When I first started my mentorship with Pitney Bowes Smallbiz Mentorship Contest winner Julie Wiley, I knew it would be a challenge. Here was a woman with years of entrepreneurial experience moving from a full-time job to a home-based, online business.
Julie had been profitably selling on eBay since 2002 on the side, so a jump to a full ecommerce business was not a big stretch. When deciding about her business plan in 2008, she wanted to select a theme that was fairly recession proof. She reasoned that people were always getting married so she named her eBay store I Do Bridal and Gifts.
She also wanted her business to be unique in the marketplace so she widened her product offerings. Tapping her creative side, she began making varied custom items – such as canvas wall décor, glassware and creative bachelorette favors. These items not only build her bottom line, but require less inventory investment. Smart move.
Thinking further into the bridal idea, Julie came upon the thought that remarriage is almost as popular as first-time marriages, so she felt that second-time brides might enjoy a place of their own. She named her new website Second I Do’s. Despite doing all that seemed right, she was struggling to turn a profit.
We dug in, and together we addressed many of the issues that face small businesses. Here’s what we changed:
Mobile–izing the Website. The first thing I did was to check the Second I Do’s website. Although it was chock full of great merchandise, the layout was dated. Although the host told Julie her site was optimized for mobile. It clearly was not. We negotiated for a new template, but the template that was offered up was incredibly basic (but could be seen on mobile). After checking the latest from different providers, we selected a professional Shopify ecommerce website which offered contemporary templates and excellent mobile conversion. This also cut down Julie’s monthly expenses. The new version of the SecondIDos.com website will be live on Shopify by December 1st.
Getting Centered. They are numerous popular ecommerce portals and Julie was trying hard to do a good job on many of them. It’s a lot of work to keep up to date on changes and relisting and listing the same merchandise on many sites. We looked at her monthly sales on each platform and evaluated the ROI. We narrowed her alternative selling platforms to the ones which performed best: eBay, Etsy and Artfire.
Sharpening Keywords and SEO. When you have a lot of merchandise up for sale online, the mere act of listing many items makes it easy to let item titles get stale. I went over about a hundred of Julie’s eBay items and made suggestions on new titles based on keywords. In ecommerce, keywords are king. They are the SEO for your items for sale. I recommended she be sure to use words that fully describe the items and fill the entire permissible title space. We also went through and freshened up listing descriptions to answer any question a prospective customer might have.
We visited Google Analytics and checked visits, time on site, average pages viewed and bounce rates (how many people leave your site without visiting other pages). We discussed the factors that needed to be improved. Moving her main site to Shopify, with its open layout, should handily increase sales.
Cash Flow. Many ecommerce businesses get weighed down in inventory. Unless the inventory is evergreen (and fashion rarely is), it’s time to slash prices and move merchandise. We also looked at monthly costs related to websites, subscriptions and payment providers and compared these to current options. We managed to pare down her monthly output significantly by using many of the lower priced and often free services.
For example, there was a paid store app on the Second I Do’s Facebook page, so we switched from that to Auction Items from eSoftie, a free solution that allowed Julie to send her eBay items to a Facebook store. Setup was simple and took only a few minutes for the entire inventory to populate.
Social Media Marketing. We went over the best practices that I lay out in my book Social Media Commerce For Dummiesand gave her tips on how to better engage and build a community of customers.
Julie had a nominal presence on most of the social sites. Since social media seems to be everywhere these days, we examined the demographics and decided in which sites Julie would put the most effort – and agreed to focus only on those. We also set up Google Alerts so she could monitor mentions of her brand and industry on the web and take best advantage of sales opportunities (as well as to derive content for sharing).
Setting up a social media plan can take a while and generally done after the ecommerce platforms are mostly complete. So it might be a while before Julie’s Twitter feed ramps up. I suggested Julie use Buffer to better organize the timing, so as not to send out tweets and posts in rapid fire fashion, leaving room for responding and connecting.
