The Auction Arbitrage Secret – A Review

The Auction Arbitrage Secret is not the first e-book to be produced on the subject of arbitrage selling using online auction sites. However, it does differ from some of the other books on the subject by the fact that it is written by someone who practices what he preaches and makes a good living following his own methods. Peter Bruckshaw buys and sells laptops, iPods, jewelry and many other products on eBay and obviously knows what he is writing about.

The term arbitrage was originally used in the financial world but more recently has also become associated with horse race betting on sites such as Betfair. It is now becoming popularly and sometimes incorrectly used to describe buying and selling on sites such as eBay. The basics of true arbitrage are where you get yourself in the position that you cannot possibly lose money on a transaction.

When anyone talks about arbitrage in respect of online auctions what they are talking about is buying at one low price and selling at another higher one. This is not true arbitrage because whenever you buy anything there is always a risk that you may not be able to sell it. However, having said that, the odds are very much in your favor that you will profit from this type of trading.

Peter maintains it is very easy to set up an auction arbitrage business as all that is required is obviously an eBay and PayPal accounts and a sniper software program which will make bids on your behalf just as the auction is closing. You will also require some capital to make your first few purchases. It is possible to purchase suitable arbitrage products both offline and from eBay or other online auction sites. In the Auction Arbitrage Secrets you are given a step by step example showing how he purchased a printer for £45 and then sold it on eBay for £127.

This 79 page e-book is full of useful advice for anyone wishing to operate in the same way as Peter. On the downside I do not believe that the method is true arbitrage or in fact a “secret”. People have been buying items and selling them for more than they paid for them since trading began. It is a well written e-book which is full of helpful advice and information which if followed could help anyone wanting to build a business selling products online.

How the "Profit Leverage Effect" Works When Using Reverse Auctions

The Profit Leverage Effect in purchasing tells us that if your organization must find ways to reduce or contain costs, the best place to start is in the Purchasing function. This is because a high percent of many organizations’ total costs are in purchased goods and services. When cost containment becomes a strategic necessity, whether due to reduced sales or revenues, high labor costs, or other factors, companies too often focus on cutting costs in areas such as labor and overhead rather than on purchasing. It is too often assumed that it is easier to implement job cuts than it is to reduce purchasing costs.

For example, as an industry average, 60% of all sales dollars are spent on purchased materials, and therefore, small changes in the cost of purchased materials result in large changes to profit. So if your business spends 10% of the revenues on labor and salaries and 25% on overhead, then your profit is an industry average of 5%. A five percent reduction in purchased costs will result in a three percent impact on net income ~ (.05 X 60% = 3%). This will boost your profits up to 8% from 5%, resulting in a 60% increase in profits. In conclusion, a 5% reduction in purchase costs will result in a 60% increase to profits.

Reducing your procurement costs will also help your company in a highly price competitive market. Your company most likely will be losing margin as lower prices are required to compete in your market. If you can reduce your purchasing costs, then you will be able to lower prices without losing your profit margin.

Fortunately, e-sourcing technologies like reverse auctions have become affordable, easy to implement, and are being used by mid-market and small organizations to control purchasing costs.

While reverse auctions cannot be used to procure everything, they can make a positive impact in the profitability of your company without implementing painful decisions.

You can visit eDynaQuote http://www.eDynaQuote.com for examples of reverse auctions that companies have been successful with.

Know Your eBay Fees And Charges And How They Will Affect Your Bottom Line

Depending on the country you live in eBay fees and charges will vary slightly.

Just like in traditional bricks & mortar businesses, you’ll need to keep a close eye on all eBay fees and charges because they will have a major affect on your overall profit margin.

One tip can be to use the starting prices shown and keep them just on the lower side of what you would like. For example, if you want to start your listing at $50, start it at $49.99 and save yourself $1.20 each time. Remember, every cent in your pocket increases your profits and helps you build a bigger eBay business.

Remember, just because you live in one country, doesn’t mean you can’t list your auctions in another. Many eBay sellers even run their whole business in an entirely different country than the one they live in.

As your business grows and you discover new niche markets you’d like to exploit, you may even want to create various Seller User ID’s and sell products all over the world.

