eBay Explained

Singapore, Malaysia, Philippines

November 2006
eBay

Themarketplace
world’s online

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eBay’s Vision

Provide a global online trading platform

where practically
practically anything
anyone can
… trade

enabling economicworld
opportunity around the

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 Global Community

eBay site or majority investment

Minority investment

Americas Asia/Pacific
USA South Korea
Canada Australia
Argentina* New Zealand
Brazil* Taiwan
Chile* China
Colombia* Singapore
Ecuador* Hong Kong
Mexico* India
Peru* Philippines
Uruguay* Malaysia
Venezuela*
*MercadoLibre sites

Users from Europe

more than 150 Austria Belgium
markets France Germany
Ireland Italy
Netherlands Spain
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4 UK Poland
 Registered users

212
th
5 most populous country in the Million
world.
Q3-06
26% Y/Y

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

1998 1999 2000 2001 2002 2003 2004 2005 2006

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 Listings

89 million items at any given time 584

6 million new items per day Million
Q3-06 More than 50,000 categories

27% Y/Y

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

1998 1999 2000 2001 2002 2003 2004 2005 2006

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 Gross merchandise volume

$12.6
$50+ billion annualized run rate Billion
$1,590 per second
Q3-06
17% Y/Y

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

1998 1999 2000 2001 2002 2003 2004 2005 2006

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 The eBay Community

• Buyers and sellers following their passions

• Trust through personal communication and feedback system

• Customer loyalty and involvement with eBay

• Millions of entrepreneurs growing the marketplace in new

ways

• 1.3 million people around the world making a living full- or

part-time on eBay

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Introducing Griff
Agenda

• Intro
• Starting a Business on eBay: First steps
• Listing & eBay Stores
• Product Sourcing
• Break
• Marketing and Managing your Listings
• After the Sale
•Q&A
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Starting a Business on eBay
Agenda

• Setting Goals
• Structure Your Business
• Basic Business Tenets
• Planning
• Basics of Business Strategy

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Setting Goals

Selling on eBay…

• A hobby or pastime
ƒ Create better listings
ƒ Build relationships

• An extension of your existing business

ƒ eBay as additional sales channel
ƒ Reach a broader market

• An opportunity to start a new business

ƒ Lower barriers of entry
ƒ Expand existing business on eBay
ƒ Join the ranks of the self-employed

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Basic Business Tenets

• A business on eBay is like any business

ƒ Success breeds competition
ƒ Observe and out-perform your competitors
ƒ Businesses cost money to operate
ƒ Manage your inventory
ƒ Remain alert, flexible, and adaptive

• It’s about profit and loss

ƒ Not every sale results in a profit
ƒ Business entails risk
ƒ Know the right time to take a loss

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Planning Your Business

• The basics of a business plan

ƒ Mission Statement

ƒ Product line

ƒ Projected revenues

ƒ Marketing strategy

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Business Strategy
 Agenda

• Start Smart and Stay

Competitive
• Pricing Options
• Streamline for Success
• Use PayPal to Support Your
Business

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Business Strategy—Start Smart

• Create a “business-only” email address

• Open a “business-only” bank account
• Apply for a “business-only” credit card
• Upgrade computer hardware/software/Internet
connection
• Register any & all copyrights, trademarks, and patents

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Business Strategy—Your Competitors

• Observe your competitors

ƒ Scour their listings
ƒ Determine their best listing practices
ƒ Adopt those that work
ƒ Avoid those that don’t

• Outsmart the competition

ƒ Out-market
ƒ Out-perform
ƒ Out-sell

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Business Strategy—Streamline

• Selling on eBay can be a full-time job

ƒ Plan ahead
ƒ Arrange and schedule daily tasks

• Gain efficiency
ƒ Manage your time
ƒ Designate an “eBay workspace”

• Lower your costs

ƒ Purchase in bulk
ƒ Locate best deals for supplies, product

• Get help!
ƒ Delegate
ƒ Enlist family members
ƒ Hire help
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Business Strategy:
Organized, Not Overwhelmed

• A simple “Task Schedule” example

Morning Afternoon
Take photos Pack items

Do research/create listings Ship items

Check listing progress Check/order inventory

Check emails/answer questions Update records

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Create Listings the Professional Way
Agenda

• Before You Start

• Research, Tools, and
Reports
• Creating Your Listing
• Pricing Strategy
• Moving Merchandise
• Listing Internationally

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Before You Start…

• Research
• Select categories
• Compose titles
• Write descriptions
• Take and edit photographs
• Obtain packing and shipping supplies

