Entries from June 2008 ↓

I regularly read a very good blog called 37Signals. They have a post that, in my opinion, perfectly describes what has happened to eBay. The MBAs have taken over the place. They do not sell on eBay (as a general rule), and while they may know business by the book, they don't understand the people who make the business tick.

Here's a quote from 37Signals from a post called The MBA Myth:

There’s a popular book on entrepreneurship called The E-Myth which claims that bakers shouldn’t run bakeries, plumbers shouldn’t run plumbing companies, and everyone else should think about how they could turn their small business into a franchise. On the face of it, there’s a lot of good advice about how you can’t just be a good baker if you don’t have a business bone in your body and expect commercial success.

Problem is that the reverse is also often true. If you just put MBAs in place — or other professional managers without deep subject matter expertise — you’re equally likely to end up with an uninspiring business that fails to be passionate about the right things. To stay on the ball you need to know what’s a good pass and the best way to do that is to be able to make one yourself.

eBay's "bakers" and "plumbers" are the small sellers in the trenches. They have valuable information to impart. But listening to the sessions at eBay Live! made it obvious that information isn't welcomed.

As an example, take a look at the way eBay Education focuses on "growing your eBay business". Most moms and pops I find in my classes are not the least bit interested in starting and growing a business. They just want to sell their stuff. It used to be that eBay was a great alternative to a garage sale, the hassles were less, and the prices were better. I still find my items bring good prices overall, but the hassles are mounting.

I don't believe eBay really wants to run small sellers away. The loss of small sellers is "collateral damage" as a result of eBay's bigger plans. Kind of like the bustling small towns and businesses that are bypassed and suffer when a new highway is built. Too bad - but that's progress. We're told it's for the good of the majority.

Humility?

Unfortunately for small eBay sellers, admitting a wrong course takes humility. Humility, it seems, is not widely taught within business schools. After all, what would it say about their expensive diplomas if a simple common-sense solution by a "commoner" proved to be the best one?

When a small seller in a midwestern town with nothing but a high school education challenges the decisions of top business school graduates - and that has been happening A LOT lately - what do you think will happen?

I think we're seeing it in action. (I hear crickets...)

Popularity: 37% [?]

eBay has unveiled the design for their new item page. They intend it to be totally phased in by late 2008 or early 2009. One of the main complaints sellers have had for many years is that eBay rolls out changes during the critical holiday selling season. If eBay is in the midst of phasing in the new page, users - er... I mean "customers" will not be happy.

The sample eBay displays shows a seller with 96.2% Positive Feedback, but does not show the red warning message warning of a seller's low DSR's that was displayed on a previous version of the page.

One feature of the new page that I am certain will also make sellers quite angry is "Safer description area via new "active content" blocking."
The sample page is very plain and neat looking. I don't think the old red, white, and blue, listings with custom templates are long for this world.
Click here to see the new design up close...

Popularity: 29% [?]

Well, it's over. The last eBay Live! till 2010 (so they say). I think the best part of the whole thing was enjoyed by only about 150 people - and that was the Chris Isaak concert. That guy is great, it was a wonderful show. It's sad so many people missed it.

In my opinion, the mood was gloomy for a large number of attendees. I spoke with many sellers that told me they were leaving eBay after this event. They hoped they would find a hearing ear with eBay execs, but the overwhelming message I got from concerned sellers is they feel eBay did not really hear them, and that the company has no intention of deviating from it's current course.

I thought it was very interesting, given the mood of many of the senior attendees, that eBay chose a singer with a reputation for singing break up songs...

Here are two of Chris Isaak songs and lyrics are below, quite interesting when considering the relationship between eBay and many of its sellers:

Wicked Game Lyrics

The world was on fire and no one could save me but you.
It's strange what desire will make foolish people do.
I never dreamed that I'd meet somebody like you.
And I never dreamed that I'd lose somebody like you.

No, I don't want to fall in love (This world is only gonna break your heart)
No, I don't want to fall in love (This world is only gonna break your heart)
With you (This world is only gonna break your heart)

What a wicked game to play, to make me feel this way.
What a wicked thing to do, to let me dream of you.
What a wicked thing to say, you never felt this way.
What a wicked thing to do, to make me dream of you and,

I want to fall in love (This world is only gonna break your heart)
No, I want to fall in love (This world is only gonna break your heart)
With you.