No matter which eBay website you decide to list your items on, all fees will come back to the one payment source you establish when you sign up. This gives you lots of flexibility to run your business.

eBay Express

eBay Express is designed for shoppers who don’t particularly want to go through the auction format. At eBay Express shoppers can look for the items they’re interested in and purchase it immediately.

The added benefit of eBay Express is it has a Shopping Cart feature, allowing the shopper to buy multiple items, from different sellers, and complete the deal in one transaction.

The customer is also covered by free Buyer Protection on all transactions. This gives the customer added security and gives them confidence in shopping directly online.

To be included in eBay Express as a seller, currently it’s only available in the US and items can only be shipped within the US, so you need to have a base there or fulfilment services.

You also need to have a minimum of 100 feedbacks with a 98% Positive feedback rating. For your listing to appear, it must be a Buy It Now Auction, a Fixed Price Listing, or a Store Inventory listing.

Do I Hear $300!

The Basics

The basics include things that you can expect or want from an online auction platform. An online auction platform should be a great interactive marketplace where sellers can start an auction for an item, a seller buys it and the item is then shipped to the buyer. In order to perform these transactions there are certain features a site should have to gain your business.

Fees – Fees can seriously hamper your end profit. As a seller you need to know about the fee structures upfront. Is there an account activation or membership fee? Is there a fee for sellers to join? Is there an item listing fee? Are there any other extraneous fees such as adding pictures or descriptions to the items you want to list? A poorly run auction site can have all these and you can run your profit into the ground.

Selling – Any items that you are selling you should be able to have complete control over. You should be able to list an item with pictures and a description, set minimum selling amounts, sometimes referred to as a reserve, and an end time or date to the auction. Cancelling bids or blocking buyers should also be available, in case of bidding abuse.

Buying – As a seller you need to look at the process of buying. Is the process easy or hard? Any buying process on the internet that is more than 3 clicks to the final sale could potentially drive away buyers. It should be for example, find an item, click buy, go to payment page, pay for item and fill out shipping particulars and finalize payment with a final click. Ensure there are no membership fees to the site either, as it will considerably lower overall traffic for the site.

Security – All payment options should be done securely offering a minimum of 128kb encryption for purchasing and backed by some form of reputation, such as an online certified BBB company or other online designations. There should be privacy policies available for easy viewing. There should also be an internal feedback system to warn of potential buyers or sellers that are fraudulent.

Help – Offering online help through any part of the process should be easy. There should be online tutorials, webinars, live chat windows, and lots of documentation for reading such as an FAQ or other helpful materials.

The Best Online Auction Sites

eBay.com

There is no doubt that the world over has embraced eBay as the go-to auction site for purchasing anything from rare paintings to homes to any oddity you can think of. It is simply the largest auction marketplace on the planet. However there have been numerous complaints about the feedback system arbitrarily favouring buyers at the expense of seller reputations. Generally speaking there are going to be unhappy customers, it’s the nature of business, but one unhappy client out of hundreds should not affect your overall reputation. eBay also has one of the highest fee structures of all auction sites, although with its traffic, you will be able to sell volume to make up for the higher fees.

eBid.ca/uk/us

This company has been around just a few years short of eBay, offers lower selling fees and had quite a global following. It does not have the same traffic base of eBay, but does let you keep more of your sales. As a second option it would be worth a try, especially if you have multiples of an item.

Onlineauction.com

This site has an amazing fee structure that can really make a difference in the long term for sellers. There are NO item listing and final payout fees. They run instead on a ‘seller account’ membership fee. This fee is an annual basis flat rate fee that you pay and have access to sell as many items as you want for free within that time frame.

These top online auction sites essentially can get you started to selling anything from widgets to gadgets today. With very little upfront costs, anything you have lying around could be sold for cash today. Once you have mastered selling items you do not want, it will be time to start purchasing items to sell for auction. This takes a lot of know how and knowing the auction market.

The History of the Online Auction

When one thinks of online auctions today, the name eBay certainly comes to mind first. This website was the first in what is now a history of the online auction, which began in 1995, when Pierre Omidyar sold his first item. The item was a broken laser pointer, which sold for $14.83 to a man who collected such objects.

