Huh? Is it really this easy?

I can certainly attest that the process and the challenges facing eBay Trading Assistants are much more complicated and more labor intensive than this article suggests.

Lets review the e-How list...

1. Sign up with eBay - OK Sounds Easy, until you actually read the accompanying agreement eBay makes you opt in to. The eBay Trading Assistant agreement transfers all legal liability to you and essentially makes the Trading Assistant become a legal shield for eBay. Beyond that, read my previous articles about the eBay Trading Assistant Agreement - It can be a challenge just to read, for an attorney even.
2. Must have "Ten Sells" in the last three months to qualify (e-How's English, not mine) Sounds Easy and can be quite easy on eBay, but why is the figure so low? To Maintain a Successful eBay Trading Assistant business one will need to maintain a minimum of 30 sales per month at an ASP exceeding overhead after payout to the client and eBay and Paypal. 10 Sales in three months will not give anyone an inkling of an idea of the dedication needed to become a successful and profitable Trading Assistant.
3. Create a Simple Brochure and Ask Businesses to display them for you. Wow , there is an advanced marketing strategy.
4. Pass out fliers and business cards in your community - Must be a more advanced version of the marketing strategy. Sure word of mouth is a good way to add to business, but the marketing plans listed here will not provide anywhere near the volume of traffic needed to pay the bills as mentioned in #2.
5. Post a classified ad and Post on Craigslist - Hilarious, I mean really, how long does anyone think an eBay Trading Assistant's advertisement will last on Craigslist?  And even if it is not flagged & pulled, the people on Craigslist are there because they do not like paying eBay fees, much less commissions on the sale. Stay away from Craigslist to advertise your eBay TA business. Classifieds are a much safer, yet infinitely more expensive bet.
6. Contact local businesses and offer their overstock via the Internet - This plan has a bit of merit, yet without a much more serious business plan I doubt any new Trading Assistant with only 10 sales in the last 3 months will get much face time in front of decision makers. Businesses hate to lose money and liquidating via a Trading Assistant means it will cost them more than if they simply did it themselves. I am not saying a Trading Assistant wouldn't do a better job, but small business seems to have a hard time seeing the value of eBay Trading Assistants without some sort of organized and efficient plan and usually a brick and mortar location to work from. Businesses want to know they will be handing over stock to a safe and reputable, insured concern. Starting out as a Trading Assistant from your home will not usually give them this impression. Make sure you have yourself established before knocking on too many business owners doors.
7. Hand out Business Cards at Yard Sales and Flea Markets - Isn't this a return to #4?  I guess this could have been a 6 step list.

Not That Easy

In reality becoming a Trading Assistant is much more complicated than most articles you find on the Internet will indicate. eBay itself tries to make it sound easy, yet they protect themselves with an agreement which a Harvard Law professor would have a hard time deciphering.

Trading Assistants work is not the path to independent wealth and security, it can provide a nice small amount of extra income for retirees and stay at home parents (if they have the time to do all the work involved).

Bigger is not always Better

Stepping up to a full size Trading Post (Now REDOL) has been proven across the land to be a very difficult business model to sustain. Overhead is too high and margins are too low in most cases. The successful REDOLs (Registered eBay Drop Off Locations) usually have very sophisticated systems of marketing and just plain good locations.

Even with a good location all is not assured because these businesses are rapidly finding the public has learned to sell on eBay for themselves.

read more | digg story

Starting September 17th eBay will charge 35 cents to list any number of the same types of fixed-price items each fixed price item listing will now run for 30 days just as store listings and continue to be included in core search. 

UPDATE: eBay special web page explaining changes here: eBay

Is this move an indicator of the death of auctions on eBay?

Lorrie Norrington, eBay's president of global marketplaces says no, but ....

The fixed price listing fee reduction was not the only announcement worth mentioning from eBay today... 

"A revamped search engine, which is now being tested and will be introduced in September, will give buyers looking for a specific item options to buy at a fixed price or via auction" (Source: Reuters).

With this additional announcement, eBay is ringing the bell that tolls a change in the way consumers will search the site. This new or revamped search engine (can you say Best Match on steroids?) will offer fixed price listings side by side with auction listings (tests leaked on this system last February).   Will this new search "disadvantage" auctions so much that they become irrelevant and eventually through market pressure simply cease to exist?

This seems to indicate a fatal blow for auctions on eBay.

This change may not be a bad thing for new inventory sellers. 

What about eBay Auction Consignment?

For our eBay consignment store readers, these announcements signal a serious change on the horizon. 

Actually if your business model still offers consignment services, selling on eBay, you are already aware of the serious problems with the auction format.  This recent eBay announcement is just the final nail in the coffin for eBay drop off stores offering consignment. 

The time has come for trading assistant or drop off stores to abandon the consignment model. If selling on eBay is part of your business model I would suggest looking at offering outright purchase of goods that come through your retail door.  Only investing in merchandise you know will sell at a fixed price you can make a profit on.  In essence drop store operations need to look at the pawn shop model and scavenge bits and pieces to suit Internet sales of used merchandise. 

Auctions may be suitable for items with little or no cost for acquisition but fixed price is where merchandise will move on eBay now and in the future.  Until the numbers at other auction venues come up to a decent sell through rate, fixed price on eBay will be the best game in town.

eBay has become the venue for mass inventory and fixed price listings.  The previous management tried to stick with the roots of eBay and hold on to the auction format but it seems the new regime holds no such nostalgia for Pierre Omidiyar's vision of a selling and buying venue using the auction format.  eBay will never be what it was, the future has come to eBay.  Time to join in the new fixed price revolution or go elsewhere.

Personally, I saw this coming some time ago and have abandoned all consignment "Trading Assistant" operations in my business (except for long time customers) late last year.  The margins were just too small and the work load too high for me to justify the offering of consignment to new customers.  Listing bulk inventory that moves is the future of ecommerce.

Change is not always a bad thing, eBay must make changes because what they are doing now is not working.  They know it and we know it... I commend eBay for being bold enough to try and stimulate sales by lowering fixed price listing fees by what some say is nearly 70%  (Of course we have yet to hear how much the final value fee will be raised to accommodate this new strategy).  Auctions simply do not hold the mass consumer attention as they once did. 

