NICE EBAY ID YOU HAVE THERE BABY
Who needs great hair or new clothes?

LISA ROTENBERG
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Remember when a sales presentation meant a pressed shirt and a brief case? What about fresh breath or a power haircut? For many executives it was the shoes – show me great shoes for a first impression and we can go from there. Scruffy wedgies or penny loafers – sorry, off you go. How about being on time at 9:00 am across town during rush hour? Were you a child of the sixties conceived at Woodstock and they named you "Skychaser"? Or perhaps you were named after great, great, great Uncle Napoleon. And you are 5 foot nothing too. Dang.

Welcome to the opportunity of your dreams. Internet selling does not have to look at you or judge you by the sins of your parents. You are whatever you present yourself to be. Napoleon can be Titan Investments and even the nudist can be Extravagant Fashions Warehouse. Wake up at noon and watch TV while you work for all anyone cares, as long as your customers’ needs are met and you run your business as you see fit. Ah, the beauty of the digital age. All function, no behind the scenes form.

The flip side is that you are on call whenever the computer is turned on, and for most of us on DSL that is forever. The discipline to separate work and home can be the biggest challenge and this author would love to see the connection between home-based business and divorce. “You love that computer more than me!”. Don’t be silly, well, maybe a little. I’ll be up in a minute.

A real positive side to the internet biz thing is the immediate solution to lay-off, downsizing or retirement in the traditional employment environment. Even if it is temporary activity until replacement employment is found, the opportunity is there for income. Nurturing a passion for a hobby and turning into an on-line business is not that big a leap either. The start-up investment can be minimal and the traditional venue of rent for brick & mortar or trade show is not necessary. The hours and level of commitment is flexible. The business can fold quickly or change if it does not work.

A negative side is sometimes the sudden start-up is not researched properly or the sector is flooded. So you may be naked at home and your name maybe clever, but you still need to do your basic business homework. Just because it is light on real estate does not mean it is light on commitment and hard work.

FUNDRAISING FOR BUSINESS PROMOTION

Making money for everyone

LISA ROTENBERG
thebidwatcher

Back before my days on eBay, when I created paintings for a living, I had this very unique selling strategy for promoting my artwork. I would take several paintings every few months and send them to charitable foundations that threw large splashy events with silent or live fundraising auctions attached to them. Some I created just for the event, some were paintings that had been hanging around my gallery a while (pardon the pun).

The attack was three fold. First, the army of volunteers who worked on these committees was idle wealthy women who had to stare at them for weeks until the event took place. Then the event itself, targeted at the well-heeled black-tie set of Toronto who would fight over the items, just to out-do each other on paper, fueled by flavored martinis and passed appetizers. Then the follow-up - the second and third place losers who actually wanted the paintings but lost. It was a great business tool and the follow-up thank-you letters looked great on my gallery wall.

The criterion for deciding who was worthy of my generosity was three fold as well:

1. Is the audience looking at the donation likely to purchase the item later? If not, pass it by as this is not a business donation, but a personal one (which is fine too)

2. Is the value of the item enough to make an impression and stand out from the rest? A $25 gift certificate is going to get lost!

3. Is the effort involved minimal with maximum impact? Dropping off a $500 painting vs a $500 personal pet portrait of Fifi (“No her eyes are a bit farther apart I tell you!”).

Dealing with large Foundations always allows for tax receipts but remember these have limitations to what can be applied to your actual taxes. Your accountant will know what is best for you. Hey, any deduction is better than none!

I found the true benefit to be in the promotion to my exact target audience and the repeat business to be substantial. The added bonus is in the good deed of donating to charity. One of these days one of these illnesses is bound to come knocking on my door and I know I will have made a solid contribution.

*The above painting, "Night Riders", was produced for the 2006 Children's Aid Foundation of Toronto Christmas Card Program by Lisa Rotenberg

SINS OF INTERNET SELLING
Where do these folks get the nerve?

Lisa Rotenberg
visit me on eBay
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Sellers on the internet are bound to make loads of errors. With the SEND button so instant and the UPLOAD function so irreversible, even for seconds until you cancel, someone is bound to see the thing. So many are just lying in wait, ready to go off half-cocked on us to point out the error, put us in our place or worse, take advantage of it for their own gain.

Some examples:

THE ENFORCER. This one has no intention of bidding, buying or actually being helpful. They just want to point out infractions and make you squirm. Or worse, they are calling your merchandise fake from a photo, even though you have the credentials in your listing.

