Message from Derek Gehl Feature article: Sell "digital" products to boost your business WITHOUT breaking eBay's new rules Boost your eBay business with promotional flyers eBay reviews feedback and linking policies -- again! Category changes to watch for Take 30 seconds and earn buyers' trust on eBay Will Buy.com eat your business? Pre-filled information expands to more categories Auction of the month: How a few minutes of research can get you top "Americana" dollar Final thoughts

1. Message from Derek Gehl
It's been a hectic summer here at the Internet Marketing Center.

We've just moved to brand-new offices. And although we're still unpacking, we've been busy researching the hottest eBay strategies you can use in response to all the changes announced earlier this year.

In the feature article, you'll discover how all is not lost if you used to sell digital products on eBay -- because there are loads of benefits to be had by burning them to CD and selling them as physical products instead.

eBay has decided to delay and review some of the changes it announced earlier in the year in response to user feedback. We've got all the details on the latest status of eBay's ever-changing policies.

We've also got some great tips direct from our Advanced eBay Mentors on how you can easily turn one-time customers into lifetime customers. And look for our information on how to boost your credibility in just a couple of minutes...

eBay remains a GREAT place to do business online -- as long as you keep up-to-date with the latest strategies to keep you ahead of the competition.

And that's why we're here to help!


2. Feature article: Sell "digital" products to boost your business WITHOUT breaking eBay's new rules
We used to recommend that new eBay sellers build up a good feedback rating by selling digital products such as eBooks.

It was cheap and easy to do -- and because buyers would instantly receive your product, you could quickly get established as a seller and boost your feedback scores.

Now, electronic products can only be listed using eBay's Classified Ads, which cost $9.95/month and don't qualify for feedback.

But there is a way you can still benefit from selling digital products on eBay... by burning them to CD and selling them as physical products.

Of course you lose many of the advantages of selling downloadable products (such as no shipping fees, no inventory to handle, etc.), but this strategy is still a great way to boost your detailed seller ratings and get started on eBay.

Plus, there are now way fewer digital products available on eBay, so it's likely you can command a higher price for things like eBooks on CD.

This strategy isn't likely to make you loads of money -- in fact, you might only break even or perhaps make a small loss. But it can be a great way to generate leads, establish relationships with customers, and keep them coming back for more... so you'll be much more profitable in the long run!

So how do you go about putting your digital products onto CD and selling them on eBay?

1. Decide how you'll sell digital products on CD

First you need to decide how you're going to use digital products on CD in your eBay business.

Will they be your main product? Or will you offer them as a bonus with something else? Perhaps you could use them to generate leads for future sales. Or you could use them as an "upsell" -- an extra product that you can add to an order for a few dollars.

It's also important to research existing digital products on CD being sold on eBay. When you're looking at what's already out there, ask yourself these three crucial questions:

• Is the item scarce? The problem with eBay's old policy of allowing people to sell eBooks and other digital products was that it seemed like EVERYONE did it! That meant there were thousands of similar digital products for sale, often for just a few cents each.
  
  But the good news now is that there aren't many digital products on CD for sale, which means you're likely to encounter much less competition.

• Is the item desirable? Do people want to buy your digital product on CD? Or can they easily instantly download something similar elsewhere? Desirability is linked to scarcity, because an item's scarcity often makes it more desirable.

• Is the item in demand? Do people NEED your digital product? Are you selling authoritative information they can't get anywhere else? Patterns, product manuals, scrapbooking templates and other unique and hard-to-find items translate well to CD, because people will overlook the slight inconvenience of waiting for a CD to get them.

Click here to find out what's hot on eBay. To research what's already available for sale, click here.

2. Find a CD duplication service

Burning digital products to CD can be a tedious and time-consuming process -- so why not get the job done quickly and cheaply by a professional company?

This can be well worth it if you sell a lot of CDs -- because you can negotiate better rates for larger orders. Plus, some CD duplication companies can also take care of your fulfillment.

