So 58% of us have used the internet  for buying things.

What sorts of things are Kiwis buying online? Again, Roy Morgan Research to the rescue:

Top Ten Products Bought Online
(within the last three months, Jan-Dec 2009)

• 18% Travel (tickets/accommodation)
• 10% Clothing/Shoes
• 9% Books/Magazines/Newspapers
• 8% DVDs/Videos
• 7% Music to download
• 7% Sports equipment/clothing
• 7% Gifts
• 7% Toys or Games
• 5% Computer Software
• 5% Other entertainment

Trade Me’s influence is clear — most of those products (largely excluding travel, which can be found on sister site TravelBug) are readily available through our favourite online auction site.

So have the dynamics of selling on Trade Me changed, now that there are more than a million and a half items regularly listed on the site?

Better, Faster, Cheaper (pick all three)

Once upon a time, sellers could get away with offering products on Trade Me that were EITHER Better OR Faster OR Cheaper. Now we need to try and deliver across all three metrics — competition in most categories is as intense on Trade Me as it is in the real world (if not more so).

And customers today are more demanding. They want perfect orders, shipped and delivered on time.

What’s a “perfect order”? According to Edward Marien of the University of Wisconsin, customers are looking for:

1. The Right Product in the
2. Right Quantity from the
3. Right Source to the
4. Right Destination in the
5. Right Condition at the
6. Right Time with the
7. Right Documentation for the
8. Right Cost.

US consumer products giant Procter & Gamble has its own definition of a perfect order: “a product that arrives on time, complete (as ordered), and billed correctly.” By P&G’s internal calculations, the company estimated that an imperfect order was costing it an average of US$200 each time.

The company found that additional costs for getting things wrong included:

• the cost of redelivery when orders were late;
• replacement costs if shipments were damaged;
• processing costs for quantity adjustments;
• and price and allowance deductions.

Those are industrial-strength concerns, of course. The Trade Me equivalent would be:

• new shipping charges if items are poorly addressed and then returned to sender
• the cost of re-supplying and re-sending goods lost or damaged in the post
• time lost swapping emails with an aggrieved buyer if the product isn’t as advertised
• the reputational risk of negative feedback if you don’t meet customer expectations
• the danger of further damage to your reputation if unhappy customers decide to tweet, blog or post to Facebook about their unhappy experiences with you
• oh, and visits to the Small Claims Court if things really get out of hand

All in all, it’s better to be an overachieving seller, delivering more than you promised.

Seven tips for improving your Trade Me sales

In many ways, though, delivering on The Perfect Order is really just about the hygiene factor — getting things right after the sale.

If you want to increase the percentage of your listings that actually sell, start with these seven tips:

1. Always include shipping costs in your listings.
   American research shows that one in five online shoppers abandon their purchase because shipping costs aren’t shown alongside the product costs. Today’s consumer doesn’t want any hidden surprises.
2. Tell visitors why they should shop with you
   Unless you”re offering a one-of-a-kind product that’s simply unavailable elsewhere, chances are you have competitors on Trade Me selling similar products. So don’t rely on the product attributes to do all the selling job — tell your browsers why they should choose you. Talk about things such as value for money, your excellent customer service record, the merits of your organisation (not just your product).
3. Include Customer Reviews
   According to Nielsen’s NZ Social Media Report (July 2010), 1.92 million Kiwis now look to their fellow Internet users for opinions and information about products, services and brands. It’s not that they don’t trust sellers — they just trust their fellow consumers more. So incorporate the words of your customers into your listings, If you have really flattering feedback, feature it prominently in your listing (don’t expect visitors to check out past praise in your feedback — they won’t, they’ll just look at the percentage of positive feedbacks).
4. Have a highly-visible, no-hassle returns policy
   For many potential buyers, a money-back-guarantee will make the difference in convincing them to go with you rather than a competitor. Yes, there is the risk that your products will be returned to you, sometimes in unsaleable condition — but if you’re delivering The Perfect Order (as defined above), your percentage of returned orders will be much lower than your percentage of increased sales achieved as a result of your returns policy.
5. Check Out Your Competitors’ Images
   What are your competitors doing well that you might copy (and indeed improve upon)? Take a look at their listing photos — are they sharp, professional, attractive? Do they show key aspects of the product that yours don’t? If you put your photos and theirs side by side, which look more interesting, desirable, show off the product features best?
6. X-Ray Your Competitors’ Words
   Start with their headlines. What features have they highlighted? What keywords have they used? Are they using subheads as well? Are there any headlines which sound better than yours? Then take a look at the main body of their listings. How compelling are the words they use? Are there any benefits they’ve emphasised that you’ve overlooked? Review what others are doing, and then polish up your own stuff.
7. Use Real-Life Stories to bring your listings to life
   It’s one thing to have nice marketing copy describing a product — but it’s far more compelling to see real-life tales from other customers describing how they use the product. Once you have a base of happy customers, invite them to contribute their stories. Even if most won’t, you just might find some real gems. [Okay, you can't do this with every product, but where you can, it's worth the effort].

