Framing
Step 1:Measure the items you want to pack. Allow for some extra room so that the contents will fit inside your crate.
Step2:Write down the measurements for your crate. This will be a simple rectangular or square box construction. These measurements will determine how much plywood you will need and how long your wood strips will be.
Step3:Cut the lid, base, sides and ends out of plywood.
Step4:Attach 1-inch thick by 2-inch wide strips onto the two sides of the plywood pieces with screws. The strips should be almost as long as the sides of the plywood. Inset the strips by the thickness of the plywood.
Step5:Screw a 1 inch by 2 inch strip onto each end of the lid and base panels. Inset those strips the thickness of the plywood plus the thickness of the strip at each end.
Assembly
Step1:Attach one of the end panels to the base panel.
Step2:Position the piece on the lip that is sticking out beyond the strip. It should fit flush next to the strip.
Step3:Put one of the side panels on. Screw it to the base and end panel. Put the other end on and the other side. Now you have the box assembled and just need to put the lid on.
Packing
Step1:Decide how you are going to pack the items you are shipping.
Step2:Wrap the items with soft foam or bubble wrap.
Step3:Measure and fit the rigid foam in the box and cut the foam to fit the object.
Step4:Use foam peanuts or crushed newspaper for further protection.
Wednesday, September 10, 2008
Thursday, May 22, 2008
My eBay Job from Slate.com
I came across an excellent article on Slate.com that complements my article on this blog "Can You Make A Living On eBay?" Dan Gross touches on my premise when he says that sales don't necessarily mean profits. Being a Powerseller doesn't guarantee that you'll make money. In fact, if you're losing money on each transaction, you lose more money the more you sell.
Here's a simple example of how easy it is to become a Powerseller. Let's say a widget is selling on eBay for $50. You buy 1200 at $50 each and immediately resell them at half the going price - $25 each. They'll sell quickly and you'll be a Powerseller, but you just lost $30,000.
So why do people strive to become Powersellers? I suspect that many of them have never achieved anything in their life (or at least that's their perception) and being a Powerseller makes them feel as if they've accomplished something. But ego alone is a lousy reason to go into business.
Anyway, here's the article:
My eBay Job
Do 1.3 million people really earn their living from the auction site?
By Daniel Gross on Slate.com
Updated Wednesday, May 21, 2008, at 2:15 PM ET
Certain numbers have an iconic status in America's business culture. One of them is the number of people who derive income selling goods on eBay: 1.3 million. The figure has been cited by eBay executives such as former CEO Meg Whitman, speaking on 60 Minutes in March; by companies that are part of the eBay economic ecosystem; and, in late April, by presidential candidate John McCain. "Today, for example, 1.3 million people in the world make a living off eBay," he proclaimed. "Most of those are in the United States of America."
Where does this number come from? And do more than 650,000 Americans really "make a living" selling costume jewelry, baseball cards, and cameras in the world's largest swap meet?
The number can be traced to a 2006 study conducted by ACNielsen on behalf of eBay. The company surveyed eBay sellers around the globe, including 2,000 in the United States. And it concluded that "approximately 1.3 million sellers around the world use eBay as their primary or secondary source of income," with an estimated 630,239 in the United States. Take careful note of the phrasing, however: primary or secondary. That could mean 50,000 use eBay as a primary source and 1.25 million as a secondary source. Or it could mean the split is closer to 650,000-650,000.
eBay doesn't break out the numbers, but it's a safe bet the reality is closer to the former. Even the minority of sellers who meet the company's "power seller" requirements aren't coming close to "making a living" selling on eBay. To reach the lowest level, bronze sellers must rack up $12,000 in sales (sales, not profits), or move 1,200 items over the course of a year. "A bronze-level power seller isn't making a full-time living on eBay," says Cindy Shebley, who began selling on eBay in 1999. "They have to really crank it up and get into higher tiers, like titanium." Levels rise from silver ($3,000 or 300 items per month) to Titanium ($150,000 or 1,500 items per month). Shebley is a silver-level seller (mostly photography and lighting equipment) but says most her income comes "from supporting sellers as a consultant and a teacher." Shebley teaches classes and is working on a new book, How To Market an eBay Business.