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What’s Hot – eBay US

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eBay US—Merchandising Calendar

Promotions for the homepage of eBay.com

http://pages.ebay.com/sellercentral/whatshot.html
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eBay US - eBay Marketplace Research

http://pages.ebay.com/marketplace_research/

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It Starts with Your Listing

• Marketing is just:
ƒ A title composed of keywords
ƒ An attractive, well-written description
ƒ At least one good picture (including Gallery)
ƒ Clear, concise terms of sale
ƒ A friendly & professional tone

• Your titles and listings are crucial

ƒ Titles—use the 55 character spaces wisely
ƒ Create easy-to-browse listings
ƒ Add listing upgrades to draw attention
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Enhancements Increase Bid Velocity

• Ways to merchandise your listing:

ƒ Gallery
ƒ Gift Services
ƒ Second Category ƒ Bold
ƒ Highlight ƒ Featured Plus!
ƒ Home Page Featured ƒ Gallery Featured
• Why use them:
ƒ Listing upgrades increase number of bids and final prices
• When to use them:
ƒ If “competitive” listings use an option, dilutes usefulness
ƒ Experiment
ƒ Watch for regular specials on listing upgrades
• Listing Upgrade bundles are often available for a
discount.
See eBay Fees page for more details.
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Pricing Strategy

• All buyers hope for a bargain

• High starting prices (and reserves) may
discourage bidders
• Use a low starting price
ƒ Encourages bidding
ƒ Bidders experience “ownership”
ƒ Bidders tend to re-bid when outbid
ƒ Bidding wars—good for the high bidder, best for the
seller!

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Choosing a Pricing Strategy

• Use Reserve to protect item if required

ƒ Use reasonable reserve amounts

• Some buyers want immediate gratification

ƒ Want (or need) the item NOW
ƒ Are willing to pay a premium
ƒ Set fixed (Buy It Now) price as your rock bottom price

• Fixed Price for commodity or multiple

items
• Pricing should match your comfort level
ƒ Experiment with different prices—see what works
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Best Offer in Your Listing (eBay.com)

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Moving Merchandise

• Choose different ways to list your items

ƒ List an item
ƒ Relist the Item
ƒ Move it to your eBay Store
• If you have multiple of the same
ƒ Limit listings to a few
ƒ Use multiple quantity option
ƒ List one, offer another as a Second Chance Offer
• Use separate, appropriate categories
ƒ Increased exposure
ƒ Use cross-merchandising
ƒ Point to your eBay Store
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How to List Internationally

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eBay Stores
Agenda

• What Is an eBay Store?

• Customizing Your Store
• Finding Your
Merchandise on and off
eBay

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What Is an eBay Store?

• One-stop location for all your eBay listings on

eBay.com
• Unique, branded destination with…
ƒ Your logo and URL
ƒ Custom categories
ƒ “Your Store Only” search engine

• Ideal for listing inventory

• Provides advanced marketing, merchandising, and
business reporting
• Least expensive path to an ecommerce presence
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An eBay Store: All That . . . and More!

ƒ Logo
ƒ Store search
ƒ Categories
ƒ Merchandise

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Which Items are Best Suited for eBay Stores?

• Store items complement your non-Store listings

ƒ Batteries for toys
ƒ Film for cameras
ƒ Golf balls and bags for golf clubs
• Items that didn’t sell in auction-format listings
ƒ Lower the price, offer specials
• Merchandise similar to your other listings
ƒ Indicate in your description; “Visit my eBay Store …”

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Finding Your Store Off eBay

• Store pages are

optimized for search
engines
• Receive Store Referral
Credit when you promote
your Store off eBay
ƒ On the Web
ƒ In emails

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Finding Merchandise to Sell
 Agenda

• Decide What to Sell

• Source Merchandise
• Know eBay Policies

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Deciding What to Sell—Who Are You?

• Established business off eBay

ƒ Current product line
ƒ Select and “port” product
• Established business on eBay
ƒ Refine and expand product line
ƒ Expand into new product lines
• New business on eBay
ƒ Your passion, interest, hobbies
ƒ Your business goals
• Considerations for all
ƒ General line or specialize?
ƒ Low-volume vs. high-volume products?
ƒ Existing source or none?