Tip of the Iceberg

What we’ve covered here is only part of the story of what it takes to sell effectively in 2010.

If you want to join the 15,000 or so professional sellers that Trade Me estimates conduct business on the site, you need to dig rather deeper.

Here are just some of the questions that professional sellers have asked (and found out the answers to) and most of us don’t know:

• What can you find out about the buyers who are most likely to be buying on Trade Me?
• When are they most likely to visit Trade Me and push the “Bid” button?
• What are the hottest selling seasons and how can you take best advantage of that timing?
• What types of products sell best on Trade Me? And what’s particularly hot in 2010?
• Who are the top selling traders on Trade Me these days and what are they doing well?
• Where are the best places to source your products?
• How can you make your products truly unique?
• How can you really get noticed on Trade Me?
• What are the secrets of going viral and getting your listings heaps of traffic?
• How do you come up with Compelling Headlines and Sizzling Descriptions?
• What sorts of images will sell your stuff best?
• How can you get the most money for your products?
• How do you promote your listings to best effect?
• These days, should you be building a following through Twitter or Facebook?
• How can you try to squeeze an extra sale out of every listing with no additional promotional cost?
• How can you grow your Trade Me business without having a total meltdown?
• What are the best tools for automating your listings processes?
• How can you get your products out the door effectively and efficiently?
• How can you attract really favourable feedback from your customers?
• How can you turn today’s one-time buyer into a longterm satisfied customer?

If you’d like to significantly improve your Trade Me sales performance, allow us to introduce our new course:

Course TM-1: Advanced Selling On Trade Me

This is a seven-week eCourse providing a comprehensive masterclass on selling on Trade Me. The course presumes you are already familiar with the basics of selling on Trade Me (if there are a few gaps, you can do your homework with our own TRADE ME SUCCESS SECRETS book).

This is an ONLINE-ONLY course — you can take part from anywhere, in your own time.

This eCourse is conducted on a web-based e-learning software platform, enabling course participants to proceed at their own pace, accessing materials online. This particular eCourse provides content in a variety of multimedia forms, including videos, slideshows, flash-based presentations and PDF files. No special software is required to participate.

Course lessons are released weekly, for participants to access in accordance with their own timetables. Interaction with the course tutor is enabled through the platform software tools (with telephone backup if required).

TIMING
This eCourse started on Wednesday August 18, with the delivery to participants of Lesson One. New lessons are delivered weekly on Wednesdays.

LATE ENTRIES
Late entries are accepted within the first three weeks of course commencement (up until September 8).

COURSE CREATION AND TUTORING
This course has been created and will be tutored by Michael Carney, author of the best-selling book about buying and selling effectively on Trade Me, TRADE ME SUCCESS SECRETS (now in its second edition).

WHO SHOULD TAKE PART
Anyone who wants to sell as effectively and profitably as possible on Trade Me.

——————————————————————————–

The full course details are at http://trademesuccesssecrets.com/ecourses/ but here’s a sneak peek:

COURSE CONTENTS

INTRODUCTION

• The secrets of selling successfully on Trade Me
• The skills you’ll need to have (or hire in) as your selling operation expands
• Self-assessment questionnaire to determine if you have what it takes to be a top Trade Me seller.

LESSON ONE: ABOUT THE BUYERS

• What makes them buy (or not)?
• How are they impacted by current economic conditions?
• What are their motivations?
• How can trigger the urge to buy?
• When are they most likely to visit Trade Me?
• How can you keep watch on their current interests?
• Who are the most likely buyers for your products?