A part-time seller, Shebley is nonetheless an integral part of the eBay economic ecosystem. The company itself (market capitalization of about $40 billion, 15,000 employees) is surrounded by businesses like the one run by Catherine Keener's character in The 40-Year-Old Virgin—a storefront that helped people sell things on eBay. In the real world, it seems there are almost as many businesses that will help you sell on eBay as there are items for sale on the site, from Mail Boxes Etc., to UPS, to bubble-wrap manufacturers, to software developers who have created more than 12,000 eBay applications, to Paul Mladjenovic, author of Zero-Cost Marketing, teaching an online class at the Learning Annex.
EBay support has become a compelling industry because it turns out there's a lot of friction in this supposedly frictionless model. A few years ago, Doug Graham, owner of Graham & Company, an advertising firm in Great Neck, N.Y., began reselling other people's goods on eBay. In exchange for a 30 percent commission, Graham handles all the hassles. "You have to take nice photos, conduct realistic auctions, respond to e-mails, and handle shipping and packing," he says. "Each auction can take a couple of hours." Graham's eBay sales are about $150,000 a year, but this power seller isn't making an eBay living. "It's a nice profit center for a larger business."
EBay continues to attract people who would like to make a portion of their living selling. "We think there are about 600,000 sellers that use selling tools on eBay who are trying to make a buck," says J.P. O'Brien, chief executive officer of Sagefire, a Boulder, Colo., company that makes software programs that automatically download data on bought and sold items.
Of course, there's a big difference between making a buck and making a living, between a sometime-thing and a steady gig. The notion that 630,000 Americans—a number roughly equal to the population of North Dakota—are making something approaching a living wage selling on eBay is a little rich. I've been paid a few times to play the piano—it doesn't make me a professional musician.
Here's a simple example of how easy it is to become a Powerseller. Let's say a widget is selling on eBay for $50. You buy 1200 at $50 each and immediately resell them at half the going price - $25 each. They'll sell quickly and you'll be a Powerseller, but you just lost $30,000.
So why do people strive to become Powersellers? I suspect that many of them have never achieved anything in their life (or at least that's their perception) and being a Powerseller makes them feel as if they've accomplished something. But ego alone is a lousy reason to go into business.
Anyway, here's the article:
My eBay Job
Do 1.3 million people really earn their living from the auction site?
By Daniel Gross on Slate.com
Updated Wednesday, May 21, 2008, at 2:15 PM ET
Certain numbers have an iconic status in America's business culture. One of them is the number of people who derive income selling goods on eBay: 1.3 million. The figure has been cited by eBay executives such as former CEO Meg Whitman, speaking on 60 Minutes in March; by companies that are part of the eBay economic ecosystem; and, in late April, by presidential candidate John McCain. "Today, for example, 1.3 million people in the world make a living off eBay," he proclaimed. "Most of those are in the United States of America."
Where does this number come from? And do more than 650,000 Americans really "make a living" selling costume jewelry, baseball cards, and cameras in the world's largest swap meet?
The number can be traced to a 2006 study conducted by ACNielsen on behalf of eBay. The company surveyed eBay sellers around the globe, including 2,000 in the United States. And it concluded that "approximately 1.3 million sellers around the world use eBay as their primary or secondary source of income," with an estimated 630,239 in the United States. Take careful note of the phrasing, however: primary or secondary. That could mean 50,000 use eBay as a primary source and 1.25 million as a secondary source. Or it could mean the split is closer to 650,000-650,000.
eBay doesn't break out the numbers, but it's a safe bet the reality is closer to the former. Even the minority of sellers who meet the company's "power seller" requirements aren't coming close to "making a living" selling on eBay. To reach the lowest level, bronze sellers must rack up $12,000 in sales (sales, not profits), or move 1,200 items over the course of a year. "A bronze-level power seller isn't making a full-time living on eBay," says Cindy Shebley, who began selling on eBay in 1999. "They have to really crank it up and get into higher tiers, like titanium." Levels rise from silver ($3,000 or 300 items per month) to Titanium ($150,000 or 1,500 items per month). Shebley is a silver-level seller (mostly photography and lighting equipment) but says most her income comes "from supporting sellers as a consultant and a teacher." Shebley teaches classes and is working on a new book, How To Market an eBay Business.