The history of the online auction was born with that sale, and has continued to grow by exponential amounts since the first day. Omidyar quickly found that his hobby of creating an online garage sale needed to become a part-time business, which grew to a full-time endeavor within a very short period of time.

In many ways, it’s thanks to eBay that other online auction sites exist. Amazon.com became a fierce competitor throughout the late 1990’s, as did Yahoo! Auctions, who actually still have majority market share in some countries.

Other auction sites, while not as big, managed to leave their mark. ePier, started by a couple of poor students, has been one of the few auction sites to withstand all storms and continues on today.

Today, there is a definite move away from auctions to more traditional methods of selling. Craig’s List and other online classifieds are gaining popularity, and Amazon.com’s open retail market has also gained quite a bit of market share with individuals peddling goods from their garage.

However, much of their success is owed to the early pioneers of online auctions. Undoubtedly, there will be new technologies and new companies that take the market in a different direction, leaving online auctions to be enjoyed by a niche group, just as it was in the beginning.

Book Business – How to Make Money Dropshipping Books

Are you interested in starting your own home-based business? There are a great number of opportunities on the Internet that you can look into. If you are the kind of person who loves books and have always dreamed of opening a bookstore, you can actually start a book business online through dropshipping.

Dropshipping is an entrepreneurial phenomenon that has brought online money-making to a whole new dimension. Initially gaining popularity with eBay auctions, this kind of business lowers the risks considerably, increases the potential to make a good profit, and is more enjoyable and fulfilling, besides. Marketing and selling books online is made easy without your having to worry about renting office space or clearing a portion of your home to make room for merchandise. All you need to do is maintain a virtual book store, take down customer orders, and have your suppliers deliver these books to your customers.

Dropshipping is a relatively simple business. You needn’t spend countless hours doing regular inventory. Your suppliers will do it for you. You get charged a wholesale rate on the merchandize, usually 20% to 50% off, and you sell these items to your customers at the retail value. This way, you are able to make a profit on your book business. You market the books, and your supplier delivers orders to your customers. You don’t even have to spend on shipping fees.

You will need to do some research to source out the best suppliers who will charge you reasonable rates. There are sources on the Internet that provide dropshipping entrepreneurs with a directory of wholesalers or drop shippers. They will provide you with an inventory which you can resell at Amazon Stores, on eBay, or through your own online bookstore. Looking for legitimate drop shippers may take some time, and you may get discouraged at times. However, once you have a list of reliable wholesale suppliers, you’re all set for business. Strive for a win-win deal: you market their books and move their merchandise faster, in return they only charge you the wholesale price of an item as soon as you’ve made a sale.

These wholesale dropshipping suppliers will provide you with a list of books to choose from. Once you have made a selection for your book business, simply copy a code from their site to paste on your online store, and you’re ready to market and sell books. Your suppliers will do all the work of inventory and product sourcing, and once you make a sale, they will drop ship the item to your customer.

To be successful at making money through dropshipping books, remember to upload good photos of your merchandize on your store’s website. Provide your customers with apt and interesting descriptions as well as a short review of each product. Establishing a strong presence for your online drop shipping book store will help you bring in more potential customers, get positive feedback from all your buyers, and earn a respectable income from your online bookstore.

Tips for Starting Your Own eBay Women’s Clothing Store Business

Launching your very own women’s eBay clothing store is a great way to begin a journey of financial freedom and independence while working from the comfort of your own home. Starting your own eBay women’s clothing store requires a bit of planning, preparation and some creativity to get your store off of the ground and running. The more you prepare to run your online store, the easier it will be once you begin to receive orders from those who are interested in the merchandise you have to offer.

Tips for Choosing Your Inventory

Determine what type of merchandise and inventory you plan to stock within your online eBay store before you begin searching for merchants that are right for your business. Create a list of the type of inventory you want to stock along with specific sizes you require for each piece of clothing or good you are interested in. The more detailed you are with your budget and specific about the type of clothing you want, the easier it is to work with merchants and wholesalers who provide what you need for the industry you represent.

Keep in mind any colors you want to offer as well as size charts from each vendor before you place any order to ensure you keep your customers as satisfied as possible when they make a purchase from you.

