 149 price in, 145 and relisting, 149 Turbo Lister for, 150 listing services, 324 List in Two Categories, 148 list prices, 204–205 live auctions, 216–217 loans from angels, 126 bank, 126–133 interest-free, 125 www.ebook3000.com from relatives, 126 SBA, 131–132 see also capital, source(s) of local auctions, 120, 214–215, 459 location (of service business), 285 logos, 67, 171–172 long-term borrowing, 128, 129 long-term guarantees, 343 low-value items, insurance for, 243–244 magazines, 204, 207 Mail Boxes, Etc., 237, 242 mailing labels, 313 mailing lists, 367 mail-order distributors, 108 management software, 319 mannequins, 186 manual accounting, 63 manufacturers drop shipping, 228–229 getting inventory from, 113 small, 106 manufacturer's information, 171–172 manufacturing, special, 113 maps (to your store), 370 marketing, 276–277, 366–368 marketing information, 172–173 marketing studies, 23–24 markets, unique, 19–20 Marsh Advantage America, 413 mass-produced products, 437–439 Mastercard, 344 Master Lister, 149 McGraw Hill, 105 mediation, 347 Medicare, 415 merchant credit card accounts, 61, 258– 262 Merchant-Veeo, 332–333 merged markets, 405 Microsoft Access, 377 Microsoft FrontPage, 484 Microsoft FrontPage Express, 75 Microsoft Office, 74 Microsoft Outlook Express, 75 mileage, deductions for, 85 minimum bids, 140, 143, 201–202, 210 mini-portals, 204 misrepresentation, 157 INDEX Miva Merchant, 260–261, 332, 367, 375–377 models, product, 18 modStop, 367, 376 money, borrowing, see capital, source(s) of money orders, 262–266, 345, 401 musical instruments, 440 My eBay, 319 MyLawyer website, 47 NAFTA, 402 NAICS (North American Industry Classification System), 103 NASDAQ, 373 negative feedback, 17 negligence, liability for, 41 Neopost, 235 net payment terms, 135 Netscape, 75, 484 NetStamps, 235 network interface cards (NICs), 77 net worth statement, 127 new items, 205 newspaper(s), 207, 237 niche(s), 91–92, 187, 202 being ready to change, 435–436 finding a, 13, 429–432 NICs (network interface cards), 77 Nolo Press, 46 nonpayment, 158 non-performance, 157 normal auctions, 140 not DOA, 343 notice(s) of charge to account, 313 of receipt of payment, 313 Nova Information Systems, 258 numbers (in ad text), 168 Ockenfels, Axel, 446 off-eBay sales, 383–390 advertising for, 388–390 and buyers, 390 and eBay's loss of potential revenue, 385–386 implications of, 384–385 pursuing, 386–388 rules for, 388 545 soliciting, 157 offenses, 156–160 office chairs, 85 office furniture, 81 office premises, 82 office supplies, 81–82 offline advertising, 367 offline appraisals, 207 offline customer service, 349 off-season, buying, 114 online appraisals, 208 online processing charges, 260 online workshops, 448 on the road, working, 87–89 operating capital, 123–124 operating statements, 127 operational space, 231 outside photographs, 185–186 overhead costs, 415–418, 427 packages, service, 277–284 packaging, 83, 117 packing materials, 237–238 packing slips, 313, 326 Paper Mart, 237 partnership agreements, 36 partnerships, 35–39, 60, 118 payback, showing a, 128 payment(s), 257–273, 357 and buying on eBay, 461–462 and customer service, 344–345 from foreign countries, 396–402 international, 460–461 methods of, 18–19, 326 and selling on credit, 270–271 via cashier's checks, 262–264 via checks, 266–268 via COD, 270 via merchant credit card accounts, 258–262 via online payment services, 268– 270via money orders, 262– 266 via PayPal, 268–270 PayPal, 268–270, 272, 301, 322, 337, 344, 397–400, 460, 461 payroll, 337 peanuts, styrofoam, 237 Pelouze, 236 Pennies from eBay, 446 pension funds, 414–415 peripherals, computer, 72 persistent bidding, 159 personal checks, 297 personal identification number (PIN), 298 photographs/photography, 18, 181–199, 361, 488–489 in About Me entry, 178 in auction ads, 164–165 catalog, 357 digital cameras for, 189–191 digitizing, 530 display props for, 186–187 eBay picture service for, 319 film for, 187–189 flash equipment for, 184 and image editing, 191–195 and image services, 196–199 lights for, 184–185 outside, 185–186 professional, 182 quality of equipment for, 182–184 resizing, 195 tripods for, 186 picking (fulfillment), 115–117 pickups, 244–245 picture service, 319 PIN (personal identification number), 298 Pitney Bowes, 233–234 PitneyWorks, 233–234 plans, business, 127 portals, product, 204 postage meters and scales, 232–233, 236 Postal Service, 233, 