The Dark Side of eBay

The Online Seller's News, Nov 29, 2011, Volume 11, No. 23

Tips, Tools, News and Resources for eBay, Amazon and Independent Online Sellers ~ Published Twice Monthly
by: Skip McGrath

In This Issue:

Musings from eBay, Amazon, and beyond

1. The Dark Side of eBay
2. Update on Amazon Kindle Fire Sales – Profits Still Possible
3. Niche of The Month – "As Is" Broken Items for Parts
4. Why My Amazon Affiliate System is Working
5. New Wholesale Sources for eBay & Amazon Sellers

"Success is falling nine times and getting up ten." ~ Jon Bon Jovi

Musings from eBay, Amazon, and beyond

I hope all of my readers had a wonderful Thanksgiving and had a chance to share and reconnect with family and friends. We are still feasting on leftovers three days later.

Amazon and eBay are on opposite sides of the Internet Sales Tax issue. I was stunned one day when I was checking my email and found a press release from Amazon - Amazon Strongly Supports Enactment of Enzi-Durbin-Alexander Federal Online Sales Tax Bill. "What the heck?" I thought. "Has Amazon gone crazy?"

This is a stunning development because Amazon has been fighting the sales tax issue for years and suddenly they caved in. Shortly after the press release eBay came out with scathing comments opposing Amazon and the tax bill.

The Marketplace Fairness Act, sponsored by Dick Durbin, a Democrat from Illinois Mike Enzi, a Republican from Wyoming and Lamar Alexander, a Republican from Tennessee attempts to simplify the patchwork of state and local tax codes across the country's thousands of individual tax jurisdictions. Opponents of the bill have argued that the complexity of the current tax system would present an unreasonable burden for smaller sellers. I guess so? What is Amazon thinking?

Fortunately eBay is lobbying hard against the bill and they have a strong lobbying arm in Washington. Todd Cohen, Vice President for Government Relations and Deputy General Counsel at eBay Inc. released the following statement from eBay:

"This is another Internet sales tax bill that fails to protect small business retailers using the Internet and will unbalance the playing field between giant retailers and small business competitors. It does not make sense to expand Internet sales tax burdens on small businesses at a time when we want entrepreneurs to create jobs and economic activity."

eBay will be lobbying in Washington, but they need your help. Go to this link https://writerep.house.gov/writerep/welcome.shtml to contact your congressperson. And here is a link to email or telephone your Senator:

http://www.senate.gov/reference/common/faq/How_to_contact_senators.htm

Do both – Call and email your congressperson and both of your Senators. Believe me they do respond. Just be polite. The staff is trained to ignore callers who are rude and they trash email that is profane or objectionable. And don't threaten – those emails are forwarded to the FBI.

When you contact them say you are protesting the Marketplace Fairness Act. That is the name of the bill. At the moment the bill is still in the Senate, so some house members may not be sure what you are speaking about, so just tell them you are against the Internet sales tax and they will get it.

Our new membership site www.OnlineSellingCoach.com is still accepting new members and we are seeing a lot of staying power.

Take a look at just a few of the benefits you get with a membership to Online Selling Coach:

• Weekly and Monthly training on new and emerging niche markets; including products you can start selling immediately.
• 40% discount on all books sold at www.skipmcgrath.com
• Access to our archives for our member's only training, webinars, audio, video, and other premium content.
• Free eBooks and courses on eBay, Amazon, Product Sourcing, Blogging, Social Media, and Internet Marketing.
• Year Membership includes a Free 30 minute One-on-One over the phone coaching consultation.
• Exclusive Membership Access to our Live Webinar Trainings.
• Massive discounts on tools, technology, software for running, researching, and automating an online business.
• Pay as you go affordable monthly membership fee. NO CONTRACT – you can cancel at the end of any month.
• 100% Satisfaction; including a 30 Day Money Back Guarantee on your first month. After that you pay month-to-month for as long or as little as your like.
• Constant updates delivered to you via our members only newsletter
• Learn from real eBay PowerSellers, Amazon Sellers, and Online Marketers.
  (People who actually do what they teach)
• Get Massive Members only discounts on our trainings, courses and product's past, present, future.

I hope you will check out www.OnlineSellingCoach.com today.

Last month I told you about Jordan Malik's book, 101 Toys and Games You can Sell for the Holidays. Jordan has now come out with a FREE eBook – How to profit on eBay and Amazon with Dollar Store Items. It really is free – just click here to instantly download.

Lets get started with this month's articles:

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1. The Dark Side of eBay

One of my readers, Michael Ford has written two very interesting books about eBay. The first one – eBay 102: What No One Else Will Tell You About eBay is first of all a great eBay primer that covers both buying and selling on eBay. Michael's main focus is to follow the rules but do it in a way that maximizes your results as a seller and using various tips and tricks to avoid fraud and just plain bad deals if you are the buyer. He also has some great tips on ferreting out the really good deals on eBay.

