1. Message from Derek Gehl

I can't believe we're almost halfway through 2008!

In our feature article, you'll find out how you can reach your revenue goals 16 times faster by opening up your business to international markets.

All the feedback changes eBay's been promising are now in effect... including some brand-new ones! So make sure you take the time to review the major changes that WILL affect how you do business.

And if you haven't started your own eBay Store yet, we've got all the inspiration you need.

You'll meet one of the winners of eBay's Best in Stores contest... and find out all the smart strategies they used to snag eBay's Best in Marketing Award. These are ALL strategies that we recommend, and you can see them at work by reading our Auction of the Month article and taking a tour of the store.

Check it out... and then take advantage of the eBay Stores 30-day free trial that's on now.

We've also pieced together the story of an eBay outlaw who hacked the eBay system. It's a story you're NOT going to hear from eBay!

Enjoy!


Derek Gehl, CEO
The Internet Marketing Center


2. Romanian eBay Fraudster "Vladuz" finally meets his match
High-profile eBay hacker "Vladuz" has finally been arrested.

It took a coordinated operation between the Romanian General Directorate for Combating Organized Crime, the US Secret Service, the FBI, and eBay's global fraud investigation team to bring the Romanian in... although details about the arrest are as yet a little sketchy.

eBay seems to have glossed over the matter a little, perhaps because it has taken so long for the fraudster to be caught. If you don't recall what the fuss is all about, here's a timeline of events as best we can make out...

December 2006

Discussion board posts with pink highlighting appear, signed by "Vladuz." Pink highlighting signifies that a post has been made by an eBay employee... which Vladuz is definitely NOT. eBay doesn't respond to the claims that their system has been hacked.

Beginning 2007

Vladuz posts a screen shot on a hacker website that he claims is from eBay's internal computer systems. The image shows about 30 names, email accounts, and passwords for eBay employees with Vladuz's name is at the top.

21 February 2007

eBay acknowledges that a Romanian has obtained access to a small number of eBay email accounts from customer service representatives, but not any financial information.

23 February 2007

Discussion about the fraud heats up. Vladuz indicates that he has more than just limited access to eBay members' info. There are claims that Vladuz has posted at least three times now on forums in "pink", meaning he still has access to eBay employee emails.



March 2007

eBay concedes that Vladuz was able to pose as a customer service agent on site bulletin boards during late February, after stealing agent login codes, and that the hacker was a skilled identity thief and long-time eBay "phisher."

10 March 2007

eBay announces that security knows exactly how the perpetrator has been breaching the network and is taking preventive measures, but doesn't describe how the fixes are being implemented.

25 September 2007

The names, addresses, email addresses, credit card numbers and expiry dates, Paypal email addresses, associated eBay user ID and other information about more than 1,200 eBay users is posted to eBay's Trust and Safety forum.

Vladuz later uses a thread on the auction-watching site Pheebay.com to claim responsibility for the credit card hack.

And it doesn't end there...

It seems Vladuz also went into the "About me" page for eBay lawyer Scott Noyce and altered his personal details.

But all this has presumably come to an end with the hacker's arrest. We'll wait and see how long it takes before he gets a high-paying job with the Romanian General Directorate for Combating Organized Crime.


3. And the Feedback changes keep coming...
eBay continues to tweak how things will work under the new Feedback system. Everything listed in this article is now IN EFFECT.

What we already know:

• Sellers may only leave positive feedback for buyers
  
  
• Negative and neutral Feedback from a buyer who is suspended will be removed
  
  
• Feedback will be removed when a buyer fails to respond to the unpaid item process
  
  
• Members can leave Feedback up to 60 days after a transaction (down from 90)
  
  
• Members will receive credit once a week for Feedback from people who do repeat business (going back to 1996)
  
  
• The Positive Feedback Percentage will be based on the past 12 months of activity (and include neutral Feedback in the calculation)
  
  
• PowerSellers require 98% positive Feedback to remain in the program
  
  

Here's the latest round of modifications:

• eBay has removed the Mutual Feedback Withdrawal process. Seeing sellers can't leave negative or neutral Feedback, having this process available would leave them open to extortion. Mutual Agreement from third-party Feedback mediation services, such as SquareTrade, will also no longer be accepted.
  