THE CORRECTOR. Also no intention of becoming a customer, this visitor just wants to correct any slight to major flaw in your research, description or spelling.

THE CHATTERBOX. Maybe will become a customer, some day, but wants to chat because you obviously share the same interests. Or maybe they have something similar to what you are selling and want an appraisal?

THE MOOCH. This perhaps can be the most irritating to many sellers. This visitor wants to know where you get your products, can they buy wholesale from you or can they use some portion of your listing or photo on theirs.

Some sins are not so cut and dry. A recent incident on a discussion board really gave me pause. A seller was accused of selling a fake *GASP* Louis Vuitton bag among many listings of real ones. Instead of engaging in speculation, the seller immediately cancelled the auction. Poof. Gone. She wrote to some folks she knew on the discussion board to let them know el Diablo had been exorcized and she was so, so sorry for her error. Cleanliness and repentance. Bless her heart.

Oh but some of the other board members were not impressed. If one sample was fake, what of the integrity of the others? How can she be trusted again? Others rose to her defense. A brawl ensued. It was riveting. The consensus was to ignore the most pessimistic of posters and to carry on.

That is the best thing about most of these crimes. You can ignore the sinners, respond in a neutralizing professional way, or turn off your screen and go watch Law & Order.

WHEN THE COLLECTOR BECOMES A DEALER
Sucking and blowing- but is there enough air?

Lisa Rotenberg
thebidwatcher

Let’s say you have this thing for Pez dispensers. You just cannot stop thinking about them. You like them without feet. You like them with feet. You know that on a certain day in that year only 10 were made and you have 3 of them. You have a temperature controlled, cedar-lined shrine that no one without DNA clearance can enter. A collector at the top of food chain. One day however you have had enough and it is time to liquidate. Over night, you are no longer a buyer, you are a seller.

Look at the resources before you. Live auction, classified ads, home sale by appointment, garage sale, booth at trade show, eBay or other on-line auction. Garage sale is out – pesky uneducated and unworthy peasants. Home sale is out – can’t let any one in to see precious other inventory. Classifieds is too hit and miss. Trade show will take too much of your time away from regular work. You am already registered on eBay – OK.

Every day, all over the world, individuals like the example above are suddenly transformed into business owners on eBay. This can be good news for those of us looking for items that would otherwise be stored away in the attics of collectors. It can be bad news for those of us who know the actual value of items and how to properly take care of customers on the internet. These instant entrepreneurs can overprice items and fumble the delivery process, turning customers off eBay.

Recently, eBay has upped the profile of the entry process, with a Learning Center, updated eBay University, very clear pages of terms regarding fees, feedback and every other eBay function. Support for sellers has gone so far with this written clause:

Buyer activity limits are one way that eBay helps sellers to minimize Unpaid Items. Based on our research, more than 50% of Unpaid Items come from new users with a Feedback score of less than 5. The goal of buyer activity limits is to minimize Unpaid Items while supporting legitimate purchases. Under this system, buyers can take appropriate actions to remove their limits*
-* Buyer Activity Limits, eBay Help

Of course, the new user/seller/buyer will not know enough to find this information. As more seasoned users, we Power Sellers should be glad to have this upper hand. Setting your preferences to qualified bidders reduces the risk.

Bringing new items to eBay is very important and new users who become familiar with the eBay process are good news for everyone. I am not sure of the actual data, but I will go out on a limb and say that Power Sellers are also some of eBay’s best customers. If the new seller population falls by the wayside because they fail, so be it. It is survival if the fittest.

THE POWER OF FLEXIBILITY
Sticking your neck out can sometimes be a good thing.

Lisa Rotenberg
thebidwatcher

Visit me on eBay

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The launch of an internet business, auction format or otherwise, can be the result of several factors. A life changing even like retirement; change of job status or mobility in the workplace; business opportunity grown out of special interest, supply source or taking a traditional venue to the web. The reasons may be many, but the result and challenges are the same for all: learn about the process, implement and wait to see what happens.

As web marketers, we can do many things that entice consumers to our web offerings, such as link to search engines, advertise, and participate in programs that count hits for keywords and banners. These all come under the heading of “the more you know”. Most don’t even cost anything, but many do. When it comes right down to it how ever, Bill Gates himself has not come up with a way to reach through the monitors of the world to make folks buy our stuff. People still will do what they want. Dang!