In the three months I worked with Julie, we covered more than I can possibly list here (I can’t give away all her secrets)! In doing so, I was reminded that mentoring is a two-way street; a partnership. When mentoring, you always gain a new point of view on many things. A recent post of Julie’s on Facebook signaled to me that we’d been successful:
“I have never been so busy working from home. Part of it is due to my mentor, Marsha Collier who has given me many “tools” I can use to become a better ecommerce business. Unfortunately, with the new tools comes time spent learning and utilizing them and when you are trying to sell to generate income, it can seem like these tools take away from your selling. I am learning that in order to be successful at selling, I need to have the proper foundation laid. Thanks, Marsha. I know next year my business will be positioned so much better for success!”
Thank you Julie. It was a great experience for me as well!
Consulting or mentoring a small
business owner isn’t as easy as working with a large business. Most businesses
with several employees have already assigned tasks and jobs to different
people. An entrepreneur is working on one's own and you're wearing many hats.
So just I started mentoring
the winner of the Pitney Bowes Small Business mentorship contest Julie Wiley owner of I Do Bridal & Gifts.
It made me remember just how many points a small business owner needs to touch;
I guess I have come to take them for granted. Working with her reminds me of
the many tasks that need to be covered on a daily basis.
Being a soloprenuer requires an “in
the trenches” education. Luckily there are lots of books (mine included) that will help
you learn new and interesting business methods that may previously have been
foreign to you. The learning experience is broad. For an ecommerce business, as
an example, the entrepreneur wears all these hats:
Merchandise
Buyer. Being on top of industry trends and being able to find merchandise
(at the right price) for web sales.
Bookkeeper.
Even if the business has a bookkeeper, the owner needs to watch financial
trends and prepare the numbers for consolidation by a professional.
Legal
Assistant. Every business needs to file for appropriate licenses and
permits from the state and federal governments, plus keep track of DBA and
required business filings for your city.
Website maintenance.
The website is a one-man operation. Entrepreneurs have a picture of what they
want and how they want it to look on the web. Reviewing and applying ongoing
updates are part of the job, as well as being cognizant of SEO and Google
Analytics.
Listing
items for sale. Aside from the small business commerce website, items need
to be listed on e commerce platforms to increase sales, build their brand and
eventually build traffic back to their own website. Descriptions need to be
well written to encourage a buyer to click the buy button.
Photographer.
If you’re selling items on the web, you’re going to need good images. This takes
a certain amount of equipment - and experience. Snapping off pictures quickly
just doesn’t work; there is a lot to keep in mind. Click here
for best practices for taking photos for online selling
Shipping
Department. Shipping is often the most daunting task for a small business
(it takes up a full chapter in my books). Learning the ins and outs and updates
on regulations is of utmost importance. Many small businesses dilute their
bottom line here, through inaccurate and expensive shipping decisions.
Chief Marketing
Officer. Being close to your business makes the entrepreneur the ultimate expert.
Armed with that knowledge, you need to apply social media and promotional best
practices to improve sales online. Tread the thin line between marketing and
possible spamming.
The tasks above become part of
the business’ daily routine. But following a routine over months and maybe
years can cause an entrepreneur to get stale. We all often fall into habits
that may end up hurting our sales efforts. Here are five common pitfalls of which to be aware:
If sales start to lag don’t blame the platforms
you are selling on right away. Be sure that you are updating your titles
regularly using the most popular keywords that describe your item. Better
descriptor keywords (just like SEO) can help you rank higher in the site’s
search.
Signing up and selling on multiple ecommerce
sites because your sales are lagging and you think expanding is a good idea.
Take a look at your core listings and see what you can improve before abandoning ship for another shiny site, thereby further weakening your views.
Money can drain slowly, even at $5 a month; subscribing
to (and paying for) multiple services that you don’t need or use is a waste.
Unsubscribe!
Not checking the competition! Every time you
list of relist an item online, be sure to search the platform (and other
vendors on the web) to see what the going price is. If others are successfully
selling an item that you are not, take a close look at their descriptions,
pictures and pricing to see if you can’t be better.
Keep your listings fresh. Add additional photos
to your item listings. The more those visitors can see, the more likely they
are to click “buy.”
I have been selling online since
1996, and yes, I do get complacent. Much of what I’ve learned is from the ecommerce
school of hard knocks. But after almost 20 years of selling online and
researching for my books, I’ve got a strong grasp on what it takes to succeed.
Keep learning and stay on top of trends, your ecommerce business will bring you
a full time - or a side income, your choice.
