Trading Information

Article Navigation

Click Here for more articles

Which Type of Ebayer Are You?

by: Eric Spence

I realise that this may come as no great revelation to you, it may not even be news. What it is, in fact, is a word which describes most ebayers. And here it is:

Procrastinator!

I think that describes most of us to an extent. You see, I um-and-ah... and generally delay on making decisions. Right now, for example, I'm umming-and-ahhing about finalising my grocery list. And I really need to get out and tidy the back yard�.
But I find myself procrastinating once again. There's always an excuse.
Now, I have to admit: this 'procrastination problem' is nowhere near as bad as it used to be, but it's still not right. You see, I've learnt that the less I procrastinate, the more gets done, and the better I do.

What does this have to do with eBay? I'm getting there.

Let me hazard a guess: if you're reading this, I'm betting you've procrastinated on one, two or more of the ideas... and that's bad. Very bad! Because even if you'd tried something, that 'something' would have given you some feedback - even if it was only 'failure' feedback, which can be very useful in itself.
But before you decide to do anything on eBay - even before you decide to procrastinate - you need to make a decision, if that... er... makes sense. A decision on which, I hope you won't procrastinate!

And that which you need to decide is simple: what kind of business you're going to go into. Or, more specifically (to start with), what type of model you'll follow.

See, there are only really two main models of business that you can go into on eBay. The first is where you're selling the same product(s) over and over... and over. .. again. The second relates to buying one-shot items... rare stuff and the like... one-off items that you buy, the onesy-twosy approach. You then resell each individual item in turn for (hopefully) big profits.

You just have to make up your mind which 'model' you're &oing to opt for.
There's pros and cons to each. As always.Let's consider, first of all; the onesy-twosy approach. We'll call this 'Model 1'.

Model 1: The 'Ones And Twos' Approach

This is a perfect part-time approach towards eBay success. You can do it when you want. You can create customers that stay with your forever... apd who will LOVE you. You can virtually see the smiles on your customers' faces as the latest offers arrive.
And you'll get great returns (often) on each item that you auction off. Ten times your money is far from uncommon. Even 20... or even 100 (or more). These are all perfectly attainable returns for your auctions. Not much money invested = great return gotten out.
But there's a downside, too. Your income is more variable and, quite frankly, it's a much more time dependent business model. You'll have to know the market, and as such you'll be the one hunting for 'product' every week. Not that there's anything really wrong with that, especially if you really like what you're trading in.
There's a corollary to all this too...
And that's this: your earnings will probably be capped. Because of the time-dependency factor. And the fact that YOU will virtually 'be the business' so you'll never build a really big business. Probably not, anyway.

So what's the other approach?

Model 2: The �Sell The Same Items Over And Over Again�Approach

This method involves buying a stock of the same item and floggings said item(s) over and over again. Again, there are pros and cons.

The pros? Well, you can build bigger. Once you've got the source of supply, there's not much work thereafter. You just list, then relist. And then go and sunbathe, particularly at this time of the year. What's more you can build BIGGER, because the business can be less dependent on you. Sounds great, huh? Actually, it is.
So what are the downsides?
Firstly, there'll be much more price-based competition. It can be quite cutthroat. If there's a big market for what you're selling - and there probably will be if you're going into that market - then there will probably be people already there who will be competing against you. Unless, of course, you've got a truly unique product that no one else has.

Secondly, there'll be lower returns available. Let me explain what I mean. Let's say that you've got a selection of items for resale with 'Model 1'. This means that you might have bought these 'onesy-twosy' items for �40 each. And you might sell them for �120 each, or one for �300, some for �80, and so on. But the point is that you'll be getting an outstanding return on your money.

Well, with the 'other' approach...well, it's a lot less likely that you'll get a big return on your stock investment. You might make 20% on your stock. Invest �500, get back �600... BUT you'll sell more product, and more often. And you can build very big (in eBay terms).

So Which Approach Is For You?

Depends on you, what your free-time situation is like, what you want to achieve from your eBaying, and so on. So you need to know where you're coming from, and where you want to go. If you're short on time, wanting to make money fast, and just want a part-time eBay business, then it's probably best to start with Model 1 (the one-off approach). If you've already gotten some eBay experience under your belt, have more time and are up for the challenge that lies ahead, go for Model 2. Of course, feel free to disagree too!

Here's something else to think about...

Let's say that you start with Model 1. You go along nicely, making some profits. You're still part-time. You can then use that basis to work from, and launch other eBay businesses as you go along. Make sense? You start part-time, build up your knowledge and capital base, and then work from there.

Or how about running two of these side by side? It's totally doable, believe me. But that again will depend on YOU, and it certainly wouldn't be recommended if you were just starting out. And, of course, you'd reed the time to do this. There'd certainly be quite a bit of work involved. It wouldn't be for everyone.

But that would be something, wouldn't it? That way, you'd be spreading your risk - diversifying if you like because you'd have two separate streams of income. You'd build up two individual supply sources, customers, e-mail lists and so on, and you'd be lowering your risk should the worst happen in one of your 'mini businesses' .

Ideally, you'd also trade under separate ID's for the two trading approaches. It might seem a bit strange to your bidders if you're telling them to 'Check your other items!' when they're looking at your stereo equipment. They check your other items and find a bunch of old dolls that you're auctioning in your 'Model l' business! Not a very good idea. So you'd (ideally) want two separate ID's.
But I think I'm getting ahead of myself here. Because, coming back to what I was saying at the start...