The world was on fire and no one could save me but you.
It's strange what desire will make foolish people do.
I never dreamed that I'd love somebody like you.
And I never dreamed that I'd lose somebody like you,

No, I want to fall in love (This world is only gonna break your heart)
No, I want to fall in love (This world is only gonna break your heart)
With you (This world is only gonna break your heart)
No, I... (This world is only gonna break your heart)
(This world is only gonna break your heart)

Nobody loves no one.

Life Will Go On Lyrics

Broken skies, heartaches that flowers won’t mend
Say goodbye knowing that this is the end
Tender dreams, shadows fall
Love too sweet, to recall
Dry your eyes, face the dawn
Life will go on

All day long thought that we still had a chance
Letting go, this is the end of romance
Broken hearts find your way
Make it through just this day
Face the world on your own
Life will go on, life will go on

There’ll be blue skies, every true love
Someday I’ll hold you again
They’ll be blue skies in a better world, darlin’

Tender dreams, shadows fall
Love too sweet, to recall
Dry your eyes, face the dawn
Life will go on, life will go on
Broken heart find your way
Make it through just this day
Face the world on your own
Life will go on

Popularity: 27% [?]

There's a lot written already on what is happening at eBay Live! this year. The best source I've seen is of course, AuctionBytes. Ina and David Steiner have great coverage of the details, along with their reporters Julia Wilkinson and Greg Holden.

As I listened to the keynote address yesterday morning I listened for what wasn't said, and noticed the overall mood of the room. It was a huge room, the same room that the closing gala will be held, and it seemed pretty packed.

When John Donahoe came out, a small group of people rose to their feet and I was a bit surprised - until I noticed they were nearly all wearing staff shirts...a standing 'O' from the paid staff doesn't count, sorry.

Mr. Donahoe's speech seemed like a make-up speech to me. There were his parents in the front row, and pictures of him as a kid, very humanizing stuff. He talked of growing up in Chicago, all the while sticking close to the teleprompter.

He said "change is hard, but essential," and that eBay's values have not changed, but the world around us has changed a lot. He really emphasized that changes have been made, and will be made in the weeks and months ahead - for the collective good of all 84 million active users. He said their decisions were made based on what is good for all of us.

Lorrie Norrington also took the humanizing approach. Talking about the little dog paintings she buys on eBay. She and Mr. Donahoe talked about their feedback (146 and 172 respectively) and how she uses the site just like everyone else.

I noticed an interesting bit of body language with both Lorrie Norrington and John Donahoe. Maybe I'm being petty, but they both "steepled" their fingers as they spoke to us. If you've ever read about body language, you know this means they feel a sense of superiority over those to whom they're speaking. Some people say this gesture indicates a "know it all" attitude. I'm just sayin'...

Lorrie talked all about trust and doing the "right thing". She got booed when she mentioned feedback, and in an awkward, and seemingly scripted moment welcomed the criticism as "part of what makes this a great community." ("Okay, so if they boo you, just say, 'that is what makes this community great...'")

With the announcement that all PayPal addresses will be considered confirmed in countries where PayPal does business, people clapped. Otherwise, it seemed very subdued and sad to me. The trust between seller and buyer may be improved, but the trust between eBay and sellers is definitely at an all-time low. Lorrie had to keep saying, "C'mon!! That's a great thing! Let's hear it! Isn't that great?!" (insert sound of crickets).

PayPal Seller Protection and PayPal Buyer Protection sounds like it's getting closer to Amazon's A-to-z Guarantee. Amazon manages that process well though, where eBay has a habit of being heavy-handed and throwing the baby out with the bathwater, overdoing things, in other words. I haven't heard sellers ask what the cost will be to them for this buyer protection. I foresee lots of angry sellers, with money held in PayPal accounts, due to PayPal Buyer Protection claims. I predict it will not be pretty.