Someone complained to me on Twitter
about selling on eBay, you might find exchange amusing:
@cheryljnu It is only a second job when you are successful ;)
— Marsha Collier (@MarshaCollier) October 7, 2014
If you're an online seller: eBay, Etsy or website vendor, be prepared to get a kick in the wallet. On Sunday, January 26, new pricing comes into effect.
Our customers all want free shipping but the latest pricing for the USPS may force you to raise your product selling prices. What do these new postage rates mean for your online business (besides higher prices)?
Flat Rate Priority Mail envelopes stay the same price as in 2013
Reduced minimum volume requirement for Priority Mail high volume discounts (CPP and CPP Cubic)
New Zone 9 created for the Freely Associated States of Micronesia, Marshall Islands, and Palau
No Commercial price increase for First-Class Package International Service
Electronic USPS Tracking International Service expanding to additional countries
New $0.01 discount for First-Class Mail Letters (up to 3.5 oz.) when PC Postage or Meters are used
The folks at Endicia made an easy-to understand pdf outling the 2014 USPS price changes. You can download this valuable information here.
Are you worrying about the recent trend to same-day delivery? Think it will cut into your business? Read on to see how your 24 hour shipping turnaround will stay competitive.
As several major retailers experiment with same-day delivery initiatives, a new study suggests that consumers are more interested in delivery price than speed.
The Boston Consulting Group (BCG) surveyed 1,500 U.S. consumers and found just 9 percent of the sample group said same-day delivery is a top factor that would improve their online shopping experience, while 74 percent cited free delivery and 50 percent cited lower prices.
EBay, Nordstrom, Wal-Mart, and many other retailers are beginning to offer the same-day delivery option to consumers in selected markets. These retailers face growing pressure from Amazon.com, which has been offering same-day delivery of selected items in certain cities since 2009.
The survey did find that “affluent millennials”—ages 18 to 34 and with a household income exceeding $150,000—who live in urban areas might be an attractive market for same-day delivery. While these consumers make up only 2 percent of the market, their online spending is about two times more than that of the average U.S. consumer.
BCG suggests that retailers should offer same-day delivery for only a select number of products that are small and light and that carry high margins. Electronics, office supplies, and apparel are likely candidates.
“Same-day delivery will be a niche service in the near future,” Rob Souza, a partner at BCG, said in a release. “Retailers may choose to offer it to build customer loyalty, enhance brand awareness, or keep up with the competition. But it is unlikely to generate significant revenues for either retailers or carriers.”
Affluent millennials are willing to pay up to $10 to receive a delivery the same day, according to the survey, while other consumers are likely to pay up to $6, less than the fee charged by most retailers today. At those rates, same-day delivery would generate between $425 million and $850 million annually in delivery revenues if—as the consumer survey data suggest—up to 2 percent of online orders are fulfilled on the day of purchase.
Despite the relatively modest levels of anticipated revenue, several startups, such as Shutl, Zipments, Instacart, and Postmates, have flocked to the space, and established carriers, such as the U.S. Postal Service and Federal Express, are also running tests.
New York and San Francisco, densely populated cities, are the sites of many of these tests. BCG’s analysis suggests that Boston and Washington, which have large shares of affluent millennials and population densities similar to other U.S. cities, would be more promising places to test national acceptance of same-day delivery.
BCG fielded the survey in November, eliciting a sample that was representative of the U.S. population in terms of gender, ethnicity, age, and household income.
Beginning Jan. 27 the U.S. Postal Service (USPS) will introduce a
First-Class Mail Global Forever Stamp at $1.10 (20 stamp sheet for
$22), and is among new mailing and shipping changes for the new year.
Here's the short take on the changes:
Parcel Post® is now called Standard Post and is ONLY available at the retail counter. (Parcel Select is a comparable mail class for Endicia customers)
First-Class Mail International Parcel is now called First Class Package International Service.
International Electronic USPS Delivery Confirmation® will now be available, and FREE, for First-Class Package International Service and select Priority Mail International packages (only on shipments to Canada, 19 countries to be added in April 2013)
Express Mail International Flat Rate Envelope weight limit has been reduced from 20 lbs to 4 lbs
Express Mail International now includes the first $200 of USPS insurance
Optional expedited delivery of USPS packaging is available for $2.50
Commercial Base discounts are growing in 2013.