A part-time seller, Shebley is nonetheless an integral part of the eBay economic ecosystem. The company itself (market capitalization of about $40 billion, 15,000 employees) is surrounded by businesses like the one run by Catherine Keener's character in The 40-Year-Old Virgin—a storefront that helped people sell things on eBay. In the real world, it seems there are almost as many businesses that will help you sell on eBay as there are items for sale on the site, from Mail Boxes Etc., to UPS, to bubble-wrap manufacturers, to software developers who have created more than 12,000 eBay applications, to Paul Mladjenovic, author of Zero-Cost Marketing, teaching an online class at the Learning Annex.
EBay support has become a compelling industry because it turns out there's a lot of friction in this supposedly frictionless model. A few years ago, Doug Graham, owner of Graham & Company, an advertising firm in Great Neck, N.Y., began reselling other people's goods on eBay. In exchange for a 30 percent commission, Graham handles all the hassles. "You have to take nice photos, conduct realistic auctions, respond to e-mails, and handle shipping and packing," he says. "Each auction can take a couple of hours." Graham's eBay sales are about $150,000 a year, but this power seller isn't making an eBay living. "It's a nice profit center for a larger business."
EBay continues to attract people who would like to make a portion of their living selling. "We think there are about 600,000 sellers that use selling tools on eBay who are trying to make a buck," says J.P. O'Brien, chief executive officer of Sagefire, a Boulder, Colo., company that makes software programs that automatically download data on bought and sold items.
Of course, there's a big difference between making a buck and making a living, between a sometime-thing and a steady gig. The notion that 630,000 Americans—a number roughly equal to the population of North Dakota—are making something approaching a living wage selling on eBay is a little rich. I've been paid a few times to play the piano—it doesn't make me a professional musician.
Thursday, January 17, 2008
eBay Sellers: How To Get Accurate Pricing on UPS Shipping
I own a The UPS Store franchise and I see a lot of people losing money on items they sold on eBay. Why? They had no idea how much it would cost to pack and/or ship their item. This is especially true of large items.
One guy complained that after paying for packing and shipping he lost $80 on the transaction Don't let this happen to you! I've written some easy to understand guidelines to help you avoid his fate. These tips are for shipping by United Parcel Service. FedEx and the Post Office are similar in many ways, but also have some minor differences.
What I'm about to tell you applies only to shipping within the United States. International shipping is a whole different ballgame.
Follow this advice, and save yourself some money (and grief).
FIND OUT HOW MUCH IT'S GOING TO COST YOU TO SHIP (AND PACK) BEFORE YOU LIST YOUR AUCTION!!!
1. Weigh your item (UPS accepts packages up to 150 pounds) AFTER it is packed.
2. Measure your item's length, height and width AFTER it is packed. The size of the box can affect the cost of shipping, and the box you use may be somewhat bigger than the item itself. If your item is fragile, you'll need to bubble wrap the item and put a couple of inches of packing peanuts on all sides, necessitating a bigger box. Even if the item isn't breakable, you may not be able to find a box that fits snugly around your item. Recently, someone brought an item into my store that was 44 inches long, 6 inches tall and 1 inch wide. But the only box I keep in stock that I could pack it in was 48 inches long, 10 inches tall and 10 inches wide. That added to the price of his shipping. If he had charged his customer based on the size of the item without the box, he would have been costing himself money.
3. Multiply the length, height and width and divide by 194 to get your dimensional weight.
Example: Your package weighs 70 pounds, is 36 inches long, 18 inches tall and 10 inches wide.
l x h x w divided by 194 = 36 x 18 x 10 divided by 194 = 6480 divided by 194 = 33.40
(34 pounds) Dimensional Weight
Now let's use the information we've got:
Use the greater of the actual weight and the dimensional weight to calculate shipping. In this case you would use 70 pounds; the the dimensional weight were, say, 110 pounds, you would use 110 pounds.
Now all you need is the zip code you're sending the item to. Problem! You don't know the zip code. How could you? You haven't even listed the auction yet. You have two choices. You can use the eBay Shipping Calculator, which lets bidders type in their zip code to find out how much shipping is (The Shipping calculator is located on the Sell page when you list your auction). Or you can select a zip code that's the farthest distance from you, but still int he continental United States, and charge the amount it would take to send the package there (if a bidder were from Alaska or Hawaii this formula wouldn't work). In either case don't forget to charge for packing if you're paying someone like The UPS Store to pack your item.
