Tiger Todd's Online Auction & Marketing Blog

Beware Of eBay Advice From "Auction Gurus"

Hi Gang,

I recently was reading an article about supply and demand on eBay.  Please take a minute and read the article here.

Towards the end of the article, the author asserts that "If you are the cause of too much supply, you can drive prices down all by yourself, lowering yours, and everyone else's margins in the process."

Let's be honest here:  the author didn't even take the time to research his article.  He wrote completely on the assumption that there were 300 Tommy Hilfiger polo shirts are being sold on eBay.  The truth is that of this moment, there are over 1,000 auctions for this particular item.  The point here is this:  if you are going to make these type of assertions at least back them up with some proof.

The author of this article is definitely from the "lack" school of thinking.  This school teaches that economically, there are limited resources, and you better figure out how you are going to get your "piece of the pie".  But reality teaches a completely different lesson.

Does anyone remember in the late 70's when these same lack oriented economists predicted that we were about to run out of oil?  We were no longer going to be driving cars by 1985 because of a lack of petroleum resources?  Well as you can surmise they were dead wrong.  And so is the author of this article.

Do you really think it is coincidence that across the street from most Burger King's there is a McDonalds?

Competition IS NOT your enemy.  Competition is a good thing.  It means that you are selling a hot commodity.  And this means that you can dominate on eBay for many reasons but I'll comment on two of them:  1.  Most of the people selling on eBay (I'm guessing 98% or more) are NOT marketing savvy.  They have no clue how to market their product efficiently.  2.  All you have to do to dominate your category is TO BE marketing savvy.

Brush up your skills on writing effective ad copy.  Learn marketing techniques that are going to give you an advantage.  Do this and you can win so easy!

And while you're at it, straighten out those attitudes and beliefs, because (hint, hint) this is where you are really going to make a difference.  Start reading good books (like the ones in the right column).  Be a student of effective marketing.  And watch those profits rise and rise - despite the competition.

I sell in an area on eBay with the second most trafficked category:  apparel.  And guess what?  I dominate.  And guess what else?  My competitors can't figure out why.  But it is really simple:  I do it better than the other guy!

Don't fall prey to the negative thinking that is prevalent in most advice that you receive concerning your business.  Take a chance and believe that you are better.  And watch those eBay auction profits grow!

Talk to you again soon,

Tiger Todd

How's Your Mental Wealth?

I just came across this quote today and it is dead on target.

"If you fix in your mind the idea that your earning ability is limited, then indeed it is. You will never earn more than that self-set limit. The subconscious will create and maintain the limits you set."

Thomas D. Willhite from The Book of Wealth

You can get a daily subscription to quotes such as this one from a couple of great sources:

1. The Thought For The Day
2. Bob Proctor's Insight Of The Day

Does eBay Break Own Rules?

Hi Gang,

Sorry about the long silence between posts.  I've been out of town part of the time at a very amazing marketing conference that I'll tell you more about in a future post to the blog.

Today's topic is one that is quite the problem for our old friend eBay.  It seems they have been in a new class action suit filed in California that claims eBay is shill bidding.  For those of you not familiar with shill bidding it is when someone (i.e. you, a friend, family member, etc.) bids up an auction to inflate earnings.  According to the lawsuit, "the Internet auction company is illegally using "shill" bidding against its own customers to force up prices, and thus increase its fees and finance service charges, a consumer suit charges."

Hmmm.  I guess raising our fees in the name of "the seller's best interest" isn't enough.  Generally I'm all for corporations and big business.  But eBay just doesn't seem to get it.  They are continually doing things like this that either drive sellers away or cause lawsuits.  I realize that there was no roadmap for the company to follow - they are pioneers and they do what they do very well.  But if they really want to increase profits, they should quit trying to do it through schemes and bad practices.  They should increase their profits the same way I have to do it:  by giving more value to the people who pay them money.

If I expect to make more money based on the same value the only variable that I can improve on is to improve the quality of my service to my customers.  If eBay wants to earn more money they should do the same and improve the value of their services to their customers - namely the sellers.

If you would like to read more about this case please read the archive at Ina Steiner's Auction Bytes website.  And if you aren't a subscriber to her newsletter, you should be.  If you would like to read the actual legal complaint you can get the .pdf file here:  http://www.lerachlaw.com/cases/ebay/complaint.pdf

Talk to you again soon ( I promise!),

Tiger Todd