Here's what you need to know BEFORE you select a CD duplication service:

• What format you require (audio CD, data CD, or DVD)
• How your CDs will be packaged (options include plastic cases, paper envelopes, cardboard sleeves, and clamshells)
• What text or graphics you need printed on your CDs and packaging
• How many copies you need
• Whether your order is a one-off job -- or you'll need more copies in the future
• How quickly you need your CDs produced
• Whether the duplication company complies with International (ISO) quality standards

So what can you expect to pay?

Well, prices tend to depend on the size of your order, but here's an example of typical prices for different quantities of standard 74-minute/650MB CDs with text logos and covers with one side of printed text:

• 10 units: Total cost: $46; Cost per disc: $4.60
• 100 units: Total cost: $148; Cost per disc: $1.48
• 1,000 units: Total cost: $1,090; Cost per disc: $1.09

Duplium (http://www.duplium.com/) is a good option for North American sellers -- or you can search Google for a suitable company in your area.

3. Build your own website and sell your digital items OFF eBay

If you still want to sell your digital items as downloads rather than on CD, but you're worried you won't sell enough using eBay's Classified Ads, you should consider setting up your own website.

You'll need your own domain name, such as www.mysite.com, and a web hosting package that gives you some virtual "space" on the Internet to store your website. When choosing your domain name, keep it related to your business, and consider using words that reflect your eBay user ID or eBay Store name.

Visit www.marketingtips.com/webhost to learn more about registering a domain name and purchasing web hosting for your first site. Then you have to build your site. Here are the three easiest ways to go about it:

a. Bebiz: The best option for setting up a simple -- but effective -- money-making website is our own BeBiz program (http://www.bebiz.com/).

BeBiz is an easy-to-use interactive program that guides you every step of the way as you create your own Internet business -- and it's ideal for building a website to sell digital products.

It also includes full video tutorials that walk you through each step -- removing every single barrier standing between you and your own successful online business.

A huge advantage of BeBiz is that it goes beyond just setting up a website and shows you how to attract the search engines so you can get lots of traffic.

b. Free website templates: For a simple one-page website, search Google for "free website templates" and choose something that reflects your business. Then just fill it in.

c. Create a blog: Blogs are easy to create and maintain, and they can be really useful for selling and/or promoting your eBay business.

Google's Blogger service (http://www.blogger.com/) makes it easy to create a blog that's simple to update with information about the products and services you offer. And it's free!

Your own website can be great for boosting your eBay business as well as giving you an extra outlet to sell your products.

By linking to your eBay listings or eBay Store from your website, you can get more people to look at your items AND improve their search engine ranking.

Plus, if you sign up as an eBay affiliate in the eBay Partner Network, you can actually get paid by eBay for driving traffic to eBay listings!

The days of selling digital products through regular eBay listings may be long gone -- but these new strategies can help you build relationships with customers, prove yourself as a reliable seller, boost your DSRs, and make you more profitable in the long run!

And digital products are still one of the most profitable things to sell on your own website -- so you should definitely check out how http://www.bebiz.com/ can help you create another stream of income outside eBay!


3. Boost your eBay business with promotional flyers
Establishing rock-solid relationships with your eBay customers is crucial if you
want to sell to them again and again.

To encourage one-time customers to become repeat customers, you should consider including promotional flyers with your packages to drive people back to your eBay listings, eBay store, or your own website.

Flyers are a great way to thank your customers and ask for a five-star Detailed Seller Rating. You can also remind them to add you to their Favorite Sellers list, which means eBay will automatically email them weekly updates of any new items you've got listed.

To make the most of your promotional flyers, be sure to include the following elements:

• Thank you! Tell your customer you appreciate their business and that you're committed to excellent service.

• Congratulations on purchasing product XYZ! Reinforce your customer's purchase by congratulating them for snagging something of value. This helps reduce "buyer remorse," which can cut down on your refund rate.

