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Last Post Mar 14, 2008 12:04 PM by: deirdre@ebay.com
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deirdre@ebay.com
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Member Workshop: Create a Sales Strategy to Boost Your Profits - Mar 14

Feb 29, 2008 1:47 PM
Topic: Member Workshop: Create a Sales Strategy to Boost Your Profits - The How and Why With Market Research

Host: terapeak
Date: Friday 03/14
Time: 11:00 a.m. to 12:00 p.m. Pacific Time
Location: Workshop Board

Description: Whether you're just starting out on eBay, a hobby seller, or a top grossing Power Seller, it's important to consider your selling strategy and how your business goals affect your auction listings. This month's interactive workshop will review different sales strategies, and how to make decisions based on these. Are you an ASP seller or an ASR seller? And how will this influence your listings? Join us to determine your selling strategy and the way it will help maximize your profits!

Cheers,

Deirdre
eBay Community Development
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deirdre@ebay.com
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Member Workshop: Create a Sales Strategy to Boost Your Profits - Mar 14

Mar 14, 2008 10:55 AM
Welcome and thanks for joining us today!

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Cheers,

Deirdre
eBay Community Development
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Member Workshop: Create a Sales Strategy to Boost Your Profits - Mar 14

Mar 14, 2008 10:59 AM



Greetings! Welcome to today’s workshop. I will be here for the following hour to answer any of your questions on the material we go over today.
Any examples included in this workshop come from the Terapeak.com website. If you would like to check out our site, please follow this workshop and find the link to a 14 day free trial to our full services at the conclusion! You may also visit our free site which provides basic access to 30 days of closed eBay listings (Link)

I’m going to post the material now, and we’ll spend the hour until noon on any questions and comments you have.
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Member Workshop: Create a Sales Strategy to Boost Your Profits - Mar 14

Mar 14, 2008 11:00 AM
If you are thinking of expanding your auction base or opening a store, it’s important that you to consider what your selling strategy is going to be. Just like a brick-and-mortar retailer has to create a business plan, you need to develop a concept of what your business is going to look like – if you want to make those dollars grow!

We’ll look at this using a few different examples. As an eBay user, you already know that the possibilities and products to sell are practically endless, but these examples will make our material easy to follow. As an eBay seller, you will need to determine not only what you want to sell, but what kind of seller you want to be.

In terms of increasing your sales, you need to decide whether you wish to focus on ASR or ASP results. ASR is the Average Success Rate of your items (that is the percentage of items you have for sale that sell), and ASP is the Average Sales Price.

If you have an item that you have multiples of, or a solid supply, and is in high demand, you would want to focus your research on ASR – the higher the success rate, the more of an item you can sell over and over.

If you have a less in demand item, or a limited stock, you may wish to consider the ASP, to target the highest end price, and maximize the value of that transaction.

Making this determination will help you to focus on specific results within your research.

Let’s look at an example to see how it works.
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terapeak
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Member Workshop: Create a Sales Strategy to Boost Your Profits - Mar 14

Mar 14, 2008 11:00 AM
As a seller, I’m constantly on the look-out for a great item to sell on eBay. Perhaps I’ve been wandering in the Men’s Fragrance section, looking for a hot seller. If I use the Terapeak Category Browse tool, I can evaluate top brand categories and determine their success within the online market.

I can shuffle my results by Total Sales within the Category Browse, and see where the big sellers are – for men, Abercrombie and Fitch colognes are near top of my list. I’m going to look at a Trend chart for the past two years of sales on eBay to determine the long-term success of this brand.



This graph shows the growth of our item over the past two years. The two peaks are over the Christmas season, and what I like to see when I’m evaluating an item is that the brand of cologne is experiencing a slow, steady growth. Now that we’ve established this is an item on the move, let’s do some more research…
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Member Workshop: Create a Sales Strategy to Boost Your Profits - Mar 14

Mar 14, 2008 11:01 AM
A quick Search Trend shows us an overview of sales for this cologne for the past 90 days.