  
• In January, eBay announced they would block buyers from leaving negative or neutral Feedback for 3 days for sellers "with a track record." Since then, the wait period has been increased to 7 days.
  
  A member with a "track record" is defined as an active PowerSeller who has been on eBay for at least 12 months.
  
  
• Buyers in international transactions now get a reminder that cross-border transactions take longer to complete in the "Leave Feedback" area. This should minimize negatives or low DSRs from impatient buyers in other countries.
  
  
• The page that all buyers see before leaving negative or neutral Feedback has been improved, offering a stronger message to buyers about the need to communicate with the seller, to allow enough time for the transaction to complete, and to keep Feedback factual.
  
  
• A new Buyer Requirement allows sellers to block buyers who have been reported by other sellers for eBay buying policy violations (such as Feedback abuse, or email threats).
  
  
• Detailed Seller Ratings will be coming to Half.com in the next couple of months.

4. Set up an eBay Store for free
Were you tempted to open your own eBay Store in March when eBay was offering a free trial, but didn't quite get it up and running? Well, you'll be glad to know it isn't too late.

The success of the last promotion has prompted eBay to offer Basic or Premium stores on a free 30-day trial again until the end of July.

The offer, which is open to first-time subscribers only, will allow you to:

• Store all your listings in one place, regardless of format
  
• Attract and retain buyers with powerful, exclusive marketing tools
  
• Establish your brand on eBay and customize your storefront
  
• Benefit from dedicated, toll-free customer support

These benefits -- and many more -- make an eBay store a fantastic opportunity for any active seller. The eBay marketing experts on our coaching team highly recommend setting one up as soon as you qualify.

And in our Auction of the Month article, you can see how the store that won this year's eBay's Best in Marketing award is taking advantage of all the tools... and using all the top eBay marketing strategies to pull in customers and keep them.


5. Feature Article: Sell internationally to reach a bigger market
Did you know that you could get 16% higher sale prices just by opening up your auctions to international markets?

That's right. eBay research has found that sellers who sell worldwide (and offer PayPal as a payment method) enjoy 16% higher final sale prices on average. This reflects the fact that half of all eBay users actually live outside the US -- in other words, more than 42 million people!

And eBay's overseas business is growing more than twice as fast than it's growing in the US!

With eBay buyers and sellers in 150 countries around the world (including 39 local eBay sites), opening up your listings to these markets could drastically improve your profits.

With all these advantages, it's worth the few extra steps it takes to sell internationally.

Here's how you get started...

Step #1. Choose your international listing method

There are three ways you can get your products under the noses of international buyers on eBay.

You can:

1. Select "Worldwide shipping" during the listing process. This will list your items on global eBay sites when buyers use advanced search AND ask to see international items.
   
   
2. Create a separate listing on other international eBay sites. If you want your listings to appear in the default search results on global eBay sites, you can go to each site and create a listing. You'll pay for each site you list with using the prices particular to that site.
   
   
3. Choose the International Site Visibility Listing Upgrade (NEW). eBay's just introduced an easier and more cost-effective way to list globally.
   
   This "International Site Visibility listing upgrade" feature allows you to list on your local site as well as show up in the default search results on select global eBay sites -- for far less than it would cost to list individually. (See fee table below.)
   
   For the time being, the upgrade will only be available for eBay UK, eBay Ireland, eBay Canada, and eBay.com. US and Canadian sellers will be able to upgrade to UK, while Ireland sellers have the upgrade option to list on the North America sites. More sites will be added soon.
   
   For PowerSellers, using this feature also ensures that these UK sales are counted towards their Final Value Fee discounts.
   

International Site Visibility Listing Upgrade (US)
Start price	Fee
$0.01 -9.99	10 cents
$10 - 49.99	20 cents
$50+	40 cents

So which option should you choose? Considering the low upgrade fee for the Enhanced Visibility Fee, it's certainly a safe bet -- even if you just want to test the waters. It gives you more exposure than the "worldwide" shipping option, and it's cheaper and easier than listing on individual sites!

