eBay and contact lenses

The Times have reported today that eBay could face prosecution over the sale of contact lenses through eBay .co.uk. The General Optical Council(GOC) have accused eBay of 11 counts of aiding and abetting the sales of prescription daily use contact lenses.

Recently some concern has been expressed about the sale of pharmaceutical and related products through eBay. Until recently the GOC claim that there were more than 200 contact lenses offered for sale on eBay. Also, recently a man from Milton Keynes was found guilty of using eBay to sell Kamagra, a generic version of Viagra, which is not licensed for sale in the UK.

When they were made aware of the problem eBay removed the contact lens listings from the site. eBay say that it is not possible to monitor the millions of items that are put up for sale. Because of pending legal action eBay will not comment on this case. However, history has shown that when they are made aware of problems eBay tend to act quickly and decisively and I suspect that contact lenses will soon appear on the list of prohibited products.

QXL's Charity Auction

QXL are hosting "The Art of Care" charity auction. This Auction has been organised in memory of Robin Needham who died on Boxing Day 2004 in the Tsunami. At the time of his death he was Country Director of CARE Nepal and had spent 25 years working for the CARE Organisation.

Daisy Bell, a student at Edinburgh University and Robin's neice sent out postcards to artists, musicians and celebbrities asking them to create a picture or doodle on the card. Over 200 works have been returned, including postcards from celebrities including Sir Paul McCartney, David Hockney, Tracey Emin, Damien Hirst , Nigel Havers, Charlotte Church, Loyd Grossman, The Kings of Leon, David Linley, Gail Porter , Mario Testino ,Theo Fennell, Antony Gormley RA, Norman Ackroyd RA, Professor Chris Orr RA, Dr.Elizabeth Blackadder RA, Mario Testino, The Chapman Brothers and Graham Rust. Yoiu can go to QXCL now to view the works of art and the auctions will finish on 3rd Octobber.

For all further information about The Art of CARE please look at the website http://www.artofcare.co.uk/ All proceeds will go to CARE International UK www.careinternational.org.uk (Registered Charity Number 292506) to be carefully distributed to areas affected by the tsunami and other Third World Countries.

Business Identification – The Facts

Next month (Oct 05) eBay are going to introduce their Business Identification feature. Currently there is a grey area and buyers on eBay are often not certain whether they are actually buying from an individual or a business.

There are also problems by the fact that registered businesses are tied to the rules and regulations of four important Fair Trading acts.

The Sale of Goods Act 1979 – this makes sellers responsible for ensuring
that the item is as described, of satisfactory
quality and fit for the purpose it is sold for.

The Trades Description Act 1968 – which makes it illegal to make a false
description of an item or to supply or sell
an item for which such a description has
been made.
The Consumer Protection (Distant Selling) Regulations 2000
This requires sellers to provide clear
information about themselves and their
products. (This can be done using the “About
Me” page)
Allow people 7 working days in which to
Cancel the purchase “Cooling off period”
Electronic Commerce (EC Directive) Regulation 2000
This requires the seller to provide the
following:
Name, address and e-mail address of business
Details of membership to any trade
Organisation.
If applicable the sellers VAT number.

By buying from registered businesses buyers will know they are protected by these regulations whereas if they buy from an individual they do not get the same degree of protection.

If you are registered for VAT, (compulsory if you have a turnover of £60,000 per year or more) your eBay fees are Vat inclusive, which means that you will
get the 17.5% saving as a VAT registered Business Seller.

So how can you define a business or private seller? EBay suggest that if you are in doubt you should contact your local Revenue office but basically you are a business if you use eBay to sell any of the following:
1. Items you have bought specifically to resell
2. Items that you have produced yourself specifically to sell
3. Sell a high amount of goods on a regular basis.
4. Often sell items that you have not acquired for your personal use.
5. act as a trading assistant.
6. Buy items from eBay for your business.(So that you can claim tax relief on the purchases)

You do not need to register for a business identification if you:

1. Sell items belonging to you that you do not need anymore
2. Buy items for your personal use.

EBay have identified 3 benefits from registering as a business:

1. The saving of VAT on eBay charges (if registered)
2. You can be included in eBay business –related communications
3. Because most businesses already meet all the legal requirements
this allows customers to know who they are.