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Researching on eBay

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Marketplace Research

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What’s Hot (eBay US)

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eBay US - Want It Now

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Finding Merchandise to Sell

• Resell used goods

ƒ Yard sales, flea markets
ƒ Thrift stores
ƒ Estate sales

• Find local sources for demand products

ƒ Regional crafts, art, gourmet food
ƒ Hard-to-find international products
ƒ Selling agent for a wholesale or retail business
ƒ Factory or factory-outlet nearby

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Other Products Sources

• “Distressed” inventory
ƒ Off-market clothing and accessories
ƒ Out-of-season, seasonal merchandise
ƒ Bankruptcy sales
ƒ Close-outs

• Buy direct
ƒ Act as “reseller” for a manufacturer
ƒ Buy wholesale merchandise

• Sources on eBay US
ƒ Wholesale category

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 Prohibited and Restricted Items

• Examples of prohibited items:

ƒ Firearms
ƒ Postage meters (scales are OK)
Search Help for “restricted items”
• Restricted items
ƒ Historical tombstones—no
ƒ New grave markers—yes
• Potentially infringing items
ƒ Academic software
ƒ Signature of another person
• VeRO (Verified Rights Owner)
ƒ Listings violating copyrights,
trademarks, use of images and text
ƒ Removes infringing items
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 Prohibited Listing Practices

• Keyword spamming: Non-

related keywords in your title or
description
• External links: Links on item
page to sites that solicit trades,
sales, etc.
• Choice listings: Providing a
choice of different items within
one listing
• Payment surcharges: Additional
fees for certain forms of payment

Help > Rules and Policies > Rules for Sellers

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Market Your Business on eBay
Agenda

• Attracting Attention
• Customer Service
• You’re a Business
• Tried and True Marketing
Techniques

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Marketing—It’s All About Attracting Attention

• Imagine eBay as a huge mall

• With over 200 million customers
• You are one store (out of thousands) in the mall
• How will you get customers to look at your
merchandise?
• How do you get them to buy from your store
(instead of the store next door)?

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How Is Your Customer Service?

All of this (and more) was found on one listing

• If you have less than 10 feedback …I will cancel the bid without prior
notice
• DO NOT BID ON MY ITEMS UNLESS YOU UNDERSTAND AND
FOLLOW MY STRICT POLICIES!
• I WILL NOT TOLERATE DEADBEAT BIDDERS
• I will only send one email requesting your information
• ATTENTION!!!! IF I DO NOT HEAR FROM THE WINNING BIDDER
WITHIN 24 HOURS AFTER AUCTION ENDS, I WILL
AUTOMATICALLY RE-LIST ITEM AND LEAVE NEGATIVE
FEEDBACK! NO EXCEPTIONS!
• I will contact the winning bidder approximately one week after the
item has been shipped…and request that positive feedback be left.
In turn I will leave positive feedback.
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Terms and Conditions—Good Example

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Tried and True Marketing Techniques

• Incentives and discounts

ƒ Sell items at lower prices (no reserve) to gain exposure
ƒ Offer free shipping for first-time buyers
ƒ Offer discounted shipping for multiple purchases

• Opt-in direct marketing

• Cross merchandising

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Marketing Yourself
Agenda

• Your About Me Page

• Advertise On eBay
• Market Off eBay
• Market from Your Own
Web Site
• Link to External Web sites

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Your About Me Page

• Your About Me page—a marketing opportunity

• Describe your products and services
• Link to your other listings
• Link to your Web site

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About Me Page Example

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 Advertise on eBay

• adMarketplace
ƒ sells and manages keyword
ads on eBay

• Purchase ads
ƒ Gain exposure with
your banner
ƒ Create sell-through
opportunities
ƒ Link on eBay Home
page or

http://www.ebaykeywords.com
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eBay Keywords

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Optimizing for Searches

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 Market from Your Own Web Site

• Link from your Web

site to your listings
or Store
• eBay Editors Kit
ƒ Display your eBay
listings on your
Web site

www.ebay.com.sg/education/learn-to-sell-editors-kit.html

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Linking to External Web Sites

Cardinal Rule: Do not distract buyers from listings

Do’s Don’ts
Link to a “description page” or photo from a Link to external Web site from a
View Item page (further describing your Item) Listing page
Link to your other eBay listings or eBay Store Link to any page that offers to sell
from a View Item page outside of eBay
Link to your About Me page from your View Link to any page that solicits eBay
Item Page user information
Link to external Web sites from your About Link to any site or page offering
Me page and Store only merchandise prohibited by eBay
Link to your listing terms and conditions, Send unsolicited emails to bidders
provided that the most relevant T&Cs are in
the listing itself.

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Summary

• Marketing is crucial
• Drive traffic to your listings and/or Store
• Quality listings make the difference
• Advertising (on and off eBay) is essential
• Create a marketing plan and stick to it
• Adopt “customer is king” attitude!