• A little about me: Putting a face to your business makes it more personal and can help create a connection with your customers.

• If you liked product XYZ, you may also be interested in... Did you know that 20% of your customers will buy from you again if you present them with a relevant offer? Don't let these sales escape!
  
  This is your chance to plug other items you have for sale -- especially if they're related to the item your customer bought.

• A discount on your next purchase! Offering a limited-time discount helps create a sense of urgency to buy, especially if you compete with lots of other eBay sellers. It can really help your business stand out from the rest!

• Ask for a five-star DSR feedback! If you politely ask for a five-star rating, you're more likely to get it. And, the higher your DSR, the higher your listings will appear in eBay's search results.
  
  Ask your customers to contact you with any concerns or complaints before they leave negative or neutral feedback, so they know you're committed to making them happy.

• Tell people to visit your website or store so they can buy more of your products!

Putting flyers in your shipping packages is easy and inexpensive. If you're an eBay Store owner, click here to learn more about using eBay's Promotional Flyer service.

But it's just as easy to make your own and get them duplicated at your local Kinko's.

It takes all of an hour to create a flyer and no time at all to add it to every package you send out -- and you'll see immediate results in your sales and DSRs.


4. eBay reviews feedback and linking policies -- again!
eBay has decided to delay and review some of its recent controversial changes
following feedback from sellers, particularly those at this year's eBay Live! event in Chicago.

(If you want to know more about eBay Live! 2008, check out our report in last month's issue of Bidding Frenzy.)

Here's a summary of everything you need to know about these latest updates:

a. Feedback percentages to be counted WITHOUT neutrals

Neutrals will no longer be counted towards sellers' feedback percentages, as of late August. Feedback percentages that do include neutrals will be re-calculated at this time and no one will lose their PowerSeller status as a result of neutral feedback in the interim.

b. New dispute resolution process set for October launch

Buyers who leave negative feedback will be able to change their feedback in certain circumstances.

This change is due for the end of October and it differs from eBay's old Mutual Feedback Withdrawal system because it allows buyers to change their feedback if they make a mistake or the issue is resolved, instead of simply withdrawing their feedback.

c. Review of no-links policy

eBay will announce in mid-August the result of its no-links policy review. If adopted, the no-links policy will stop sellers linking to off-eBay pages from their "About Me" page.

eBay says sellers will have a four-week grace period to remove links once the policy is introduced.

d. Specified shipping prices not required until August

eBay has also delayed its specified shipping prices policy, which aims to create shipping cost transparency for buyers. eBay is updating its bulk-editing tools to allow shipping information to be edited across multiple listings at once.

The policy will be enforced in August once these tools have been updated.


5. Category changes to watch for
eBay will make some significant category changes in mid-August that you
should look out for if you sell in the Jewelry and Watches or Electronics categories.

Jewelry and Watches

A new section for Fine Jewelry has been created "to spotlight non-vintage, non-bridal jewelry composed entirely of genuine gemstones and solid, unplated precious metals."

A separate section for Engagement/Wedding/Anniversary Jewelry has also been created. Click here for full details.

Electronics

Many categories in Electronics will be removed to avoid redundancy between categories and item specifics. Click here to see the full list.

There will also be changes in Antiques, Entertainment Memorabilia, and Clothing, Shoes and Accessories. Click here for more information.


6. Take 30 seconds and earn buyers' trust on eBay
Want a quick and easy way to make potential buyers trust you more?
eBay's ID Verify service allows you to establish your proof of identify with a special icon in your feedback profile.

It's a subtle -- but effective -- way to tell your customers that you're a real person they can rely on to do business with.

Verification costs $5 and it lasts as long as you have the same name, address, and phone number. Click here to learn more.