The onus of registering, as a business, is entirely in your hands. If you have already given eBay your VAT details you will automatically become registered. EBay fees for both private and business sellers will remain the same. Interestingly eBay have said that if you both use eBay for business and private buying and selling that you can set up separate accounts for these two functions, one private and one business.

It is possible to become a Power Seller with sales of under £10,000 per year but I suspect you might have a problem persuading the Inland Revenue that you were not operating a business if you held that accolade.

Some sellers would for their own reasons prefer not to let customers know that they are a business. However, you cannot opt out of having the “Registered as a business seller” shown in your members profile.

As we have reported before both the Inland Revenue and HM Customs and Excise(VAT department) seemed to have been showing a great deal of interest in the selling activity on eBay of late. The introduction of the business identification I am sure is a move by the company to head off any threat of any compulsory legislation.

Many established businesses will welcome this move because it does level the playing field to some extent. But what the long-term effect for the average part time seller remains to be seen.

If you have any further questions eBay will hold a workshop on Wed 28 Sept from 10.30 -12.00 to answer your questions.
See http://forums.ebay.co.uk/thread.jspa?threadID=200243795&tstart=0&mod=1127392002322 for further details.

Disclaimer: This article is written for general information and no legal qualification or experiince are claimed. If you have any questions or queries relating to the legal points raised in this article you should consult your own legal advisor.

Business Identification Feature

eBay intend to launch a new feature called Business Identification that will let buyers know they are buying from a business seller rather than an individual. It will also allow business sellers to easily identify themselves as such on View Item Pages and their Member Profile.

Once the feature launches in October whenever you see “Registered as a Business Seller” you will know that the seller is registered as a business with eBay and has to adhere to certain laws and practices.
If you have already registered your VAT details with eBay you will automatically be added to the list of Business sellers when the scheme comes into operation. This is not a totally unexpected move and it will obviously have implications for many eBay sellers. At UK Auction Line we intend to study the details and will add a new article about this feature in the next day or two in the sellers section of the web site

eBay University announce new dates

eBay have just announced details of the forth-coming eBay University days. They have also introduced a new second level course into their syllabus. The first course is called “Beyond the Basics” and is aimed at people who have mastered the basics of eBay selling and want to move on to the next level.

The first course is called “Beyond the Basics” and is aimed at people who have mastered the basics of eBay selling and want to move on to the next level. The second course called “Advanced eBay Skills” offers delegates the opportunity to learn about eBay specific topics and skills in greater depth.

The advance course is divided into two options. The first stream, which is presented in association with the Institute of Business Advisors, offers delegates the chance to gain the knowledge required to make the leap from part time trading and full business status. The subjects covered include your first steps in business, Tax, VAT and writing your own business plan.

The second stream is entitled 'Advanced eBay Skills' and offers delegates the opportunity to learn about eBay specific topics and skills in greater depth. eBay experts will cover a diverse range of subjects aimed at taking your eBaying to the next level. Topics will include search and email marketing; maximising the opportunity of your eBay shop and PayPal. In addition you can hear from third party tool providers, such as AuctionWorks and Channel Advisor, to allow you to judge how their products maybe able to help you develop your sales.

The two streams will run concurrently but attendees will be able to move freely between streams- picking the classes they wish to attend.

There are 3 more events planned for this year

October 15th Hatfield- North London Beyond Basics
All New Top Seller

October 29th Manchester Beyond Basics
All New Top Seller

There is also an event planned for the Midlands on 12thNovember which is going
Consist of the “Beyond Basics” module. More details later.

You can book for the Hatfield and Manchester events by going to
http://pages.ebay.co.uk/university/

5 Tips for eBay buyers

by Dave Bromley

One of the reasons for the popularity and success of eBay is the fact that it is very simple to both buy and sell items through the online auction site. It has been estimated that this year 30 million sales worth $20 billion will be made so it is obvious that most people have few problems with the process. However, there is little doubt that some purchasers are paying more for items than they need to. I have identified five tips to help you ensure that even if all your purchases are not bargains they at least represent value for money.

