Auctions as a Balanced Approach

I've been doing some talking, and a lot more thinking, about how to incorporate the auction format into my listing strategy when reselling used clothing on eBay. As many of you know, I'm testing the auction format as a means to sell instead of just a means to clear out stale items.

I am running an experiment this month where I list 5 auctions every day. Some of these are new, some are older items from my store. I was originally listing them at MY price, the price at which I would accept the lowest offer in my store. I wasn't noticing a lot of action, and granted, it was a very small sample size so it could just be a fluke. But, through discussions on a Facebook group, I picked up a tip from another seller. She mentioned she starts her auctions at 4X (4 times) what she paid for the item. Her goal is to double her money after fees. Personally, I think this leaves money on the table, but for the sake of experimentation, I had nothing to lose by getting rid of some items quickly. So, I've been doing this.....and seeing a little better results. This stands to reason because the starting price is often $12.95 instead of $19.95. Of course things will sell better when you drop the prices 30%.

My goal is to unload 20% of my items once I move them to auction. This number would produce another sale per day on average, presuming I keep starting 5 auctions every day. I sell about 2-3 items per day in my store right now and this would allow that number to climb to 3-4 per day without accumulating any more inventory. In fact, it would purge inventory because I would be selling more items without buying more. I'm modeling after another seller I've seen use auctions to get from 4 items per day to 8-10. This seller only carries 400 items in their store! That's an inventory load I can handle.

Also, I'm watching a couple of other sellers closely and finding the ones that really shoot the clothing out the door are typically selling on rather thin margins. I'm seeing average profits of $7....even $5. Well, I'm not into selling 225 items per month to only profit $1500 when it's all over. That hourly wage is crap considering all the sourcing and shipping and listing and photographing you need to do to produce those numbers. I'm sorry, but I could work at McDonald's for better cash.

The answer, as always, lies somewhere in between. This is my Holy Grail, if you will. To find that sweet spot. Like centering a 98mph fastball in October, finding the center will have things leaving my store/ebay business like a homerun in October. Here is a quick note (not pretty, complete sentence typing) I drew up really quick noting where I stand in the auction challenge so far. I'm close to that 20%. Remember, though, I'm doing this all month so I can learn. Stay tuned.....and Make Today Count!

5 bids on 36 auctions. that's pretty close to 20%. however, the last two days, i listed at 4x the price i paid instead of my normal price. so, if bidding wars don't happen (which i suspect those are rare on clothing), then i don't know that it's worth much other than to get rid of clothing.

so, the theory becomes........store stuff at MY price in my store for awhile. and, at whatever predetermined time i decide is time to let things so (i'm thinking 3-6 months) then move them to auction at 4x what i paid.

Diversify yourself!

Thought I'd post a quick thought about diversification in what you sell.  This is a slow month starting out again.  And, most of you know me as a "golf shirt guy."  But, it's not half of what I sell.

I've sold 12 things so far this month (believe me I'm so frustrated I could throw something).  But, here is the break down.

Golf shirts- 4
Denim- 3
Hawaiians- 2
Ties- 1
Coffee mugs- 1
Tshirts- 1

So, what to gather from this?  DIVERSIFY!!  If I only sold golf shirts, I'd have only sold 4 things.  By branching out and selling in more than one niche, I'm not crushed when golf shirts slow down.

As you can see, they are still a BIG part of what I sell.  But, putting all your eggs in one basket is plain suicidal in this ever-changing marketplace.

Get out of your comfort zone and learn more niches!   Make today count!

Resist the Temptation to Push the "Reset Button".....AGAIN....

Many of us do this.  Heck, I still do.  It's a nasty habit and leads to unproductivity.  It's called hitting the reset button on life.

I used to play video games as a kid.  I used to want to get off to the best start possible to set myself up for the best game possible.  So, when one little thing went wrong, I'd just hit the reset button.  I got really good at the beginnings.  I got really good at setting myself up for success.  But, every time I hit a snag or a challenge, I went back to the beginning where I was most comfortable by pushing the reset button.

It wasn't until adulthood that I started to realize that life does NOT have a reset button.  You have to muddle through the tough parts.  You don't get to start over when things don't go as planned.  The only Eminem song I respect is "Lose Yourself."  Think what you want about him as a rapper and musician, but these lyrics really ring true here.....

You only get one shot, do not miss your chance to blow
This opportunity comes once in a lifetime yo

My point is:  We all get caught up in this "resetting life" from time to time.  And, we get frustrated in why we never seem to arrive at our destination.  We never tap our potential.  We need to learn to quit reaching for the reset button....stop trying to tweak every little thing....and just keep moving forward!

I've been reading a lot of articles lately on eBay's search engine, Google's search engine, and optimizing for mobile.  While it's important to keep up with the times and stay on top of things, we must resist the urge to go back and tear everything down just to start over from scratch.  This is killing you!  Just apply your changes as you move forward.  But, keep moving forward!

You have put a lot into your eBay business, or your Amazon FBA business, or whatever career path you chose.  You have hopefully read from trusted, proven successes that it can be done.  That you can achieve your goals.  Trust the path you are on.  If you are like me, and are constantly tempted to tweak little things and start over again and again, I write this to you so you will see the encouragement to trust your path.  I hope you make the decision today to move forward instead of sideways.

Make today count!
Chip

When it's time to change..

...it's time to rearrange!

Now that you're in the mood, here is where I'm heading....

I am incorporating auctions in my listings.  For the rest of the month of September I will list 5 auctions per day.  If I receive sales from just 20% of my auctions, I will add 1 item per day to my 2-3 per day average.......WITHOUT ADDING INVENTORY.

This is a space saver of biblical proportions.  I'll keep everyone posted.