Michael's second book, CRIME On eBay explains exactly how scams on eBay work and how you can easily avoid them. Once you are aware of a scam, he shows you how it sticks out like a sore thumb the next time you encounter it. Even the most clever, intelligent and experienced person can fall for these scams so Michael shows you how to trade safely on eBay –and PayPal. Both books are available for pre-order and will ship in a few weeks.

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2. Update on Amazon Kindle Fire Sales – Profits Still Possible

If you are one of my readers who bought Kindle Fires to resell when the supply was short you are probably holding your breath right now. Unlike the earlier Kindles or the iPads, this time Amazon came out of the gate with a much larger supply. So right now there are about 300 Kindle Fires listed on eBay at prices around $200 to $240.

But don't panic yet. There is still plenty of time. Here is a comment on my blog from Jordan Malik who publishes FBA Finds:

Skip – There are two factors pointing to the Kindle Fire being in WAY short demand AND reselling for a high price:

1. Retail analysts' estimates of Kindle Fire 4th quarter orders are now up to 7M. (See screen shot: http://screencast.com/t/TKsd07BOoRy)
2. eBay Purchases of Kindles have hit a high of $349; and a high of ~$260 for *PRE-ORDERS* (i.e. customers were clearly told their order was a pre-order)

It's still way too early to tell exactly how reselling will go for the Kindle, but I am still confident that Amazon will not be able to keep up with orders (i.e. there will be delays due to orders clogging up their pipeline; and there will be delays due to several ‘out of stock' notices on Amazon because I believe the overseas bulk shipments of Fires to Amazon will not be able to keep up with the demand. -~ Jordan Malik, HonestOnlineSelling.com

As I was sitting here writing this, the noon news came on the radio and there was a business story about the Kindle Fire. It seems a business research group said the Kindle Fire is now the number 2 selling pad and is taking share away from the iPad and Motorola's pad. If that is true, then I think we will see prices starting up very soon as people rush to get them for Christmas giving. I called my local Best Buy. They have plenty of the other Kindle models but are already out of the Kindle Fire and don't expect to get any more before Christmas. The person I spoke with told me they only got 12 units and they all sold out within a few days.

So don't despair and don't panic yet. I still believe the very worst case is you can get your money back and cover the selling fees for no profit – but also no loss. And if the supply does tighten up, as I expect will happen after Black Friday and Cyber Monday, then we can all see some nice profits.

Deregistering Your Kindle Fires to Sell

Before selling your Kindle Fires you should deregister them. Here is what Amazon says about doing that:

By default Kindles are registered to the account where the order is placed unless it is mentioned as a gift. Hence the Kindle Fire you ordered were registered to your account.

You can also deregister your Kindle online through Manage Your Kindle at www.amazon.com/manageyourkindle. Click the Manage Your Devices link on the left side of the screen to view all devices registered to your Amazon account. Click "Deregister" next to the Kindle you want to deregister.

So be sure and do this. Otherwise when someone opens the box and plugs the Kindle in for the first time they will see a welcome message in your name.

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3. Niche of The Month – "As Is" Broken Items for Parts

A few years ago I was puttering around in the garage and I came across an old espresso maker that we hadn't used in years. So like any good eBay seller does, I cleaned it up, took a few photos and put it on eBay.  My wife saw the listing and turned around and said to me: "does that thing still work?" "Hmmmm," I thought, "It was working the last time we used it a few months ago." So she went down to the kitchen and tried to make a cup of espresso. When she turned it on the machine shot coffee and steam all over the place.  Turns out all the seals had dried out. 

So I pulled the listing from eBay and renamed it "Broken Espresso Machine As Is for Parts Only."  Whereas before I was thinking I could get about $100 for the machine, now I figured out I might still get $10.  Boy was I surprised when the auction ended and the machine sold for $78 with three bidders fighting it out at the last minute.  It turned out all three of them had the same old model. They loved it, but needed a spare part they couldn't get anymore.

Lest you think this is an unusual event, take a look at eBay. If you look at almost any category you will see lots of listings for items that are being sold for parts or sold AS IS. This is being done with everything from computers to coffee makers, cameras to iPods.  When I searched the term "as is + Parts" in the eBay search engine, I got over 12,000 results.

Here is a screenshot of just a few items for sale:

As you can see there is everything from a coffee maker to a camera to a seaplane. I even saw a broken pasta machine that sold for $49.00.  Oh yes, there was also a listing for a Saeco Vienna Espresso Machine "as is" for parts that sold for $123.95.

I emailed one seller who sells a lot of broken items and he told me he finds most of his merchandise at garage sales and thrift shops.  A lot of the items actually work, but he doesn't bother with that. He just sells everything AS IS. If it works too, then the buyer is really happy, but if it doesn't then the buyer is still satisfied.