1. Do your Research.

How many of you’re eBay purchases are planned and how many are impulse
buys? If you intend to buy a costly item such as a digital camera, DVD recorder
or other medium priced item it pays to carry out some research. Decide exactly
which model or models you want. If you can visit local shops that sell the
items you are interested in. Find out what features the models you are interested
in offer and mostly importantly find the best prices available. You can then
go onto the Internet and search the non-auction sites to find the best prices
available for the product. Having done this you are now ready to start
browsing eBay.

2. Do not rush in.

The majority of bids are made in the last few hours of an auction so there
is little to gain by putting in a bid early. In fact by putting in a bid at
an early stage you can inadvertently draw other peoples attention to the auction.
The more bids an auction attracts the higher the final bid price will be. Click
on the “Watch this Auction” but do not actually put in a bid until
thee last few hours.

3. Set yourself a top price

If you have done your research correctly you will know exactly the value of
the item you are bidding on. Make up your mind what you top bid is going to
be and stick to it. Sometimes when you find yourself bidding against someone
else there is a tendency to try to win the auction at almost any cost. Whatever
you do don’t fall into this trap once the bidding reaches your preset
limit walk away.

4. Make sure you know everything.

When you make a bid on eBay you are relying on a great extent to the description
and photograph that the seller has supplied. Many times though due to inexperience
or just plain laziness the seller does not include all the information that
you need. In this case do not be afraid to use the “Ask the Seller a
Question “” feature to send an e-mail with any further questions
you may have Quite often a listing with a poor description will not fetch as
good a price as one with a more detailed one. This can sometimes give you the
opportunity to snap up a bargain providing that you can get the information
you need before you place your bid. While we are on this subject I am surprised
at the number of people who place a bid without first checking on what the
shipping or postage charges are. You should always be sure you know exactly
what the total cost of the item would be if your bid is successful.

5. Avoid the rush hour.

Research shows that Sunday afternoon and early evening are the time that is
the busiest on eBay. The quietest appear to be early on Monday and Tuesday
mornings. It follows that with less people viewing you could expect the final
sales price to be lower. I have picked up some bargains by getting up early
on a Monday or Tuesday morning and using the “going, going gone” feature
to find auctions due to finish within the hour.It can be a case that the early
bird really does catch the worm.

eBay and Skype, a done deal

You have to admit that when eBay make up their minds that they want something they do not hang about. On Monday it was announced that eBay had paid $4.1 billion
for the Internet communications company. You have to admit that is a heck of a price for the 200 employee London based business.

So what does Skype do? Simply it allows members to talk to each other providing they have installed the Skype software. Currently if you want to make calls to landlines there is a small charge but it costs nothing to talk to anyone anywhere in the world using the Internet.

You do not have to be a genius to realise the impact that this technology could have on International communications. Very similar I expect to the effect that e-mail had on traditional mail services. The question of course is what does eBay want with Skype.

Skype allows you to dial another Skype user and speak to them via your microphone and computer speakers. Each member has their own “telephone number” and can access an on screen telephone keypad.

The big question everyone’s currently asking is “What exactly are eBay going to do with their new purchase?” Up to date they have given no indication but that has not stopped suggestions coming thick and fast from interested observers.

One theory is that eBay will add Skype as a contact seller option. On the surface this could appear to be a great new tool. If you wanted to contact a seller you would have the option of either messaging or clicking the Skype link to speak to the seller direct.

Personally the thought that when you list on eBay anyone in the world can “phone “ your computer fills me with horror. Unless eBay can introduce some form of monitoring you are going to get telephone spamming and a possible deluge of calls. Also eBay like to control all the communications between buyers and sellers and this might not be so easy with an audio medium rather than a written one.

I cannot believe that the quantity sellers will be very keen of the idea of having a torrent calls coming into their computers. In fact I suspect that most sellers will deactivate the service. To be honest all of this may just be “crystal ball gazing” and only time will tell if Skype will become an important marketing tool or not.