Eventually eBay may look at spinning off the auction marketplace to a new site or even selling it outright, which may have been a good move about a year ago when the value seemed limitless.  Now that they have damaged the reputation of the auction format beyond repair and it might be difficult to find a buyer. It seems the plan is to slowly let auctions die on eBay and morph into a new Amazon like persona.

I guess we now know what "it" is....

"it" was Amazon, all along

Zippi- Networks Affiliate, MLM or Franchise, what's the difference?

eBay Live 2008 held many surprises... low attendance, minimal exhibitors and a subdued atmosphere...

Not what anyone who has attended any prior eBay Live would ever expect.

One of the biggest surprises (to those in the know), was the presence on the eBay Live 2008 solutions floor of yet another eBay based consignment franchise opportunity (Or Affiliate/MLM - Call it what you will). 

Past eBay Live events had been virtually packed with eBay drop stores and mobile consignment business opportunities / franchises.  Yet since the recent and severe decline of eBay drop stores like Quick Drop and Snappy, it was a little odd to see a new franchise trying to sell the same style of business opportunity.

For those who are not yet acquainted with the history of eBay consignment franchises, please read this post: eBay Franchise Drop Stores.

Zippi Networks is a publicly traded company, Zippi[TM] Networks, Inc. (Pink Sheets:ZPNW) and has a very clean flashy website. The content on the site is eerily similar to what other eBay based business opportunities have offered, without the actual overhead of a retail store. 

Clutter into Cash - Sound Familiar?

Not having the overhead of a retail store location can certainly have a positive effect on any businesses bottom line. I believe that any eBay drop store with retail space is in a difficult position from day one. Zippi has solved this problem by eliminating the entire retail store aspect. One would think Zippi's Zipsters would already have a leg up on a profitable bottom line.

To evaluate business opportunities, an indication of verifiable income must be established before the bottom line can be measured. Unfortunately, it seems Zippi has little verifiable income from eBay sales.

In the last 90 Days the eBay account for Zippi-Auctions has recorded the following sales figures.

Total Sales: $1,818.00

For a single seller, these numbers would be less than optimal, when the Zippi Auctions business plan is considered, the results become even more surprising.  Zippi offers a home based business plan to unsuspecting people with the promise of making cash from unwanted items. This plan is based upon consignment sellers picking up, photographing, and storing consignment items which are in turn listed under the Zippi Networks eBay ID. 

Zippi describes and lists the item on eBay for these "Zipsters" - if Zippi sells the item picked up and stored by the "Zipster" from a consignment client, a portion of the consignment commission is then deposited into the Zippi certified affiliates PayPal account. One is left to assume the certified affiliate then ships the item for Zippi to the buyer on eBay. Additionally, one might also wonder why the consignment customer would allow a "Zipster" to drive off with valuable merchandise? Because the "Zipster" has a magnetic sign on their car or truck? -

Nowhere on the Zippi Networks website are the official eBay terms "Trading Assistant' or REDOL mentioned.

The nationwide network of Zippi Affiliates is processing these eBay items through one eBay seller ID Zippi-Auctions (currently 9 items listed).  Imagine the difficulties which could develop if this one ID experiences a problem with eBay Trust and Safety - The entire network will be shut down for an indeterminate amount of time. 

Back to the numbers... In late 2007 Zippi Networks released the following information.

"Zippi(TM) Networks, Inc. Moves From R & D to Revenue Generation Virtually Overnight"

Zippi now marks a new phase in the company's growth and operations as these founders have already begun generating revenue since sales activities began less than three weeks ago. October 1, 2007 marked the official launch of Zippi from its development stage to its rapidly growing revenue stage, largely through the initial commitment and promising work of the company's Presidential Founders.

In this first two weeks, Zippi's achievements include:

-- Approaching 200 signed, Zipsters / Affiliates into the Zippi Network

-- Zippi offering spread to Zipsters / Affiliates across 31 states and two countries

-- Doubling revenues earned week over week from initial sales made in late September

Bold statements, yet Zippi's entire network of "Zipsters" have sold $1,818.00 worth of merchandise in the last 90 days.  The commissions sent to the 200 signed "Zipsters" from these sales amount to much less than the return on the $795.00 initial investment (plus $49.99 per month) Zippi charges the Zipsters for access to the entry level affiliate services would seem to warrant. 

These "Zipsters" must be impressed by the sales pitch and Multi-Level Marketing approach.  Can you imagine recruiting all your friends to go out with the $2000.00 certified pro bundle from Zippi (including a handheld smart phone from Motorola equipped to photograph and upload descriptions of eBay items to the Zippi Network).

All your friends and family can be part of your down-line or "team".  Using these state of the art devices to list items in the Network and then, what?  Bring them all back to your house?  Leave the merchandise at the sellers home? Store the merchandise in their own homes? - Imagine the fun when it comes time to ship a team members listed and sold item to an eBay seller...

Hmmm, where was that diamond ring? - did you list the Rolex last week?  Where are those pearl ear rings?

Franchise or MLM?

It really is no surprise Zippi-Auction's sales on eBay have not been stellar.  The concept may sound great to the inexperienced and the perpetual business opportunities buyers, but if one looks at the numbers and the concept, is there really any Zip here?

Caveat Emptor!

ConsignmentPal - The little big directory for eBay consignment sellers is growing fast!

Regular readers here will be aware that I have helped Linda Miller and her ConsignmentPal directory with the redesign and reinvigoration of this amazing directory. And I am sure glad I did...

ConsignmentPal has not only become the best place to list your consignment or Trading Assistant business (even better than the Trading Assistant Directory, in my opinion) but is now a great place to find real honest to goodness solutions providers, consultants, designers, web developers, and eBay gurus like Skip McGrath (Not an affiliate link).

The press release below is a good indication of the forward thinking and bright outlook Linda Miller brings to the industry with ConsignmentPal (Not an affiliate link). Providing a free directory for all of the eBay consignment, resale and eCommerce marketplace is a very laudable achievement and I think everyone attending eBay Live 2008 should stop by the booth and shake Linda's hand, thank her for all of her hard work and sign up for ConsignmentPal. Tell her Scott Pooler sent you... if you don't happen to catch me manning the booth myself (I think Linda wants me to fill in during the best speeches...huh, not likely! LOL)

See You at eBay LIVE!

