Turn Excess Inventory into Cash on -...
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Turn Excess Inventory into Cash on The World’s Online Marketplace for Clothing, Shoes & Accessories MAGIC August 2002
Transcript of Turn Excess Inventory into Cash on -...
Turn Excess Inventory into Cash
on
The World’s Online Marketplace for Clothing, Shoes & Accessories
MAGIC August 2002
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Agenda
• eBay Overview
• Clothing, Shoes & Accessories on eBay
• Liquidating Excess Inventory on eBay
• Getting Started
• Q & A
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eBay’s Business
World’s largest online trading community
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eBay’s Vision
Provide a global online trading platform where practically anyone can trade
practically anything
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How This All Applies to You: We Connect Apparel Buyers & Sellers
Buyer ValueProposition• Selection &
Availability
• Price & Value
• Experience &Community
Seller ValueProposition• Highly liquid Market
• Better Economics
• New CustomersMarketplace
Buyer ValueProposition• Price & Value
• Selection & Availability
• Experience &Community
Seller ValueProposition• Liquid Market w/
Better Economics
• Brand Distribution
• New CustomersMarketplace
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“A Day in The Life of…”Clothing, Shoes & Accessories on eBay
• 60,000 items sold• Over $1.1M in gross merchandise sales• $1-$15,000+ Price Range
1,035 shoulder bags, 382 sunglasses sold
1,328 women's jeans sold
680 men’s short-sleeve shirts, 482 ties sold
658 pumps, 372 basketball shoes sold
509 boys sets, 580 one-pieces for 0-12m sold
110 maternity dresses sold
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How Can You Use eBay?To Liquidate Your Excess Inventory
eBay Focus
Liquidate Excess Inventory…• Fast Turn-Over: from excess inventory
to cash in 10 days or less• Higher Yields: 2-4X greater recovery vs.
traditional liquidation• Lower Channel Costs: eBay fees
average 6-7% of sales
Time
…And Acquire New Customers• Once a user completes the transaction,
she is your customer• Some partners find that up to 70% of
eBay customers are new to them
End of LifeMaturityProduct Intro MainstreamLaunch Full-price Mark-downs Liquidation
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Apparel Listing and Pricing Strategies:Which One Is Right For You?
Auction- Style Pricing Pure Fixed Price
Merchandise your entire assortment in a single destination, your eBay “Store”
Auction With $1 Start Price
Objective:
Maximize bidding to drive up final price. Most aggressive pricing.
Auction with Minimum Bid
Objective:
Drive bidding activity and protect downside. Recover a minimum % of cost.
Auction with Buy It Now Option
Objective:
Maximize bidding orcapture fixed price buyers.
Pure Buy It Now Listing
Objective:
Drive multi-unit fixed price sales or keep basics in stock
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1) Auction with $1 Start Price
$0.99 Start Price
23 bids have raised current price to $68, and there are 4
more days to go…
Considerations:• Highest risk, but usually highest return.
E.g., if this handbag had a start price of $60, there would have been fewer bids and maybe a lower final price
• Buyers look for low prices; low-priced items can drive traffic to all of your listings
• 100% sell-thru
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2) Auction with a Minimum Price
Minimum Bid was $55.00
2 bids have placed this item at $57.00
Considerations:• Minimum bid insures you attain the
price you want• There may still be bidding activity• Sell-through rates will depend on
attractiveness of opening pricing
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3) Auction with Instant Purchase Option:Buy It Now
Start Price = $39.00
Buy It Now price is $99.00
Considerations:• Allows bidding if buyer is
looking for best price• Captures buyers who want an
instant purchase
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4) Fixed Price
Considerations:• Sell one item or multiple
quantities at a set price• Attract buyers who prefer to buy
at a set price• 20% of eBay sales are now in
fixed price format
Buy It Now only; no option to bid
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There Are Several Ways to Get Started
Do It Yourself
What is This
Who should Try This
Level of Internal Resources required
Fees
Manage and complete the sales process yourself.
Individuals, Small Retailers, or Manufacturers.
Higher. Requires internet-savvy person on staff available to list and manage offers on eBay.
eBay fees
How to Get Started
Register on eBay; Create a Seller’s Account
Hire an eBay Trading Assistant
(experienced seller)
Partner with a “Preferred Solutions
Provider”
Have an experienced eBay seller list and manage your sales on your behalf.
Have a full-service provider facilitate your eBay sales and integrate with your existing system.
Small and medium –sized retailers and manufacturers.
Medium and large size retailers and manufacturers.
Lowest. Requires a person internally to select sales items and coordinate with trading assistant.
Moderate. Requires internal resources to coordinate and interface with third party solution providers.
eBay fees + Trading Assistant fee
eBay fees + Preferred Solution Providers fee
Go to ebay.comTA to find trading assistants near you.
Go to ebay.com/PSP to find the contact information for PSP companies.
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Getting Started
How do I sell a pair of jeans?
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Select “Sell”
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Register on eBay and Create a Seller’s Account
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Decide on Auction-style or Fixed Price
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Choose the Appropriate Category for Your Item
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Write Clear, Compelling Title and Detailed Description
Good Descriptions Include…
• More details about the item, including material, color, condition
• Measurements, if appropriate
• Return policy
• Shipping policies and restrictions, if any
• Payment terms
• Background about you, your sales
Good Titles Include…
“New Seven Jeans Boot Cut Sz 31 $140”
Include the word ‘New’ if the item is new
Brand Item Type
Style Or Color
Size Original Retail Price
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Add Listing Choices and Pictures
Take good photographs.
Clear pictures help boost sales
Always include one or more photographs when selling clothing, shoes or accessories.
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Enter Your Payment Terms
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Enter Your Shipping Terms
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Review Listing
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Done!
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During The Listing Period:Communicate with Potential Buyers
• Try to preempt questions by including as much information as possible in your listing
• Answer all questions you receive as soon as possible
• If you don’t respond right away, tell customers when you’ll be able to
• Keep buyers focused on the current auction –don’t sell other items
• Spell-check your emails• Always reveal problems or blemishes with
your item if they exist (be honest)• Have fun
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After the Sale Closes
Contact Buyer
• Terms and conditions
• Where to send payment
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Wait for Payment
• Best if you offer online pay
• Wait for checks to clear
Ship Item
• Package appropriately
• Clear return address
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Leave Feedback
• Typically positive
• Ask for feedback
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Need more information?
Quickest way to find answers:
ebay.com/SellApparel
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eBay Fees
Listing Fees Final Value Fees+
Opening Price
$0.01 - $9.99
$10.00 - $24.99
$25.00 - $49.99
$50.00 - $199.99
$200 and up
Insertion Fee
$0.30
$0.55
$1.10
$2.20
$3.30
Closing Price
$0 - $25
$25 - $1,000
Over $1,000
Final Value Fee
5.25% of closing value
5.25% of the initial $25 ($1.31) plus 2.75% of the remaining closing balance
$1.25% of the initial $25 ($1.31) plus 2.75% of $975 ($26.81) plus 1.50% of the remaining closing balance
EXAMPLES: On a $24.99 item the total fees are $1.62 or 6% of the totalOn a $49.99 item the total fees are $2.30 or 4.5% of the total
Turn Excess Inventory into Cash
on
The World’s Online Marketplace for Clothing, Shoes & Accessories