LESSON TWO: PRODUCTS THAT SELL

• Products that always sell well on Trade Me
• Items that are especially hot in 2010
• The best places to source your products in 2010
• How you can make your products truly unique

LESSON THREE: TOP SELLERS & THEIR STORIES

• Who are the top selling traders on Trade Me these days?
• What are they doing especially well?
• We also catch up with some old friends (featured in Trade Me Success Secrets) and ask them what they’ve learned since last we met

LESSON FOUR: GETTING NOTICED

• Why an auction goes viral and picks up hundreds of thousands of pageviews
• Tana Umaga and that handbag
• The Scary Washing Machine phenomenon
• Strategies that make auctions sizzle.
• The increasing importance of Twitter and Facebook for auction sales

LESSON FIVE: KILLER CONTENT

• What makes content remarkable, valuable and relevant?
• What makes it worth sharing?
• How to craft the words that matter
• Creating headlines that get noticed
• Pictures that make your item a must-have

LESSON SIX: HOW MUCH?

• What pricing strategies are most effective on Trade Me these days?
• What are the little tricks for squeezing more revenue out of the site?
• When are loss leaders (such as $1 No Reserve listings) appropriate?

LESSON SEVEN: GETTING THINGS DONE

• Systems are vital if you want to grow your Trade Me business (unless you simply don’t want a life).
• What’s now available to create your listings, post them quickly, get the products out the door — and then handle those after-sales deals such as feedback.
• We also look at how you can build a list of satisfied customers — and turn that happiness into additional revenues.

CONCLUSION

• How to turn all that learning into a planned sales programme. We give you the tools (or tell you where to find them).

——————————————————————————–

INVESTMENT

This seven-part eCourse is available for $297 +GST ($334.13 total). However we offer a special highly-reduced rate:

EARLY BIRD SPECIAL: SAVE $100

Pay just $197 +GST ($221.63 including GST) if you book and pay before MIDNIGHT NEXT WEDNESDAY SEPTEMBER 8.

Bookings are confirmed on receipt of payment, which can be by bank deposit or credit card. We can raise an invoice in advance if you need it.

If you’d like to pay by credit card, here’s the link to sign up for the Early Bird Special (via international credit card processor PayPal): CLICK HERE TO PAY.

We also offer a couple of instalment options, if you’d rather not pay up front:

1. Pay five monthly installments of $70 per month (total to pay, including GST, $350): CLICK HERE FOR THIS FIVE-MONTH PAYMENT OPTION
2. Pay twelve monthly installments of $30 per month (total $360): CLICK HERE FOR THIS TWELVE-MONTH PAYMENT OPTION

If you would prefer to pay  by bank deposit, or require an invoice before making payment, please send an email to info@successsecrets.co.nz with your contact details.

(The service provider will be shown as Netmarketing Services Limited in your transaction and on your credit card statement)

WHAT HAPPENS NEXT?

• Your booking will be confirmed (if you have not received a confirmation within 24 hours, feel free to email info@successsecrets.co.nz
• You will receive a series of emails from us on Wednesday September 15 with login and password details and Course Notes for Lesson One
• Further Lessons will be provided at weekly intervals for the duration of the seven-week course

Related posts:

1. How To Create Eye-Catching Listings Want to sell on Trade Me? There’s a bit of...
2. 7 Key Facts for serious Trade Me sellers If you want to get serious about selling on Trade...

Spending too much time on Trade Me? Here are ten ways to tell if your flirtation with Trade Me is turning into a serious business — and, if you are indeed in that position, ten other things you should know to help make that business soar.

BUSINESS OR HOBBY – DOES IT MATTER?

If you’re running a business, your business expenses are deductible but you have to pay tax on your income. If it’s a hobby, you can’t deduct any expenses but then you don’t have to pay tax on your sales either.

Inland Revenue’s point of view, paraphrasing its published advice on the subject: the same rules apply, whether you’re selling on Trade Me or offline. If you sell stuff you don’t want or need any more, there are usually no tax consequences. However, if you sell things on a regular basis you might be regarded as being in business and consequently should declare the sales for income-tax purposes.