Consignment Pal Adds Collectors and Third Party Service Providers to Business Directory

SAN ANTONIO, TX June 19, 2008 -- Today Consignment Pal (CP) announces the addition of two new business categories in the Consignment Pal Business Directory: Collectors and Third Party Service Providers. The new Collector category will provide a way for collectors to create free business profiles, similar to facebook or Linkedin, so that people can advertise that they will buy, sell, or trade items in their collection. Ebay sellers will be able to more easily source entire collections or single items. The Third Party Service Providers category has been added to offer resources to help Consignment Pals grow their businesses. Additionally, Directory users will be able to find professional organizers, downsizing specialists, business liquidators, etc. at www.consignmentpal.com.

Regarding service providers, Consignment Pals who are ebay Education Specialists, eBay Trading Assistants, and eBay Drop Off Stores have been helping CP Directory users for years. Now CP is adding Third Party Service Providers which includes conference planners, authors, bloggers, business consultants, professional organizers, software providers, etc. “Not everyone can attend eBay Live, so Consignment Pal is making resources available in the CP Directory to help people grow their business,” says Linda Miller, President of Consignment Pal. Service providers include:

• Christopher Matthew Spencer, Executive VP for Online Market World conferences and author of The eBay Entrepreneur: A Definitive Guide to eBay Trading Assistants.
• Skip McGrath, author of over a dozen books about selling on eBay and publisher of the eBay Seller’s News.
• Scott Pooler, consultant and owner of iBusinessLogic and owner of and blogger on eBay Trading Assistant Journal.
• Paul Hedgecock, eBay Business Consultant and owner of Hidden Treasurers eBay Drop Off Store.

The Consignment Pal (CP) you knew as a national directory of eBay drop off stores is renewed, revamped, and ready to take your eBay business to the next level. Our new custom business profiles not only allow you to describe your business in your own terms, link to your website, upload images, and post articles and guides. CP’s personalized business profiles can also showcase up to five of your current eBay listings!

Consignment Pal exists to serve you, the eBay resale business owner, and directory users in search of the best finds on eBay and the hottest picks in resale. Let us do the hard work and connect you with users hoping to buy items, sell items for cash, sell items on consignment, trade, or donate items. All you have to do is create a free business profile. Let effective marketing begin!

With the expanded scope and functionality of the national directory, Consignment Pal is inviting business owners to create a business profile and begin enjoying all of the features designed to grow their businesses. For instance, CP helps resale business owners increase efficiency and profits by providing access to various consultants and service providers specializing in shipping, education, marketing, software, insurance, etc.

To jump start the membership campaign, Consignment Pal is exhibiting at the 2008 eBay Live! Conference in Chicago at McCormick Place West on June 19 - 21. The following week CP exhibits at the National Association of Resale & Thrift Shops (NARTS) Conference in Indianapolis. The good news is that you don’t have to wait for a trade show, check out www.consignmentpal.com and discover the benefits of having a Pal to either kick start your resale business or to find you the best resale stores today!

About Consignment Pal
Consignment Pal connects users with resale businesses to facilitate buying, selling, trading, or donating. To find businesses near you, view online sellers, or learn the latest about the resale business, visit HYPERLINK "http://www.consignmentpal.com" www.consignmentpal.com. CP Directory listings are still free after over 3 years.
Consignment Pal launched at the eBay Live! Conference in San Jose, CA in 2005. The new CP Directory is an expansion and upgrade from what began as the National Directory of eBay Drop Off Stores. Consignment Pal is now committed to all types of resale businesses and to making the search for that perfect buyer, seller, or consignor as simple as possible.

Contact:
Linda Miller

http://consignmentpal.com

The only online directory of consignment sellers & Drop Off Stores that allows eBay Businesses to:

• Link to an off eBay Web Site - Get traffic to your site!
• Show current list of eBay Items For Sale - Automatically - in the Business Profile
• Describe Your Business as you prefer - With your own keywords
• Includes your business in a searchable database

Read the Official Press Release Here

Linda Miller of Consignment Pal has worked long and hard to provide a directory service to the consignment industry. Her efforts have been rewarded with a very efficient and usable directory for both consignment shops and eBay Trading Assistants / REDOLS (formerly Trading Posts) and the clientele of these establishments.

The eBay version "Trading Assistant Directory" is widely regarded as being difficult to use and nearly impossible for any end user to find in an online search. If a Trading Assistant or Drop store wants to be found on the Internet, being listed in the Trading Assistant directory will not really help much. Now that Linda Miller has updated the Consignment Pal Directory, the chances of having your listing found online have gone up significantly.

Just a quick search for the words "Consignment Directory" in Google brings up the following results:

As can be plainly seen, the Consignment Pal directory is prominently found...

We have speculated here at the Trading Assistant Journal before about eBay apparently ignoring the entire keyword category related to consignment in their SEO optimization of the eBay Trading assistant Directory.

Apparently Linda Miller at Consignment Pal does not have the same aversion to finding real consignment businesses new customers from the Internet. I applaud her for looking outside of eBay's odd definition of a Trading Assistant and for using more commonly found keywords in her SEO optimization of Consignment Pal. With more listings added to the directory each and every day, the power of the SEO exposure of this directory can only increase.

How do people search for the types of services "Trading Assistants" provide?

It is my contention that they are very unlikely to enter either the term "Trading Assistant" or REDOL in the Google or any search engine query box. Words like Consignment and Directory are much more likely search terms...

I strongly suggest increasing your store or business exposure by signing up for Business Profile listing in Consignment Pal. Our listing for All Business Auctions has been in the directory almost since its inception and I can honestly say that I have received more business from the old Consignment Pal directory than I ever did from the eBay Trading Assistant Directory.

With this kind of search exposure a free listing in this directory seems to be a no-brainer decision.

You should not only list your business here, but link from any website you have to the listing. Linking to your listing from a blog or website will add to the power of the entire Consignment Pal directory and increase every members exposure throughout the country.

With the new release of Consignment Pal a more business like appearance has been created.

This directory is clean and clutter free. For clients simply looking for a place to find a consignment specialist or eBay trading assistant, this directory is mush easier to use.

The most important feature is the Business Profile included with each listing. Business can now give possible clientele a real sence of what kind of professional services they provide. With the inclusion of a sampling of your eBay listings, clients will get a real feel for the quality of work your business provides. (They will also see it is not as easy as some may think it is to list items on eBay with great descriptions and quality photography).

If you are a Trading Assistant, REDOL, Trading Post, Consignment Store, or Mailing Center with an eBay Service, I strong recommend inclusing your business information in the Consignment Pal Directory.

