Online Auctions

In early 2005, eBay brought to market a new service for businesses with an eBay store presence. It is called ProStores and is a suite of services that integrate with their existing stores. ProStores provide a new eBay business with its own e-commerce-enabled Web site. As Marsha Collier explains in her article "5 eBay Tools You Need to Have," the Web sites used by ProStores work in concert with a company's existing eBay auction activity. "In my eBay classes, I always teach that once you get the hang of eBay selling, you need to open an eBay store. Once you have your eBay store management mastered (and are running a successful enterprise), it's time for you to expand and open your own website. It's the website part that causes many sellers to stumble. eBay sellers aren't usually masters of HTML and the idea of running and setting up a website is a huge, daunting task. ProStores supplies you with practically everything you need to set up a website. If you want help you can always search eBay for ProStores support or website graphics and you'll find people who'll help you make it perfect. You won't find more reasonable website hosting, especially when you consider that it includes a shopping cart and e-commerce specialties. You can jump aboard with ProStores for as little as $6.95 a month."

Affiliates

Online affiliate programs have become very popular among online retailers. These programs are arrangements in which a Web site carries a banner ad for a company in exchange for a small percentage of any sales that result from the referral. One of the most successful affiliate programs on the Web today is the one run by eBay. The success is usually attributed to two factors. The first is the sheer volume of traffic on the eBay site each day. The second is the high commission rates paid by eBay to its affiliates. Melissa Campanelli writes about the program in an article for Entrepreneur, and explains that "depending on monthly activity, affiliates can earn between $10 and $20 for each active registered user sent to eBay." An active registered user is defined by eBay as a user who registers with the company and bids on or buys an item within 30 days of the registration.

The affiliate program can be very lucrative. According to eBay, it has 10,000 such affiliates, the top 50 of whom make more than $1 million in commissions annually. In order to succeed in this program one must have marketing savvy and a Web presence that includes a substantial advertising budget. But for businesses in this position, becoming active in the eBay affiliates program may be a move that would help to leverage the investment already made in an online presence.

ISOLD IT ON EBAY

One final way in which an entrepreneur may be able to build upon the online auction trend in order to start a retail business is by becoming an iSold It franchisee. The iSold It franchise concept is to offer customers an easy and effortless way to sell their items online without ever going online themselves. Customers of an iSold It franchise simply stop by a store to drop off items they wish to sell, and iSold It takes care of the rest. The business provides the following services to its customers for a small set fee and a percentage of the sale price:

• Professionally photographs each item.
• Posts the item for sale online.
• Holds the item in inventory.
• Answers buyer questions.
• Packs and ships the item.
• Collects from the buyer.

Like any franchising opportunity, the iSold It franchise requires a considerable up-front investment but it also comes with a proven business model and all the tools necessary to put that business in place. And the iSold It franchise is all made possible because of the popularity and strength of the robust online auction market.

ONLINE CLASSIFIED ADS

Online auctions have changed the world for retailers and entrepreneurs by giving them a national and international venue from which to sell. But shipping and transportation costs are not an insignificant barrier to the sale of many large items. A move back to geographically centered trading, to the local marketplace, is being accomplished online through the use of online classified ad sites. Two such sites that have shown strong growth during 2004–2005 are Craigslist.org and LiveDeal. These online classified ad sites are another venue through which small businesses may wish to sell products generally, post an ad for a particularly large item, post job openings, or use as a sales outlet for their overstock items.

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