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WORKING WITH EBAY & AMAZON 51


usually just goes for whoever has the lowest price. “eBay is also very price driven, but


there are more opportunities to allow your brand to shine and encourage buyers to go with you over others. For instance, you have a whole page for each product, which you can style to match your branding.” While eBay does indeed allow


sellers to put more personality into their listings, the Amazon Marketplace style is generally quicker and more convenient. All Marketplace listings are incorporated into Amazon’s regular product pages, so there is no need to spend time typing up product descriptions or taking photos – all the hard work has already been done for you. Adding a product is as simple as entering the EAN barcode number and setting your price.


same item to the same customers – this is all well and good if you can buy at a better price. But 30 people trying to compete on the same item is just going to create a price war and that is not good for business. “The key is to be versatile and offer


different products or more niche, specific items. Why compete with these sellers who set their prices so low? Find something different and move onto the next product or craze.” Middleton also thinks having a


physical store could give a crucial advantage over internet-only retailers: “If you have your own stores in high- volume footfall areas you get a feel for what people are looking for. This is something you can’t get from online – people do not email and ask questions about lines you don’t stock.” Aside from product selection, Middleton says that good pictures,


We sell literally hundreds of thousands of toys. Our business model is simply to be on the ball, look at what’s available and try to offer something different. David Middleton, Midco


Anecdotally, retailers report that


Amazon buyers generally pay a higher price for the same product. Midco Toys is one retailer which has


had great success selling toys via these online markets. Boasting three bricks and mortar shops in Derbyshire and Staffordshire, Midco owner David Middleton started his business selling on toys on eBay. Today, the firm has an entire warehouse dedicated to packing orders received via internet selling platforms. “We sell literally hundreds of


thousands of toys using various platforms throughout the year,” explains Middleton. “Our business model is simply to be on the ball, look at what’s available and try to offer something different. There are a lot of people online trying to sell the


descriptions, feedback and reputation “are all critical things” when selling in this environment. To ensure repeat business on eBay


Midco spares no expense when it comes to customer service, offering the fastest available shipping and making sure the warehouse is manned 24 hours a day, so someone is always available to respond to customer emails and calls. If a stubborn line still refuses to


sell after heavy discounting then you can usually find a home for it online. “Because you are appearing in front


of such a large customer base, there is going to be someone somewhere who will want that product. There have been lines we have struggled with in the shops which we have been able to clear online in days.”


LISTINGS


The two main ways of listing are auctions and Buy it Now.


Most retailers will find the Buy it Now format the most useful as it allows for multiple units of stock to be sold within the same listing.


Auctions are the best option for unique or rare items.


LISTINGS / SELLING


Fonts, pictures and colours can be easily customised and HTML (the fundamental web coding language) can be incorporated into listings, so there are really no limits when it comes to customising the way an item’s page looks.


There are a number of options eBay sellers can use to highlight and feature items. From £14.99 a month, sellers can open an eBay Shop.


eBay offers a much greater level of listing customisation than Amazon.


FEES


All eBay listings are subject to an insertion fee, except auctions starting below 99 pence.


eBay takes 10 per cent of the final selling price, up to a limit £40.


RETURNS POLICY


Sellers can chose to operate their own returns policy.


POSTAGE COSTS


Postage can be set – but eBay has started to punish those who charge over the odds and now promotes items with free shipping.


PAYMENTS


eBay sellers can elect to receive payments via PayPal, bank transfer, cheque or postal order. However buyers are more inclined to pay with PayPal.


PayPal (an eBay subsidiary) charges 3.4 per cent plus 20 pence on withdrawals under £1,500.


Amazon Payments deposits your money into your account at regular intervals, automatically, with no withdrawal fees taken.


Amazon calculates postage and charges the customer on your behalf.


Amazon Marketplace sellers are required to agree to a set returns policy.


Listing on Amazon doesn’t cost you a penny until your item sells.


Amazon takes a fee of 15 per cent of the sale on most items, including toys.


Although Amazon is less customisable, it makes up for it in being faster to use. As all Marketplace listings are incorporated in regular product pages, all sellers need to do is identify which item they want to sell and the description and pictures are already there.


In order to sell unique items and add your own pictures and item descriptions you must upgrade to a Pro Seller account, which costs £28.75 per month, currently.


Fixed-price only, but prices can be adjusted


Amazon Marketplace listings are promoted within regular product pages.


Unlike eBay, listings can last indefinitely on Amazon, so it doesn’t require as much upkeep. Action is only usually required once an order has been made.


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