How to Set Up, Part 3

The eBay Way

Before starting an e-commerce site, many test the waters by selling on eBay. They have good reason: Today, the eBay community includes 168 million registered users worldwide. "The most obvious reason a new business chooses eBay is the access to our enormous customer base," says Jim "Griff" Griffith, dean of eBay Education.

To sell on eBay, you need to register and create a seller's account. Listing an item is an easy five-step process, but Griff suggests you do your homework first: Research eBay to learn what the market value is for your items and what eBay sellers of similar items are doing on the site.

When you list an item on eBay, you're charged an Insertion Fee ranging from 25 cents to $4.90, depending on the item's selling price. You're also charged a Final Value Fee if your item is sold. Final Value Fees start at 5.25 percent of the item's closing value.

You may also consider opening an eBay Store, which costs from $15.95 per month to $500 per month. eBay Stores let you sell your fixed-price and auction items from a unique destination on eBay. You can create customized categories, add your own logo or choose one of eBay's on-line images, and list item descriptions and selling policies.

Your eBay Store is promoted in several ways: Your listings and user ID include a "red door" icon inviting buyers to visit your eBay Store. The eBay Store Directory can also guide buyers to your Store. And you receive your own personalized web address to distribute and promote.

One company that has made the most of its eBay Store is Jeff Atchison Enterprises Inc., dba Dad's Toys. The Dardenne Prairie, Missouri-based company, which started in 1999, sells high-end gadgets such as flat-screen TVs--many of them on eBay. Founder and president Jeff Atchison set up a basic eBay Store in 2002. Why? "To add credibility to my listings," says Atchison, 41. "It shows people you are more of a permanent presence on eBay." It also allows Atchison to keep all his listings organized on one website that can easily be viewed by customers. Tactics like this have helped Atchison grow his company to an estimated revenue of $2.1 million last year.

Ready, Set, Sell!
10 tips to optimize your website for online sales

Once you've got your website up and running, you, an in-house IT staffer or an IT consultant should optimize it for best results. Lisa Schneegans, executive vice president of Praxis Software Solutions, a Minneapolis provider of internet solutions for small and midsize companies, suggests 10 ways to optimize your website:

1. Test your site early and often. Plan ahead to ensure your site can handle heavy shopping traffic.
2. Test your content for misspelled words, broken links, busted pictures, etc.
3. Make sure images load quickly. A slow-loading page may drive customers away.
4. Install, verify and test all patches and upgrades.
5. "Load test" your site to see how much traffic it can support. A web maintenance service can tell you how you do.
6. Create sample transactions. These can simulate expected customer traffic and web transactions. By running "synthetic" transactions periodically--say, every five to 15 minutes--you'll know if there is a problem before your customers do.
7. Check the performance of your network provider. You can do this by looking at a site that is simi-lar to yours in your area but connected to another network.
8. Add cross-sell and upsell opportunities throughout your site. This means, for example, suggesting table linens on the dinnerware, silverware and glassware pages. Offer "Top Gift Suggestions" or "Bestsellers" to improve sales and drive impulse purchase opportunities.
9. Make it easy to find and contact live customer service. Providing an easy-to-find phone number on the site helps online shoppers feel more secure. Clearly state your company's return policy.
10. Make your search function more effective. Your search function should accommodate common misspellings by returning similarly spelled items or your site's most popular search terms.

Taking Shortcuts
If you don't want or need a full-blown e-commerce site, check out the following quick, low-maintenance ways to sell merchandise and services.

Craigslist.org: Craigslist.org allows you to post items for sale for free. More than 10 million people use Craigslist each month, and there are more than 6 million classified ads and 1 million forum postings each month.

Gorage.com: Want to avoid paying auction commissions? Then try Gorage.com, an online garage sale, classified ads section and storefront shopping alternative that offers flat-rate pricing for listing items online, allowing sellers to avoid paying auction commissions. The pricing structure is based on the number of "selling spaces" a user chooses, which together make up the seller's "gorage." Gorage.com pricing plans start at $5, which gets you up to 10 selling spaces for 30 days, and they run all the way to $600, which buys over 2,000 selling spaces for 30 days. Gorage.com charges no auction commissions, which can help you save money and pass on savings to customers.

SwapThing.com: Have a limited amount of cash? Tired of being outbid in auctions? Then try SwapThing.com, a site that lets you swap or sell everything from music, art, trading cards, old schoolbooks--even personal services. You can list items for free; the site charges each party $1 for every item swapped or sold.