Consignment Pal Business Directory Fact Sheet

www.consignmentpal.com

Purpose

To help users find resale businesses where they can buy items, sell items for cash, sell items on consignment, trade, or donate items. CP also helps resale business owners increase efficiency and profits by providing access to various service providers specializing in shipping, education, marketing, software, insurance, etc.

New Features in Consignment Pal

Custom Business Profiles

I personally had a hand in helping Linda Miller create the content for these business profiles and helped her to get the eBay listing information into each and every directory profile. I think this will help the entire industry find new customers and also help sell items listed on eBay.

The more inbound links to your listings, the better!

Businesses create personalized profiles to market themselves to directory users and network with other businesses. Consignment Pal users search for profiles by business name, state/province, zip/postal code and distance. Business profiles can be updated often and are completely custom, in a similar manner as social networking sites, such as Linkedin and facebook.

Numerous features include:

• Business Description (choice of bold, italicized, color, underline, and font size selection features)
• Logo and Images
• Interactive Map showing business location
• Specialities field to highlight areas of expertise
• Messaging services which protect businesses’ private email addresses and prevent spam
• Upload Articles and Guides
• Showcase up to five eBay listings
• Website Link
• Business Tag Line
• List Credentials
• Details of Payment Options (buy for cash, consign, trade)
• Business name, Address, Phones/Fax, Hours, Pick Up & Delivery Options
• Type of Business and Office Type
• eBay User ID
• Commission and Fees
• Terms of Service

Newest Feature
The new business profile showcases up to five active eBay listings for our eBay sellers. This new feature is particularly valuable for eBay consignment sellers, also known as eBay Trading Assistants and eBay Drop Off Stores. Business liquidators, antique dealers, consignment stores, resale stores, art galleries, and non profit stores can also take advantage of this feature to highlight their auctions and drive traffic to their brick and mortar stores.

Cost
Businesses can create a personalized business profile in which they can list their specialties, upload images, post articles, link to their website, and showcase five eBay listings at no cost. CP has provided directory services to resale businesses free of charge since 2006. Advertising and affiliate revenue from www.consignmentpal.com

Businesses Represented
Antiques, Art, Auction House, Auto, Business Liquidation, Children's Clothing & Accessories, Collectibles, eBay Drop Off Store, eBay Drop Off by Appointment, eBay Pick Up Service, eBay Store with Pack and Ship, Estate Sales, Fundraising, Furniture, General Merchandise, Jewelry, Men’s Clothing & Accessories, Non Profit Store, RVs/Motorhomes/Trailers, Vintage, Women’s Clothing & Accessories, Other

Office Types Represented
Online Sellers (Amazon, eBay, Go Antiques, personal e-commerce websites, etc.)
Brick and Mortar Stores (antique, art, consignment, and resale stores)
Home Based Businesses
Art and Antique Show Dealers (to advertise upcoming exhibits or display their show calendar)
Kiosks (such as eBay drop off locations inside of antique malls, pack & ship stores, hardware stores, etc.)

History
Consignment Pal officially launched at the eBay Live Conference in San Jose, California, in June 2005. The first CP Directory, the San Antonio Consignment and Resale Directory, was released in September 2006.

Contact:

Consignmentpal.com

We have listed this boat twice on eBay.com and now have it running on OnlineAuction.com

2003 18ft Renegade Nomad Flats Boat - No Reserve Auction

For Sale on OnlineAuction.com or in Person. This boat is located in Largo, Florida. But it is a Michigan boat with most of its running time in Fresh Water! The boat is in great shape with two brand new batteries and everything regularly serviced - ready to fish!

• 115 H.P. ELPT4S Mercury 4 Stroke Outboard Motor
• 260 Hrs on Engine
• Owens & Sons 2004 Aluminum Slide On Trailer (See Photos)
• Boat is from Michigan with mostly Fresh Water Use
• Minn Kota 24V 65lb Thrust Trolling Motor
• Stainless 3 Blade Propeller (See Photos - Small Nicks)
• Bimini Top
• Removable Bow Cushions

This Renegade outboard center console has a fiberglass hull, is 17.58 feet long and 80 inches wide at the widest point. The boat weighs approximately 900 pounds with an empty fuel tank and without any gear or passengers

• VFlex Steering
• Console Rod Holders
• Comfortable Helm Seat
• Lowrance LS-240 Fish Finder
• Dual Batteries - Both Brand New - March 2008

Great flats boat with alot of class- 4-ss prop-trim tabs-fish boxes and live wells-dual battery set up with switch-poling platform-pop up cleats-deluxe gauges-Lowrance x 67 at helm-Motor Guide trolling motor-boat shows like new-new Aluminum Slide On trailer

Similar Renegade Nomads have sold recently for up to $21,000.00
Additional Photos Available Here: Renegade Nomad

Recently I have advised my readers here at the TAJournal that blogging about the items you sell is a great idea to drive traffic to your listings, no matter where you post them.  One reader mentioned that I seem to not be practicing what I preach.  This is true to some extent, but mostly because I do not want to load up the Trading Assistant Journal with post after post of items I have for sale.  

I have posted here with items we have listed for sale in the past (See: Diamond Ring)

From the diamond ring listing I have unscientifically determined this strategy works - try blogging for your listings and see if it helps boost sales and awareness of your brand.

And Listed on ONLINEAUCTION.COM

Obviously this is a very attractive, high quality diamond ring. We have the original appraisal and paperwork; it is owned by a long term and dear client - it was her wedding ring stone and has since been reset in this stunning dinner ring setting. Total weight is now 2.8 carats of fine diamonds and as you can see, this is no knock-off.

I had it appraised by a local gemologist in Clearwater, Florida, who I have known personally for 20 years and who has been a part of a family business in fine jewelery locally for over 40 years. His appraisal of this diamond and setting together is included in the description, but his official opinion places the value in the $35,000.00 range.

Our client is ready to sell for $22,500...

Will it Sell as an eBay Stores Item? Or Will it sell as an OnlineAuction.com Listing

Lets see..

This ring has been listed on eBay and on OnlineAuction.com

I will let everyone know where I get the most traffic, if it sells and from which site the buyer contacts us. It is possible this item could sell from this listing in my blog, and if that is the case, I will tell you here first...

I think this will be an interesting - if not scientific - test of traffic generation from the two sites.  Since this will be listed as an eBay Store Item, I have no idea if there will be an advantage for eBay or not. Everyone is welcome to submit an opinion in a comment below.