And according to eBay's data, it only takes one or two extra bids from international buyers to make up the extra cost.


Step 2. Use eBay's shipping calculator to provide accurate overseas shipping information

Including shipping rates to international destinations on all your listings is a great way to encourage international bids on your item -- and it saves you from having to answer more email.

The free Shipping Calculator provides instant shipping costs to buyers everywhere -- and listings that include the Shipping Calculator are more likely to sell.

Some of the international shipping options you'll be able to choose include:

• United States Postal Service (USPS): Your local post office offers some of the most cost effective international shipping options. For more information, see eBay's USPS Shipping Zone.
  
  
• UPS: UPS is one of the most popular shippers on eBay because of their speed and instant tracking. Service is more expensive, however, and they can charge your buyers extra for "brokerage" services, which may lead to feedback problems.
  
  For more information on UPS, visit the UPS Shipping Zone on eBay
  (http://pages.ebay.com/ups/home.html).
  
  
• More courier services: Companies like Federal Express and DHL also service the international community. They can be more expensive, but the ability to track packages and get your items delivered overnight are services your buyers might just pay extra for.
  
  Visit www.fedex.com and www.dhl.com for more information.
  
  

For information about using eBay's Shipping Calculator, visit:
http://pages.ebay.com/services/buyandsell/shippingcenter7.html

Step #3. Accept international payments with confidence

All sellers want to get paid quickly and securely. And international transactions can make some sellers nervous. But their loss is your gain!

It's no secret that shady escrow companies and wire transfers are to be avoided, but the answer is simple: use PayPal!

PayPal is pretty much the most secure payment form you can accept. Plus, PayPal lets you customize your options so that international payments work the way you want them to. If a buyer pays you in US dollars, the funds are automatically deposited in your account.

Consider using Escrow.com for high-priced items. Escrow.com (www.escrow.com) is a service that holds payment until both sides agree that the goods have been received. There are a lot of fake escrow companies out there, so stick to this one, which eBay recommends.

Step 4. Make sure you have received and confirmed payment before you ship any item

If the buyer is using a credit card, contact the card issuer and verify that the name on the card matches both shipping and contact information.

As an extra precaution, review the buyer's contact information to verify that the information corresponds with the shipping address they've provided. You should also check out a buyer's history if you're worried.

Visit the eBay Security Center at http://pages.ebay.com/securitycenter for more information about how to protect yourself as a seller.

Step 5. Get your packages through customs safely and smoothly

Customs can be one of the most worrisome and difficult obstacles faced by international sellers. Customs departments charge a confusing number of different duties and taxes, and can be different for every country you sell to.

The good news is that you don't have to worry too much about this. Just follow these tips and you'll be fine:

1. Clearly state that the buyer is responsible for import tariffs (by adding a short line in your listing's shipping information).
   
   
2. Declare the value of the item on the customs form, using the auction closing price of the item, not including shipping and handling costs.
   
   
3. State the condition of the item on your form. If it's used or second-hand, it'll spare your buyer from having to pay extra duty.
   
   
4. Include a printout of the closed eBay listing in your package. If customs inspectors examine the package, this will verify that the information on the customs declaration form is true.
   
   

As you can see, it doesn't take much to open your offerings to the world at large -- and push your final selling prices up an extra 16%!

For even more information about eBay's range of global trading tools and resources to help you expand your horizons, visit:

http://pages.ebay.com/globaltrading/seller/index.html#sellinternationally


6. The big eBay Bucks invitation
eBay recently launched a new program to reward loyal shoppers by allowing them to earn "eBay Bucks" for qualifying purchases.

The rewards are calculated as a percentage of what you spend between May 14 and August 14. Full terms and conditions are listed here, and participation is FREE.

The bucks will be redeemed as coupons and can be used to pay for purchases made on eBay (excluding anything bought on www.express.ebay.com) between August 21 and September 21.

The program is currently being tested with a small group of selected users, so if you got an invitation email from eBay, make sure you sign up!