THE TEN TELL-TALE SIGNS THAT YOU’RE RUNNING A BUSINESS ON TRADE ME

As a general rule you’ll be considered to be in business (and should declare and pay tax on your Trade Me sales) if:

1. You acquired your products with the purpose of onselling them

OR

2.Your intention is to make a profit from your selling activities

OR

3. If your business involves dealing in such products

Note the ‘OR’ — any one of these conditions is enough to lead to the conclusion that you’re running a business on Trade Me. A key factor that Inland Revenue will consider when evaluating your case is how often or how regularly you’re selling on Trade Me. A high feedback count in a short period of time may be good for business — but it’s also a good indicator that you’re actually running a business.

Business or hobby — it’s one of the ‘grey areas’ of tax law. Some of the other issues that Inland Revenue (and the courts) consider if they need to establish whether an operation is hobby or business are:

4. Scale of operations

If it’s relatively large-scale, it’s probably a business. If it’s small-time, it could be a hobby.

5. Volume transactions

Many sales make business work. Just a few sales suggest a hobbyist (or a really lousy businessperson).

6. Commitment of time, money and effort

If you don’t have a life any more, it’s a business. If you’re only occasionally engaged in Trade Me-selling, hobby status seems likely.

7. Frequency of sales

Regular = business; occasional = possible hobby.

8. Financial results

Large sums of money changing hands, whether profitably or not, indicate a probable business venture. Small dollar values suggest you aren’t very good at this, and if it’s not just a hobby then maybe it should be.

9. Type of activity

If you’re dependent on Trade Me for your livelihood, tick business. If it’s mostly for fun, tick obsessed.

10. Buttoned down

Do you have systems and processes set up for your Trade Me efforts? Quacks like a business to us. Or are your operations loose as a goose? Then you’re either feeding a hobby or setting yourself up for a major business quack-up.

CONGRATULATIONS, IT’S A BUSINESS!

So your operation fits one or more of the Ten criteria above? Well done! Time to get even more serious about doing business on the site. Here’s another top ten list for your collection, this time of  10 key points to improve the prospects for your Trade Me offerings:

1. There are four wholesale levels when it comes to manufactured products: manufacturer, importer, distributor and intermediary. The further up the chain you have to buy, the harder it is to make money when you sell. Try to get as close as possible to the original manufacturer of a product. How? If you see a product you think would be a profitable seller on Trade Me, check the markings on the product and/or the packaging for point of origin. Then pick up the phone, ask for sales and start talking likely volumes. At the very least they’ll point you in the direction of the nearest importer or distributor.

2. Don’t be an early adopter. Never buy new or soon-to-be-introduced products unless you’re absolutely certain they’ll sell on Trade Me (based on historical results for similar products).

3. Don’t buy fad products, unless you buy at bargain-basement prices direct from the manufacturer or importer and you’re buying right at the height of the fad (which, frankly, is unlikely).

4. All products have life cycles. First, they’re launched, full of hope and excitement. Ultra-hot new products, where demand exceeds supply, can sell on Trade Me for a premium — if you’re able to find a dependable product supply source and can get in when demand is at its peak. (Guess wrong about a product’s popularity, however, and you’re cooked. Anyone want to buy a Catwoman plastic toy — we’ve still got a few hundred left?)

5. Not all products survive the launch phase. But those that do tend to become established then turn into a steady seller at retail. During this phase you’re unlikely to match the buying power of the large retail chains, so it’s not a good time to sell this product on Trade Me (except for pre-owned versions bought for a song and resold at highly discounted prices).

6. In the next phase of the product life cycle, sales begin to dip as customers move on to the next big thing. Retailers will start clearing stock at discounted prices — but not at enough of a discount to make it worth your while buying up product. Once again, this is a poor time to buy for resale on Trade Me.

7. Finally, the products fall into the liquidation phase, flogged off for pennies in the dollar. This is when you’ll be able to make a decent profit — so long as the product still has inherent appeal for potential purchasers.

8. Don’t buy products in volumes that represent more than 10% of the total quantities available on Trade Me. You won’t corner the market; you’ll just take a bath.

9. Don’t buy a product if there are more than 10 competitors selling the exact same thing on Trade Me.

10. Never buy a liquidation or end-of-line item unless it carries a well-known brand name.

For a whole lot more about running a business on Trade Me, may we direct you to Chapter Seventeen of Trade Me Success Secrets, available through our Trade Me Store.

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