10 Ways to Beat EBay's Latest Sellers' Slump

If you've been selling on eBay, you've probably been hearing (or worse, experiencing) what users are calling a serious slump in sales. Auction final prices are down and so are the number of completed auctions. So what's a seller to do? Fight back!

Thanks to this slow-down and to the new feedback system on eBay, it has really become a buyer's market. Here's what you can do to improve your margins and your sell-through rate.

1. Minimize costs. There's no getting around this one. It's time to start penny-pinching those costs. Make sure you're adequately, but fairly, charging for shipping. Many times we eat into our profits when we miscalculate shipping so pack up your items in advance and be sure you're charging the actual price it will cost to ship. Resist the urge to pad out the shipping fees since eBay consumers are ever more alert to inflated shipping fees.

Reuse shipping materials. Never buy your shipping supplies from a retailer. Look online for wholesalers of envelopes, bubble wrap and other packing materials.

2. Negotiate with your wholesalers. You never know if you can get a better deal unless you ask. This eBay slump is getting to be pretty common knowledge so your wholesalers may be sympathetic to your cause. If your wholesalers don't want to negotiate then make sure you're shopping around for the best prices on your goods.

3. Do your homework. If you aren't already researching your merchandise purchases through "completed auctions" search and through "Marketplace Research" (a paid subscription) - start now! Research every piece. model number and color variation if you can. Make sure that what you're buying from your wholesalers is really what's selling. Accurate market information is even more crucial than before.

4. Look for higher margin/ higher priced goods. You can help compensate for eBay's substantial fees by selling higher priced goods. If you're able, move up-market a bit. A 20-30% markup has more impact on a $100 item than on a $15 item.

5. Consider other auction sites and sales venues. Let's face it, if we're not feeling the love from eBay these days, there are other options available. One of the easiest is Yahoo's auction site. Also consider going offline. If you sell higher priced collectibles, jewelry or electronics, consider listing them for free on your local Craigslist site. Thrifty Nickel and Greensheet also offer very competitive listing prices.

6. Look for added value opportunities. Are you an expert in the items you sell? Why not create a guide and include a free copy with each sale? Go the extra mile for your buyers in any way you can (that doesn't add significant cost, that is.) Some people throw in a little candy gift, or gift wrap each item. If your margins are very thin, or your items are very inexpensive, this may not be a good option since it would increase your costs. However, if you're selling diamond rings, don't ship them in a plastic baggy. Find a jewelry box or satin bag wholesaler and spruce up your products before you ship them.

EXTRA TIP: Send off for freebies! Get on the freebie forums like Freebiefix.com, Freelancebyu.com, and FatWallet.com and start sending for freebies. These make great gifts with purchase. Take advantage of every freebie opportunity you can. Enter contests and sweepstakes as well to increase the chances of more free stuff!

7. Make sure you're giving the best service you can. Answer questions quickly and thoroughly. Set yourself apart through the service you provide. Include a personal thank you note instead of just a packing list or invoice.

8. Do business with other eBayers. Take advantage of the eBay blogs if you haven't already. They're an excellent source of information and remember, most eBayer sellers are also buyers. Get competitive deals on supplies through other eBayers. This not only helps the community but also boosts your feedback.

9. Market yourself. Take advantage of the various cross-promotions and marketing services available through eBay. There are several pages devoted to the subject on eBay's own site, so I won't repeat the information here. Review the topics thoroughly and decide which, if any, would be helpful to you. EBay is constantly adding services to this area, so make sure you check those pages periodically. Also, if you're not blogging (outside of eBay) then start. You can set up a page on Blogger, Livejournal, or Squidoo (which I highly recommend) to simply talk about the wonderful products available at your store. Get the word out!

10. Review your listings. Make sure you're writing all the features and benefits of your products. "Just the facts," just won't do these days. Provide vivid details that appeal to the senses. Tell potential buyers why the product is so good and why they should buy it from you. Don't be afraid to "ask for the sale" in your listing. Make it urgent - if you only have 1 or 2 of an item, say so. Put your item in context for the buyer. If you've had personal (positive, of course) experience with the product - write it. If other buyers have left feedback about the product - put that in the listing too!