First-Class Mail 1 ounce stamp is increasing by $0.01 to $0.46.
Small business gets commercial base discounts on shipping when they use electronic postage for their shipments. I use Dymo Endicia's Dazzle software and they have given me a discount link for my readers. Click here for a code for a free 60 day trial.
Note that the USPS receives no tax dollars for operating expenses and relies on the sale of postage, products and services to fund its operations.
Want to succeed as an online seller? Too many folks try to tell you how easy it is. Bottom line? It isn’t easy – especially the part where you actually try to make a profit. You have to keep up with changes in the market— like shifts in consumer buying behaviors— study from tried and true experts, and practice!
The best place to get a feel for online selling is on eBay. I’ve written many bestselling books on the subject, and I’m a Top Seller on the site. Remember that you can’t make a dime if you don’t actually list anything, and you probably won’t be successful without making a few mistakes. But, you can also learn from the successes and mistakes of others. So in this post, I want to offer some advice on how to create listings that sell – and how to earn the most profits from those sales!
1. Listing title. Nothing is more important than your title. You’ve no doubt heard about SEO (search engine optimization). Well, you can apply these same practices on eBay to increase sales. It’s all about “keywords” – the terms people will use to search for your item. Note that rarely would anyone search for a “beautiful” sweater. More than likely, someone would search for a sweater in a certain size, color, fabric, brand name, sleeve length – get it? Do not waste your 80 characters (total allowed on eBay for your item title) on fluffy adjectives or adverbs. The item title does not have to be a proper sentence; instead, be sure to make the verbiage descriptive with practical details. Since eBay buyers see less than the full title listing when browsing (mobile only shows 25 characters), keep the less important words at the end. Search will find the matching words anywhere in your title when someone searches for them.
Bonus Tip: Use tools like Google’s Keyword Tool (used by advertisers who place ads with Google) or Title Builder, an accurate eBay-centric search tool to identify top keywords people search for.
2. Pictures. You may post up to 12 pictures at no charge, but most new items can be illustrated completely in just two clear, well-lit photos. Be sure the photos you upload are at least 500 pixels wide or you run the risk of eBay rejecting them. Use multiple photos if you are selling a collectible or rare piece so that you cover every possible angle. Be sure to photograph any flaws so the customer can effectively evaluate an item’s condition before bidding on or buying vintage items. If you would prefer to show images within your description, go to the HTML description builder and use the code <img src=”URL of the photo on the web” height=”height in pixels” width=”width in pixels“>. When shooting images of jewelry, coins or anything detailed, use your camera’s macro setting. Do not use any fancy backgrounds that may distract from your item.
Bonus Tip: To accurately portray colors of metals, use a Cloud Dome (or Cloud Dome Nimbus for smartphone cameras). It holds your camera steady and uses a mathematical formula to reflect light at exact angles for the best images possible.
3. Price it right! Check eBay’s completed listings search to see if your item actually sells well on the site and how much similar ones have sold for in recent auctions. Prices and trends may change by the minute and there is no point in listing when an item isn’t selling well. Check current listings too: How many sellers are selling your item? And at what price? As with any market, eBay items sell based on supply and demand. Choose your items carefully, price strategically and put slow selling items in your store. If you have a bit of wiggle room in your pricing, consider using eBay’s “Make Offer” option when listing. This way you can determine the sale price based on a customer’s offer. You can make up to 3 counter-offers to a buyer. Free shipping is also a good strategy for attracting customers and can make your listing seem more appealing than another seller with the same or a similar item – buyers feel like their money is going further, and there’s no guessing as to what cost the final invoice may reflect.
Bonus Tip: Double check your profit margin before you list. Although eBay has fee calculators, one of the best I have found is at http://salecalc.com/ – this tool takes all fees and expenses into account and gives you an accurate picture of how much you will make on your item if you sell it at a certain price point.
4. Don’t ignore the value of Customer Service. Good customer service will set you apart (and give you a leg-up on the competition from big brands) by letting the customer know you care. Communicate with your customer, even within your description. Let the customer know you are invested in their happiness with the purchase. Sell to international customers; American goods are very popular overseas. Putting the customer first through stellar customer service promotes repeat business and helps you reach the goal of Top Seller Status (where you receive a 20% discount on final value fees and are advantaged by eBay’s Best Match search algorithm). Find out more about Top Seller Status here.