The response was definitely not that of other pep-rally style eBay Live! events. This is an injured crowd, and they are not getting the healing they want. I'm heading over for Saturday, where I'm presenting my blogging seminar again. I presented yesterday to a very large, mostly full room. Many, many people say they want to use blogs to promote their off-eBay businesses. Very interesting trends here...

Popularity: 29% [?]

eBay Live! Registration 11 AM Thursday

This was the scene at the registration booths on the first day of eBay Live! Chicago at 11 AM. ...no waiting in case you're planning on attending.

Hmmmm...

Popularity: 41% [?]

It appears one of my 5 predictions may be coming true already. As Randy Smythe mentions, it could be that eBay is already moving toward a single listing page with multiple sellers on that page, similar to Half.com and similar (once again) to Amazon.

eBay's recent announcement may pave the way for this. If it happens, it will get harder and harder to list an item without a bar code or some identifier that allows eBay to categorize it. Could it be that, in the end, the only category left for unique items is the Collectibles category? Could the Collectibles category become "eBay Classic"?

Read the full announcement from eBay on the changes here.

Popularity: 19% [?]

I hope you have your agenda completed for eBay Live! in Chicago. I'll be speaking each day and hope you'll attend my classes and introduce yourself. Here's my schedule:

Picking a Niche and Pricing for Profit Thursday, 12:30 to 2:00 PM
I'll be presenting this along with Lisa Suttora from WhatDoISell.com, and former Director of Community and Education for Doba, Mikal Belicove.
Here's the description:

eBay sellers often wonder what they should sell, and how to sell it for a profit. Knowing the answers to these two questions is vital to the success of every online retailer. In this seminar, you will learn how to answer these questions for themselves as we share tips and techniques employed by top-selling eBay sellers and successful online businesses worldwide. Specifically, you'll learn: How to pick a profitable specialty niche, how to increase the passion for their online business, why we might see a "retail" price cheaper than "wholesale" and why creative marketing is more important than competitive pricing.

Blog to Boost Your Business on eBay
Mikal Belicove and I presented this last year to a packed room. We've freshened it up for this year and will present it twice. Friday, 1:00 - 2:30 PM and Saturday, 3:00 - 4:30 PM.
Here is what we'll cover the blogging seminar:

Stay competitive in the packed world of e-commerce. Blogging provides you with a marketing medium like no other stage, where you can demonstrate your passion for products and commitment to your customers. Here, learn how to implement a blog in your marketing programs. After attending this session, you will be able to add the personal touch that's missing from a majority of buyer-seller transactions, boost your credibility and find that competitive edge you need to take your eBay business to the next level.

Popularity: 14% [?]

eBay Live! 2008 is upon us and I feel right at home. I grew up just across Lake Michigan from the city of Chicago and I thought I'd share my personal favorite restaurants for attendees. These Chicago eateries on on my "must visit" list during Live!

Heaven on Seven
111 North Wabash, 7th Floor
If you like hot food, this place is for you. The walls are covered from floor to ceiling with every type of hot sauce you can imagine. The food is really good too. It really may be the "Best Louisiana Cookin' Outside of New Orleans". They are only open for dinner on the third Friday of each month, so it will be open for eBay Live!

Gino's East
633 N. Wells St.
There are a lot of places that make Chicago deep dish pizza. In my humble opinion, Gino's East is the best, and you can write on the walls. You probably won't be able to eat more than one or two pieces of this pizza, and you'll be too full to walk. It's great.

In the neighborhood...
East of Gino's East, is the original Pizzeria Uno along with Pizzeria Duo which was built when Pizzeria Uno was getting too full. Many say this is the best deep-dish pizza, and it's the original deep-dish. Your choice of course. There is also a "Rock and Roll McDonalds" in case you can't afford the Hard Rock.

Boston Blackies
120 South Riverside Plaza in the Loop
This one is new for me. A friend recommended it and says the hamburgers are the best. Maybe I'll see you there.

Weber Grill Retaurant
539 N. State Street
If you think you're the bomb with a grill - you need to try this place. It has a huge Weber grill attached to the corner of the building that is visible for a block. And the coolest thing is your dinner is cooked by pros on Weber charcoal grills. It's a lot of fun.

For a $pecial night out...