Stunning Evening / Cocktail Ring 2.0 ct Near Colorless Magnificent Diamond

• 2.85 (TCW) carat of Diamonds Set in a Custom Made 18Kt White Gold Ring
• Ring Size 6
• 2.0 Carat Round Brilliant cut Near Colorless Solitaire Diamond Set in a 18kt Cast White Gold Ring (Stamped and tested) w/ 81 (0.85 ct) single cut Round Diamonds equaling 2.85 carats total.

• Trading Posts had been renamed as REDOL's (?).
• REDOL (Drop Stores and TA's with actual business locations) were saddled with increased insurance requirements that initially contained unattainable coverage requirements.
• The word "Auction" has been banned by eBay as part of any private business name, signage or included in advertising...except, strangely enough, for use as an eBay account name.
• Legal liability shifted completely onto the small business owners selling consignment items in the eBay system.

We reviewed the terms of the new program here at the Trading Assistant Journal. 

Our review led us to the personal and business decision to opt out of joining the new program and to drop our eBay designation as a Trading Post/Trading Assistant or REDOL. We do still sell items on consignment, just without the Trading Assistant logo.  We found the terms of the agreement to be too restrictive and much too liberal in its protections of eBay for any and all legal threats in relation to any action brought against eBay itself or any Trading Assistant or REDOL by any third party. 

Our review of the Trading Assistant requirements and our final business decision and personal opinion plus the details of the TA/REDOL agreement have been discussed here.

One of the reasons proffered by eBay for consignment sellers and listed as a benefit for joining the new program was the inclusion in the new and improved eBay Trading Assistant Directory.  The "New" directory was said to have unlimited potential and would not follow in the footsteps of the previous eBay Trading Assistant directory which was widely known as being nearly useless as a tool to advertise or promote an eBay consignment business.  The old directory was full of bad listings, was a rampant spam magnet and provided almost no leads for real business.  In my 7 years as a registered Trading Assistant and a Drop Store owner I could count on one hand the number of leads derived from the old directory.

The promises sounded good and some believed in the new system, so much so that they breezed right past the legal mumbo jumbo and signed up for this new and improved eBay TA system.  This directory was to be different, it would bring more leads and business, it would be searchable and it would legitimized the eBay consignment business as it had never done before.

Be aware that until this blog mentioned the fact that when the keywords "Trading Assistant Directory" were placed into a Google search box, only posts on this and other blogs would be returned in the search results.  It seems that since our story regarding this SEO faux pas, the situation has been corrected by eBay (what would they know about search engine optimization?). 

The public is now finding the Trading Assistant Directory in Google for the first time ever (hurrah).

Unfortunately, once they land on the directory, the search success seems to fizzle out...

The following are direct quotes from the eBay discussion board. These comments were posted in the Trading Assistant discussion board.  Keep in mind, it is now a full 2 months since the new directory was initiated and all of the "new" members of the Trading Assistant and REDOL program were instructed on how to complete the required information for their listings in the directory. 

Finding a TA .....Help
martin****  (172 ) View Listings | Report		Mar-25-08 07:36 PDT
I am trying to find a TA in my area, Baltimore MD 21218. Ebay's system for "helping" has me frustrated. I went to the find a TA in your area link. I get a list of names and distance from my zip code, not very helpful. I do not care if someone is 2.3 or 2.7 miles away. I want to know what areas of expertise they have. Do they prefer to handle only new items or do they know the difference between an elephant folio and an elephant umbrella stand? How many lots they can handle a week 10, 100, or 10,000?I start clicking the TAs that are listed. Many of the listings have half the fields blank. I can understand not filling in your address or phone number but not including terms is beyond me. Very few had about me pages to see if it is someone looking to earn beer money or a business with 4 employees. There is no way to search for keywords in the TA listings or to compare them to each other without using the back button and clicking back and forth. Some have no items listed right now. Are they still in business, on vacation or competing on American Idol?I have tried the, have a TA contact me 3 times over the last month and have not heard back from anyone.In the past I have used college students and friends to list items for my business. Recently many of the have left and gotten; a full time job with benefits, married or pregnant.So I am still looking for a TA.Thank you for letting me vent.

replies
seacliffvil****** (836 ) View Listings | Report
LOL I'm glad you came here to vent...it's good for all of us to get some feedback on user experience of the trading assistant directory.I do think you should go with gut and process of elimination. Certainly if you don't like the lack of specific information at a listing, cross that one off your list.If you have tried contacting someone via the directory and haven't heard back, please be aware that the directory is still brand new...many of us are still trying to figure out how it will communicate with us, and it IS a third party service, so we won't get communications via My Messages the same way we get other communications. Try contacting TAs directly through their listed contact information, rather than using the system. Then...if you don't hear back, that's another one to cross off your list.As for trying to decide who's serious...vs. who's just picking up pocket money...lack of information at the listing is certainly a hint, then interviewing TAs is certainly your prerogative as well.If you're looking for a serious TA..most advertise locally...look through your penny saver type mailers and at other local low cost advertising venues.If you're just looking for a hired hand to help you list things...your best bet might be to hire at an hourly rate, and train. If you find a good, experienced TA...you'll pay for their expertise. If you're just looking for extra help...training your own can be the best investment if you're looking for support in a business. Karen seaclif*********
purr**** (378 ) View Listings | Report		Mar-26-08 18:04 PDT	4 of 4
I am trying to find a trading assistant for a friend in south central Michigan, very near the Indiana and Ohio borders. I can't bring up a single one and I know you are out there. She has some wonderful collectible dolls and he has lots of model cars to sell. I am in Florida and the logistics involved are too much over this much distance.Thaks! Pat PS it would help if you guys put more than UNITED STATES in your locations on your about ME pages.

My experience on both sides of the fence has revealed certain truths, and since I was at one time a proponent of the franchise model, I believe my views could be helpful to anyone considering the purchase of a new franchise eBay drop store. These views are my own opinion and do not reflect upon eBay any eBay franchise drop store chain in particular or upon eBay consignment as an addition to any other type of business. I am simply expressing my views regarding the stand alone drop store franchise model and why it has failed.