Bonus Tip: Print out “thank you” notes and include them in your orders. Include information about you, your website or other merchandise you carry. Consider also offering customers a discount on their next order.
5. Ship the item out FAST! Know when your auction listings are scheduled to end, and be prepared to immediately pack and ship any items that have sold. For “Buy It Now” listings, set aside a few minutes each day to take care of shipping needs. Once the customer has sent you money, the item belongs to him or her – it no longer has a place in your inventory area. Keep a stock of shipping supplies (padded envelopes and free Priority Mail® packaging here) that match the items you sell. Use First Class mail whenever possible for items less than 13 ounces and send them in a bubble wrap envelope to save on weight. When it comes to shipping costs, box weight can make a big difference, so you might consider Priority Mail® Flat Rate Boxes, depending on the size and shape of the item. Priority Mail® Regional Rate Boxes can also be an economical option, depending on your shipping destination. Use the postal zone charts at this link to calculate shipping rates from your ZIP Code. Remember, Top Seller Status, which can increase your profit margin, is impacted by how buyers rate your shipping time and shipping costs.
Bonus Tip: As your business grows, no doubt you will sell on other sites like Etsy, Amazon, Facebook or your own website. Keep all your shipping records in one place: on your computer. Use this link for a 60 day trial to DYMO Endicia and see how easy postage and shipping can be. http://bit.ly/free60days
Ever scratch your head to figure out which channels are the best for marketing and selling products and services online? Its a moving target! Doing the research for my upcoming Social Commerce book is making my head spin. I thought I'd share this fun infographic - let me know how it resonates with you?
There is a new version of Ryan Olbe's eBay fee calculator which uses the new eBay fee rates as of July 06, 2011. He also has free online fee calculators for those who sell on Amazon, etsy, Overstock Auctions and Buy.com. For eBay, he also has calculators for eBay Canada, Ireland, UK and Australia.
He also sells definitive spreadheets to calculate the cost of selling one single item on eBay or the cumulative cost of selling multiple items. They can tell you what the total cost of selling on eBay is and what your final profit is (the exact amount you will have left over after fees).They incorporate all of the latest eBay and PayPal fee rates. I use them myself and find they make a big difference in figuring out profits or losses - before you make a costly mistake.
The spreadsheets work for many eBay sites: eBay.com, eBay.ca, eBay.com.au, eBay.co.uk, eBay.ie, eBay.fr, eBay.es, eBay.it, eBay.de, eBay.at, eBay.be, eBay.nl, eBay.pl, eBay.ch, eBay.in, eBay.com.my, eBay.ph and eBay.com.sg
Details of the latest eBay.com rate changes:
The 5% discount for standard PowerSellers is being removed. Only the 20% discount for Top-rated sellers will be available.
Final Value Fees for Store owners selling in Auction-Style Format are changing and are now being applied to the total sale amount (item price + S&H).
Final Value Fees for eBay Store owners selling in Auction-Style Format
Item Price
New Fee
Old Fee
$0.01 - $50.00
7.50%
8.75%
$50.01 - $1000.00
4.00%
4.00%
$1,000.01 or more
2.00%
2.00%
Final Value Fees for Store owners and Non-Store owners selling in Fixed-Price Format are changing and are now being applied to the total sale amount (item price + S&H).
Media
Item Price
New Fee
Old Fee
$0.01 - $50.00
13.0%
15.0%
$50.01 - $1000.00
5.0%
5.0%
$1,000.01 or more
2.0%
2.0%
Clothing, Shoes, Accessories / Parts & Accessories
The simpler way to ship – with Priority Mail Flat Rate Boxes from the U.S. Postal Service – is set to extend its popularity with consumers and shippers in the new year when new prices take effect. Prices for Priority Mail, Express Mail and other Shipping Services will change Jan. 2, 2011.
A flurry of new flat-rate product innovations will be ushered in with the new year. Priority Mail Flat Rate innovations include a legal-size flat-rate envelope and a padded flat-rate envelope. The Priority Mail Legal Flat Rate Envelope (15" x 9.5") and Priority Mail Padded Flat Rate Envelope (12.5" x 9.5") are both priced at $4.95. All six types of Priority Mail Flat Rate envelopes will be priced the same as the regular Priority Mail Envelope (12.5" x 9.5") at $4.95, including the Gift Card Flat Rate Envelope, Window Flat Rate Envelope, and Small Flat Rate Envelope.