Finding the Right Wholesale Suppliers for Your Business

Finding the right wholesale suppliers is also necessary when you are shopping for a women’s clothing store on eBay. Finding a wholesaler online that caters to those who have eBay shops is highly recommended to purchase high-quality products and merchandise at a discounted price, especially when ordering in higher volumes. Shopping online to find the right wholesalers is a way for you to save time while also getting more access to hundreds and thousands of items depending on what you plan to sell to your customers.

Avoiding Shipping Nightmares

Avoid shipping nightmares when ordering any of your products wholesale by reading and reviewing all terms and conditions that have been put in place by wholesalers and other merchants you are using to purchase your items. Be sure to read the terms and conditions of all vendors you work with when operating a store of your own on eBay, especially if you plan to order items in bulk. You may also be able to find discounts from various merchants with the more you order in wholesale.

Importance of Pricing Factors

It is essential to factor in the pricing of your items and the markup you want to charge before launching your online eBay women’s clothing store. Consider the price you have paid for each item before marking it up and selling it to others. Additionally, it is also important to consider whether you are paying for shipping or requiring your customers to pay for shipping before setting a price for the merchandise you have for sale. If you plan to pay for shipping yourself, it is highly recommended to consider marking up the total cost of the item more to increase profit margin.

Consider Potential Fees

Whenever you have an eBay shop for women’s clothing, it is necessary to consider all PayPal and eBay fees you may encounter each time you make a sale or transfer your funds to different accounts online. Your eBay account may charge you for each sale that is generated, which is important to keep in mind when you are setting your prices online based on the amount of profit you are looking to generate in revenue altogether. Additionally, PayPal also takes fees depending on the type of merchant account you currently have as well as the number of sales you are making regularly. Read the terms and conditions of both sites before you begin selling your merchandise.

eBay Feedback Run-Ins and How to Keep Everyone Happy

Although you may ship your items on time and deliver a high-quality product, it is important to be realistic and to expect poor feedback from time to time, often from a difficult customer. It is essential to push for positive feedback from all customers to help negate any negative feedback you receive with your eBay account.

Learning all about the selling and marketing process of running an eBay store is a great way to get started in running a successful online women’s clothing business from home. The more time and effort you put into building your own eBay store with high-quality goods at affordable prices, the easier it is to build a loyal following of fans and potential customers for your brand.

Lifetime Membership From SaleHoo – Is it Worth It?

Online selling has now become a trend in the business world and may continue to be the hottest business to be in for a long period of time. This is evident with the popularity of auction sites such as eBay. Today, everybody seems to choose to just sell stuffs over the internet than have a regular job simply because online selling is proven to be profitable and more convenient.

Online business owners deal with online directory listings and wholesalers for the products they wish to sell. And one of the more popular listings is SaleHoo. It covers thousands of suppliers, distributors, companies and liquidators to get your products from. To be a member of SaleHoo, a one time membership fee of less than $80 is required. But once you become a member, you are forever given access to all its benefits and deals.

Being a member of SaleHoo does really pay off because you will be given a wide array of products to choose from which can give you more profits and possible business growth. It can also give you tips, strategies and tools to further improve your operations and business. SaleHoo also helps in marketing your products to customers. This is actually one feature that other directories do not have. The assistance and support that it gives to its members are definitely helpful for all business owners especially to the new ones.

And lastly, SaleHoo is the only online directory that protects its members from dealing with unreliable or illegal companies. This is because it first checks on the performance of a company before letting it be a part of their listing. SaleHoo is a complete all around tool for any business owner.

Estate Liquidation – Pros and Cons of Tag Sales and Auctions

Executors faced with liquidating an estate’s personal property will quickly find that it is their most time-consuming administrative task. Executors who don’t perform their duties could be removed from office by the Probate Judge, so it is important that they single-mindedly pursue disposing of the estate’s property so that the bills can be paid and the estate settled.

What you’ll get from this article

Executors have three main liquidation options, and I will discuss the pros and cons of each in this article. Any company chosen to liquidate an estate should be vetted; I will tell you how to do this conscientiously, and I will also propose the best liquidation method. I assume that the twin liquidation goals of the Executor are to achieve the greatest cash benefit to the estate and to leave the house broom-clean so that it can be sold. Of course, there are ways to maximize the cash return for each type of sale, and I’ll tell you what they are.