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Managing Your Active Listings
Agenda

• Active Listings
• Management Tools
• Let’s Look at Selling Manager
• Selling Manager Pro
• Bidder/Buyer Management
Tools
• Managing Listings

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 My eBay - Active Listings

• All Selling > Selling Link

• From here you can
ƒ Edit a listing
ƒ Cancel a listing
ƒ Sell a similar item
• Once a listing ends it moves
into Sold or Unsold

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Let’s Look at Selling Manager – eBay.com

• Selling Manager—a new eBay selling tool

• Organizes your listings
• Track transactions
• Easy sign up (Seller Services page)
• Online application, no download of files
• 30-day free trial, ($4.99/month)

Let’s explore Selling Manager!

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Selling Manager Pro—Summary

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Selling Manager Pro—Sold Listings

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Selling Manager Pro—Success Ratio

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 Bidder/Buyer Management Tools

Bidder management tools

ƒ Block or pre-approve bidders
ƒ My eBay > Selling-Related Links

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Managing Listings

• Answer emails promptly

ƒ Prompt response helps item success
ƒ Instills buyer confidence
• Cancel bids
ƒ Only with good cause
ƒ Cannot be reinstated

• End a listing early

ƒ Item no longer for sale
ƒ Cancel all bids or sell to the highest bidder

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Summary

• Manage active listings from Selling Manager and

My eBay
• Manage your bidder list
• Block bidders at your discretion
• Cancel bids if necessary
• Revise or cancel listings if necessary

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Managing Your Sold Listings
 Managing Sold Items

• Managing Sold Items

ƒ Notify the buyer
ƒ Invoice the buyer
(if necessary)
ƒ Track buyer’s payment
ƒ Ship the item
ƒ Leave feedback
ƒ Receive feedback
ƒ Use Second Chance Offer, if
necessary

• Use Selling Manager!

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Managing Payments
Agenda

• Payment Status
• eBay Checkout
• PayPal

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PayPal – An Excellent Payment Solution

• An eBay company and the global leader in online

payment solutions:
ƒ Enabling any individual or business with an email address to securely,
easily and quickly send and receive money online
ƒ 123 million account members
ƒ 103 markets around the world
ƒ 17 currencies:
ƒ Total payment volume through PayPal for 2005: US$27.5 billion (RM100
billion)
ƒ Preferred on eBay

• PayPal’s Vision:
ƒ Borderless Payments: Where online inter-country payment is as easy and safe as
domestic

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PayPal and eBay: A perfect match

Marketplace Payments
• Integrated checkout
process with PayPal
Sellers go where
• Achieves PayPal critical More Sellers
buyers are mass – 120M Offer PayPal

• Enhances trust & safety

• Increases velocity of trade
Buyers go where • Lowers risk of fraud
sellers are More Buyers
• Preferred by buyers Use PayPal
• Cost Effective
• Saves Time & Money

eBay and PayPal facilitate the export and import of goods

worldwide in multiple languages and multiple currencies
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 PayPal Integrated With the eBay International Listings

Automatic Logo Insertion

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 PayPal Seller Accounts: Premier and Business

• Account Types:
ƒ Premier Account: Casual Sellers
• Accept all payment types, including credit card payments
• Customer Support: receive telephone customer service
• Free reporting tools to track your sales & transaction from one central location

ƒ Business Account: Businesses

• All of the benefits of a Premier account, plus
• Operate under a business name
• Create multiple user accounts to limited employee access to your account
• Chargeback/Claim Email Alias: route buyer inquires & disputes separately

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There’s Money in Your Account!

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Managing Your PayPal Account

Log in to PayPal to:

ƒ View recent activity
ƒ View and download sales history to your accounting software
ƒ Withdraw funds

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 Withdrawing Funds

• Log in to PayPal
• Click the My Account link
• Click the Withdraw link
• Select an option
• Follow the instructions

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Packaging Pays Off
 Agenda

• Customer Satisfaction
• Match Packaging to Item
• Flat vs. Actual Costs
• Selecting a Carrier
• Purchase and Print Shipping
Labels on eBay with PayPal

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Customer Satisfaction

• Well-packaged items
ƒ Promote a professional image
ƒ Result in more positive feedback
ƒ Save time and money

• Buyers pay for packaging and shipping so…

ƒ Pack it well
ƒ Neatness counts
ƒ Excessive shipping costs may deter bidders

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Match Packaging to Item

• Select the appropriate box for the item

ƒ Double box fragile items
ƒ Smaller items? Envelopes weigh & cost less

• Use a sturdy, corrugated box

ƒ With ample room for packaging
ƒ Rigid sides & flaps intact
ƒ Don’t exceed box’s maximum gross weight

