There are over 100 million members using eBay. That number is astounding, and just think when you set up your eBay business that means that will be how big your customer base will be – right away. 100 million potential customers – 100 million people looking to spend their money with you as soon as you are up and running. The reach of eBay is impressive, but keep in mind that right now the market doesn’t know you exist. Truthfully, most will never know that you exist, no matter how well you do. 100 million is a lot of people.

The most successful eBay sellers started out as buyers, and I suggest you start this way too. Starting as a buyer gives you a sense of how everything works. It also gives you the buyers perspective, which can be helpful when you begin selling. Consider this time period as time spent doing consumer research. You will actually be studying how eBay works, from the customer’s point of view. It may not seem like it, but the eBay buyer experience will help to make you a better seller – from the beginning.

Pay special attention to the customer service you receive from sellers. Take time to think about how you, as a buyer, want to be treated, and take notes for later use. Take your time in this process and interact with each seller. Even get involved in some hot auctions to see what that experience can be like. Another thing to make notes of is the hot items you see selling, these will be useful later.

eBay is like any other business, you need to determine what people are wanting to buy to be successful. You will learn that there are specific items that sell really well on eBay – you will need to figure out what those items are. There are many resources to help you find out this information. The best place to start is with eBay’s sellers lessons. I strongly urge you to attend the eBay University as well. This will be your next step in the process. Once you have experienced being an eBay buyer, it will be time to learn how to be an eBay seller.

eBay has lots of useful information right on their site. study as much of it as you can. You will learn quite a bit and it will provide a roadmap to your success. The best part is it is completely free. Reading through these resources will help you to avoid making several mistakes that many others have already made.

Once you make it through this learning process, you should know everything you will need to get started. And you will be on your way to making money with an eBay business of your own.

My #1 recommendation for choosing the right web host: Ask an expert.

And I don’t just mean any “expert.” Your friend’s brother who sells stuff on Ebay is not going to be the kind of web hosting expert that you need. Here are some qualifications for your expert:

• Needs to be a techie with experience in hosting websites like to yours. In other words, if your aunt sells a couple of hair ribbons in her Etsy shop, she’s not going to be able to help you sell $80,000 in products from your website each month without crashing the server. Ideally, your expert will have experience working with sites the same size (traffic, bandwidth, etc) as yours larger.
• Needs to have worked with more than one web host. I know, it’s tempting to go to that colleague who has a complementary, or even competitive site, and go with the host they are using. But if they’ve only used one host, and only hosted one site, they could be experiencing issues they don’t realize they have, like rude staff, or unusually long wait times for issues.
• Needs to understand the issues that can arise from bad hosting. If you end up with a bad host, you could find yourself without any customer service, customer support people who are rude, at best, and more downtime than uptime. (Downtime is where your site cannot be accessed from the Internet.) You could end up with a really slow website and no resolution from the company.
• Must understand your site’s unique needs. Do you need to host a podcast each week, with audio files that people will download and listen to frequently? Do you need a robust ecommerce solution that will put a lot of strain on a server? Make sure your expert understands these issues when recommending a web host.

When I talk to small business owners about their websites, I make sure I find out about their unique needs, how their website is performing now and what their goals are for the future. I then evaluate their website in terms of whether or not I feel that my team can provide the website hosting that they need. If not, I recommend that they go somewhere else.

Most often though, we can handle what the business owner needs, since we offer shared hosting accounts, VPS  and dedicated servers. Our support staff is friendly and knowledgeable, and we’re willing to go the extra mile to make sure you get what you need. We also offer at least two different options — we teach you how to do the task for free, or we offer to do the task for you for a reasonable rate.

If you have any questions about hosting your website, contact me today about your web hosting needs.

Making changes mid-way can be expensive, or just downright impossible. So it’s very important to make the right decision upfront.

One of the main things I do when I talk to a potential client is figure out what they need in a shopping cart and which of the carts we work with will benefit the client the most. I know not all of you are ready to take the step to ask for a business consultation, so I’d like to put together a few reviews and a comparision chart for you.

