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forhappydogs.com (4,986), David Campbell Managing Customer Expectations | December 2003 |
| In business, identifying what works is critical. Home PowerSeller David Campbell did just that when launching his online pet business. As his eBay sales took off, he made eBay his focus.
"I started auctioning on eBay as a way to generate a few sales while I was in the process of launching my business and Web site," he says. "The demand and sales volume from eBay was much more than I ever anticipated."
Campbell now has two channels for his pet crates, beds, and exercise pens: his eBay Store and his Web site. "eBay always will be an important means of acquiring new customers and marketing our products," he says.
The entrepreneur credits the success of his eBay pet business to a well-formulated customer care strategy, which has enabled him to properly position his volume business yet also alleviate customer concerns that might reduce sales.
Detailed customer FAQs (frequently asked questions) are fundamental to his approach. The FAQs educate Campbell's customers, reduce his customer support responsibilities, and free him up to take care of other business, such as fulfilling orders. Wisely, he also offers a FAQ for both his sale policies and his products (with size, brand, and model advice).
"People truly regard their pets as members of the family, so they're emotionally invested in buying pet homes," says Campbell. "Their concerns were expressed in a huge volume of email, and we found ourselves answering the same questions over and over again. Now, people can get the assurances they need immediately and we can do other things besides answer emails."
Campbell's FAQs, which he links to from his listings, also cut his costs, enabling him to avoid hiring a customer support staff.
"The phone literally rang 24/7 with people wanting their questions answered immediately. Emails were swelling to 100-plus a day," says Campbell. "It's impossible to survive financially offering Costco prices with Nordstrom service. The FAQs help to set realistic expectations and alleviate frustration on the part of our customers."
The FAQs, in other words, have helped Campbell illustrate to his customers how his business model works, and more importantly, how it benefits them. His return buyers know that he keeps his overhead low so that he can pass savings onto them, and that makes them more loyal.
For Happy Dogs does work one on one with customers under certain circumstances, particularly if there has been a misunderstanding.
"We are genuinely committed to making our customers happy, and have gone to great lengths --occasionally at a financial loss -- to do so," says Campbell. "We know that a positive buying experience at For Happy Dogs translates into word-of-mouth advertising and greater sales."
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radiantthreads (3164), Esther Mandel Creating Your Own Product Line | November 2003 |
| Some of Esther Mandel's embroidery customers look for popular names. Others want the lowest price. She satisfies both groups, selling premium brands and her own line of Radiant Threads.
Mandel has parlayed a passion for sewing and embroidery into a thriving eBay business, which has performed more than 5,000 successful transactions in less than a year. "I can truly say eBay has changed my life," she says. "It has allowed me to stay at home with my three kids, plus make more than a full-time job."
This stay-at-home mom has added successful businesswoman to her resume by developing an effective eBay marketing plan and establishing a brand identity in her specialty category. For one, she understood the importance of crafting a strong name for her business, Radiant Threads, and promoting it via an eBay Store and compelling About Me page.
Equally important, Mandel presents herself as an expert in her niche by offering a wide yet focused selection of embroidery products and supplies, including volume quantities of her own thread, the latest embroidery designs, and embroidery software. She also has rolled out a Radiant Threads customer newsletter, educating repeat buyers about upcoming offerings.
In addition, she has made a point of carrying her category's top brands, such as Brother, Amazing Designs, and Janome, and including these brand names in her Buy It Now listing titles, so that she takes advantage of enthusiast searches for these embroidery names. In short, she enables novices and enthusiasts to pursue their hobby more successfully.
"I am one of the biggest dealers for Amazing Designs, a household name in the embroidery world," explains Mandel.
To compete more effectively on price with other embroidery sellers, Mandel also has moved beyond just being a reseller of other vendors' products. In order to offer volume spools of thread at rock-bottom prices, she has created her own value brand of threads, purchased directly from thread manufacturers.
"It took a little research and trial and error, but I have learned a lot through this process," says Mandel. "I'm now working with a few companies overseas and buying in huge quantities so the price is lower than anyone can get here in the states."
The savings she earns selling generic thread, sold under the Radiant Threads label, not only enables her to reduce her thread prices and increase sales, but also reduce her costs overall and list brand-name design patterns and software for less. And, that gives her the ability to merchandise her items more effectively. Many of her listings quote the item's retail price, which is typically a third more than her Buy It Now.
"I make the Buy It Now a couple dollars more than the starting price so when a person wants to make sure they get the item they just Buy It Now," adds Mandel.
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Longsuits (8262), Jennifer and LeRoy Forming a Successful Collaboration | October 2003 |
| Two really is better than one, according to Jennifer and LeRoy of eBay business Longsuits. They've become a true eBay success story, leveraging each other's unique talents.
"There are so many aspects to running an eBay business that it is almost impossible to excel at them all," explains Jennifer. "We chose each other based on our individual strengths."