• Use proper packing materials

ƒ Bubble wrap
ƒ Peanuts
ƒ Foam
ƒ Corrugated dividers
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Selecting a Carrier

• Shipping carrier is an extension of the transaction

• Good carrier customer service enhances your
reputation
• Offer a range of shipping options & prices
• Manage and meet customers' expectations while
keeping costs low
• The lowest price may not yield the best value

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Resolving Issues and Feedback
Agenda

• Business/Customer Issues
• Leave Feedback
• Unpaid Items—UPIs
• Second Chance Offer

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Business/Customer Issues

• Conflicts and differences of opinion

• Negative feedback
• Account theft
• Buyers who attempt to purchase products
illegally
• Unpaid Items (UPIs)

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Leave Feedback

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Dealing with Negative Feedback

• Negative feedback is probable

• You may respond to negative feedback
• Mutual Feedback Withdrawal
ƒ Valid within 30 days of date feedback left or 90 days of the
transaction end date (whichever is later)
ƒ Both parties must complete the Mutual Feedback Withdrawal Form
ƒ Both feedback scores are adjusted simultaneously

Find more information at: Community > Feedback Forum

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Unpaid Items

• Research shows most UPIs are oversights

ƒ Buyer out of town, ill, or deceased
ƒ Loss of computer or connection
ƒ Spam blocker blocks invoice emails
ƒ Buyer just plain forgot!

• Don’t assume ill-intent

• Communication usually resolves most UPIs
• Keep communication polite and non-accusatory

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Tips for Avoiding Unpaid Items

• Make PayPal your preferred method of payment

• Set preferences to provide Pay Now button on
closed listings
• Include clear shipping & payment instructions
• List Buy It Now items with Immediate Payment

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What You Can Do About Unpaid Items

• Send a payment reminder

• Contact your buyer via email and/or phone
• File a Unpaid Item dispute
• Request a Final Value Fee credit
• Leave appropriate feedback

If the Buyer eventually pays:

ƒ Remove the Unpaid Item strike
ƒ Update feedback (optional)
More Info:
www.ebay.com/securitycentre

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Second Chance Offer – eBay.com (US)

• Second Chance Offer

ƒ To sell item to under bidder
ƒ Increases sales
ƒ Sale completed on eBay (not off-line)

• Make a Second Chance Offer when:

ƒ Selling a duplicate item

• Final Value Fee applies

• No second insertion fee

ƒ Winning bidder fails to complete transaction

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Sales Reports and Other Tools
Agenda

• eBay Sales Reports

• Seller and Traffic Reports
• Accounting Assistant

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Track Your Business

Effective management by thorough measurement

• Things to track
ƒ Products sold
ƒ Final selling prices
ƒ Upgrade options
ƒ Costs
ƒ Traffic (hits, bids)
• Adopt a bookkeeping system
ƒ Use software
ƒ Create graphs, charts, comparisons
ƒ Study and “listen” to the data

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How Sales Reports Can Help

Sales Reports help sellers….

• Measure their eBay sales against pre-determined
sales goals
• Understand the main drivers of their business
• Determine opportunities and areas for
improvement
• Refine their business strategies to ensure success

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 Seller and Traffic Reports

• Store Seller Reports

ƒ View key metrics
ƒ eBay marketplace data

• Store Traffic Reporting

ƒ Exclusive to Store sellers
ƒ Identical tool eBay uses to analyze
traffic and market
ƒ Reports on all of your listings and
Store pages
ƒ Bid/BIN tracking for Featured and
Anchor Stores

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Resources on eBay
Agenda

• The eBay Community

• eBay Explained Online
• eBay Radio

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The eBay Community - US eBay.com

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The eBay Community - Malaysia

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eBay Radio

• Hosted by Griff
• Broadcast twice a week
• All shows archived

• Receive
upcomingweekly noticesShows
eBay Radio for

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eBay Seller Programs
 • Trading Assistants
• PowerSellers

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 Trading Assistants

• Experienced, qualified eBay sellers

• Sell for others on consignment
• Have experience? Meet qualifications? Become a TA!
• Need experienced help? Hire a TA!
ƒ Go to tradingassistant.ebay.com
ƒ Enter your area or zip code
ƒ Review feedback and listings
ƒ Shop for the best deal!

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 The End!

• It’s Q & A Time!

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