And if you’re an experienced online seller already, I’d love to include your opinions. What are your favorite carts? What features do you like the most? What do you displike most about your cart?

One of the Sparkplugging interns and I are in the process interviewing people who are familiar with the under-the-hood portions of the carts and we’re putting together the chart as well. We’d love to have your input to add to the mix.

Please reply to this post, letting us know what you think. Your advice may save another small business owner from making the wrong decision. Thank you!

Today, you can search Google for “baby slings” and come up with almost 400,000 websites. Practically every popular parenting website already has baby sling and cloth diaper retailers advertising their wares.  How can you possibly compete with that?

Here are a couple of ideas that have proven profitable for other small businesses:

1. Promote locally. Check out your local area for competition and for customers. Perhaps your city, if it’s large enough, your county, or even your state may be able to support your business during the startup phase. Research the area to find out how much interest there is in your product, whether it’s baby related, jewelry, or something else.

Even though there are tons of other sellers on the Internet, you can become the local expert, the hometown face that everyone associates with your product. Just remember, do your research and be prepared to get out of the house and meet people, at local events, at trade shows, at festivals and networking groups.

2. Do something different. One of my clients started selling pregnancy tests online. You’re thinking, seriously? Who would buy pregnancy tests online when you can get them down at the local pharmacy? Well, that’s the thing. Many people would prefer not to leave the comfort of their homes to buy the product. Not to mention, my client offered exceptional customer support with the product, She’d answer your questions via phone or email, any time. Much better than asking the pharmacy guy questions about peeing on a stick, right?

3. Partner with others. If you’re starting a bath and body store, partner up with the already established candle shop to promote each others products. Go to your local boutiques that cater to your target market and see if they will add your products to their shops.  Not only will you benefit from their traffic and existing relationships, but their benefit from the extra sales.

The caveat to these three ideas? Do your research. Find out if your local market will support your business. Find out what your potential competitors do, so that you can stand out. And then find those partners who are willing and capable of working with you.

As it turns out, I struggled with a bout of fatigue starting in late September and lasting though November. I started feeling better just in time to make some serious goals for this year.

Hi! My name is Michelle Waters. I’m a wife and a mom to two kids, a dog and a cat. I also run a home-based web hosting, design and ecommerce business. I’m passionate about helping women start and grow their own online businesses.

After recovering from my period of hibernation (Ha!), I took a hard look at my business and my life. And I realized that it was seriously time to simplify things, time to take my focus back to what I knew my clients and family needed.

My main business, Watersweb Solutions, started in 2002. Since then, I’d added more than a half dozen websites, including a blog, a podcast, and two annual online events.

While I two virtual assistants help me run things, all of these websites (one for web design, one for basic web hosting, one for ecommerce, and more…) were too much for me to maintain effectively.

So, I consolidated several websites, and am still working on consolidating more. I can take better care of one site, than I can of several. The changes were made based on feedback I received from my clients, who are home business owners just like you.

So when Kelly McCausey invited me to be a writer here, I knew this would be a perfect fit. With fewer websites to keep up with, I have more time to devote to finding out what you need to know and writing articles to meet those needs.

This fits in with my two most important missions: Simplification and teaching.

So far, I’ve taken a few steps off the Internet to promote my mission: Teaching web design and internet sales classes at Mid-America Technology Center and working with a local women business owner organization to present ecommerce topics and workshops in Oklahoma.

This blog, teaching and my new speaking opportunities give me the opportunity to share what I’ve learned in seven years of online business, with people who are new to the arena. And I’ll have the opportunity to learn what services and products you need, so that I can plan to meet those needs through my business.

And that’s what the whole concept of ecommerce boils down to: Finding out what people need and meeting that need. So that’s my first nugget of advice, if you’re new to online business:

1. Find out what people need.
2. Determine what your passions, talents, resources and skills can be harnessed to meet those needs.

There you have it — very simple. But it’s not easy. If you’re new, you’ll make mistakes. If you’re a long-time business owner, you’ve already made mistakes.