Too often, eBay sellers go it alone or recruit inappropriate business partners, says Jennifer.
"I think a lot of people choose their spouse to be their eBay partner because they're 'around' or 'simply there.' To me, this is a huge mistake," she stresses. "Couples choose each other because they have similar interests, experiences, and backgrounds. That works in a marriage but not in a business. We are effective partners because we excel at different tasks and don't step on each other's toes."
The two often divide core tasks right down the middle. LeRoy, for example, handles the company's back end, coordinating and systematizing the overall operation along with it's finances, while Jennifer oversees the front end, interacting with customers. LeRoy is the deal closer, haggling with suppliers over price, while Jennifer is the product expert. She sources merchandise from 50 different importers and manufacturers, even traveling overseas routinely to find objects other sellers don't carry.
"We love unique, beautiful things and try to buy with that niche in mind," says Jennifer. "We stay away from brand names in favor of handcrafted collectibles -- but new items, not antiques."
When it comes to strategy, the partners see eye to eye. "We love to sell a wide range of merchandise across as many categories as possible, but we stick with one theme -- beautiful objects for the home," Jennifer explains. "By selling a wide range of products, you're able to include more search terms in your auction titles and ultimately attract more bidders."
Both also are boosters for eBay's Gallery listing upgrade, critical for their highly visual home items. "We use gallery 100 percent of the time," says Jennifer, "Our sell through rate is way above the eBay average and we definitely feel that Gallery has something to do with that."
Pricing, of course, is also critical: "We are definitely a bargain hunter's dream," says Jennifer. "Our prices are just above wholesale. Even with shipping, our customers pay far less than retail."
The two met and discovered their compatible talents while attending eBay University, which Jennifer still heartily recommends.
"I have attended three times and would go again in a minute. I would even recommend traveling to it, if necessary," she says. "Go and experience it; it will make a huge difference in your eBay business and pay for itself fast."
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hessfine (8,946), Hess Fine Art Generating a Steady Revenue Stream | September 2003 |
PowerSeller Jeffrey Hess no longer worries about traveling to shows and relying on sporadic sales. Thanks to eBay, he's been able to stabilize his business and generate a steady revenue stream.
"eBay is very good for the cash flow," says the founder and president of Hess Fine Art, which is based in St. Petersburg, Florida, and specializes in fine and decorative art, including jewelry.
"I used to do 30 shows per year," Hess continues. "I was constantly on the road. If it was a big show, I had to hire vans, employees, extra insurance. More importantly, I was away from the office and missing out on buying and selling opportunities."
The advent of eBay in 1998 to his 19-year-old company changed all that. Not only does Hess not have to travel as much and incur various show-related costs, but also his eBay sales have provided him with what every seller strives for: a regular influx of cash.
"My bank loves me," says Hess. "Instead of spurts of income, and having to worry about whether or not a show goes well, I now have a continuous revenue stream."
According to Hess, most of his 15 employees are involved with the eBay side of the business, including one full-time shipper, four full-time posters, and one full-time customer service person.
Speaking of customer service: the company needs it more than ever now. It receives 400 emails per day. Despite the increase, Hess Fine Art strives to be as accessible as possible, which Hess believes has contributed significantly to the company's high customer retention rate.
Buyers, for example, can contact the staff directly by AOL Instant Messenger. In fact, employees' IM names, including Hess's, are listed in all of the company's auctions as well as on its About Me page.
"We encourage people to IM us," comments Hess. "Our entire staff is one giant customer service staff."
While Hess Fine Art uses eBay primarily for straight auctions, it also has opened an eBay Store to branch into fixed-price sales and increase its brand's visibility.
"The Stores give you great exposure," Hess says. "They're a great place to park your inventory and let people see the kind of merchandise you have, especially local people."
Hess also believes that eBay ("the great equalizer") will continue to grow as a venue for the sale of high-end items.
"eBay is going to be the primary sales place for art in the United States," he predicts.
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 | bertsbest (7460), Rachel Halverson Increasing Inventory Turnover | August 2003 | Aggressive-that's how Home PowerSeller Rachel Halverson describes her eBay approach. It's a style that generates repeat customers, accelerates inventory turn, and produces real capital.
Halverson takes calculated risks to encourage inventory turnover. For starters, she invests in promotion. All of her auction-style listings feature the Gallery listing upgrade, which has been shown to increase final price by 11% and conversion rates by 9%*.
Halverson also lists hundreds of items a week, from tableware and furniture to kitchen appliances, to ensure that she has a diversity of merchandise available and attracts a healthy number of bidders. "We sell a wide variety of items in all price ranges and product categories, hot and practical," she explains. "We feel this brings more bidders."