None Of This Can Happen if you continue to procrastinate! So what are you waiting for?
You at least need to think about which approach is right for you, in line with your current circumstances, and how maybe you want to see them change too. Just don't procrastinate too long on the path you want to follow.

About the author:
Sign up for my free newsletter and free 7 day e-course 'How to make more money on eBay' at

Circulated by Article Emporium

Read Articles:

Wholesale Buyers Versus Retail Customers

9 Deadly Mistakes of the Stock Trader:

Generate Traffic And Make Money

Some Fast ways to lose money online quickly

Looking for the best opinion relating to brokers.

Staying Out Of Trouble With Ebay�s Listing Poli...

The Uses in Forex Trading of Moving Averages an...

InvestorIdeas.com presents �The Insiders Corner...

How To Buy a Product or Service With No Money

Business card printing: At your service!

High Powered Ways To Increase Your Traffic

Work from home with e-currency

Pink Sheets Discover Disclosure.

Your Competitors Offer Leasing Finance, you sho...

Trends and Profitable Trading In The Forex Mark...

The Most Popular Subjects People Will Pay For!

Identity theft: Safeguarding Can't Hurt

Boost Your Income With Financial Spread Betting

The New Border Patrol - National Registration o...

Which Type of Ebayer Are You?

Invest Now for Dividends Later

What's the difference between successful busine...

Goodbye Multi-Level Marketing and Hello E-curre...

SAFELY PROTECT YOUR HOME BASED DREAM OF RETIRIN...

ECOMMERCE SOLUTIONS�THE CALL OF THE TIME

THE Secret Weapon For Gaining Wealth

Surviving Tough Times Online

The Simple Tactic the Internet Gurus use to Tur...

Alternative Business Client Gifts

What MACD & RSI Mean in Forex Trading?

Are You One of the New Disposable Workers?

E-currency Exchange Trading

What Part Do Commodities Play in the Market and...

Customer Relationship Management

More Article Pages 1 - 2

Forex: Benefits of Trading the Forex Market
by: Raul Lopez

Trading the Forex market has become very popular in the last years. Why is it that traders around the world see the Forex market as an investment opportunity? We will try to answer this question in this article. Also we will discuss come differences between the Forex market, the stocks market and the futures market.

Some of the benefits of trading the Forex market are:

Superior liquidity.

Liquidity is what really makes the Forex market different from other markets. The Forex market is by far the most liquid financial market in the world with nearly 2 trillion dollars traded everyday. This ensures price stability and better trade execution. Allowing traders to open and close transactions with ease. Also such a tremendous volume makes it hard to manipulate the market in an extended manner.

24hr Market.

This one is also one of the greatest advantages of trading Forex. It is an around the click market, the market opens on Sunday at 3:00 pm EST when New Zealand begins operations, and closes on Friday at 5:00 pm EST when San Francisco terminates operations. There are transactions in practically every time zone, allowing active traders to choose at what time to trade.

Leverage trading.

Trading the Forex Market offers a greater buying power than many other markets. Some Forex brokers offer leverage up to 400:1, allowing traders to have only 0.25% in margin of the total investment. For instance, a trader using 100:1 means that to have a US$100,000 position, only US$1,000 are needed on margin to be able to open that position.

Low Transaction costs.

Almost all brokers offer commission free trading. The only cost traders incur in any transaction is the spread (difference between the buy and sell price of each currency pair). This spread could be as low as 1 pip (the minimum increment in any currency pair) in some pairs.

Low minimum investment.

The Forex market requires less capital to start trading than any other markets. The initial investment could go as low as $300 USD, depending on leverage offered by the broker. This is a great advantage since Forex traders are able to keep their risk investment to the lowest level.

Specialized trading.

The liquidity of the market allows us to focus on just a few instruments (or currency pairs) as our main investments (85% of all trading transactions are made on the seven major currencies). Allowing us to monitor, and at the end get to know each instrument better.

Trading from anywhere.

If you do a lot of traveling, you can trade from anywhere in the world just having an internet connection.

Some of the most important differences between the Forex market and other markets are explained below.

Forex market vs. Equity markets

Liquidity

FX market: Near two trillion dollars of daily volume.

Equity market: Around 200 billion on a daily basis.

Trading hours

FX market: 24hr market, 5.5 days a week.

Equity market: Monday through Friday from 8:30 EST to 5:00 EST.

Profit potential

FX market: In both, rising and falling markets.

Equity market: Most traders/investor profit only from rising markets.

Transaction costs

FX market: Commission free and tight spreads.

Equity market: High Commissions and transaction fees.

Buying power

FX market: Leverage up to 400:1.

Equity market: Leverage from 2:1 to 4:1.

Specialization

FX market: most volume (85%) is made on major currencies (USD, EUR, JPY, GBP, CHF, CAD and AUD.)

Equity market: More than 40,000 stocks to choose from.

Forex market vs. Futures market

Liquidity

FX Market: Near two trillion dollars of daily volume.

Futures market: Around 400 billion dollars on a daily basis.

Transaction costs

FX market: Commission free and tight spreads.

Futures market: High commissions fees.

Margin

FX market: Fixed rate of margin on every position.

Futures market: Different levels of margin on overnight positions than day time positions.

Trade execution

FX market: Instantaneous execution.

Futures market: Inconsistent execution.

All this makes the Forex market very attractive to investors and traders. But I need to make something clear, although the benefits of trading the Forex market are notorious; it is still difficult to make a successful career trading the Forex market. It requires a lot of education, discipline, commitment and patience, as any other market.

This Static Spot is open for sponsor

This Static Spot is open for sponsor