The Chicago Firehouse
1401 S Michigan Ave

This one is pretty close to McCormick Place and is a real nice restaurant. It's in an old (go figure) firehouse. The steaks and chicken are great, and they have a great, well-stocked bar. I had an old scotch there and thought about the history of the place. Expensive, but I liked it.

Hope this helps during your eBay Live! visit - or any visit to Chicago. There is so much to choose from in Chicago it can be paralyzing to begin. I have actually been to these places (except Blackies) and I can vouch for them. Maybe I'll see you there.

Popularity: 13% [?]

A few things are rising to the top in all the discussion of eBay's plans for the future. I suspect many will be announced at eBay Live! next week. Stephanie Tilineus, eBay's GM of North America said at the ChannelAdvisor Catalyst conference earlier this year that the eBay of today will be "unrecognizable" with the eBay a year from now. What will it take to accomplish that?

#1 - NEW Fixed-price Only - No Auctions

Ms. Tilineus also said eBay want's to move to a more "retail-like experience". Auctions are a lot of work for eBay. There are a lot of people monitoring them, enforcing rules, and fixing VeRO problems. The auctions invite more layers for scammers to get involved.

eBay says fixed-price listings will surpass auction style listings this year for the first time. That's not surprising since eBay has slanted things toward the fixed-price format. So were auctions really dying on their own? Or did eBay kill them?

In any case, the "split-screen" fixed-price / auction format won't last - the auction is being pushed out.

The Sourcing Pavillion - New for 2008

For the first time, eBay Live! will have a "Sourcing Pavilion". The registration materials say, "Find the hottest products, secure the best pricing, and boost your sales! Visit the ASD/AMD Sourcing Pavilion and discover how leading sourcing companies can increase your profits."

There are currently 17 exhibitors signed up to appear in the pavilion.

If the emphasis is on selling new fixed-price items, what better way to get sellers on board than a bunch of people offering new merchandise for them to sell?

More Control by eBay

Rather than going back to the "old eBay" or "eBay Classic" as my friend Randy Smythe likes to call it, eBay will begin exercising more control over sellers.

#2 - Controlling how sellers get paid

• They'll do this by requiring PayPal. If they cannot legally do that, they will make it painful for sellers to use anything else.
• eBay will then shift the responsibility of handling disputes solely to PayPal

#3 - Controlling shipping

• Just like Amazon, eBay will step in and offer a shipping credit, or in some other way standardize and control the shipping amount sellers can charge.

#4 - Standardized Listing Formats

• I believe the days of creative descriptions and individualism on eBay are nearly over. With the prohibition of links -even in About Me pages - eBay is setting that up. They will move to a one-size-fits-all description format and away from the homey kitchen table feel.

#5 - eBay Fees

I think the other thing that will change in a major way, and will save eBay a lot in expenses and bad PR is a change in the way people pay to list. Right now there are dozens of fees for every little thing in a listing. eBay will simplify everything with an Amazon-like monthly fee, free listings, and a back-end commission when an item sells. Just watch.

eBay Live! still has the logo "The Power of all of us." displayed on the website. I used to think that included me and my fellow sellers and buyers - I'm thinking now though that "us" is a more exclusive group...within the walls of eBay HQ.

Popularity: 23% [?]

Even with high gas prices people are still planning on taking a little time for themselves this summer. If you're an Amazon seller, you may not know you can give your listings a vacation too.

Amazon.com is very strict about sellers shipping within two business days of a sale. That will likely become a problem if you have sales while you're away this summer. Vacation settings can help ease your mind as you relax.

How to Set Your Amazon Vacation Settings

To set your Listing Status to "On Vacation," follow these steps in your Seller Account:

1. Click "Store Settings" in the Settings section.
2. In the Vacation Settings section, click the Edit button.
3. Click Start your Vacation.

NOTE: Allow 36 hours for the changes to take place. It's best to set your vacation settings 48 - 72 hours before you leave to be sure there are no outstanding orders. (It never fails that someone will order something as you're trying to get out the door. Plan ahead.)

To set your Listing Status to "Active," follow these steps in your Seller Account:

1. Click "Store Settings" in the Settings section.
2. In the Vacation Settings section, click the Edit button.
3. Click End your Vacation.