234, 238, 239, 240, 242, 264 posting, 143–144, see also listing(s) PostLink, 235 prefixes, domain-name, 373–374 premises, office, 82 presentation services, 197–198, 312 price comparison websites, 205 pricing, 18–20, 145, 160, 201–211 for eBay Motors, 221 eBay research, 203–204 and feedback, 341 and offline research, 207–208 546 pricing (continued) and online research, 204–206 and prices, 202–203 and selling strategy, 209–211 by trial and error, 208–209 printers, 86–87 print scanning, 187–188 Priority Mail, 238, 242 private auctions, 142 processing charges, online, 260 production ratings, 358 product models, 18 product portals, 204 product profit model, 422–428 comparative calculations used in, 422 ideal product in, 423–427 and personal income needs, 423 with unique products, 439 professionalism, 100 professional services, 224 profit, calculating your, 409–419 and benefit costs, 411–415 and business expenses, 415–418 on commodity products, 426 getting help with, 419 profitability, and growth, 437 programming, custom, 336 prohibited items, 151–154 promoting your business, 172–173 proof of delivery, 243 props, display, 186–187 proxy bidding, 176–177, 458, 464 quantity buying, 254 QuickBooks, 62, 269, 336–337 Quicken, 62, 63, 336 readability of ads, 165–170 of auction titles, 174 real estate, 149, 416–417 real estate auctions, 215–216 receipt of payment, notice of, 313 Reeves, Daniel, 341, 446 regulations, 53 reintroduction, 387 relatives, financing from, 126 relisting, 149, 296 INDEX remanufacturing, 113–114 reports, 326 research, pricing, 202–208 reseller's permit, 50 reserve auctions, 140, 143 reserves, 201–202, 210–211 resizing photographs, 195, 535–537 Resnick, Paul, 341 resources eBay, 445–451 on fraud, 302 on fulfillment, 238–239 on getting inventory, 103–106 restricted access auctions, 142 restricted items, 155 retail, decline of offline, 14–15 retail excess inventory, 114 retail picking, 115–117 retirement plans, 414–415 return policy, 347–348 review packages, 281–283 routers, 77 rules, guidelines vs., 173–174 rules (straight horizontal lines), 169 RVs, 88, 89 sales tax, 357 sales tax licenses, 50–52, 93, 432 satellite broadband, 88 satisfaction guarantees, 344 savings, financing with, 124 SBA, see Small Business Administration scanners, 79 scanning film, 188 print, 187–188 SCORE, 69 S corporations, 42–43 search engines, 206, 366, 367 Secure Electronic Transactions (SET), 298 self-employment taxes, 46 seller auction list, 358–359 sellers auction management by, 465 and escrow, 345 tips for beginning, 469–470 tips for seasoned, 471–472 www.ebook3000.com seller's permit, 50 Sellers's Assistant Pro, 320 Sellers's Assistant Standard, 320 selling on credit, 270–271 of services, 275–291 strategy for, 209–211 see also auctions; international sales Selling Manager, 319–320 selling offenses, 157 seminars, 448–449 SendMoneyOrder.com, 265, 460 services, 275–291 advertising by selling, 276–277 buying, 466 Elance as medium for selling, 287– 291 information products for promotion of, 280–281 packaging of, 277–284 professional, 224 providing customer, 285–286 strategy for, 284–287 SET (Secure Electonic Transactions), 298 7-Eleven, 265 sharpness, 194–195, 534–535 shelving, 230 shielding, bid, 159 shill bidding, 156 Shippertools.com, 242 shipping, 18, 83, 173, 239–248 arranging pickups for, 244–245 auction management service for, 313 automatic, 241 by bus, 248 and check clearing, 296–297 to different addresses, 298, 300, 305 drop, 93, 228–229 as expense, 357, 418 and insurance, 243–244 international, 396 rates for, 240 tracking, 463 by truck, 245–248 vendors offering, 241–242 shipping charges, 326 shipping costs, 357 INDEX shipping labels, 241 shopping cart, 357, 374 short-term borrowing, 128, 129 short-term guarantees, 343 shrink wrapping, 134 SIC (Standard Industrial Classification), 103 similar products, 174 Simply Postage, 235 Small Business Administration (SBA), 69, 131–132 small businesses, software for, 349 small manufacturers, 106 Smart Card, 298 Social Security, 415 Social Security number, 61 software, 74–76, 309–315 accounting, 336–337 affiliate, 367 auction management, 310–315 bundled, 76 buying, 74–75 for customer service, 348–349 database, 310 digital camera, 190–191 digital editing, 194–195 ecommerce, 260–261, 314–315, 374–379 free, 75, 335 image, 191, 529–538 for inventory control, 253–254 Web authoring, 483–495 software assistance, 317–337 