One specific section of this I would like to focus on is that Sell-Through rate of 81.26% - this is a great ASR! We can also see in the second section that there was an average of 6.61 bids per listings. So not only is this item enjoying a high Sell-Through rate, but the amount of bids suggests that there is demand (=bid competition) for the item. As a seller, this is great! What this means is this item is a great candidate for an ASR focus – move as much of the product as you can and focus your listing construction on that.
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Member Workshop: Create a Sales Strategy to Boost Your Profits - Mar 14

Mar 14, 2008 11:02 AM
How do we do that construction?

Let’s look at the remainder of the report we’ve produced, and see how it can guide our listing of that cologne:



This is a quick example – and for this exercise, I’m going to concentrate on the Sell-Through rate column to build my listing. I’ve opened the Listing Types report. We see the options for listing (Bid Auction, Fixed Price, Second Chance, Store, and Multiple Item). The highest Sell-Through rate for these is the Bid Auction (90.20% of these sold over 90 days! That’s impressive!). I would take this into consideration as I focus on how to list my items for the highest Sell-Through rate.
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Member Workshop: Create a Sales Strategy to Boost Your Profits - Mar 14

Mar 14, 2008 11:02 AM
So that’s ASR – high velocity sales, move more product, faster, and target the listings for maximum sell-through. This works when you have an in-demand item that you have in good supply.
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Member Workshop: Create a Sales Strategy to Boost Your Profits - Mar 14

Mar 14, 2008 11:03 AM
ASP – Average Sales Price

As you’ve probably already guessed, the ASP seller has a slightly different type of item. It might be a rare item, a limited edition item or something that is just new to market. Maybe it is a single or limited supply item. This seller wants to maximize the final sales price of their product, instead of the multiple sales approach of our ASR seller.

Compare that first two year graph to this one for Wedding Dresses:



This graph is more representative of a rare or collectible item. The market is very much in flux and not even that seasonal Christmas upswing in sales is visible. This is more of an availability driven item, and one that we want to list with Sales Price in mind.
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Member Workshop: Create a Sales Strategy to Boost Your Profits - Mar 14

Mar 14, 2008 11:03 AM
Now let’s look at a 90 day Search Trend for this item:


Wedding Dresses return a 13.54% Sell Through rate, which is very different from the over 80% we looked at earlier. It stands to reason that as a Wedding Dress seller you’re going to have a very different sales strategy compared to a cologne seller.

When listing this item, I’m going to concentrate on the Listing Types, Times of Day, Days of Week, and Listing Duration (1, 3, 5 or 7 day) that will fetch the value of my item.
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Member Workshop: Create a Sales Strategy to Boost Your Profits - Mar 14

Mar 14, 2008 11:04 AM
Alright! It’s as simple as that!

The main point I’m hoping to make here is that you need to evaluate your item and where it is in the market and then decide how you will sell it on eBay using a bit of quick eBay research from Terapeak!

Here’s your homework – find a product that you’re interested in selling on eBay (for ideas, visit our Hot List section or our Category Item Browse area for the same sort of reporting I used to find the examples we used today) and do a quick review of their 2 year trend graph, Sell Through Rate, and Average Prices. Or, pick a product you’re currently selling and evaluate your own sales strategy using research. Aligning your selling strategy with the market for your item will increase your margins!
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Member Workshop: Create a Sales Strategy to Boost Your Profits - Mar 14

Mar 14, 2008 11:04 AM
Let’s open the floor for questions and comments - we’ll be here for the next hour for you.
If you have any remaining questions after our time, you can contact our support team at support@terapeak.com and they will get you the information you need!
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Member Workshop: Create a Sales Strategy to Boost Your Profits - Mar 14

Mar 14, 2008 11:11 AM
We'll take any questions you might have (well, on the subject of research :)

Please feel welcome to join in!

-denise
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deirdre@ebay.com
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Member Workshop: Create a Sales Strategy to Boost Your Profits - Mar 14

Mar 14, 2008 11:31 AM
Hey everyone - we're wasting precious Q&A time. We'd love to hear your questions and comments.

Deirdre
eBay Community Development
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Member Workshop: Create a Sales Strategy to Boost Your Profits - Mar 14

Mar 14, 2008 11:34 AM
Hmm. Maybe it's nicer outside everywhere else?

:)
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