Expect the same delay of up to 36 hours to see all of your inventory again. If you are an Amazon Pro-Merchant, you will still be charged for your monthly subscription, even if you have your listings on vacation.

That's it. Now enjoy your hard-earned vacation.

If you'd like to learn more about getting started as a seller on Amazon, buy Selling on 'the River' here.

Popularity: 12% [?]

...eBay says,

"We're just a platform that connects buyers and sellers. That's all we do." said eBay spokeswoman Kimberly Rubey.

That comes from a recent Denver Post article on eBay and taxes.*

Excuse me is this 2001? I haven't heard that line in a long time. It's certainly not the tough talk dished out to sellers of late.

"You're supposed to report any profit from those sales," said IRS spokeswoman Jean Carl. "It's a voluntary system for taxpayers to report it, and people are trusted to do that."

What would you do if the IRS was watching? eBay shrugs and says in a kid-like innocent tone, "We're just a marketplace." To sellers though, eBay decides where you show in search results, what kind of comments you can leave, what you put in your description, and how you pay and get paid. Sounds like more than just "connecting" buyers and sellers.

Sorry eBay, the days of "we're just a platform" are long gone. It's offensive to thinking people.

What could the IRS do?

I'm no tax guy. But consider possibilities. If the IRS thinks eBay is more involved in transactions than just "connecting buyers and sellers," might they want just a little more from them? After all, eBay is the central point for all these transactions? Can you imagine the expense eBay would incur if they had to add the "tax" element to their platform?

Imagine a seller that wanted to sell their old clothes or books. What would they do if upon registration, they were faced with adding more personal information? If casual sellers, who normally fill out the short tax form, are faced with something that may complicate or add to their taxes, they will break out the Yard Sale signs instead.

I believe the IRS is going to find a way to do this. It may not be tidy, in fact I think it will kill a lot of business, but it's coming. If people think it's hard to deal with eBay or PayPal - how 'bout arguing with the IRS over the sale of grandma's spoon collection.

Sellers are already upset at eBay for changes this year. If the IRS becomes baked into the process, sellers will just leave instead of sharing more private information.

If you would like to find the best tax related books for eBay sellers visit my store here.

Do you think the IRS will continue to "trust" eBay sellers?

Source for quote: http://www.denverpost.com/business/ci_9508677

Popularity: 20% [?]

Amazon.com is offline.

The site has been down since 1:30PM today and there are no comments from management yet.

Pages have been appearing intermittently but the site is basically not working. Stay tuned...

UPDATE: It seems Amazon's "Un-planned event" as they call it, is resolved. There is no official announcement yet, but the site seems to be back up and working normally.

You can now go back to purchasing my best-selling eBook "Selling on 'the River' - The eBay Seller's Guide to Amazon.com."

Popularity: 10% [?]

I met Rob Cowie, President of Worldwide Brands, at eBay Live! in San Jose a few years ago. I moderated a product sourcing panel and met three really nice people. Rob, Lisa Suttora of WhatDoISell.com, and Jeremy Hanks of Doba. I have since been impressed at the integrity of all three of these people, and I recommend all three of these companies as great sources of information for product sourcing.

How I Used Worldwide Brands

After meeting Rob, and eventually WWB founder, Chris Malta as well, I got an account with Worldwide Brands. I have sold posters on eBay for years. I wanted to expand though, and I used Worldwide Brands to do it...

First, let me correct some misconceptions I have seen regarding their product. They are not a middleman type company providing a catalog of products. In that situation, sellers find themselves competing with other members selling from the exact same catalog. It's a terrible feeling.

Worldwide Brands helps people interested in sourcing product by approaching the right people, and qualifying them to work with small sellers. Many large companies will not work with small eBay or Amazon sellers, which makes it difficult to get product to sell. Worldwide Brands builds relationships with these companies, collects them into a directory, and makes that directory available to members. They charge a one-time payment for this access. When I've called any one of the companies in the directory, they have been willing to work with me. I've set up my own deal with them, my own prices, and then I deal with them on my own. No middle man.