In February, my hotdog warmers were selling like hotcakes. In March, my hotcake flippers were hot dogs! Now in June, the whole fast food prep gizmo thing is going cold. What the heck happened? I lowered the price. I raised the price and put them in my eBay store. I offered a pancake flipper with a hot dog warmer. I offered free shipping when you bought 3. I will deliver them personally in North America and make you lunch. WHAT MORE DO YOU WANT FROM ME???

Maybe it is not what consumers want from you, maybe you just exhausted that market for a while. It does not have to go anywhere. The hot dog warmers do not have an expiration date. What you need is to try to add some spark to you line and flexibility. Here is how you can do it. Open an ID on eBay. A fresh, clean one. Think of something that YOU NEED, or look around for an idea that really excites you. It does not have to be the next million dollar baby, but who knows? The criterion is one of self gratification. Try to find a source for this item or work from the source angle first and go back. A search through eBay’s completed items can double check if the market is glutted, dead in the water or looking bright.

Obtain a small quantity of the item – enough to list a good trial run, but not enough to lose your mind if you end up giving them all away next Christmas to friends and family. In the new fresh ID, try a new design format and add some new ways of selling the thing, like a new About Me page or links. GO NUTS. This is new ID, so it does not have the baggage of the old one.

In about a week to 10 days, maybe a few weeks, you should be able to see if this thing has any legs. In the meantime, you have found sparks, new ideas and some energy that may lead to something. And by the way – how’s the hot dog biz? Anything happening there? Did the cycle swing back your way? Anything from your little dalliance give you some ideas for that business?

After all you did not cheat on her for nothing!

PICKING UP A FEW TOO MANY NEGS?
Cynthia Lizana
Texcyngoods
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If you sell on eBay, you will understand what I mean by the dreaded “neg”. You went to bed last night thinking all was right with the world and woke up this morning with a big fat RED mark on your feedback. How did it happen? Why? Could it have been avoided?

It is my firm belief that negative feedback is, in most cases, the result of a break in communication between the parties involved. In some cases, nothing you could have done would have avoided a negative feedback. Some buyers are just prone to “speaking their mind” and don’t take the time to try to resolve the problem with the seller before leaving feedback.

However, many times the seller was given a chance. If you made a mistake, the key to avoiding negative feedback is in how you approach the buyer in your email advising them of the error. Many times sellers try to sound “professional” when advising the buyer of the mistake. This approach often leaves the buyer feeling like just another number, a victim of corporate malaise.

It is easy to slip into using “We” when corresponding with a buyer. But when you have made a mistake, you want the buyer to know you are human, so speaking in first person is normally the best way to approach the buyer. For example “Dear Buyer, I am very, very sorry, but it appears I have made a mistake….Please accept my sincerest apology.” This approach is going to be received much better by the buyer than a canned “We are sorry but that item is currently out of stock.”

It is important to email the buyer immediately, take responsibility for your mistake, apologize profusely and issue a prompt refund.

The other scenario is when you receive an email from an irate buyer accusing you of sending them fake, damaged, wrong, etc merchandise. Perhaps the buyer is insinuating you sent this merchandise on purpose to scam them. You are insulted and your first instinct is to fire back a reply that is just as insulting as the buyers email.

However, the best course of action in this situation is to take a deep breath and count to ten. Reread the buyers email to find out what they are saying is wrong with the item. Reread the listing. Is the buyer complaining about something that was clearly stated in the listing? Is there any truth to what the buyer says? Anything in the listing the buyer may have missed?

Once you are calm, begin your reply with “Dear buyer, I am very sorry you are unhappy with your item…” Then go on to explain, clearly, why the item was represented correctly, or that it was in perfect condition when shipped, or how you know it to be authentic, etc.

It is best to stay away from accusatory phrases such as “you should have”, “you didn’t” “if you had.” Even if the customer did not read the listing, or didn’t measure before purchasing, you will only upset them more by blaming them. Use words like “the measurements were stated in the listing”, “the listing clearly states..”, etc.

Be sure to offer a solution based on your return policy. Do you state you don’t accept returns, but in reality you normally do? Then advise the buyer “As stated in the listing, we do not accept returns, however, I am willing to make an exception in your case.” Give them clear specifications on how to return the item and what to expect when the return is received. Will you refund the purchase price only? Or offer merchandise in exchange?

If there is no way you can offer a return, it is important to clearly explain that to the buyer, including an explanation as to why you can’t, and referencing the part of your listing that states returns are not accepted.

Always finish your email in a polite and friendly manner. You want to leave the doors of communication open. Usually the buyer will respond well to a professional, but friendly email.