from Andale, 322–331 from auction management services, 333–336 and broadband, 332 and custom programming, 336 from eBay, 319–332 features of, 318 from Merchant-Veeo, 332–333 sole proprietorships, 30–35, 60 soliciting off-site sales, 157 Sothebys, 222–223 SPAM, 329 spamming, 158 special auction(s), 213–225 auction houses as, 222–223 eBayBusiness.com as, 223–224 547 eBay Motors as, 218–221 Elance as, 224 foreign auctions as, 217–218 live auctions as, 216–217 local auctions as, 214–215 real estate auctions as, 215–216 special manufacturing, 113 special products, 112 specialty bags, 237 spelling mistakes, 146–147 Square Trade, 347 Stamps.com, 234–235 statistics, eBay, 323–324 stock, selling, 41–42 storage, 83, 197 storefront(s), 356–364 Andale, 361 catalog feature of, 356–357 checkout device of, 357 Dangerous Threads example of, 361–363 definition of, 356 eBay, 360 informal eBay, 358–360 marketing your, 363–364 shopping cart device of, 357 stores, 207 storing images, 196–198 strategy, 160 styrofoam peanuts, 237 subscripts, 167 success, increasing your chances of, 92– 93 sunlight, 185–186 superscripts, 167 supplies, 81–82, 417 sustainability, 19 tables, 330, 491–494 taboo items, 151–154 task packages, 283–284 tax deduction, home-office, 84–85 tax(es), 84 income, 35, 39, 42–43, 45–46 use, 53 tax numbers, 61 telephone and customer service, 349 taking orders via, 367 see also voice over IP telephone lines, 82 templates, 170–171, 312, 324, 369 10-Day Duration, 148 Thomas Regional, 105–106 threatening, 158 thumbnail photographs, 361 timeliness of customer service, 348 time zones (table), 176 timing, 325 of auctions, 175–177 of credit card payments, 125 of listings, 147 of loans, 131 tracking auctions, 463–464 tracking instructions, 313 tracking purchases, 463 trademarks, 34, 62 trade organizations, 101, 207 Trade Show Center, 95 Trade Show Plaza, 95 trade shows, 94–101, 349 Tradeshow Week, 95 trading links, 367 traffic reports, 325 transaction checkout, 313 transportation (as expense), 417 trial selling period, 23–24 tripods, 186 truck, shipping by, 245–248 trust and bankers, 132–133 in partnerships, 35–36 Trust Among Strangers in Internet Transactions, 341 TurboCheck, 267 Turbo Lister, 143, 150, 320–322, 480– 481 tutorials eBay, 448 Web development, 450 typeface logos, 67 typesetting, 145–146, 165–170, 487–488 type size, 169 Uline, 237 under age, 157 underlining, 169 unemployment insurance, 414 548 unique markets, 19–20 unique products, 439–442 Universal Parcel Insurance Coverage (U-PIC), 244 U-PIC (Universal Parcel Insurance Coverage), 244 UPS (United Postal Service), 239, 240, 242, 244, 402 URLs, 172, 360, 382–383 usability, 357 USB capability, 72 used clothing, 155 used items, 205, 206, 348 use tax, 53 US Patent & Trademark Office, 62 utilities (as expense), 417 valuation, 177 value-added products, 437–442 and customer service, 442 mass-produced, 437–439 unique products as, 439–442 Veeo, 376 Veeo Action Plus, 332–333 vendor credit, 134–136 INDEX vendor financing, 107 virtual businesses, 43–44 Visa, 344 visibility, 68 voice-over IP (VoIP), 78, 87, 332 volume selling, 17 Vonage, 78–79, 395 vulgar language, 158 wages, 416 warehouses, 230 WBT (Web-based training), 448 Web authoring software, 483–495 Web-based training (WBT), 448 Web browsers, 75 Web development tutorials, 450 Web malls, 369 Web page(s) defining, 499–501 example of, 525–526 viewing source of, 526–527 Web Pages the Smart Way (Sinclair), 451 websites, 172, 173, 368–370 affiliate, 367 and Andale store, 328–329 www.ebook3000.com brochure, 369–370 and email address, 372 storing photographs on you, 196 Wells Fargo Bank, 270 Western Union, 264–265, 397 wheeler-dealers, 428–429 Whois, 371, 373 Wholesale Lots auctions, 224 wholesalers drop shipping, 228–229 getting inventory from, 106–108 and sales tax, 51–52 workers' compensation, 413–414 workshops, online, 448 write once data entry feature (auction management software), 314 WS_FTP Pro, 196 Yahoo, 369 zoning, 33 .. .eBay Business the Smart Way This page intentionally left blank www.ebook3000.com eBay Business the Smart Way Maximize Your Profits on the Web’s #1 Auction Site Joseph T Sinclair... 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... mar- 10 EBAY BUSINESS THE SMART WAY keting? eBay may be your economical answer Let’s look at several models eBay Only Seller You sell only on eBay Your marketing cost is the fees you pay to eBay