7. Will Buy.com eat your business?
As if eBay hasn't already alienated sellers enough... now it's struck a deal with
Buy.com that allows the giant online retailer to sell on eBay at reduced fees.

eBay even created a new "Diamond" tier of PowerSeller for mass retailers selling $500,000 or 50,000 items a month. And one of the benefits of Diamond PowerSeller status is "alternative fee structures" -- in other words, the ability to negotiate fees.

So eBay is inviting the "big box stores" of the Internet to sell on the eBay marketplace at lower fees than everybody else has to pay. It's part of the move to more fixed price listings and a more "predictable" experience for shoppers.

For smaller sellers this may seem like the last nail in the coffin.

But don't panic just yet.

Our Advanced eBay Mentors have taken a close look at the situation and they say that Buy doesn't represent real competition to niche sellers who practice good marketing on eBay. Here's why.

Buy is not a niche retailer. It sells mass-market products in saturated categories like computers, electronics, video games, toys, music, and books. If you sell to a group of people with specialized interests and you can cater to their needs -- with expert advice and a deep knowledge of your products -- they'll trust you enough to buy from you.

Buy can't write a listing like you can. With almost three million items for sale per month, there's no way Buy can create listings that actually talk to shoppers and help them understand how they'll benefit from the product. And the stats prove it. With an average sell-through rate of only 2.08% and only 0.03 bids per listing, they're not exactly grabbing shoppers by the eyeballs.

Buy has to maintain high standards or lose its Diamond status. To qualify for the Diamond PowerSeller tier, a merchant must maintain 98% feedback and at least 4.8 on all DSRs. (The only other seller to qualify is poor_fish_store which sells hunting and fishing equipment.) The bulk of Buy's feedback has come since June. Time will tell if they can keep up the pace.

Buy doesn't ship beyond the continental US. If you do, then you have an advantage over them, even if you're selling in the same categories. You can mention it prominently in a subhead in your listing title and again in your listing description.

Yes, eBay is definitely going after big sellers. And it's definitely favoring fixed price listings over auctions. But if you concentrate on:

• finding a niche market and catering to their needs
• writing keyword-rich listing titles and benefit-rich item descriptions
• keeping your feedback and Detailed Seller Ratings healthy
• shipping beyond the continental US

... Buy and other huge retailers are no competition for you.


8. Pre-filled information expands to more categories

• Consumer Electronics
• Computers & Networking
• Cameras & Photo
• Business & Industrial
• Home & Garden

Pre-filled information helps you save time creating listings because you can instantly add standard product information (such as brand, model, and color) and photos.

Click here for full details of the items in these categories that will have pre-filled information available.

Pre-filled information is already available in Media categories of Books, Movies, Music and Video Games, and Electronics categories of Cell Phones, PDAs, and Digital Cameras. To find out more, click here.


9. Auction of the month: How a few minutes of research can get you top "Americana" dollar
How would you like to wear a piece of American history?
Well, if you've got $9,000 to spare and you live in the US, you can. Check out this pair of 1890s Levi's 201s being auctioned off on eBay...



And in case you think that $8,000 is a lot to pay for a pair of torn denim pants, consider the pair of 1880's Levis that sold for $46,532 to the Levis Strauss company in 2001, and a pair of 1890 501s sold for $50,000 to a Japanese collector in 2005.

The jeans up for auction are one of the oldest pairs of Levis to be sold on eBay.

There's no question that these Levis are a rare find -- if they're authentic.

Because of the money involved in this auction, it's important to take steps to establish authenticity. Let's take a look at what this seller is doing -- and what else he could be doing -- to establish their worth and get top dollar...

• Give details that bring the history of your product to life. This seller gives little details about the jeans that make you imagine the 1890s. "This old pair of LEVI'S was found in a mine in the Rand Mining District, in the Mojave Desert, California. They are covered in candle wax from the candles the miner was using to light the tunnel he was working in."

• Establish a timeline. We learn in the auction listing that the jeans were found in an old paper bag with the name of a mercantile store that operated between 1895 and 1898 -- giving an approximate timeline of the contents. The jeans were also found with a gunny sack with the initials APK -- thought to be the store's partner, Adam P. Kuffel.