...now back to my story. I wanted to find a poster company that would drop ship. I searched on the Worldwide Brands directory and found a few. The one I finally chose was Barewalls.com. We spoke on the phone, and came up with a deal of 40% commission for any products I sold. Some of these posters sold for $100 on eBay, so we're talking a decent profit for never touching the merchandise.

I sold hundreds of posters through Barewalls. I just don't have the time to do it any more. They are just one of the great companies in Worldwide Brands directory. The possibilities are endless.

What about Amazon sellers?

Worldwide Brands puts you in touch with thousands of suppliers offering millions of items. You can work with those suppliers to sell on Amazon as well. Just remember Amazon requires items to ship within two business days of the sale. If you can either stock the product, or find a drop shipper that will agree to those terms, you have an entirely different set of buyers that hasn't been sold to yet.

Is this a good time to start selling online? What about the economy?

The job market is shaky. The mortgage meltdown is causing thousands of people to lose their homes. Gas prices are insane and continue to creep up.

Turn on the news and you'll hear about it all day.

But hidden in all of the ' doom and gloom ' is something that few people are talking about. Even though we're in the middle of a recession, a lot of savvy eBiz owners have not only survived this economic downturn, they have thrived in it.

How did they do it?

Well, that's exactly what you're going to find in a series of FREE videos, audio interviews and special reports in the upcoming weeks. (I'm even in the videos!)

Click here to watch the first video and
sign up for their in-depth video series.

Popularity: 17% [?]

Since I'm an ex-printer, I like printed things. That's why I love books and posters. When I first became interested in Amazon.com I took a look at my own book collection and found I didn't have much in the way of valuable books. I received an email last week from a reader who had the same experience. He purchased Selling on 'the River' and was disappointed to find penny booksellers selling the same titles he wanted to sell. He said,

Hi Steve

As you can see, I bought your book, and found it a fascinating read - I got quite excited!

However... I got a shock when I checked out some of my treasured personal books on Amazon and found they were for sale for $0.01. The same books were on offer at ABE Books for $1.00.

Question?... How does anyone make any money at those prices?

You state in your book that professional sellers hate the 1cent sellers, but there are dozens, hundreds +++ of books being sold by large book sellers at that measly price. I'm totally at a loss as to whether it is worth the effort to locate and sell books.

Any suggestions Steve, as to the way to handle this situation of minuscule prices?

I replied with this, and I thought it could be helpful to you all,

Thanks for buying my book. I had the same reaction when I dug through my personal collection of books. It seems some of them are not as scarce as I’d thought.

I often buy books by the box at garage sales here. I find that the mass-produced books are the least likely to bring a profit. But often I find at least one or two that are a little less common. I just found two books yesterday (at $2 each) that are listed for over $25 on Amazon.

As for the penny booksellers – I have sold two books this week for over $5 with other sellers listing along side me at much less. I try to be funny or clever in the condition comments to catch the shopper’s eye and it seems to work. Price the books for what they’re really worth and they will still sell.

When choosing books to sell though, it’s generally best to look for non-fiction, and titles that deal with very specific subjects. For example, when I look through a bunch of cookbooks, I look for “vegetarian”, or “how to make sausage”, instead of general cookbooks. I never buy anything published by National Geographic, Readers Digest, or Time/Life because there are likely a ton of them out there already. In non-fiction I look for books written for specific niche markets, often the author is a PhD and is writing to other PhDs.

I made nearly $100 yesterday on Amazon with used books that I think I paid about $5 for. So they are out there. You might want to check a site called www.theAuctionRebel.com for some inspiration. He has done quite a bit with books and even has a couple of reports you can download.

After taking my advice, I received this reply the following day (which made me feel like a proud poppa):

I got your message loud and clear, Steve - thanks for taking the trouble.

This old guy has just got smarter. I went to a s/h dealer who sells books for $1 each and picked up five, and one at an Op shop for 50c.

Checking on Amazon gives me a reasonable sell for each of:-
$15; $10; $30; $60; $10 - not bad eh!

Thanks also for the link - I've had a quick look and will go into the site in more depth later.

There's a lot out there, learn to sell on Amazon and get to it!

Popularity: 7% [?]