Investing ten minutes into reading this article could save an Executor many hours of work.

Option 1: Have An Auction On-Site

Benefits of an On-Site Auction:

Auctioneers are very competitive lot. It should be an easy job for an executor to find an auction company willing to take the estate liquidation job, and commissions will be competitive. A strong argument for an on-site estate auction is that when the auction is over, there will be very little clean-up. If you like, the real estate can be auctioned as well, since auctioneers are licensed to auction the real estate and other titled property. In one day, the house, car, boat, RV, and all the household goods could be sold.

Negatives for an On-Site Auction:

Auctions are driven by competitive bidding. Consequently, it is necessary to have a lot of people at your auction. Big crowds require nice weather, plenty of parking, bathrooms, food, and refreshments to keep the people from leaving. Online bidding can be included to boost attendance, but it is the local crowd that builds excitement and drives the prices up. To attract a crowd, the estate must have collectibles and other quality goods. Run-of-the-mill goods that can be purchased at the local thrift store are insufficient to attract a good auction crowd.

Suggestions for an On-Site Auction:

If your estate has many large collectibles, like antique furniture or a piano, an on-site auction may be your best choice. Summer weekends, when the weather is warm and dry, are the best times to hold an on-site estate auction. The auction company you hire should be equipped with sound equipment, canopy tents, display tables, and plenty of help for fast checkout.

Option 2: Auction Gallery Consignment

Pros for Auction Gallery Consignment

If weather is a concern, you may want to consider consigning your items to an Auction Gallery. Consignments at an Auction Gallery are grouped according to the type of item in order to maximize turnout and get the best prices from their collectors. For example, there may be an auction dedicated to art and home decor, or musical instruments, or ceramics.

Cons for Auction Gallery Consignment

There are quite a few reasons for not consigning to an Auction Gallery. For starters, many Auction Galleries will take only the best items from the estate. Ninety percent of an estate is made up of items that are of little interest to the auctioneer, which leaves the Executor to deal with the remaining ninety percent of the estate property. Lastly, when an Auction Gallery spreads the merchandise out over several auctions, it can take months for all the items to sell, delaying the closing of the estate.

Tips for Auction Gallery Consignment

Before you consign to an Auction Gallery, ask the auctioneer how your merchandise will be distributed between auctions; get a guaranteed settlement date. You will also need a plan for disposing of all the remaining estate merchandise.

Option 3: Tag Sale On-Site

Pros for Tag Sale On-Site

Tag sales have several advantages over an on-site auction. For those that are not familiar with tag sales, the sale is held on the premises and in the house. Companies that specialize in tag sales are less common than auction companies. At a tag sale, everything in the house is priced, much like at a yard sale. Shoppers will browse through the house, and choose the items they wish to buy. When buyers arrive at the house, they take a number, and are admitted into the house when their number is called. Tag sales usually start on Friday evening and end Sunday evening, so there is no need to provide food or bathroom facilities. Tag sales can be held rain or shine and in any season

Cons for Tag Sale On-Site

The biggest disadvantage in hiring a tag sale company is that tag sale companies are not held to the same legal standards to which auction companies are held. Auctioneers and Realtors are bound by law to the estate by a fiduciary bond. A fiduciary relationship binds the agent by law to act at all times in the best interest of the estate. Fiduciaries are licensed by the state, must pass tests, be bonded, must hold all funds in an escrow account until distributed, and has to settle the account with the estate within a specific time frame.

Fiduciaries must also keep accurate records and follow certain protocols. Failure of a fiduciary to follow procedures can result in fines or loss of license. Tag sale companies are not held to the same legal standards, although they certainly have a moral obligation to the estate. Tag sale companies can handle the details of the sale and the distribution of the money any way they see fit.

Another problem with tag sales is that typically there is merchandise left over after the sale. Often, there is a LOT of merchandise left over. When a lot of items are left over, the executor then has a clean-out problem, because the house must be left “broom-clean” before a realtor will list the house for sale. Unlike an auction, where prices go up with each bid, tag sale shoppers want to negotiate a lower price for everything, which is not only time consuming but costs the estate money.