Another suggestion is that this purchase is the first move by eBay to diversify their interests. Some market watchers believe that the eBay bandwagon may be slowing down and Meg Whitman, eBay’s CEO is looking for new markets to conquer. If this is true then it will be taken by the market place as an admission that their core market is slowing down.

Drop Shipping

Dropshipping is a process of selling products without having the physical item yourself. You list an item at a price of your choice and when you get a sale you send the customers details and an agreed amount to a drop ship customer who ship the item directly to your customer. Your profit is the difference between what you sell then item for and what you pay the drop shipper for it.

This can give you a very inexpensive method of building up a portfolio of products to sell in online auctions without having to purchase, store and package the items. I have to admit that I have always been a little wary of dropshipping because my main concern is that if anything goes wrong it will be you getting the brickbats and complaints. But having said that in the USA it has proved a very successful way of doing business and no doubt it will be the same here.

I will talk more in detail on the audio program but in this article I will look at some of the companies in the UK who provide a dropship service.

http://www.atsdistribution.co.uk
A one off payment of £20 and you get complete access to 100s of images of PC and console accessories. I believe that after successful registration you receive stock to the value of your fee so in fact this would mean it costs you nothing to join but check this with the company.

http://wholesaleknives.co.uk
No membership fee. This appears to be a relative newcomer to the market.
Offers a wide range of interesting knife related items.

http://freebiephones.2U.co.uk
No Set Up Fee. Offers a range of mobile phones.
It also has a very good and comprehensive web site.

http://www.bjdropship.co.uk
Fashion Jewellery & Watches from low, low prices. Top-Quality makes including 9ct,18ct Gold & Diamonds

http:www.dropshippert.co.uk
Concentrates mainly on Gadgets, Toys, Games and Magic Tricks. But by becoming a member, (Costs £24.99) you also get access to other Dropship companies as well.

This is by no means a comprehensive list of dropshippers. To find more try a search on Google or Ask Jeeves for “UK Drop Shippers”. Another alternative is to read my friend Brian McGregor’s excellent e-book on UK Dropshipping . For more details http://www.workwinners.com/ukdauctionline.htm

Disclaimer: I have to be honest and admit that I have not personally used any of these companies and so therefore they are included purely for information purposes. Inclusion in this article should not be taken as a recommendation or otherwise for any company.

There is life beyond eBay?

There is life beyond eBay?
By Dave Bromley

If you read the popular press you might be forgiven for thinking that there was only one online auction site on the Internet. Ebay with its massive publicity machine has been grabbing all the headlines. In fairness, as they have 95% of the market is probably understandable but there are some interesting UK challengers emerging from the pack.

It is unlikely that any rival will be in a position to seriously challenge eBay for the number one spot. However, I think that there is an opportunity emerging for a UK company to take a fair slice of the market. Recently I have been looking at a range of online auctions and one particularly has caught my eye. If you have not yet discovered CQout I would recommend you visit the site.

This is no “me too” clone of eBay but an auction site that has taken its own path to offer online auction buyers and sellers what they claim to want, tighter security. Cqout (pronounced seek you out)is the only online auction site that I know that charges a registration fee, £2 by credit card or £1.50 for postal applications.

Although you can browse the site for free I was initially surprised to find I would have to pay the registration fee even if I only wanted to buy. However, I could see how this could prevent “shiming” (registering several IDs and then bidding on your own items to push the price up). The saving on this alone could more than off set the registration cost.

By debiting your credit card this gives the company confirmation of your address and the other details you provided on registration. I was also most impressed after I registered to receive a phone call to confirm my acceptance. No doubt another security check and it left me with the impression that here was a company that really cared about security and was not just paying lip service to the concept.

As Tony Newton, a founder Director of CQout told me,
“we know that a registration fee can put some potential users off, especially fraudsters, but those that elect to enter their details know that they are joining a secure, trustworthy trading community and time has proved us right.”

This would most certainly appear to be the case. Despite the fact that they use no advertising and rely purely on word of mouth CQout are now second only to eBay in the UK, judged by the number of items offered for sale.