The Promise:
eBay drop stores came upon the scene with a great fanfare and promise. Initially it was considered a unique and interesting proposition by both business pundits (Entrepreneur Magazine) and investors alike. The promise of the initial drop store franchise operations seemed limitless and they expanded like weeds across the land. Soon it would be difficult to pick up a newspaper or read a business magazine without seeing some reference, either advertisement or article, about the eBay drop store franchise revolution. It was an exciting time...

These franchises promised individuals an easy way to be in business for themselves - a way to "have a store without investing in inventory" by offering a simple effective solution to everyone in America's battle with clutter. People heard the story and they believed; they read about eBay's fabulous growth and the amount of merchandise sold every moment on eBay and they felt it was a sure thing. If any franchise could work for them, this type would because it was easy and it was new and customers would clamor over themselves to get in the door. And really it was a "cheap" franchise to buy....

The Deal:

The deal was simple.

Anyone could own a store if they agreed to the franchise terms. Most of these terms included a simple up-front franchise fee of about $25,000, an added expense for signage and fixtures of anywhere from $5,000 to $25,000, plus a continuing monthly national advertising fee and a royalty fee on all sales of about 4% (of Gross Sales), some with a cap at $1,250.00 per month but most with no cap on the royalty fee.

Once "accepted" into the franchise, the new store owner would be "helped" in finding a suitable lease for a prime storefront (its all about location). These prime retail locations usually were recommended to have a footprint in excess of 2500 square feet. (The storefront itself did not require more than 300 square feet, but storage would be large consideration). Usually the overhead numbers involved with operating a 2500 square foot space in prime retail locations were not stressed to the new store owner, but it would be mentioned to cover the basic requirements of disclosure.

Every franchise must comply with the U.S. government rules regulating franchises and they do so with a document called the UFOC. The UFOC is a very verbose & complicated document which provides both parties in a franchise transaction certain definitions, disclaimers and disclosures. The document can reach 400 pages in length or more and is simply not easy for a layman to understand or evaluate. The U.S. government requires this UFOC document, but they do not provide a course in how to read it. I will say that it is intended to provide many worthwhile protections for prospective franchise buyers, but since most of those same people do not read the document, these protections are rarely understood.

The Process:

A new store owner is first given a training course, usually lasting approximately 7 days. This course is given by the franchise at a franchise designated location (travel expenses are not included in the up-front franchise fee). The course is designed to teach the standard methods and practices of the franchise methodology of drop store operations. The class will also include many details about eBay rules, eBay practices and eBay listing procedures. Very little time is usually devoted to the calculation of eBay fees. Intake, Description, Software Operation, Photography, Storage & Inventory, Shipping, Customer Service (both store front and online) and numerous other topics are covered in this 7 day course. It really is a lot to absorb, especially if the new store owner has never sold an item on eBay before.

The Program:

The newly trained store owner is then released to complete his store construction phase according to franchise regulations. Counter colors, sign placement, numbers of computers, placement of interior walls and paint colors all are defined in the materials given to the new store owner. He has bought into a "proven" system and he must follow the franchise specs.

Once the new drop shop franchise owner's store is complete, he is ready for business. Some franchises will use a portion of the "National Advertising" budget to send out flyers and possibly buy a newspaper ad or a radio spot for the grand opening of the new eBay drop store. Initially the store owner is pleased with the small amount of initial business which results from this advertising push because he and his staff (usually 4 or more employees to start) need to get up to speed on all of the procedures of both eBay and the franchise and they need to learn each step of the process. The store owner is responsible for training his employees or he can send them to the franchise corporate headquarters for a training class at his own expense. Usually it is a trial and error method with the new store owner teaching his staff as much as he can remember from his short training class.

The Grind:

Now that everyone is all "trained" and the initial "ad buy" is over, the store owner is now looking for ways to drive business into his new store. He has more overhead than he initially had envisioned so he must get to work. Staring at a monthly nut to crack of nearly $8,000 on average, most store owners realize fairly quickly that they need items to sell on eBay. Where to get them? Some store owners simply advertise the store and wait behind the counter for customers to stream in. In certain areas of the country and in the early days of drop store operations history, this "tactic" did work. It is less likely to work each and every day however.

The average customer of an eBay drop store, franchise or not, is someone who is not tech savvy, has no internet access, is elderly or is wealthy and has little time. Initially the pool of prospective customers was much larger than it is today because more people now have internet access, more people are familiar with eBay and eBay has made it much easier for people to list a single item on their own. eBay classes are taught by certified eBay education specialists at retirement centers nationwide and these classes are sometimes free. People would rather realize 100% of net profit from a sale than 60 or even 50%.

The drop store owner is now on a mission to bring in customers.

He/She must have products to sell. If it become apparent that advertising and location simply do not provide the traffic he needs, the store owner will try different tactics. Sometimes the franchise will offer assistance in the form of "outside sales" seminars, conference calls and the like. These sales ideas are offered as a way to show that the franchise is on the side of the store owner. (To be honest, most employees of franchise operations are honest hard working people who want nothing more than to help the store owners).

In the end these outside sales ideas boil down to selling cars, RV's and boats - all of which are now precluded by eBay and some States as being illegal or unacceptable without special licenses for each. The franchise failed to mention that a store owner may need a car dealer's license and a boat broker's license or an auctioneer's license to operate a eBay drop off store and sell these types of items. Business-to-Business is another source of income promoted by franchises, but rarely do other businesses wish to split profits in the manner required to make the deal attractive for the drop store owner. This leaves only household merchandise, collectibles and toys, generally creating a garage sale type of atmosphere.

Processing becomes the key - reduce processing time, become more efficient, write shorter descriptions, shoot less photos and speed up the process for each item. This only serves to reduce the final sale price of those items. Store owners soon realize that selling any item worth less than $100 is not worth the expense of processing that item. They react by turning customers away with low value items. This is not always the wisest course of action because that customer will never return and one never knows - they could have been just trying you with a small item before bringing in a diamond ring.

Those rare occasions that high value items are presented are exciting to the store owner and stressful at the same time. The store owner knows the customer will want what he/she has been taught that diamond ring is worth. Unfortunately used diamond rings or other high value items are not always worth what some may think they are. We all like to buy low and sell high but when we buy high we really hate to sell low. eBay has a way of bringing reality to the equation. The store owner must now attempt to coerce the customer into selling a high value item with a low starting price and no reserve. Why no reserve? Because the store owner soon learns that items placed on eBay with a reserve price rarely reach the minimum bid and the number of bids on items with undisclosed reserves are are less than on items with no reserve at all. On eBay the game is to start low and hope to sell high. The store owner must get his customer to buy in to that theory.

