The Turnover Principle

Step Three:

Strategic Selling!

The Turnover PrincipleInvestigate to find out

what sells and the profit you can make

Find products from reliable suppliers

with maximum profit margin

Sell consistently and stay ahead

of changes in the market

Selling Should Start with STRATEGY!

1. High Volume: Listing Success Rate (LSR)Strategy: A higher volume of sales yields greater profit in the long run, even if the profit per listing is less. This strategy is great for bulk items.

2. High Profit: Average Selling Price (ASP)Strategy: A greater profit per sale yields greater overall profit in the long run, even if the conversion rate is lower. This strategy is great for small inventories or less common items.

3. Balanced: LSR x ASPStrategy: This strategy tries to strike a balance between increasing conversion rate and earning more per sale in order to get the greatest profit in the long run. This strategy is great for selling common items at non-bulk rates.

Strategic Selling Tips• Expand Slowly and Cautiously

– Some sellers on eBay readily attempt to sell anything you can imagine, however, it is often more profitable to focus in on something that you can specialize in and do better than any other seller.

• Gauge Product Demand– Demand is the key to eBay business profitability.

– Timing is extremely important.

– Learning to pick a hot product before it becomes hot is a valuable skill that comes from knowing that market. (Research, Research, Research!)

– High demand and low supply translate into higher prices. As demand increases, supply will eventually overtake it and prices will gradually move downward. At the end of a product’s popularity, liquidation stock in the market will cause prices to basically bottom-out. This will happen very fast, often in a matter of weeks not months or years.

More Strategic Selling Tips• Gauge Product Supply

– A careful analysis of the competitive landscape is always important before jumping into a new market. If the market is already saturated with sellers who have better pricing and access to product than you, you may want to look elsewhere for more profitable business ventures

• Marketability– Clearly it won't matter what products you sell if your customers aren't buying.

• Profit Margin– The best selling products won't earn a seller much if their margin is too small.

• Some questions to keep in mind while selecting products for resale.– Would you buy it and use it yourself? – Can you see yourself getting excited about this product or service? – Would you sell it to someone you know? – Is there a real need for the product in today's market?

Shipping

options

Best

start timeBuy-it-now

Best

ending time

Highlight

Best

listing

durationBold

Keywords

Selling Strategy Building Blocks

What is the Selling Strategy of My Competition?

Analyze market factors and individual sellers in each category that have captured a large share

of the market with fewer listings and then:

• Imitate– Follow best practices that are working well

• Innovate– Use research to surpass average market successes– Use research to anticipate market changes and react

quicker than the competition.

Track Your Product Life-Cycle Changes

Demand Supply Business Implications

EarlyLife-Cycle

High Low

Product is very expensive early on in the product cycle, but if your sources can get you sellable product with a window of opportunity

before it is available to the general marketplace, some of the highest margins to be

made on eBay are to be made here.

MiddleLife-Cycle

Decreasing Increasing

Selling here is where most traditional businesses compete. Higher margins come from

efficiency, good supply relationships, and volume discounts. Sellers must constantly be aware of the upcoming shift to the end of the

product life-cycle

LateLife-Cycle

Low High

Selling here is tricky, risky, and timing-intensive. The goal is to buy product in volume just as it hits liquidation channels but before demand has dried up as the result of market saturation or the public's anticipation of the

replacement product.

Generate Strategic Selling Goals

Volume

Pro

fit

Mar

gin

• GOOD

• BEST

• BETTER

Communication is Key to Long Term Selling Success

• Start with accurate listings, efficient shipping, and fast response time to queries

• Create a professional “About Me” page and direct customers there

• Create a professional Webpage and direct customers there (links to a webpage are allowed from your “About Me” page but not from your listing)

Customer Service is Another Key to Long Term Selling Success

• Answer questions in 12 hours or less

• Use timely invoicing procedures

• Expedite shipping & feedback

• Establish clear, fair policies (e.g. returns, warranties guarantees)

• Offer options whenever possible (payment/shipping)

• Communicate, communicate, communicate!!!

Takeaways of the Turnover Principle:Correct Implementation of the Turnover Principle will allow an eBay seller to:

– Remove the guesswork from selling successfully on eBay

– Understand the market they compete in or hope to compete in

– Make and implement effective strategic decisions

– Develop on-target business plans & strategies

Researching, sourcing and selling is to

remove the chaos of running an eBay

business and replace it with sound

strategies!

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