Pricing for the Express Mail Flat Rate Envelope will remain unchanged at $18.30. A new Express Mail Legal Flat Rate Envelope (15" x 9.5") makes its debut, and is priced the same as the Express Mail Flat Rate Envelope.
In addition to an overall price change of 3.5 percent for Priority Mail, new prices for Express Mail, Global Express Guaranteed, Express Mail International, Priority Mail International, Parcel Select and Parcel Return Service will be effective Jan. 2. The overall price change for all Shipping Services products is 3.6 percent.
“The Postal Service continues to offer the best combination of value and shipping solutions in the market,” said Paul Vogel, president, Mailing and Shipping Services. “These new products will provide simple solutions to a dynamic marketplace.”
Currently available for Express Mail only, the popular Hold For Pickup service option will be extended to Priority Mail and First-Class Mail commercial parcels in the new year. Available at no extra charge for customers using shipping labels from Click-N-Ship or other USPS-approved vendor, packages with the Hold For Pickup endorsement are shipped directly to a Post Office, instead of being left at a recipient’s address. Packages are then held at the Post Office until picked up anytime during office hours, at a time convenient for the recipient.
Pricing for 50,000 Post Office Boxes in 49 retail Post Offices will change to reflect a new pricing schedule based on their presence in areas where significant competition exists. Post Office Boxes at these Post Offices have been classified as competitive products, allowing the Postal Service to test consumer interest in enhancements to current service and help shape future offerings.
For shippers mailing regionally, an economical new Priority Mail Regional Rate Box featuring USPS-supplied packaging will be available in two sizes for Commercial Base and Commercial Plus customers. The Priority Mail Regional Rate Box (shown above) offers zone-based pricing with the “If it Fits it Ships” concept and flat rates up to a maximum of 15 pounds for the cubic-size box measurement of .21 cubic feet (about the size of a large framed photo) and a maximum of 20 pounds for the cubic-size measurement of .41 cubic feet (about the size of a toaster). Volume thresholds for Commercial Plus customers have also been reduced.
Critical Mail is another innovative product offering for January available to Commercial Plus customers. Offering fast, consistent time-in-transit service for sensitive documents such as event tickets, identification cards and high-value direct mail, Critical Mail provides customers with tracking and free Delivery Confirmation. Critical Mail is a category of Priority Mail with First-Class Mail service standards. Additional extra services such as insurance and signature confirmation are also available. Critical Mail requires using USPS-supplied envelopes at a mailing cost of $3.50 for letters and $4.25 for larger, flat-size pieces.
Customers choosing online shipping solutions from the Postal Service will continue to save compared to retail prices. A complete listing of 2011 prices is available online under the http://www.usps.com/prices link. The new prices and product innovations are pending Postal Regulatory Commission review.
Pricing adjustments to competitive products are made each January. A plan outlining a balanced approach for the long-term viability of the Postal Service introduced on March 2 includes proposals to deliver mail five days a week rather than six, restructure prefunding requirements for future retiree health benefits, create a more flexible workforce, expand convenient customer access to products and services and drive inefficiencies out of the mail system.
The Postal Service receives no tax dollars for operating expenses, and relies on the sale of postage, products and services to fund its operations.
Starting in 2011, all U.S. payment providers including PayPal will be required by the IRS to report sales information about certain merchants to the IRS. We want to help you understand these changes.
Applies to merchants receiving over $20,000 in gross sales volume AND 200 payments or more
Applies only for sales beginning on January 1, 2011
Questions? Log in to your account or call 1-888-221-1161
Under the new legislation, PayPal will be required to report to the IRS the total payment volume received by PayPal customers in the US who:
* Receive more than $20,000 in gross payment volume in a single year, AND * Receive 200 or more payments in a single year.
The IRS changes will apply to all payment providers, including PayPal. They will take effect on January 1, 2011, with the first reports going to the IRS in early 2012. Our goal is to help PayPal merchants to understand and comply with the new requirements.
If you meet the stated thresholds, you will be required to verify your identity by adding a SSN/TIN/EIN to your existing account.