Some eBay drop stores do survive with perseverance, skill and entrepreneurial spirit...

These stores would have survived and possibly thrived without a franchise but going in, the store owner did not know that he would have to find ways to make it work on his own. He purchased a franchise and this usually implies the investment in a proven system which will yield dividends if the system is followed. In most cases, in the eBay drop store business, if the franchise model is followed and the store owner does no more than what the franchise recommends, the store will not be profitable. The overhead, eBay fees, insurance, lease payments, employee costs and advertising costs are a tough enough nut to crack on a net of 30% of the net profit from used merchandise. Adding in a franchise fee, national advertising fee and royalty fee just makes the entire business model collapse upon itself.

Franchises sell a name and a brand in most cases.

In this case the franchises were selling someone else's name - they sold the name and brand and the cache of eBay. They did it with eBay's blessing in most cases, but they did it in a way which was not exactly providing the value of a franchise.

When one purchases a franchise like McDonalds, they are reasonably assured that people driving down the road who see the franchise sign will be familiar with that brand. When one purchases any eBay drop store franchise, no matter the name, they are not assured of the same brand recognition. They perceive a brand recognition for the eBay name, but that has little to do with xyz franchise signage. The franchises usually tried to capitalize on the eBay brand with similar color schemes or even by using the eBay logo in the franchise brand logo. This still does not make the consumer recognition for that brand any stronger than it would if a store owner who did not purchase a franchise used the same logo trick (which is not allowed by eBay) in their own non-franchise store logo.

Buying a franchise is a big step, one which should include a great deal of your own research and numbers crunching. Even if the idea of owning a franchise seems comfortable, be aware that it is not a guarantee of success. Many people who have purchase eBay drop store franchises feel as thought they were deceived into a purchase of a business model which never worked.

On the surface this is the truth, but it was not always the case. In the early days of the drop store boom the concept did work and store owners realized gross sales months as high as $200,000 or more. These numbers were widely leaked by the franchises because they helped sell franchises...and because at the time they were the truth. Leaking these numbers was a big risk. As a franchisor it is unlawful to share these numbers, but it was done on a consistant basis.

Times have changed for the eBay consignment business, the market has shifted, customers are smarter and eBay is easier to figure out. Retail lease space costs have increased and insurance premiums have doubled or more. The cost of doing business as a stand alone eBay drop store is just too high. It is no longer a viable franchise model and only in very rare cases will it work for non-franchise store owners with no other retail income.

What Will Save The Day?

Think long and hard about investing in this business model. If you currently own a franchise drop store, you need to seek other opportunities, find new ways to bring in income, reduce your overhead or increase your revenue per item. There are many options available but most store owners are swamped with the grind of maintaining the process of eBay consignment to fully explore these options.

For the owners of franchise eBay drop stores - only they can save the day. But if the franchise will not budge on the fees or on restrictions regarding secondary - or actually primary - retail solutions such as cellular (another iffy proposition) or some other form of retail, there is little hope of digging out of the trap. The current situation was not foreseen by the store owners or the franchisors, although the franchisors saw it sooner than the store owners in most cases. The situation remains, in either case...

eBay consignment can work as a tool for another business. In my view, it is not a business model which can support itself without some other form of business income. As a part of another business, eBay consignment can be a very attractive addition to the overall picture. By using eBay and consignment sales to boost revenue and provide customer service for another business entity while increasing the worldwide exposure for that business through eBay stores listings and auction listings of consigned or inventory products, eBay consignment can be utilized as a very good tool for marketing. eBay consignment, if used as a draw to get new customers in the front door, advertise an existing business in a new and interesting way, and to transition a brick and mortar operation to Internet sales can be a very nice marketing program for almost any existing business.

As a hobby or part time income producer, selling for neighbors or friends, eBay consignment can be fun and rewarding. But as a full time stand alone business model with no other income streams, your efforts and money could be invested more wisely elsewhere.

Written by: Scott Pooler - All Rights Reserved - No re-prints or re-transmission of this content with out express written permission.

Reader Please Note: This post is over 1900 words in length. I feel it is worth the time to read the entire article. If you think this post is just too long after reading the entire article please leave a comment and tell me what you think - Thanks - Scott

eBay has decided to change the existing system in regards to Trading Assistants and Trading Posts. In doing so eBay completely revised the way they qualify participants for the program(s). This change has been presented as a way to clean up the "old" directory and provide more relevant results for people looking for help in selling merchandise on eBay. Some think the real reason for the change is to allow eBay to extend the legal distance between itself and anyone listed as a eBay Trading Assistant because of certain active cases against Trading Assistants and Drop off Store owners in States like Pennsylvania.

The terms and conditions eBay requires to be placed in the eBay "official" Trading Assistant directory are extensive. To be included in the directory as what is now termed REDOL (Registered eBay Drop Off Location) or Drop Store, the extensive terms of the TA agreement become even more so. Choosing to be included in either directory at this time is a more important issue than many may be aware. Diligent business owners will read all of the terms of the agreement(s) before making a quick choice to join the directory. 

There were many promises made to the existing members of eBay's TA & Drop Store or Trading Post (Now REDOL) community when this massive change was announced. Essentially eBay promised a massive advertising campaign to 50,000 businesses in the USA promoting TA's and REDOLS, they also promised a new, easy to find, and less spam filled directory. eBay said that with the "reduction in competition" after the directory was switched over to the new version and every TA & Drop store re-registered, each registered member would receive more business from the directory.

The results so far have been less than promised.

Consider the first promise: "Massive" direct mail advertising campaign to 50,000 businesses. This boils down to a single letter sent to 1000 businesses in each State. My County in Florida has more than 50,000 registered businesses alone. For any company to send out a direct mailing piece to just 1000 businesses in my State would be considered as a joke by any reputable direct mail advertising agency. Not surprisingly, the direct mail piece eBay sent out has not returned much business for TA's or REDOLS - if the responses in the Trading Assistant Discussion board on eBay is any measure.

Reduction of Competition: Thus far this promise has been met - there are fewer listings in the TA directory, whether the listings in the directory are more relevant is up to debate.  From our inspection of the directory it seems more like a great deal of new and inexperienced Trading Assistants joined the program to fill the void left when the old directory was closed by eBay. This void may have been created when the veteran TA's and Drop store owners either chose to not join the new directory because of the terms of the extensive new agreement required for listing in the directory, or they just did not get the email notifications from eBay which indicated they would not be included in the new directory without accepting the new terms in the TA & REDOL agreement. 