One feature that will appeal to all auction sellers is the fact that basic listings are free. Enhancement and final listing fees are also considerably lower than eBays.

Three graduates of the London Business School launched Cqout in 1999. After a slow start, which is typical of most new auction sites, they are now growing rapidly. A year ago they had users in 39 countries, now it is 58.
A powerful feature is that users can place and view auctions in their local currency.

Although a general auction site CQout is gaining a reputation in specialist categories such as movie memorabilia and music.

The challenge for any auction site is to attract enough buyers. Free listings will always attract the “well I have nothing to lose” brigade, but unless there are buyers any auction site will eventually fail. CQout has proved that it can attract them by offering a secure and fair trading environment. It may not be as big, bold and brash as its American rival but it does have a rather friendly reassuring feel that I like. Why don’t you visit the site and give it a look, you could be surprised.

Is eBay Trying to Difersify?

Over the last ten years the growth of eBay has been nothing short of phenomenal. Both in terms of registered users and monies spent the company has continued to surge forward. It was untouched by the dot com slump and now boasts of over 30 International sites.

EBay’s CEO Meg Whitman has guided the company to the pre eminent position is holds today. She is a very smart businesswoman and so many eBay watchers have been surprised by the news that eBay have shown some interest in making a bid for Skype the London based internet telephony company.

Ebay are not the only interested party as Google, Yahoo and News Corporation are also believed to be interested. But when the news leaked out last week Wall Street
was less than impressed and eBay shares dropped by 4% down to $39.

It is difficult to see any natural connection between eBay and Skype although some observers think that they could use the system to allow bidders and sellers to speak
directly to each other. Although it is difficult to see how eBay could maintain the control over verbal communications that they have with their “Question from eBay
Member” email system.

Another suggestion is this could be the first sign that eBay are diversifying from their
core business. This could be driven by the fact that the first quarter result for eBay were described as disappointing and there seem to be signs of a slowdown in the
auction market.

Skype is the major player in the internet telephony market and offers its users free and paid services. Interestingly Skype use eBay’s Paypal service for online payments.
Internet companies like eBay and Google are both very “cash rich” and if Skype
do sell out whoever is successful can expect to pay up to $5 million for what is a company with just 200 employees.

With 53 million users and its own rapid growth rate it may be that the company will not want to surrender its independence. Recently Janus Friis, one of the co founders of Skype has said that the company is in no hurry to sell. Their expansion plans are going ahead well and they are generating more than enough income to finance their planned growth.

My own belief is that Google would be a better partner for Skype than eBay and if
Meg Whitman really wants to win this auction she is going to have to bid a very high price, perhaps to high a price.

When It Comes To Ebay, Don't Follow The Herd

Q: I want to start an online business. Since I don't know anything about ecommerce and building websites and such, I'm
thinking about starting out selling products on eBay, then pay someone to build a website for me once the money starts coming in. The big question is: what is the hot product to sell on eBay to make money fast? -- Bob D.

A: While it's true that selling products on eBay can be a quick, low cost way to launch an online business, following the herd by selling the "hot product" of the moment, is not a great idea. To the contrary, chances are you will be stomped in the ground by the herd and left lying in the dust with your unsold inventory in hand.

We talked about starting a profitable eBay business in a previous column and the advice I dispensed then still applies
today.

The most successful eBay sellers are those who understand that success on eBay relies on many of the same factors as success in a brick and mortar business.

* Smart sellers research the marketplace and the competition to determine the salability and profitability of the product.

* Smart sellers test the market with one or two before committing to a product line and tying up their cash reserves in inventory that may never sell.

* Smart sellers adjust their product offerings until they find a product or product line that sells consistently.

The last point is perhaps the most important. Long term eBay success does not come from "one off" sales. The key to real eBay success is to find a product that sells well and sell that product over and over and over again.

I asked Timothy Mina, author of the new book, The Online Auction Expert's Bible To Selling on eBay, his thoughts on
launching a successful eBay business.

Why is eBay so attractive to entrepreneurs?
"With an eBay business, you set your own hours and set your own goals," Mina said. "You can work as much or as little as you want and whenever you want. Many sellers supplement their income by selling on eBay and many others have turned it into a full time business."

