UK Auction Line News. Issue 12

The leading ezine of users of Ebay.co.uk...

24.11.2003

The Path to Power Selling

Archive

Editor's Note

Welcome to the the twelfth issue of UK Auction Line

We have had a big upsurge in new subscribers over the last two weeks and I would like to give a special welcome to our new readers. It is a good opportunity to remind you all that this is your Newsletter and we welcome your input whether it be in the form of articles, questions or general comments on matters relating to online auctions.

Sales are really taking off on eBay at the moment as the Christmas holiday comes rushing towards us. At this time of the year it is worth considering running 3 day auctions to get a quicker turn round. This is especially true if the items you are selling could be considered seasonal or classified as possible gifts.

I hope you all received my e-mail regarding the Mimail virus that has been targeted at PayPal users. I have included the latest information in this issue. In the main section I look at the relevance of Customer Lifetime Value to online auction sellers.

I have been receiving questions from subscribers about alternatives to Ebay, and although I do not think there really is an alternative at present in this issue I take a look at Ebid.co.uk which is a UK based auction site that intends to go global.

Spam is becoming an increasingly big problem for all Internet users. If you do not already have a spam filter on your computer then you should consider installing one. The only problem with filters is that they cannot always tell friend from foe and this can lead to items such as our newsletter being blocked. We do our best by avoiding words that are liable to trigger the spam guard. You could help by adding us to your white list in your anti spam software so that you can receive your UK Auction Line Newsletter unhindered. In this issue I will tel you about the spam guard we use and recommend.

I will talk to you again soon. Good selling

Dave Bromley

Contents:
1. A customer is for life
2. Ebid.co.uk
3. Final Thoughts

 


Content section 1

A Customer is for life, not just Christmas

by Dave Bromley

Do you know exactly how much it costs you to acquire a customer on eBay? Basically it is fairly simple to calculate, it is the listing fee plus the Final Value Fee. Of course to be totally accurate you should also average the cost of any listing for unsold items and add these as well but lets not make it too complicated. The point is that it does cost you money to get a customer.

But not only does it cost you money it can also cost you time. Time to answer questions from sellers, time to pack the item properly so that it will not be damaged in the mail. In fact time to ensure that the purchaser is happy with the item you have sold them.

Great, you have a happy customer full of good will towards you and if you are like 99% of the other sellers on eBay what do you do? You totally ignore them, in fact you properly never even have contact with them again unless they just happen to bid for another of your items.

Just think about it for a minute: you have a satisfied customer, you know their physical and e-mail addresses and you know the type of products they are interested in and are prepared to buy. That is the kind of information a professional marketer will kill to get and you have had it handed to you on a plate. Building up a relationship with a customer can take time but the rewards are well worth the effort. I have customers who have made ten or more sales from me over the last couple of years because they know me and trust my products. If you can build that kind of trust with your customers it can be worth a small fortune to you.

Ebay, very rightly, have strict rules about sending out unsolicited e-mails but I use the following method to develop a relationship with my customers. When I send out the item they have purchased I include a compliment slip. These can easily be produced using Microsoft Publisher or Word. I thank them for making the purchase and I tell them that I often have similar items for sale. Also that I would like to occasionally e-mail them with details of these items but if they would prefer not to receive the e-mails then just to let me know. To date I have never had anyone come back to me to say no.

To comply with Ebay rules just on the strength of this slip I could not start sending advertising e-mails because the person has not taken any active measure to agree. In other words they have not said yes, they have just not said no. After a couple of weeks I send them an e-mail containing a free offer, perhaps a report or e-book. There is no product offer or attempt to sell anything at this stage I just make it very easy for them to request the free item by sending a blank e-mail to me. Once they have asked for the book or report they have to use the technical term "double opted in" to your list.

There are good months and there are bad months on Ebay, it is the nature of the business. But if you have a list a past customers who know and trust you then in a quiet month you can quickly e-mail them an offer which can then generate enough profit to make up for any fall off in your auction sales.



Content section 2

Ebid.co.uk

With the near monopoly of eBay it is very easy to forget that there are other UK auction sites. This week I have been looking at Ebid.co.uk which appears to be a growing site and having started as a purely UK orientated it is now accepting sellers from overseas.

One great attraction is that Registration and listings are free and compared to Ebay the Ebid equivalent of the Final value fee is small starting at 5p and rising to £5 for items over £1000.

The site has several interesting features including an option for £3 of having a 1 hour auction featured on the front page of the site. There is also a Happy Hour Auction that runs from 4 p.m. to 8 p.m. and this costs £1.

When you first join EBid youy are given a Bronze rating until you make a sale or purchase, then Silver until you reach 10 transactions. Gold memebrs have between 11 and 29 transactions to their credit and those with 30 or more are given Platinum status.

As it costs nothing it is possibly worth registering as this looks like a site were you might be able to pick up a bargain or two that you could then list on Ebay. There is quite a large section of wholesale offers which might be worth keeping an eye on. With free listing you have nothing to lose by putting up one or two items to see how they go.

Ebid.co.uk

 

Don't Miss Out

More information about the PayPal Virus

How Can you Stop Spam Mail?

77 Answers to your Ebay Questions

Question of the Week

Ebay announce changes to Online Stores

Advertisement

Are you looking for information products to sell on eBay and other online auctions? A good selection of CDs with resale rights are available at www.eclipsepublishing.com


Section 3

Final Thoughts

I am a great fan of the Jiffy bag. Those heavy duty padded bags are ideal for shipping out many auction items. Admittedly they are no good for fragile or large items but nearly everything I sell on Ebay I send out in a Jiffy bag.

The only trouble is that these bags can be expensive. Well they are if you buy them from the High Street stationers in packs of 5 or 10 bags. However, I have discovered that if you buy from one of the direct mail stationers such as Viking Direct you can make a great saving. But having said that it still pays you to shop around. I have just compared the prices of 3 Direct Mail Stationers, Viking Direct, Staples Direct and Neat Ideas.

A box of 50 bags 8 1/4in by 12inch cost £11.98 from Viking Direct, for the same size but a brown rather than a white envelope cost £9.99 from Neat Ideas and Staples Direct offer the same sized bag in white for £8.99 which makes it my best buy. All three companies can also provide other packaging material such as bubble wrap, pack fill and boxes.

They also offer free delivery for orders over £30 but you should remember that all prices in their catalogues excludes VAT so you should add 17.5% .

To order a free catalogue contact:
Viking Direct - www.viking-Direct.co.uk
Staples Direct - www.staples.co.uk
Neat Ideas - www.neat-ideas.com

 

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