Running Out Of Stock Room Space!

I hear a lot about people running out of stock room space, I also suffer from this problem.

Usually people are not expanding their business when they get to this point, they are just at a point of not managing stock properly.

During my time of running an ebay store I have changed my stock keeping methods a number of times and I am now at a rack and bins stage and being one to never pass up on a bargain I have to ensure my space is kept to a manageable level.

How I do this stock rotation effectively is by using the loss leading strategy.

I sell my items for as much as I possibly can, as quickly as possible. I first sell my front end items and then run at clearance prices and then I back end out, if I make very good profit I can clearance and back end much faster so I do have to be savvy in what I buy.

For example if I purchase 100 items at £100 and I sell the first 50 at a price that makes me 5 times my initial investment (as you do have to remember that there will be selling expenses) so 50 items sold at £5 leaves me with £250, this already covers my initial £100 investment, so anything from this point is profit. I then start the next 25 at cost price at £1.00  making £25.00, I then list the remaining 25 at a bottoming price of £0.50 to clear, totalling £12.50 so my total profit for the initial investment will be £250+£25+£12.50 = £287.50 minus my initial investment of £100 = £187.50 profit.

The above example shows a profit of almost 2 times the initial investment but this can often be a lot more. If I am running a clearance I put them on auction at my bottom price, more often than not they will sell for more than your bottom price, yet it doesn't matter if they only sell at the price you set either. So there are no worries about making a loss, you can often make much more profit than you set out to do. 

So using loss leaders, is useful in not only that it helps to bring traffic to your store, it also helps to free up space so you have somewhere to put your new stock that will bring in a cash flow. There is no point in hanging on to dead stock that just will not budge, using loss leaders helps to combat a number of important issues, for me the biggest is stock room space

There is nothing worse than having dead or slow moving sock cluttering up the stockroom and having to turn away a good deal because you have no where to store it.

You are not losing money by selling below cost your are recapturing half of your cost to add to the profit of the purchase.

 

10 Step Plan to Clearing out the Clutter Monster!...

Most of us end up hoarding at one time or another throughout our lives to some varying degree, be it a lack of time or a lack of motivation for clearing out the clutter, we are all guilty of hoarding more than we would like and end up with those pesky wardrobe monsters.

Hoarding is not recognised as a distinct psychological disorder, however, compulsive hoarding disorder is believed to be related to, or connected with other disorders. These include bipolar disorder, social anxiety, and depression.

A good sign that someone is a Compulsive hoarder is when they can no longer use rooms in the way they are intended. They end up running out of storage space and start to store items in the garage, the loft and anywhere else they can cram things. To the point they have to be constantly on guard in case they get crushed when they open a door or move a strategically placed box. Their quality of life deteriorates to a point they are living in total disordered chaos.

Hoarding disorders are difficult to treat, even when the person is prepared to seek help, but the good news is that it can be overcome. The main treatment is cognitive behavioural therapy (CBT). The therapist will help the person to understand what makes it difficult to throw things away and the reasons why the clutter has built up.

The majority of us are more controlled hoarders, our lives get so busy that clutter monsters start to build up and just sit there in boxes, shelves and cupboards and gather dust for a few years. The clutter monsters become mildly irritating and the intention is always there to 'have a good clear out', but that never quite happens.

Maine Trading  also help the more extreme hoarders with a mild form of compulsive hoarding, they can find it very difficult to part with their much loved clutter monsters. They have already taken the important first step to contact us, so they are mentally preparing themselves to 'let go' and turn those clutter monsters into cash.

The thing that we find most helpful when dealing with these types of clients is that we have to be firm. We find, rather than boxing things up ready for us to collect and take away, they prefer us to go through their 'clutter monsters' with them. Quite often some clutter monsters never make it to the 'sell' box and end up staying put, sometimes we get a call after the pick up to bring something back.

Some of the clutter monsters are not worth selling and I have to be brutally honest and tell them, in a sensitive way. Making a joke seems to work well, it gives them a sense of calm when they start to panic at the thought of parting with that particular clutter monster. A real world view of the clutter monster's worth, sometimes, makes them see that the bin is the best place for it. 

