Choosing An EBay Business Model That Sells
With this business model you advertise locally quality products that people want to sell. They bring you the items and you decide if they sell well on eBay. If you determine that they have potential, work out a consignment agreement with the seller. The consignment eBay accounts for sale agreement states that you pay them a percentage of the auction price as long as the item is sold. You take the photos, make the auction list, and process payments and delivery, so your share of the sale price should be high enough to cover those services.
Many eBayers combine eBay Store sales with auction sales because many buyers prefer the thrill of “winning” an auction. The next step in setting up an eBay Store is to add the items you want to sell. Part of adding inventory involves determining the prices of items. Research competitors to get an idea of how they price similar items. One of the useful tools that eBay offers sellers is the price flow that suggests price ideas based on category and item.
Wholesale is sometimes referred to as batch sales or bulk sales. This eBay business model is focused on selling products in bulk rather than separately, and products are usually sold to other eBay business owners. You’ll find that real estate sales or auctions in your area tend to sell certain items in bulk, for example, such as 1,000 books for a penny each. Instead of creating 1,000 separate auctions, it’s easier and faster to sell the entire lot for an extremely low price, such as 5 cents each plus shipping costs.
In fact, Gome’s closest competitor in China, Suning, uses the same model and flourishes. Some products and services have a much higher value for buyers when purchased together than when purchased separately from independent sellers. In those cases, resellers generally do better than versatile platforms, the latter may not even be viable. On eBay, sellers can choose to sell fixed-price items or create an auction offer. Unlike some of the most popular accounting software vendors, FreeAgent doesn’t limit the number of customers you can add, the invoices you can send, or the invoices you can enter. Along with its unlimited features, it offers sales tax tracking and multi-currency support, two crucial features if your customers place orders anywhere.
Items that sell well on eBay include clothing, shoes, and books. All eBay sellers get 50 free listings per month, it costs 35 cents per listing outside of that. As a seller, you also pay a Final Value Fee when your items are sold. For most items, this is 10 percent, including shipping and handling. Please note that eBay has announced a number of rate changes planned for this fall. The eBay dropshipping business model is often used with eBay Stores to offer products for direct selling.
Since its inception in the early 2000s, Gome has sold or leased space in its stores to suppliers, operating as de facto independent concessions. This means that the products in Gome stores are organized by brand, not by category, and 80% of the sellers are employed by the manufacturers. Because this model doesn’t offer a great customer experience, it’s hard to imagine that you can succeed in the long run. But the company lacked the means to achieve its goal of being the first to open electronics stores in all major Chinese cities, if it operated as a traditional retailer. While struggling financially and has recently closed some underperforming stores, the problem seems to be the lack of capable senior managers, not the company’s business model.