Go to UPS.com or call your nearest UPS Store to get a quote on shipping (and packing if necessary) based on the greater of the dimensional weight or actual weight including the shipping box. You can skip this step if you're using the eBay calculator, which will work automatically when your bidder types in his zip code when viewing your auction Be sure to specify the amount of insurance coverage you will need for your package if calling The UPS Store or any other packing and shipping business. If using UPS.com be sure to type in the declared value of the package. Also, whether using UPS.com or calling for a quote, be sure to specify whether your package is going to a business or residential address, since shipping to business addresses is a buck or two cheaper.
For reasons I haven't been able to get to the bottom of, there is sometimes a $4 to $5 discrepancy on larger packages between the price on UPS.com and the price UPS downloads to us at The UPS Store. I was told that we at The UPS Store get our fuel surcharges downloaded to our system before they update the UPS website. That doesn't make sense to me, but that's what they said. (Fuel surcharges go up or down based on the price of fuel, and can change from day to day). You might want to tack on a few bucks to your packing or handling charge if you're shipping a larger item. Also note that certain UPS options, like Signature Required, can cost extra.
Now you're ready to list your auction. Simple, wasn't it?
Hope this helps you.
One guy complained that after paying for packing and shipping he lost $80 on the transaction Don't let this happen to you! I've written some easy to understand guidelines to help you avoid his fate. These tips are for shipping by United Parcel Service. FedEx and the Post Office are similar in many ways, but also have some minor differences.
What I'm about to tell you applies only to shipping within the United States. International shipping is a whole different ballgame.
Follow this advice, and save yourself some money (and grief).
FIND OUT HOW MUCH IT'S GOING TO COST YOU TO SHIP (AND PACK) BEFORE YOU LIST YOUR AUCTION!!!
1. Weigh your item (UPS accepts packages up to 150 pounds) AFTER it is packed.
2. Measure your item's length, height and width AFTER it is packed. The size of the box can affect the cost of shipping, and the box you use may be somewhat bigger than the item itself. If your item is fragile, you'll need to bubble wrap the item and put a couple of inches of packing peanuts on all sides, necessitating a bigger box. Even if the item isn't breakable, you may not be able to find a box that fits snugly around your item. Recently, someone brought an item into my store that was 44 inches long, 6 inches tall and 1 inch wide. But the only box I keep in stock that I could pack it in was 48 inches long, 10 inches tall and 10 inches wide. That added to the price of his shipping. If he had charged his customer based on the size of the item without the box, he would have been costing himself money.
3. Multiply the length, height and width and divide by 194 to get your dimensional weight.
Example: Your package weighs 70 pounds, is 36 inches long, 18 inches tall and 10 inches wide.
l x h x w divided by 194 = 36 x 18 x 10 divided by 194 = 6480 divided by 194 = 33.40
(34 pounds) Dimensional Weight
Now let's use the information we've got:
Use the greater of the actual weight and the dimensional weight to calculate shipping. In this case you would use 70 pounds; the the dimensional weight were, say, 110 pounds, you would use 110 pounds.
Now all you need is the zip code you're sending the item to. Problem! You don't know the zip code. How could you? You haven't even listed the auction yet. You have two choices. You can use the eBay Shipping Calculator, which lets bidders type in their zip code to find out how much shipping is (The Shipping calculator is located on the Sell page when you list your auction). Or you can select a zip code that's the farthest distance from you, but still int he continental United States, and charge the amount it would take to send the package there (if a bidder were from Alaska or Hawaii this formula wouldn't work). In either case don't forget to charge for packing if you're paying someone like The UPS Store to pack your item.
Go to UPS.com or call your nearest UPS Store to get a quote on shipping (and packing if necessary) based on the greater of the dimensional weight or actual weight including the shipping box. You can skip this step if you're using the eBay calculator, which will work automatically when your bidder types in his zip code when viewing your auction Be sure to specify the amount of insurance coverage you will need for your package if calling The UPS Store or any other packing and shipping business. If using UPS.com be sure to type in the declared value of the package. Also, whether using UPS.com or calling for a quote, be sure to specify whether your package is going to a business or residential address, since shipping to business addresses is a buck or two cheaper.