If you didn't get an invitation emailed out to you (they were sent out at random), you won't be eligible this time around. But you can sign up for future promotions by opting in here.

Depending on the success of the program, this sort of promotion could occur more frequently in the future, so make sure you're enrolled for your chance to benefit simply from shopping.


7. USPS shipping updates -- what you need to know!
Earlier this month, the United States Postal Service shipping prices and fees changed, as you might already know.

• Rates for Parcel Post, First Class Mail, Priority Mail and insurance increased.
  
  
• The standard Priority Mail Flat Rate Box increased to $9.80 ($9.30 in the label printing solution) regardless of weight or destination. International prices for this service increased.
  
  
• The new Large Priority Mail Flat Rate Box remains at $12.95, regardless of weight, to domestic addresses.
  
  
• Express Mail pricing is now based on zones as well as weight.
  
  
• First Class International pricing is now shape-based.
  
  

Some of eBay's shipping solutions were affected as a result, although most were automatic changes that have already been put in place.

There are, however, new discounts in PayPal Label Printing you can benefit from:

• New commercial base price reductions are available in the PayPal Label Solution for Priority Mail and Express Mail.
  
  
• For Priority Mail, commercial base prices are 1% to 11% lower than retail prices and are based on zone and weight, and 2.2% on average lower than today's Priority Mail prices.
  
  
• For Express Mail, the commercial base prices are 3% lower than the retail prices.
  
  
• The existing 5% and 8% discounts on Priority Mail International and Express Mail International will continue.

8. Category changes update
Updated Categories:

eBay's been madly reorganizing their sub-categories this month. Do you list any of these items?

• Antique tractors
• WWII
• Digital software
• Art Supplies
• Beads, Glass & Jewelry Making
• Handcrafted & Finished Pieces
• Home Arts & Crafts
• Kids' Crafts
• Multi-Purpose Craft Supplies
• Needlecrafts & Yarn
• Scrapbooking & Paper Crafts
• Sewing & Fabric
• Miniature Bears, Baby Dolls, Mod-Era Barbies, and Interactive Dolls?
• Guitars
• Maltese/Mdina Art Glass
• Bordallo Phinheiro, Nemadji Art Pottery, or ES Prussia China & Dinnerware
• Golf Balls, Vintage Fishing Lures, or Baseball Gloves & Mitts
• Antique & Vintage Lanterns
• BMX Old School Bikes & Parts
• Equestrian
• Radio Control Engines or Aircraft
• Video Game Accessories

If so, get more information here. And if you have any of your own ideas about category changes, let eBay know here.


9. Auction of the month: Meet the winner of eBay's Best in Stores Contest... and steal their best strategies!
The votes are in for eBay's Best in Stores Contest!

So this month, we thought we'd take a look at the store that won "Best Store Marketing" -- so we can dissect their winning strategies (and you can adopt them for yourself)!

(See the full winners list.)

And the winner of Best Store Marketing is...

Thumbmonkey Video Games
(http://stores.ebay.com/Thumbmonkey-Video-Games)

Let's take a look at how they're taking full advantage of eBay's marketing tools...

Winning strategy #1: Customize your store design to suit your target market

Thumbmonkey sells video games for families. So their cute and clean store design with animated "thumb monkeys" is a perfect fit. They've also used those images as a memorable way to tell more about the store, with callout boxes that give more information when you mouse over them.

Notice they also have a professional logo and a store tagline.

Thumbmonkey also takes advantage of eBay Store custom pages that help organize important information.

You can customize your store theme, header, and layout -- and create custom pages to give you an edge over your competitors -- in Manage My Store.

Winning strategy #2: Use promotion boxes to highlight your best offers

Promotion boxes are small windows you can use to set apart and display important information about your store -- and they're free for store owners.

And as you can see by looking at Thumbmonkey's homepage, they're effective ways to highlight your best selling features. Take a look at the information Thumbmonkey's featured:

• Fast shipping
• A solid return policy
• Specials at 99 cents and under
• Bestsellers & Staff picks
• Notable achievements (like the Best in Marketing award!)