As a parting note – It is never beneficial to argue with a customer. The seller will always lose.

LEGAL CONSIDERATIONS FOR THE ONLINE SELLER
SETTING UP THE BUSINESS - SHOULD YOU INCORPORATE?

By: Irene Guimera

qazxz1219

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For many, if not most, online sellers, it isn’t really necessary to incorporate, at least not at the beginning. It’s fine doing business as a sole proprietorship.

There are several types of business entity. They are:

• a sole proprietorship, a single person operating a business;
• a partnership, two or more persons operating a business;
• a corporation, a separate legal entity owned by one or more persons; and
• a limited liability company, or LLC, which is a kind of hybrid between a partnership and a corporation.

From the moment you, as an individual, set up your business, you are a sole proprietorship. The only formalities required are discussed under “What Legal Requirements Are There to Operate a Business” below.

The primary benefit of forming a corporation to operate your business is limiting your personal liability. The corporation can be sued and required to pay a judgment without it affecting you or your personal assets. If you were running a hazardous business, or one that involved a lot of potential liability, you would want to incorporate from the beginning. Normally, however, an online seller is less likely to get sued in the course of running the business. If you feel you’re at a low risk - you don’t operate a factory or shop with dangerous equipment, don’t sell potentially hazardous merchandise, and don’t sell merchandise which could infringe on another company’s trademark, for example – you will probably want to defer the expense and added paperwork involved in incorporating. The same applies to setting up a limited liability company or LLC.

If you do set up a corporation, the corporation is a separate entity from you, and must be treated that way. It must have a separate bank account and its finances must be maintained separate from yours. It will pay its own taxes or at least, file its own tax form. It must have one or more shareholders (the owners), directors, and officers, including a president, secretary and a chief financial officer. Formal minutes documenting all corporate actions must be maintained, at least annually.

WHAT IF I HAVE A PARTNER?

Most partnerships that don’t involve the ownership or operation of real estate are not required to have a formal, written partnership agreement. But it’s always a good idea to have a written agreement. You should ideally have a document that spells out how much money each partner is putting into the business and how much additional capital will be required; each partner’s duties and responsibilities in the business; who manages the business; what happens if one partner wants out, dies or becomes incapacitated.

You and your partner should also discuss whether to incorporate. The considerations are similar to those previously discussed. In most cases, the answer will probably be “not right away- if ever”.


WHAT LEGAL REQUIREMENTS ARE THERE TO OPERATE A BUSINESS?

A person doing business as a sole proprietorship, rather than through a corporation or LLC (limited liability company), has less paperwork to worry about, but still needs to observe a few legal formalities.

Fictitious Business Name Statement

If your business name differs at all from your name (even if it’s “Jane James and Associates”, where the “and Associates” implies that there are more people involved than just you), you will generally be required to file a “fictitious business name statement”. This is sometimes referred to as a “DBA”, for “doing business as”. Requirements vary from place to place, but generally this statement is a simple one-page form which is filed with the county in which you are doing business, and must also be published in a newspaper. You will have to show proof that you have complied with these “fictitious business name” requirements to be able to open a bank account, bring a lawsuit, or take other action in the name of the business.

Business License

Many cities and other local governments require business located in that city to have a business license. This involves, once again, filling out a simple form and paying a fee. Sometimes there is a requirement that the local planning department inspect the business’s facility, but this probably will not apply to most home-based internet sales businesses.

Federal Employer Tax Identification Number

For a sole proprietor, your federal employer identification number (sometimes referred to as an FEIN or just EIN) is your Social Security Number, so there is no need to apply for a separate number until you hire employees for your business. Once you do hire your first employee, you will need to obtain a new federal employer identification number, which you can do online from the IRS. At that time you will probably need to apply for a tax identification number from your state as well. (Corporations, partnerships and LLC’s all need to obtain their own federal tax identification number from the beginning, even if they have no employees.)

Resale License

If you are going to be purchasing items for resale, you will have to add sales tax to the purchase price unless you are a licensed reseller. This generally involves completing a form and having a personal interview with the appropriate state agency. You will have to describe the type of business and estimate your annual dollar volume of taxable transactions. When you receive your resale license, you will show that to vendors who will then be able to sell to you without collecting sales tax.

Of course, the flip side is that you will be required to collect and pay sales tax on all sales within your own state. Currently, internet sellers are not required to collect taxes on out-of-state sales, unless they have a presence (such as a retail location) in those other states.