About Ebay

[Mandyding]

I am thinking of start my own business over ebay, the previous company I worked for had business on ebay so I had basic knowledge of ebay. The biggest problem is I do not know what products to sell, not sure what products ppl on other countries like to buy over internet, the products I sell would be made-in-China, I have been checking alibaba and taobao for some time, but still no clue. How about selling chinese tea?Can anyone here give me some advice?

[Yezze]

In America, where i live, no one really drinks tea. But, from what i noticed in supermarkets, there doesn't seem to be a wide, if even any, selection of Chinese teas (This is meant to show that if you sold Chinese tea, i guess it could be considered rare, and people might want it more).

Idk if that will help at all.

[Mandyding]

thank you very much, I would consider about it.

[putonghua73]

Hi Mandy Ding,

Let's STOP right here! Ask yourself and answer a couple of basic questions:

1. Why do you wish to start your own business?
2. Why do you wish to use Ebay as a distribution method?

I am thinking of start my own business over ebay' date=' the previous company I worked for had business on ebay so I had basic knowledge of ebay[/quote']

From your post, the issues that I have is that it appears that you worked for a company whose business model was acting as a middle-man / retailer, buying products produced by one company and selling them via the internet - but not through their own site but through a 3rd party site e.g. Ebay, Alibaba, Taobao, etc. Since the products are for all intents and purposes identical to the products sold by any other retailer - another company produced the products - you're essentially competiting on one criterion: price.

Aside from the initial start-up money to fund business premises (small office), a modicum of customer service staff, packing staff, etc, the barriers to entry are low. So why do you think you can compete with these other companies?

Your biggest and most important edge is market research i.e. knowing what products sell in different countries / markets and for how much, knowing the wholesale price of these products and being able to purchase them in quantities cheap enough to cover ALL of your costs and make a profit, knowing ALL the p&p costs, knowing all the costs of conducting a transaction over the internet, detailing all Capex costs (equipment such as Pcs, telephones, fax machines, etc) and all Opex costs (rent, utilities, wages, etc) and STILL make a profit wothwhile to persist.

Unfortunately, you state:

The biggest problem is I do not know what products to sell' date=' not sure what products ppl on other countries like to buy over internet, the products I sell would be made-in-China, I have been checking alibaba and taobao for some time, but still no clue. How about selling chinese tea?Can anyone here give me some advice?[/quote']

I think you need to go back to the drawing board with your idea because you do not know the basics that would allow you an edge over any potential competitor also selling products via a 3rd party distributor over the 'net. My ex-girlfriend's sister started her own (small) business in Taiwan after working in Supply Chain Management (my profession). She sold clothes in Taiwan from 'international markets - usually the UK and Japan. First and foremost, she has always been interested in clothes, second, she spent considerable time and cost (plane tickets) conducting market research to know what would sell, for what price, and also the cost of buying these clothes to actually make a profit - and would actually be worth her time. Thirdly, she didn't depend on her small business as her sole source of income.

Apologies for being negative, but I honestly feel that you've made the decision backwards i.e. you've thought of owning your own business one day, without stopping to think about the fundamentals of what goods / services can you offer that people are prepared to pay, with a profit margin large enough to actually make it worth your while.

You really should write a business plan to justify that your potential business is viable. Find sites on the 'net that provide information on starting up small businesses, to share advice and experience, as well as to learn import / export costs and custom duties and tax in both your own country and the markets that you plan to sell.

Cheers!

Edited June 29, 2010 at 03:38 AM by putonghua73

[Mandyding]

Your advice is very helpful, I come up with the idear selling on ebay is after an interview in a company. This company only does business on ebay to overseas market, and also does business on taobao. The boss talked with me over 2 hours about his business model and his plan. His strategy seems simple, searching products to sell on alibaba and then sell them on ebay. The most difficult part would be finding the suitable products, the suitable products must have 2 advantages: 1st low competition, a lot of chinese do business on textiles or electronics online, but the compettion is fierce. 2st the profit margin should be good. Given the firerce competition on E-business, I know its difficult to find such products. The boss told me he spent over one year to search for suitable products, well, he is really good in English and b4 he started his business, he is a good sales man, now he sells sauna facilities, he says he only expect to sell one piece in two days and use different accounts coz he dont want catch other ebayers' eye and these products are profitable over 500$ for one machine. he dislike the idear to sell textiles coz there are too many kinds textile materials and size standards are different in each country. It is always easy to find good suppliers in China, as long as you can get a customer, you can ask the supplier to deliver to goods to overseas address without keeping many stocks by yourself.