For reasons I haven't been able to get to the bottom of, there is sometimes a $4 to $5 discrepancy on larger packages between the price on UPS.com and the price UPS downloads to us at The UPS Store. I was told that we at The UPS Store get our fuel surcharges downloaded to our system before they update the UPS website. That doesn't make sense to me, but that's what they said. (Fuel surcharges go up or down based on the price of fuel, and can change from day to day). You might want to tack on a few bucks to your packing or handling charge if you're shipping a larger item. Also note that certain UPS options, like Signature Required, can cost extra.
Now you're ready to list your auction. Simple, wasn't it?
Hope this helps you.
Product Sourcing for eBay
Where do you get things to sell on eBay?
After 10 years selling on eBay I still don't have a good answer. I've tried just about everything, and I'd like to share with you what I've learned. I'm only going by my experiences; I can't comment on what other people say works for them.
Yard sales are a lousy place to get merchandise for resale. Most yard sale stuff I've seen is junk. Maybe - maybe - if you're an expert in a category you could find a bargain that you could resell for a profit. However, you'd have to do a lot of driving before you sorted through all the junk to find it. Which brings us to another drawback to yard sales: they are costly and time-consuming. Even if you find things to sell, when you factor in the cost of travel and the cost of your time you're not making any money. On the eBay discussion boards I see people brag about something they bought at a yard sale for $5 and resold for $300. That's great, but how many of those deals are out there? Certainly not enough to obtain a regular supply for inventory.
Thrift Stores. The local Salvation Army and Goodwill thrift stores in my area are full of things that are too junky to be in yard sales.
A creative idea that I've used is to buy things that are "Free After Rebate", get the rebate and then sell the item. I've been successful doing this, but again, such items aren't consistently available and the profit is small. Plus, I hate dealing with the rebate paperwork.
Wholesale lists. One word: Scams.
Wholesale publications such as The Closeout News. A good source for products to sell at flea markets, but not on eBay. Items sell for more at flea markets than they do on eBay, which is also why buying at a flea market for resale on eBay is tough.
Items you make yourself (including information products) are a possibility: just know what your cost (including time) is for each item. For more information on this, see the post Can You Make Money on eBay?
Finally, don't go on the discussion boards on eBay and ask where people get their inventory. If someone has a good source they're not going to tell you.
After 10 years selling on eBay I still don't have a good answer. I've tried just about everything, and I'd like to share with you what I've learned. I'm only going by my experiences; I can't comment on what other people say works for them.
Yard sales are a lousy place to get merchandise for resale. Most yard sale stuff I've seen is junk. Maybe - maybe - if you're an expert in a category you could find a bargain that you could resell for a profit. However, you'd have to do a lot of driving before you sorted through all the junk to find it. Which brings us to another drawback to yard sales: they are costly and time-consuming. Even if you find things to sell, when you factor in the cost of travel and the cost of your time you're not making any money. On the eBay discussion boards I see people brag about something they bought at a yard sale for $5 and resold for $300. That's great, but how many of those deals are out there? Certainly not enough to obtain a regular supply for inventory.
Thrift Stores. The local Salvation Army and Goodwill thrift stores in my area are full of things that are too junky to be in yard sales.
A creative idea that I've used is to buy things that are "Free After Rebate", get the rebate and then sell the item. I've been successful doing this, but again, such items aren't consistently available and the profit is small. Plus, I hate dealing with the rebate paperwork.
Wholesale lists. One word: Scams.
Wholesale publications such as The Closeout News. A good source for products to sell at flea markets, but not on eBay. Items sell for more at flea markets than they do on eBay, which is also why buying at a flea market for resale on eBay is tough.
Items you make yourself (including information products) are a possibility: just know what your cost (including time) is for each item. For more information on this, see the post Can You Make Money on eBay?
Finally, don't go on the discussion boards on eBay and ask where people get their inventory. If someone has a good source they're not going to tell you.
Can You Make Money on eBay?
This seems to be the million dollar question (no pun intended). Everybody thinks they can, and even more people are willing to sell them information on how to do it. But can you really make money on eBay?