To be fair, eBay did make several attempts by email and by phone to notify all previous members. In any case, the directory does not seem to contain nearly as many experienced TA's or Drop Store Locations. Many franchises have opted out because they have the word "Auction" in their name which is no longer allowed by eBay if a business wants to be included in the directory. Some businesses find that the requirement to change signage and the business name to be too much of a burden when comparing the costs against the benefits of the "new and unproven directory."

When one takes a step back and looks at the benefits of using the resource eBay has provided with the TA & REDOL program versus the costs or commitments, a conclusion could be drawn. What was your conclusion?

Did you decide to join the new directory? Possibly changing your business name and all advertising materials (removing Auction or eBay from your message), agreeing to the extensive rules and legal protections the agreement provides eBay and which subsequently places all of the burden for any future legal exposure upon yourself? If you chose to join the new directory have you found the effort worth the costs (if any) of making these changes, i.e. have you received any real business from the eBay Trading Assistant Directory?

Did you Opt Out of the New eBay Trading Assistant or REDOL Program? Choosing instead to continue to advertise locally and possibly start your own (off eBay) Internet website to advertise your business?

Personally I chose the latter. I did this for many reasons all of which I feel are valid.

1. Can't change my business name: All Business Auctions - Too much invested in my name and I like it, so do my clients.
2. My attorney: Advised against my volunteering to accept all legal burdens in regards to any actions brought against myself or eBay by any party (This includes States Attorney Generals). My attorney felt this was an onerous burden for my company in exchange for a simple directory listing and the right to use a logo.
3. Not enough return: My business has been listed in the old Trading Assistant Directory under several different names since the inception of the TA program, both as a TA and as a Trading Post with almost zero verifiable results in the form of actual leads to clients.  

In my opinion it is just too difficult for a client to find the TA directory in the first place. When a person wants to find someone to sell merchandise for them, what search words do you suppose they would use? 

• Trading Assistant? No, I don't think so...
• People generally think of a Consignment Store or service or they immediately think - Auctioneer. 
• See the list below from Google - Trading Assistant is not one of the most common searches and REDOL will not even be considered.
• Why be listed in a directory no one is searching for?

Searches related to: Sell on eBay

If one chooses they can continue to search for relevant keywords which should lead to the eBay Trading Assistant Directory but they are hard to find. Lets say you use the keyword "Consignment Directory" which I would assume most average customers of a Trading Assistant business would search for in Google. This search would result in not one mention of the eBay Trading Assistant Directory.

Let's check a few more (just follow the links to see results)

• Sell on eBay for me
• eBay Seller
• eBay Sales Help
• eBay Drop Store

I could go on but I think the point is clear. The only way anyone will find the eBay Trading Assistant Directory is by using that exact search term. When eBay has not used common SEO practices to funnel traffic to the directory and they have not educated the public in any other way which would present term "Trading Assistant" as being anything to do with eBay or eBay consignment sales.  How does eBay or anyone utilizing the directory expect to derive any benefit from inclusion in same?

Today's world is driven by relevant keyword search criteria.

People are less likely to look in the yellow pages for business services. If they need to find a business or service or product the first stop is the Internet and the Google search bar. eBay knows this more than anyone and eBay has been incredibly successful at driving traffic to their site. The eBay name is synonymous with SEO optimization and without knowing how to utilize search effectively eBay would never have grown to be the dominant Internet sales property in the World. So one has to ask, why would they just forget to optimize the Trading Assistant Directory for relevant keyword search?

Could it be because eBay would prefer the general public sit down and learn how to sell for themselves? eBay has made the sell your item form much easier to navigate. Every task involved from uploading photos to writing descriptions have become a simple task for one time sales with the SYI form. eBay is a fee based service, the more people registered to sell, list and re-list on eBay the better for eBay. eBay would rather have 40 sellers a week register to sell one item each than have one registered seller with experience (a TA) sell 40 items for those same 40 people.  40 new seller accounts equal 40 new Paypal accounts, one Trading Assistant account is just one PayPal account. Think about what benefits eBay the most.

As a business person many choices must be made to improve your business on a daily basis. As a Trading Assistant or Drop Store owner your business only survives if you bring in new customers with the right kind of goods to sell. It seems clear to us that some methods of advertising and promotion are more beneficial than others. And we think every consignment based business should look for more efficient ways to promote their business and not simply rely upon one directory provided by eBay which has no real funnel sending traffic to your business.

11 Alternate Methods to Promote and Advertise your Trading Assistant Business:

1. Set up your own professional website - With SEO in mind.
2. Attach a blog to your website and make regular article entries in that blog.
3. Get listed in other directories outside of eBay and funnel traffic to your blog and/or website.
4. Create online press releases about your business and insert them in your website prior to release.
5. Participate in the conversation - Add comments to other blogs and forums with your industry focus.
6. Create a local Joint Trading Assistant or Consignment community on Yahoo Groups or Meetup.com - Get involved with your local competition, share ideas, and specialties.
7. Exchange ad space on your blog or website with local businesses
8. Create a digital download product which describes your business and gives tips to your clients about eBay. This will build confidence in your business and your personal integrity.
9. Contact the local direct consignment shops and thrift stores in your area - negotiate a deal to handle items which are better sold on eBay than in a B&M store - then offer to advertise the B&M consignment store on your Internet Properties. Some items are better left in a traditional consignment shop and some are better sold on eBay, there is no reason why the two businesses can not work together.
10. Set up an external mailing list with a company like Constant Contact. Make sure you communicate with your clients and your buyers on a regular basis.
11. Open your mind to the possibilities - There is more to the Internet than eBay - Many opportunities and many methods to make your business known. As eBay people we all become a bit myopic when it comes to exploring the rest of the Internet for our own business purposes. Time to look outside the box!

Scott Pooler is the Owner of All Business Auctions and a Web Development Company iBusinessLogic. He writes for the Trading Assistant Journal, All Business Auctions Blog and several other publications such as the Auction Software Review. Scott Pooler will be happy to discuss your business and how you can funnel traffic to it by using proper web development design and web 2.0 techniques at any time.  Simply click the links to find contact information.