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4. Why My Amazon Affiliate System is Working

My book, How To Make Money With The Amazon Affiliate Program, has been one of my best sellers since it came out in 2010. It is one of my books that I tend to get a lot of feedback on. Several buyers have sent me links to blogs they have set up to take advantage of the program and I have been really impressed with the quality and the cleverness of what folks are doing. I would love to show them to you, but its not fair to give away their secrets, but believe me you can do this.

Here is a look at a screenshot of my Amazon affiliate account for the month to date.

Most people who try affiliate marketing after buying some program that promises quick riches are disappointed. The truth to affiliate marketing in the broad sense is that you have to have a large list like I do, or you have to have a popular blog with tons of followers. But the Amazon affiliate program is an exception. If you do have loyal followers you can make even more money with the Amazon program –but you don't need that to get started.

Amazon is the most trusted shopping site on the net and they tend to have the lowest prices. This means if you can deliver traffic to Amazon –they pretty much do most of the work selling for you. To do this you don't need a loyal following –but you do need traffic. And that is what How To Make Money With The Amazon Affiliate Program, is all about. I show you how to create the sites that can get the traffic to send to Amazon. Now don't expect results like mine above. I have been doing this for years and it does take a while to build the sites and to get the traffic, but it can be done by almost anyone and if you are patient you will get good results.

Here is one of the main sites I use to refer traffic: www.EZauctionTools.com. If someone clicks on a product link at that site they are taken directly to that item on Amazon. Once at Amazon if they buy anything in any category within 24 hours then I earn a commission.

Unless you go really big –this is not a way to make a living. The earnings tend to be steady but small. A goal of a few hundred dollars a month is very reasonable. So look at this more as a way to make extra money or supplement your income rather than a main source of income. But the neat thing about it is once you do the work, there isn't much else to do. You can earn a few hundred dollars a month with perhaps as little as one-hour of work per week.

And as a bonus, you can use the Amazon Affiliate Program to make an extra 6% to 7% by sending traffic to the items you are selling on Amazon. Speaking of that I am often asked what am I selling on Amazon, so here is a look at My Amazon Page. If you see something you like, feel free to buy it.

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5. New Wholesale Sources for eBay & Amazon Sellers

One of our advertisers is Topper Liquidators. I was speaking with Steven Topper a few days ago and they have a ton of new merchandise. It would be tight getting anything in time for Christmas but give some thought to what will be selling after the holidays. Remember that Valentines Day is coming and Spring merchandise starts selling in February. I have been recommending Topper to my readers for quite a while now and I have never had a complaint form a reader who bought from there. One thing to note: A lot of small eBay sellers like Topper because he sells in small lots. But if you would like to purchase in a larger lot, email them through the website and they will usually give you a much better price if you are buying ten lots instead of one or two.

AC Kink an established distributor of all popular brand names in fishing lures and accessories. They are a one-stop shop for Maglite, Leatherman, Gerber, Pelican, Coleman and more.

Red Peddler is a large wholesale site that carries merchandise in dozens of categories. You have to register to see pricing. Once you register, use the code RED26 when you place your first order over $299 and you will get a $26 dollar discount which should cover most of your shipping.

Helmets Inc. sells both DOT approved motorcycle and bike helmets as well as novelty helmets. You will have to open an account through their online form to get wholesale pricing.

BePe Baby sells adorable and unique baby booties and toddler non-skid slippers. These are fun, stylish and they stay on baby's feet!

Rico Inc. sells 100 different products for every major sports league: the NFL, MLB, NBA, NHL, NASCAR and NCAA. Products range from pennants, stickers and signs, to high quality leather goods and banner flags.

Military Logistics Inc. is a wholesale supplier of all types of Military surplus, new and used equipment, police-law enforcement gear, paintball equipment, outdoor survival gear, military jeeps, trucks, Humvees, clothing, uniforms.

The Brabo Group sells a great line of children's clothing with fun themes including their Magic Socks.

Sckoon is a baby clothes brand for wholesale and retail. Wholesale trendy and unique designer baby clothes, infant clothes, baby cloth diapers and soft toys for a hip baby. Made of Certified Organic Cotton 100%. Dyed with metal-free, low-impact dyes.

Melrose Creations, Inc. sells a line of beautiful handbags. Use the contact info on the website and they will send you a full color catalog with wholesale pricing.

Tibetan Natural Healing sells a line of herbs and nutritional products from Tibet based on ancient methods.

That's it for now. I hope everyone had a wonderful Thanksgiving. My next issue will be out in mid-December. We usually publish twice monthly, but only once a month in December.

Skip McGrath
The Online Seller's News

P.S. If you missed the last issue, click here to read it.

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