And if you’re like most of us, you’re wondering how the economy and some new regulations are going to affect you. I can tell you that I’ve either made most of the mistakes already (like not starting a mailing list back in 2002 when we weren’t overrun with spam), or worked with clients who had made mistakes (like the client who took an Internet Marketing course at a small business school that taught her to setup multiple blogs in Blogger, each with a different topic and only one or two posts, and she couldn’t figure out why no one read them).

The fewer mistakes you make, the less expensive your ecommerce journey will be. The best place to get great advice is from those who have gone before you. So, I’m here to lead the way.

I’m looking forward to getting to know you and hearing your stories. We’ll discuss how-to, issues we face and topics of importance to ecommerce businesses.

Got questions? Just ask!

The answer is a loud, resonating YES!!!

Now is the best time to start a store and here is why:

1. Your other income opportunities are becoming much less stable – layoffs, a down employment market mean that many jobs today are less stable than ever.  If you are currently employed, you need to create other streams of income to insure your future.
2. Competition is slowing down and backing off.  In most industries, the economy is causing businesses – big and small – to make cuts.  This provides an opportunity for the small business to swoop in and grab market share that is being ignored.
3. Online stores are one of the least expensive ways to own your own business.  Your brick and mortar counterparts have to invest hundreds of thousands of dollars to achieve the same results.
4. While all shopping was down for 2008, online shopping was down the least – people are turning to the internet to save money and avoid the “malls”.

 

Make it your new year’s resolution to secure your future with Your Own Business. Your Own Income.

For more information on building and marketing your online store, visit me at Online Biz Consulting.

There are several requirements and aspects to consider during this process.

But first, let me make one point – nothing you do here is permanent! Many people get stuck in this phase and take way to long to analyze the pros and cons of every single platform available. But Nothing is Permanent! Please don’t get stuck in the paralysis by analysis syndrome here. Choose something that looks like it will meet your needs and move on.

The most important aspects to look for are:

Reliability – will it be up and running when it needs to be and will it handle whatever volume you bring?

Security & Fraud Protection – credit card security is extremely important to your business and you want to be sure the platform you choose is secure and has fraud prevention mechanisms in place.

Scalability – even if you are starting with a small number of items to begin with, can the system handle adding large numbers of new products?

Usability – how easy is it for you to update and make changes?

Customizability – can you change the design and layout however you want to for all conversion and navigation needs?

SEO-Friendly – some platforms allow you more access to the site structure elements to allow you the freedom to optimize your site.

Shipping & Tax Calculations – your solution should have the ability to setup different shipping options and calculate the charges and taxes associated with each sale.

Promotions & Marketing – does the system have the ability to add coupons, cross sells, gift cards?

Technical Support – once you have your store up and running, it will be critical to have access to a technical support department that can help you if any issues arise.

Of course, I can’t help but recommend the platform I use – Yahoo! Merchant Services – for several reasons.

1. The setup is extremely easy for anyone to use. Entering products, processing orders, setting up shipping options – all of these configurations are quick and easy.
2. The solution is very reasonably priced.  And, while I do recommend outsourcing the design of your new site, the companies that specialize in Yahoo design are very reasonably priced as well.
3. Yahoo’s product database engine is very robust with many customizations available to how you store, present and even track inventory of your products.
4. They are secure and trusted.
5. Nothing is Permanent! When I outgrow Yahoo! Merchant Services, I will be migrating to an entirely customized eCommerce system, but I will also be able to afford the web development team for such an effort when that time comes. That expense would have never made sense before the business model was proven and the company was profitable.

There are several sites out there that can help you analyze the features and benefits of available platforms. Keep in mind that most sites I have found are “sponsored” by one of the platforms, so beware of that bias when you are reading.

Shopping Cart Reviews
Cart Compare
Ecommerce Software Reviews

For more information on building and marketing your online store, visit me at Online Biz Consulting.

You are FINALLY ready to get started building a store.

As I mentioned in the last article, you now need to get your financial and legal ducks in a row.

You should spend some time learning about the different options you have when starting a company. You can start out as a sole proprietorship, you can incorporate or you can start a LLC. All three have pros and cons to consider.