• Provide unique details that help authenticate your item. This seller gives a description of the jeans that places the date they were made between 1890 and 1901: "These pants have the cloth label vs. the leather label. They are copper riveted with the rivets marked L.S. & Co. S.F. They are buckle back (pictured) with suspender buttons. Buttons are silver in color and are all marked LEVI STRAUSS & CO. S.F.CAL. The pants were made with just one back pocket on the right hand side."
  
  However, you have to be up on your Victorian-era Levi's lore to know that copper rivets were introduced in 1890, and that two pockets were introduced in 1901. This information is readily available if you do a little Google digging. (Look at this Levis Strauss Co. timeline.)

Don't make your buyer work to find out whether your item is worth buying! Here are some other strategies this seller could be using to hit the motherlode:

• Take lots of photos and close-ups. The more photos that show close-up details of things like the markings on the copper rivets, the more you'll be able to show your item's authenticity.

• Get your item certified. The previous high-selling Levi's auctioneers both had experts examine the jeans and vouch for their age and worth. When you know that you're sitting on an item that's potentially worth $25,000 plus, this is a step that would certainly be worthwhile. After all, would you want to lay down that kind of dough on a potentially fake item?

• Reinforce your credibility as a seller. This seller has over 400 feedback -- 100% positive. But this isn't emphasized in the listing. For an auction worth this much, it's a good idea to include some of that feedback in your listing (or at least mention it).

• Open up your bidding to the widest possible audience. This seller has restricted the auction to United States addresses. But Japan is a huge part of the vintage American collectors' craze. Even though this seller would have to pay more to ship overseas, the higher auction price he could fetch would probably offset the cost.

• Maximize your auction title. Make sure your item gets maximum exposure. Use all 55 characters for your title and stuff your auction title with as many relevant descriptive keywords as you can. High-ticket items could definitely benefit from a 50-cent subtitle. This seller tells exactly what he's selling, but unless you're looking specifically for an "1890's -201 Levi's- Great Condition" (or browsing a particular category, you wouldn't find it. (What if you were looking for "Victorian Levi's," or "vintage Levi jeans").

I'm no Levi's expert, but after doing a couple hours of research, my feeling is these jeans are authentic. But just how do you go about spotting fakes?

• Research eBay guides specific to the item you're considering. (e.g., http://www.levisguide.com/fakes/fake.html).

• Look for spelling errors on labels and tags, and sloppy workmanship like off-centered rivet and button stamps. They tend to indicate a fake.

• Get your item authenticated. This seller offers a 7-day return policy... so the buyer could have the jeans examined by an expert.

It will be interesting to see the final selling price of this auction. Maybe the item will sell for what it's actually worth... or it could be scooped up by another savvy eBay seller who'll turn around and use all these strategies to resell the jeans for a profit!


10. Final thoughts
That's it for this month's Bidding Frenzy!
As you can see, there are ALWAYS new eBay selling strategies you can use to keep your business ahead of the game -- and that's why we're here to help you.

But we'd also love to hear about any of your own new strategies that are working for YOUR eBay business. Or if you'd like us to research any particular topic for a future issue, please email us at: ebaynewsletter@marketingtips.com.

Thanks for reading -- here's to your continued success on eBay!

If you're looking to start an Internet business... WITHOUT a website WITHOUT a ton of start-up capital WITHOUT being a computer techie, and WITHOUT a ton of business experience! ... eBay is the perfect place for you! PLUS -- if you have an EXISTING Internet business -- you'll learn how to boost your sales by expanding into eBay's giant online auctionplace of 2,000,000 shoppers a day, with over $1 Billion in purchases made in 2006! So if you're keen to earn life-changing wealth in the world's largest marketplace (I'm talking 241,000,000 registered users who are PSYCHED to spend money online), then check out my new Insider Secrets to Selling on eBay!