The answer is (drum roll please): Yes, but not much. Yes, but the same effort would make you more money doing something else. eBay is a great way to liquidate merchandise from your business or get some money for stuff lying around your house that you no longer use, but it's VERY difficult to buy something and resell it on eBay for a profit.
Here's why:
The answer is (drum roll please): Yes, but not much. Yes, but the same effort would make you more money doing something else. eBay is a great way to liquidate merchandise from your business or get some money for stuff lying around your house that you no longer use, but it's VERY difficult to buy something and resell it on eBay for a profit.
Here's why:
- You're competing with the whole world. Sure, you have millions of potential customers, but you also have millions of potential competitors. You're much better off to be the only seller of an item in your town with fewer potential customers than you are to be on the internet facing such stiff competition. And the competition on the internet can almost always sell for less than you can. Maybe they have a source of merchandise you don't because they can afford to spend $10,000 to buy it. Or maybe there are other reasons they undersell you, such as:
- Your competitors are stupid. That's right, I see stupid sellers on eBay all the time. They buy a ton of merchandise they shouldn't have bought and just want to unload it at giveaway prices. Or they don't know they're not making any money; they forget to factor in the cost of fees, or their labor. Real life example: I have a friend who makes craft items. "I made $500 on them," she told me. "Did you factor in the cost of materials?" I asked. "Yes" she said. "How many hours did it take you to make them?" I asked. "Oh, probably a couple of hundred hours." Congratulations! You just make $2.50 an hour. (I didn't tell her that).
- They're offering things at a low price as a loss leader. I don't agree with this strategy: Offer a low price on your auctions then get the buyer to click on your web site where he can make other purchases from you. Inevitably, I can buy the cheap item from his auction, then go back to eBay to find a cheap price on the same things he has on his web site at a higher price. So why would I buy from his web site? Still, all the eBay gurus say this is a good strategy, so it must work. Right?
- Your competitors are addicted to eBay. Some people can't help themselves. eBay becomes a compulsion. They don't care that they're not making money.
Soon we'll take a lot at product sourcing.
Thursday, April 12, 2007
So You Want To Be In Business For Yourself
I've been self-employed for most of my life. Small business - the most employees I've ever had were five. Also a lot of one-man shows - selling on eBay, at flea markets, having a vending route. Everybody thinks they want to own their own business, but few actually pursue their dream. For the most part, those people don't have the single most important quality a business owner can have: drive.
Contrary to popular belief, business owners work harder than their employees. A lot harder. You don't have to be a rocket scientist to own your own business, but there are things you have to know, and if you don't know them you have to learn them. Things like marketing, financial management, and perhaps most important, people management.
Owning a business requires a lot of self-discipline. If you quit school because you didn't like it, or haven't saved any money because you can control your spending, save yourself a lot of money and heartache - keep working for someone else.
If you're really interested in starting your own business, here are a few notes:
Contrary to popular belief, business owners work harder than their employees. A lot harder. You don't have to be a rocket scientist to own your own business, but there are things you have to know, and if you don't know them you have to learn them. Things like marketing, financial management, and perhaps most important, people management.
Owning a business requires a lot of self-discipline. If you quit school because you didn't like it, or haven't saved any money because you can control your spending, save yourself a lot of money and heartache - keep working for someone else.
If you're really interested in starting your own business, here are a few notes:
- You still have bosses; your customers and your employees. Make no mistake - your employees don't work for you - you work for them! You'll have to cancel a lot of your plans because an employee calls in sick at the last minute, or their child is sick, or they forgot they have a doctor's appointment, or they broke up with their boyfriend and don't feel like working today, etc.
- You need to save a least a years worth of income to live on while your business gets off the ground. That's a minimum. Not only will that money have to support you until you can take money out of the business, but you may also have to invest more money in the business to keep it going. Most people think they can take money out of the business to live on right away. WRONG!
- A bank won't lend you money unless you have a significant chunk of your own money invested in the business. If you're not willing to risk your own money, why should the bank risk theirs?
- Buying a franchise can be a good option for you if you don't have any business experience. You'll have to do things their way and also pay them royalties based on your sales, but it's still a good deal because you're buying expertise in the business. Lack of expertise and lack of money are the two big killers of business.
- Take advantage of courses offered by your local chamber of commerce, community college and SCORE (Service Corps of Retired Executives). They can help you with everything from approaching banks to business management.
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