The reason to using 3rd party coz its an easy way to start small business, It requires much fund and technology to support an website and promote it. Security is another reason, payment conducted online through credit card, paypal transnationally may lead to fraudulent transations, payment on ebay is not 100% safe, however there is at least a party who can handle disputes.

Thanks again for sharing your ex-girlfriend sisters experience, maketing research is important, I just do not have much time for this, I have full time job, but I will try my best.

[gougou]

Given that he's trying not to attract other Ebayer's attention, I'm not sure how happy he will be with you publishing his business plan on an internet forum...

[putonghua73]

Hi Mandyding,

Glad that you took my advice in the spirit in which it was intended. I'm posing these questions to get you to really think about how viable your idea is, whether you truly wish to pursue it (or would your energies be better spent elsewhere), and whether you have the required aptitude and determination to really see this through.

The most difficult part would be finding the suitable products, the suitable products must have 2 advantages: 1st low competition, a lot of chinese do business on textiles or electronics online, but the compettion is fierce. 2st the profit margin should be good. Given the firerce competition on E-business, I know its difficult to find such products.

As stated above, since you are acting as a middle-man / retailer, you must have an edge to be able to differentiate on different criteria other than price. Standard items that are mass produced without customization, boil down to essentially price. How can you effect price? Quantity i.e. buying in bulk, and accepting low profit margins.

Unfortunately, low competition (high barriers to entry) and high profit margin either require being able to design and manufacture the products, or specialist product knowledge e.g. antiques, specialist clothes, yada yada yada. Any gap in the market that requires low competition and high profit margin without either requiring design and manufacture, or specialist product knowledge, should / will be filled by rival competition also seeking to meet demand.

The boss told me he spent over one year to search for suitable products

As stated above, if it was easy, everyone will be doing it!

The reason to using 3rd party coz its an easy way to start small business, It requires much fund and technology to support an website and promote it. Security is another reason, payment conducted online through credit card, paypal transnationally may lead to fraudulent transations, payment on ebay is not 100% safe, however there is at least a party who can handle disputes.

I agree. I wanted to know if you had thought about these matters

Thanks again for sharing your ex-girlfriend sisters experience, maketing research is important, I just do not have much time for this, I have full time job, but I will try my best.

Market knowledge / research is everything in your position! You cannot compete on price; value-add in terms of innovation and service is likely to be close to nil (although don't discount the service factor to boost your profile and reputation as a reliable seller); the one criterion where you can (potentially) compete is specialist knowledge of products (1) judging what will / will not sell, (2) knowing markets, (3) knowing and being able to influence buying and selling prices, (4) reliable source (supplier(s)), and (5) continually researching and increasing your specialist knowledge to maintain those barriers to entry.

My ex-girlfriend's sister has a passion and deep knowledge of vintage clothes; thus she saw a potential opportunity to exploit her knowledge. Last I heard, she got married and wanted to start a family (3 kids) - so I guess her small business idea is on the backburner.

Don't do anything stupid like quit your job, but use your time to mull over whether your plan is viable, increase your overall business knowledge, seek and gain knowledge from like-minded people, and maybe find a business partner. An entreprenurial spirit is admirable, and there is nothing wrong with possessing ambition to work for your self / start your own business. You need to be realistic and work out whether it is worth your energy, money and time.

All the best!

Cheers!

[Mandyding]

Firstly I would appreciate your kind critism, you kinda hit the point that I worried the most. I know I am too harsh to make the plan. as I said before I dont expect to make profits in the first year, just to gain reputation for my ebay account. I wont quit my job for this of course, another reason I want to sell on ebay is I want to find something to occupy my spare time, I dont find other things to put my enery in , taking other courses wont help my carrer, and it is more time and money consuming than doing businesses. Selling on ebay is at least better then sell in a booth on subway station,

Its so hard to do any businesse, I heard a lot of Americans make their livings on ebay. anyway Ebay is open to many coutries, thats the best advantage.

[anonymoose]

The thing is, if someone had a really good money-making idea, I don't think they'd just come on here and tell you about it.

But one thing maybe you can look at is selling Chinese books (maybe books for learning Chinese) on eBay. There won't be a huge profit but at least it won't cost you much to set up either.

[Mandyding]

Not sure if there are many ppl study chinese around the world, but it might be a good idear to start with. Chinese tea will be another option I get started. ppl with good money-making idears are busy with their own business. I know it, just want to know others opinions.