Mina cites the following reasons for eBay's growing popularity among entrepreneurs who want to start an online business:

* You can start up quickly and don't need special skills.

* There is very little risk and investment required to get started.

* The marketplace is huge. There are millions of potential customers waiting to buy what you're selling, 24 hours a day, with the click of a button.

* No stress, no boss. Yes, there is work involved, but the work can be done at your own pace. You are your own boss and you set your own schedule.

* Most importantly, you can follow your passion and do something you love. If you sell something you enjoy selling,
online auctions aren't just profitable, they're fun and exciting, too.

Why It's Critical To Find Your Niche
Mina recommends creating your eBay business with niche items. According to Mina, the benefits of targeting a specific niche market include:

* If you are going to rely on eBay as your primary source of income, it is essential that you find your niche. If the goal
of your eBay business is to earn enough money in your spare time to make your car payment every month, it is less
important, but still highly recommended.

* If you find a profitable niche, you will become a certified guru of the items you sell you will ideally be the only one on eBay offering the products.

* Your expertise will make it ten times as easy to spot bargains when you're shopping for products to resell. Bargains might be all around you, but if you don't know anything about what you're selling, you won't know how to spot bargains that are right in front of you.

* You will find different ways to add personal value to your products. These low cost add-ons or unique twists to your products will drastically increase your sales and profits by making your items unique and desirable.

* You will have little or no competition from other sellers, so you can corner your niche market.

* By dealing with the same type of customer over a long period of time you will get to intimately understand the mindset of your target customer and what your customer wants. This will help you sell your products better and allow you to market your products in ways others haven't thought of.

* You will be knowledgeable and enthusiastic about what you sell, and you will be attentive to your customer's desires. This results in satisfied customers, name recognition, and a lot of repeat business.

* You're going to find something you're passionate about and specialize in it. If you love what you're doing, you have a much greater chance of sticking to it and loving it. So it won't even fell like work - it'll be like you're getting paid
to play.

How do you find your niche? So how do you find your niche? Mina recommends doing an inventory of your hobbies and interests to help you identify a niche you would enjoy working in.

Ask yourself:

* What are you passionate about?
* What do you collect?
* What do you like to read about?
* What do you do in your spare time?
* So you have a favorite pastime?
* What was your major in college?
* What jobs have you had?
* Are there any other fields in which you have a great amount of knowledge?
* What clubs do you belong to?

Mina also recommends that you spend time on eBay studying the category listings. This may give you additional ideas for hobbies you can turn into an eBay business. Once you have defined your hobbies or interests, brainstorm how you can turn them into a business.

* How can you turn your expertise into a product?
* How can you add value to current products related to your interest?
* What product can you sell that may be one of a kind and have little or no competition?
* Can you think of novel ideas that people who share your passion would love?
* Is there anything related to your hobby that you can create yourself? An ebook or a how to, perhaps?

About The Author: Tim serves as the president and CEO of three
successful technology companies and is the founder of
DropshipWholesale.net, an online organization dedicated to the
success of online and eBay entrepreneurs
http://www.prosperityandprofits.com
http://www.dropshipwholesale.net http://www.30dayblueprint.com

A New Service from UK Auctionline

In response to many requests I have added two new links to the UK Auctionline Web Site. You will find them just below the eBay logo on the home page. The first "Wholesale" link will take you to the latest wholesale offers on eBay. If you require quality packaging materials for your eBay sales you will find some of the best deals available on the eBay.co.uk auction site. Click on "Packaging" for a direct link to the latest offers.

Fee Increases on eBay

eBay have announced some changes to the fee structure for eBay.co.uk and eBay.ie

The changes effect Buy It Now listings which now move from a fixed 6p (E0.10) to a new sliding price rate dependent upon the starting price. These fees will cost between 5p-25p (E0.10 -E0.30)

The maximum cost of Multiple or Dutch auctions will also rise from £2 (E3) to £3 (E4.50)
You can get full details of these new fees at http://www2.ebay.com/aw/uk/200508.shtml#2005-08-29003927