Tips for Tag Sale On-Site

When working with a tag sale company, read the contract thoroughly, make sure settlement dealines are included. the operator should have a solid pricing plan, adequate staff, and a solid track record.

What about Internet Sales and Retail consignment?

Internet sales work well for items that can be shipped easily, like small collectibles, books, and artwork. Before you decide to sell these items online, remember that having a nice assortment of collectibles at your auction or tag sale is what will attract the buyers to your event. If you sell all the good collectibles online, you won’t get very good attendance at your sale. Dont even consider a retail consignment; they will take too long to sell your items.

How do I know if I am dealing with a reputable company?

Unfortunately, asking for references doesn’t always work; no one gives a bad reference. The Better Business Bureau lists ratings for some, but not all, companies. With an auction company, most states have an occupational licensing board which can give you the status of an auctioneers license and tell you if they have any complaints on file. Checking up on a tag sale company is a lot harder, because there is no agency keeping track of complaints. One website that is helpful is http://www.ripoffreport.com. When at the site search the name of the company you wish to investigate; also type in the owners name to see what that brings up.

Hire a company with a solid internet presence

These days, it is imperative for a company to have an online network. A company that is well-connected in the online world is likely to be a company that is well-networked in the local area. It’s unlikely that a company with a poor or no website will be able to use the internet to generate sales for your event. Doing a Google search of the company’s name or web address is the best way to to see how well connected they are. Go to Googles search bar (not the address bar at the top of the page, but the search bar in the center of the page) and type in the companys web address starting with www. How many search results are returned that pertain directly to the company you are investigating?. If the company is a national franchise, disregard the results for the general franchise and only count the results where the local company is mentioned. Ranking well with the search engines doesn’t necessarily mean the company will be the best one for your needs, but it is a good indicator of the professionalism of the company. Typically, companies that have lots of returned results do so because other organizations want to associate with experts in their field, so they link to the experts website. A large number of linking companies is like a “vote” for the company being linked to. A company that displays lots of Google results is usually one that is recognized as being expert in their field.

So, what’s the best way to liquidate an estate?

The best type of sale for estate liquidation is to hire a licensed fiduciary to sell the estate property in one day, to the bare walls, any time of year. To achieve this would require an event that is part tag sale and part auction, run by an auctioneer. Since Tag Sale operators are generally not licensed auctioneers and auctioneers usually hate to do tag sales, that’s a tough solution to implement. There are auctioneers that combine these services, however. Finding such a company will give an executor the flexibility of having a sale any time of year, the ability to sell down to the bare walls with nothing left over, and the assurance of dealing with a state licensed and bonded fiduciary.

How to Choose the Ideal Auction House Company

There are many different auction houses out there for you to choose from. Whether you are looking to place your most valuable antiques from your home collection or looking to liquidate old inventory that has been sitting on the shelves for months, there is an auction house out there for you. How do you find the right auction house to do the best job for you?

The first thing you should consider is what you are looking to sell and matching it up to the right type of auction house. There are many different types of auction houses out there, and they all specialize in selling off different inventory. You can find places that sell cars and truck, or industrial equipment. There are places that only deal in real estate. And even places that just specialize in antiques and collectibles. It is important for you to make sure that the company that you choose to auction off your items is familiar with the market that would cater to what you want to sell.

Something else to consider is to research the business practices of the auction house you are considering. This means to find out how long they have been in business, what are their terms and conditions to sell. Do you consign your items; or do they outright purchase them from you? Are they a trustworthy company? These questions are just a few examples of what you want to ask the auction company that you choose to do business with.

Another increasingly important thing to consider when shopping around is if the auctioneer offers an internet market. What I mean by this, is if they offer an online bidding service with each auction they do. Do they catalog each of their auctions and place them online for people to look at and bid on when the auction starts? This is important because the opportunity for you make top dollar on what you are consigning is key to being successful in turning a profit. You want maximum exposure for your items and that will only happen with an online audience.

The ideal auction house will choose to have a live bid online auction. They will recognize the value in hosting their auctions online as well as be open to other great ideas that will help you get the best profit for what you are selling. These are just a few examples of what to look for in an ideal auction house, but above all, don’t forget to use your “gut instinct” when choosing, as you usually won’t be wrong.