5 Legal & Financial Components Required when Starting an eCommerce Biz

In this article, I am going to list the major legal and financial entities you need to have in place to run your eCommerce business.

1. DBA – “Doing Business As”

You must register the business name you are planning to use. You can also go to the next level and incorporate and there are many good reasons to do this as well.

This is an important step because your name communicates a lot to your customer. Some people use a “parent company” concept for their legal and financial setup. However, keep in mind that when your customer is billed for your product, this is the name they will see.

Find out more about filing for a DBA at Business.gov.

2. FEIN – Federal Employer Identification Number

No matter which legal entity you decide upon, you need to make sure you file for a Federal Tax ID.

Go to the Federal IRS website to learn more about these requirements.

3.  State Tax ID

Each state is different, but your State Tax ID is critical because all suppliers will require it.

Be sure you research and understand all of your legal obligations when it comes to taxes.

Business.gov has a great set of tax guides to educate you on this topic.

4.  Checking Account in Your Business Name

I highly recommend Harris Bank. They cater to the small business.  Any bank will require all of the steps above to be completed before opening a business account. 

It is important to keep your business finances completely separate.  Also, when applying for a Merchant Account, they will open the account with the name on your checking account.  Again, this will be what your customers see when you charge them.

5. Merchant Account in Your Business Name

It’s okay to accept PayPal – you should.  But do not allow that to be the only payment type you accept.

If you are serious about your business you must accept the major credit cards.

I found a company that makes signing up for a merchant account easy and painless: Advanced Credit Systems. 

Educate Yourself

I know this can be a complicated topic, but you need to learn enough about sole proprietorships, corporations and LLC’s in order to make an educated decision about what will be best for you and your business.  An attorney can also walk you through this decision.  There are also several companies that will help you with filings for a fee.

Some sources of information on the legal and financial aspects of starting your business:

• Business.gov
• Small Business Administration
• Legal Zoom

This is the part many people skip – because it isn’t always easy.  But this step is the key to success for all businesses.  You’ve found a solid market segment.  You’ve found a product or line of products that they want or need.  But the bottom line question now is: “Can I make money selling this?”.

Once again, I am going to recommend that you read the book “What to Sell on eBay and Where to Get It”.  There is some invaluable information presented about how to contact and communicate with potential suppliers. 

What Comes First? The Business or the Supplier?
One problem beginners will run into with sourcing product is that all legitimate suppliers will require that you have a tax id.  You will need to get a tax id eventually, as well as a checking account, in order to work with suppliers and credit card merchant accounts.  Now is a really good time to go ahead and apply for at least the tax id.  It can be an intimidating first step, but it’s really not that hard.  Your tax ID is through your state and all processes are slightly different – but just go to your state’s IRS site for more info. 

Some may also require financial references such as a business checking account and references from other suppliers.  What they are really looking for are two things: a) Are you a legitimate business?  and b) Will they have problems getting paid?  As long as you let them know that you are not looking for any financing, such as Net 30, and that you are willing to pay for everything up front, you shouldn’t have a problem if you don’t have these things yet.

Several suppliers also want to see that you are legit by looking at your website.  If you are working on this step as a preliminary one to actually jumping into this market, let them know that.  A word of caution here – some distributors and wholesalers are going to hold pricing close to the vest - don’t be pushy, just move on to the next one.

It’s a bit of a “catch 22” – you want to know what kind of pricing to expect to estimate your margins.  And the distributor wants to know you are a legitimate retailer before they give out confidential information such as their dealer-direct pricing model.

You will find suppliers to work with here.  Just be patient and know that it may take several calls to find the right one.  Be respectful even if you are rejected – you never know when you may work with them in the future.

Once you have this information, you need to compare it to the top competitors’ pricing to find out if you might have a good profit margin. 

Product Sourcing
Once of the easiest ways I found to source product is to work with the folks at World Wide Brands.  They have made their business to locate and negotiate with suppliers around the world on behalf of the small business owner.  They have already screened their distributors to be sure they are not only legit, but are willing to work with small business owners. 

