The Turnover Principle Step Three: Strategic Selling!

The Turnover Principle Investigate to find out what sells and the profit you can make Find products from reliable suppliers with maximum profit margin Sell consistently and stay ahead of changes in the market

Selling Should Start with STRATEGY! 1.High Volume: Listing Success Rate (LSR) Strategy: A higher volume of sales yields greater profit in the long run, even if the profit per listing is less. This strategy is great for bulk items. 2.High Profit: Average Selling Price (ASP) Strategy: A greater profit per sale yields greater overall profit in the long run, even if the conversion rate is lower. This strategy is great for small inventories or less common items. 3.Balanced: LSR x ASP Strategy: This strategy tries to strike a balance between increasing conversion rate and earning more per sale in order to get the greatest profit in the long run. This strategy is great for selling common items at non-bulk rates.

Strategic Selling Tips Expand Slowly and Cautiously –Some sellers on eBay readily attempt to sell anything you can imagine, however, it is often more profitable to focus in on something that you can specialize in and do better than any other seller. Gauge Product Demand –Demand is the key to eBay business profitability. –Timing is extremely important. –Learning to pick a hot product before it becomes hot is a valuable skill that comes from knowing that market. (Research, Research, Research!) –High demand and low supply translate into higher prices. As demand increases, supply will eventually overtake it and prices will gradually move downward. At the end of a product’s popularity, liquidation stock in the market will cause prices to basically bottom-out. This will happen very fast, often in a matter of weeks not months or years.

More Strategic Selling Tips Gauge Product Supply –A careful analysis of the competitive landscape is always important before jumping into a new market. If the market is already saturated with sellers who have better pricing and access to product than you, you may want to look elsewhere for more profitable business ventures Marketability –Clearly it won't matter what products you sell if your customers aren't buying. Profit Margin –The best selling products won't earn a seller much if their margin is too small. Some questions to keep in mind while selecting products for resale. –Would you buy it and use it yourself? –Can you see yourself getting excited about this product or service? –Would you sell it to someone you know? –Is there a real need for the product in today's market?

Shipping options Best start time Buy-it-now Best ending time Highlight Best listing duration Bold Keywords Selling Strategy Building Blocks

What is the Selling Strategy of My Competition? Analyze market factors and individual sellers in each category that have captured a large share of the market with fewer listings and then: Imitate –Follow best practices that are working well Innovate –Use research to surpass average market successes –Use research to anticipate market changes and react quicker than the competition.

Track Your Product Life-Cycle Changes DemandSupplyBusiness Implications Early Life-Cycle HighLow Product is very expensive early on in the product cycle, but if your sources can get you sellable product with a window of opportunity before it is available to the general marketplace, some of the highest margins to be made on eBay are to be made here. Middle Life-Cycle DecreasingIncreasing Selling here is where most traditional businesses compete. Higher margins come from efficiency, good supply relationships, and volume discounts. Sellers must constantly be aware of the upcoming shift to the end of the product life-cycle Late Life-Cycle LowHigh Selling here is tricky, risky, and timing-intensive. The goal is to buy product in volume just as it hits liquidation channels but before demand has dried up as the result of market saturation or the public's anticipation of the replacement product.

Generate Strategic Selling Goals Volume Profit Margin GOOD BEST BETTER

Communication is Key to Long Term Selling Success Start with accurate listings, efficient shipping, and fast response time to queries Create a professional “About Me” page and direct customers there Create a professional Webpage and direct customers there (links to a webpage are allowed from your “About Me” page but not from your listing)

Customer Service is Another Key to Long Term Selling Success Answer questions in 12 hours or less Use timely invoicing procedures Expedite shipping & feedback Establish clear, fair policies (e.g. returns, warranties guarantees) Offer options whenever possible (payment/shipping) Communicate, communicate, communicate!!!

Takeaways of the Turnover Principle: Correct Implementation of the Turnover Principle will allow an eBay seller to: –Remove the guesswork from selling successfully on eBay –Understand the market they compete in or hope to compete in –Make and implement effective strategic decisions –Develop on-target business plans & strategies Researching, sourcing and selling is to remove the chaos of running an eBay business and replace it with sound strategies!

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