To set up your own promotion boxes, go to Manage My Store, and choose:

• Where you want your promotion box to show up
• Type of listings you'll display in them (e.g., sale items)
• Promotion box display type. Choose everything from simple boxes to slideshows and countdowns.
  

Winning strategy #3: Make it easy for your visitors to find what they're looking for!

Thumbmonkey neatly organizes their store into categories organized by game consoles. They give you two ways to find this information -- in the sidebar and in organized tabs at the top of the homepage. They also included a search bar so people can search their store by keyword.

And then promotion boxes further organize these listings into Bestsellers, Staff Picks, and special offers. With all these different options, both browsers and shoppers looking for specific products will have no trouble zeroing in on what they want.

These are ALL great strategies for clinching a sale, so if you aren't already using them, now's the time! After all, if your visitors can't find your products, how can they buy them?

Winning strategy #4: Focus on customer service

Thumbmonkey puts a HUGE emphasis on customer service. Let's take a look at some of the strategies they use to make customers feel comfortable buying from them:

• Make it easy for customers to contact you and ask questions by including a contact page and dedicated email address.
  
  
• Cut off questions at the pass with an FAQ list. A list of frequently asked questions and answers cuts down on the number of emails you'll receive AND allows your visitors to find important information that could affect their buying decision -- at a glance.
  
  
• Offer more information about your products with guides like Thumbmonkey's "Game Rating Guidelines."
  
  
• Offer MORE services. Buying a gift for someone? You can get it gift-wrapped at Thumbmonkey for $3.95 per game.
  
  
• Give away coupons. Each Thumbmonkey "Save a Bunch Coupon" specifies a discount amount and a coupon code that can be entered during checkout.
  
  
• Offer a solid guarantee. A return policy takes away the risk of buying from a company you aren't familiar with. At Thumbmonkey, buyers have 30 days to return defective items for an exchange or refund.
  
  

All of these features work together to remove barriers that can stand in the way of a purchase, and help set your store apart from your competitors.

Winning strategy #5: Use email to keep your visitors coming back for more.

Email is an indispensable business-building tool. Most people won't make a purchase on their first visit to your store. So if you have a way of contacting them, you can encourage to come back.

Email is also great for building relationships with those who DO buy, so you get repeat customers!

Take a look at how Thumbmonkey encourages visitors to sign up for their emails:

• "Specials Alert" link on the homepage goes to a sign-up page for Thumbmonkey's email newsletter and Top Picks.
  
  
• Their Company Philosophy on the About Us page explains how they're able to offer such low prices... and invites readers to sign up to receive special alerts.
  
  
• The Contact and About Us page features 22 RSS feeds so subscribers can receive automatic inventory updates, specials, and more.
  
  
• A privacy policy reassures subscribers that they won't be spammed or have information passed off to the Vladuzes of the world.
  

Winning strategy #6: Build a community with eBay tools

Take advantage of eBay community pages to get more people to your store, and tell your store customers more about you.

Thumbmonkey:

• Is in the top 5,000 reviewers! Writing reviews and guides is a fabulous way to drive traffic to your store, and cement your reputation as an expert in your industry.
  
  
• Has a MyWorld page that features their feedback profiles, listings, and newsletter sign-ups.

Winning strategy #7: Link to your off eBay-website

You've heard us talk about the benefits of having your own web store off eBay. And Thumbmonkey's got that down, too! Go to their About Us page, and you'll see a prominent link inviting you to visit them at www.thumbmonkey.com.

When you click through to their site, you'll see their website uses the same design theme as their store for consistency.

Don't forget that when you direct people to your eBay store listings from your off-eBay web store, you receive 75% off your listing fees when they purchase something.

Congratulations, Thumbmonkey -- and thanks for the all the tips!


10. Final thoughts
Thanks for taking the time to read our May Issue of the Bidding Frenzy newsletter and as always, we wish you continued success on eBay.

We love getting comments and questions from our readers, and we read every one! If you have any questions or comments about this issue, or want to suggest topics for future issues, please email us at:
ebaynewsletter@marketingtips.com

Until next month, happy eBaying!

Derek Gehl
www.auctiontips.com