 
Manufacturer Direct
Another tactic I have used in the RC business is to start out with distributors and once we were really good at SEO, I would contact the manufacturer directly and highlight our ability to rank for their top products.  Many times we would be coming up #1 for their top product, which would show them that we were serious about their product line.  This worked especially well with the smaller, less-known manufacturers.

Get More Information on Market Research and Getting Started in eCommerce at www.OnlineBizConsulting.com

By now you have come up with several product ideas.  Hopefully, you started with a market and discovered their needs – checkout my article on Choosing a Market First if you missed it. 

There are three main components to understanding the potential success of a product or product line. 

1. Market Demand – Are They Looking for It?

The first step in determining the potential success of your idea is to identify how much demand there is for the product. 

The easiest way to research market demand is through keyword research.  Looking at whether potential customers are searching for what you are “selling”.  There are several free tools you can use to gather this information plus some paid tools that do a very good job of consolidating the results.  My favorite (because it’s free) is actually Google’s Keyword Tool.  Another one that I like to use is NicheBot.  It is less expensive that most of the others, but still uses the same information.  I find Wordtracker to be the easiest to use and the most comprehensive in terms of the data that is returned.  However, it is also the most expensive. 

The first step is to brainstorm words and phrases that you think a customer might type into a search engine to find the product.  For example, in my case, I would use “rc cars” as my search term.  Then I might type in some of the specific manufacturers or products that I am interested in selling.  When you get back the results from these research tools, take a look at the number of searches to determine how many people are looking for this item.  Each of the tools I listed above provides even more detail on the best way to analyze keyword data.

2. Competition – Are There Others Already Selling it?

Competition is a good thing.  It means that there are others already successful at selling this line of products.  But you do need to analyze the competition carefully to determine if there is “room for one more”.  Now some would advise that there is always room for one more.  I don’t disagree with that concept – my point is only that you don’t necessary want your first online biz to be an uphill battle against Walmart

The best place to start is to perform a Google search on the top keywords you found in the previous step.  The top 10 organic listings are those you want to focus on.  Take note of the AdWords competitors too – but you want to know how hard it will be to break into the top 10 organic spots. 

The data you want to check with each competitor is pricing & competitor quality.  Go to the competitor sites.  See what the quality of their site is.  Is it professional?  Would you be comfortable buying from this seller?  What are their product prices like? Record some of these to use in the next step.  Are the top 10 competitors similar in price?

When you get to the point where you understand the best practices involved in SEO, you should also check whether they have strong SEO skills.  This will give you a much better idea as to whether you can break into the top 10.

3. Product Sourcing – Can You Get it at a Good Price?

This last step is one that I rarely hear people talk about (except in the book I recommended in my last post.)  But is is SO IMPORTANT!  Don’t skip this one.  You can find out that your product idea has a ton of market interest and the competition is beatable – but if you can’t find a distributor, a dropshipper or a manufacturer that will sell it to you at a margin worth working for, you have a “loser”. 

This is by far the hardest step because it is going to require . . . . phone calls.  I know, I just heard a huge number of you gasp.  If you have a fear of talking to people and if you are getting into this business so that you can hide behind the computer, I have one reality check for you to grasp right now: If you want to own and run your own business, you will need treat it like a business.  That includes dealing with setting up the proper business entities (business license, bank account, etc.) and creating relationships with suppliers. 

I will tell you that this was my biggest hurdle in the beginning – but when I finally got over the hump, I was flying down a rollercoaster at full speed and it was a blast!! 

One place that many folks are finding their suppliers is through the folks at WorldWide Brands and their product OneSource.  Depending on the product you have chosen to research, you may find wholesalers or dropshippers in their database to contact.  The great thing about contacting suppliers through OneSource is that they have already shown interest in working with smaller, online businesses.  Which is one hurdle you can skip. Isn’t that Nice?

Take Action

All of these steps may seem intimidating at first. 

But just Get Started. 

Take Action. 

Commit to completing all of these steps on at least one product line. 

Once you’ve completed this research, you will feel empowered to keep doing it again and again until you’ve found your “Winner”.

Several of the tools and resources that I recommend can be found on my Online Business Tools and Resources page.