Moreover, she sources her inventory from liquidators in mixed, bulk lots. This aggressive approach enables her to steeply discount individual items (50 to 80 percent), attract more customers, and sell in greater volume. She even specializes in new items that have damaged packaging, so that she can buy at extra low rates, a fact she fully discloses in her listings.
Her sourcing strategy does have its challenges: "Customers tend to have more questions about items with damaged packaging," says Halverson, which complicates volume selling. "Once a customer purchases these items, however, they tend to become repeat customers."
Another issue: her bulk lots often contain items that aren't worth selling on eBay, creating excess inventory. "We generally only list popular, brand name products," explains Halverson. "These have broader appeal and provide the best return on investment."
Not surprisingly, Halverson engineered a novel solution for the above problem. "We hold monthly warehouse sales locally as an outlet for this product," she explains. "We also utilize a local auction company to liquidate merchandise that does not meet our eBay standards."
Last but not least, BertsBest stays aggressive and increases turnover by avoiding reserves.
"We like to give all eBayers an opportunity to win our auctions," says Halverson. "Reserves deter bidders and have a negative impact on sales."
* This represents an average based on data from January 2003 transactions. No representation is made that a seller's final price or conversion rate of a specific item will increase by the average percentages noted above.
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 | memorybed (156), Memory Bed Offering Product Trials and Refunds | July 2003 | While some sellers hesitate to offer product trials and refunds, Home seller Marcia Lawson of Memory Bed believes the benefits of this customer perk far outweigh the risks.
Buyers of her high-density, visco-elastic memory foam mattresses can try their buys for 90 days-that's right, three whole months-and if they're not satisfied, they can return the mattress and receive a full refund.
"It's a great incentive," says Lawson, adding that she understands why some people might be wary about buying an item like a mattress online. "It's a large purchase to do over the Internet," she admits. "Buyers just want to make sure they're going to be taken care of if they don't like it."
Taking care of her customers is exactly what Lawson strives to do. In fact, when buyers regularly inquired about whether a trial period/refund was available, she listened and implemented the program. Moreover, Lawson says she wanted to make the offer even earlier, when she and her husband, Craig, started selling on eBay last August.
"We were small and growing then," she explains. "We couldn't necessarily afford to take that risk initially. But we've grown and we've taken that risk. It's definitely paid off." (In case you're wondering, Lawson says she has yet to have a single mattress returned.)
Lawson credits her rapid expansion to eBay's Buy It Now listing format and her eBay Store. Lawson is a firm believer in fixed-prices sales having found it suits her business best.
"We feel that a mattress is something people don't want to wait on," she says. "People want to buy right away. When we did auctions early on, we'd often have five people wanting the mattress but only one person would get it."
With Buy It Now and her Store, she now can serve all of her customers at once, she adds.
In less than a year, Lawson has developed a thriving business with a flawless feedback rating, primarily selling one type of item. However, she eventually plans to expand her product line-a key to her longevity on eBay, according to Lawson.
"Diversity," she concludes, "is what creates a successful online business."
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 | chaobiz (832), C&C Furnishing Researching the Market | June 2003 | There's no substitute for proper preparation. That certainly has been true for top Home PowerSeller Chao Wang of C&C Furnishings.
"Researching what buyers want is the key to quality sales on eBay," says Wang, "It allows me to forecast the sale and profitability of each item."
Wang doesn't buy any product in volume until he is confident it will be a regular seller. To gage that, he first tracks the item's availability with eBay Search. "If many competitors are selling it, I can easily determine the item's profit margin and marketability," he explains.
Items in lower supply (meaning they could be a bigger opportunity) are test marketed on the site, offered at different opening bids and Buy It Now prices, as well as with and without reserves.
The goal: find out how to best position this potential product in the future for higher returns. His research, for example, often gives him insight into when and when not to use reserves.
"If I learn a product is very popular and unique, then listing without reserves earns me higher profits," he explains.
Wang also shies away form reserves if testing reveals that customers will buy extensively at a clearance price. "I've found that setting a reserve price gives buyers the impression that the item is priced too high," he says.
Wang doesn't stop evaluating his products after they've made the initial cut, either. "If an item doesn't remain profitable, I'll stop selling it and start looking for other new products," he says.
Wang has that flexibility because he's positioned his business for the entire home, selling a broad selection of home furnishings, from small Tiffany-style lamps to bigger ticket items, such as bed sets, sofas, and desks. If one item performs poorly, he has the relationships and branding to substitute it for another.
Additionally, he has the ability to sell individual customers multiple items. "It has been very effective to sell a variety of home furnishing products," says Wang. "Many repeat customers come back for different types of products."
Thanks to his eBay Store, he can effectively merchandise his entire lineup, from kitchen appliances to office furniture. Better yet, his Store has enabled him to diversify into more expensive items without compromising his value-oriented brand image on the main site.
"eBay has been extremely helpful and important for my business," concludes Wang. "I have my own Web site for my business, but 90% of my sales are from eBay."
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