That mix of firmness shrouded in sensitivity towards the client with my already acute sixth sense for their anxiety about clearing out the clutter, usually makes things a lot easier for them to tackle that clutter. Coupled with the obvious fact that they have already let me through the door and I am there and present in their kingdom of clutter, that in itself is a massive step forward for them to get closer to their goal of 'being 'clutter free' and a few pounds richer'.

I have never yet come across an extreme compulsive hoarder, I would be the last person they would reach out to. To help someone in that situation would require a psychotherapist and a team of other people, to help them achieve their desired goal of becoming compulsive hoarding free.

The types of items Maine Trading clients decide to turn into cash are clothes that have not been worn for a year or two, or kids toys and clothes that have been outgrown, kitchen appliances sat around, unused and are taking up valuable kitchen worktop or cupboard space preventing them from buying the latest new and exciting kitchen gadget. Ornaments and furnishings that have been boxed up from the last change of decorating the house to have a more updated look, in some cases personal collections and memorabilia that have fallen out of favour.

In other cases there are those that have lost loved ones and are ready to 'let go' of possessions, or there is a house move and no room to take everything with them, or in a few cases, they really need some money and are prepared to sell as much as they can to reach their savings goal.

Having a good clear out can be so liberating for many different reasons, so here is our simple 10 step plan to help you achieve your new clutter free existence and free yourself from those clutter monsters.

Step 1) Give us a call or email and and organise a day and time you want us to come and relieve you of some of your clutter monsters.

Step 2) Now you have the clock ticking for us to rock up at your door to collect those clutter monsters, get some empty cardboard boxes at the ready. You can get these from any supermarket or corner shop for free. Just ask and they will willingly give them to you, they are heading to the skip anyway. Pick up some black bin bag's whilst you are there. Or you can buy some strong cardboard boxes and bin bags on ebay 

Step 3) Start clearing one room of clutter monsters at a time. Start with your own bedroom and empty the wardrobe, completely. Don't forget to have those  black bin bags and the boxes at the ready to start placing things in.

Step 4) Start to put the clothing back into the wardrobe, with each piece ask yourself, 'how long is it since I last wore this?'. 'If this is the first time working on this 10 step plan, then a one year time frame is a good measure, otherwise, be brave and go all out for the six months time frame'. 

If the answer is more than a year ago then throw it into the 'sell box' as it will be highly unlikely that you will ever wear it again or if it has sentimental value such as 'you wore it to Aunty Betty's wedding,' then think about how much 'joy' someone else could have from that dress.

Think about the 'memories' that you could be helping someone else create with that dress, for those same few hours that you spent in it. 

Think about that fortune you spent on buying that dress for it to sit in your wardrobe collecting dust. 

Think of how you could be investing in someone else's happiness and joy at the same time as using the proceeds from selling it on to buy yourself a brand, spanking new outfit that you can make new memories in. After all, you will see it again when Aunty Betty gets those wedding photo's out at Christmas. It is as useful to you as a chocolate teapot, being stuck in that wardrobe collecting dust. 

Don't be selfish, let someone else experience the joy and make their own memories in that dress, just like you did.

Step 5) Make sure any item that you find in the wardrobe has not one mark, rip, tear, or button missing, misshapen arms and shrunken bodies are definitely a no no, bobbly bits can be excused as lint removers are great. However there is no need to be so hard on yourself and get rid of absolutely everything, but all items that are damaged and unwearable, make sure they go straight into the black bin bag, ready for the big black bin outside. 

This is the 21st century and there is no need to be wandering round like no one owns you, even if it is a Friday night and you are the only one home, sat in your comfy holey jumper, eating chocolate on the settee, in front of that weepy chick flick movie that you have seen a million times before,  but never the less it always has the same affect and makes you all nostalgic. 'NO EXCUSE'. chuck it, you are 'not' a Victorian pauper..

Step 6) Now stand back and marvel at your thinned out wardrobe, all ready and waiting for you to fill it with more beautiful garments, that you will only wear once or twice, (just in case people think you never change your clothes). Before you know it, a year (or six months, it depends how good at this you get) has passed you can have that longed for feeling of satisfaction you get when you free yourself from the wardrobe clutter monster that woefully plagues us all. 

Step 7) Grab yourself a well deserved cuppa and chuck the rubbish bag of clothes you bravely let go of, into the black bin outside, on your way to the kettle.

Step 8) This step is optional. Take a good look round your room (finish your cuppa first) and see if there is another draw or cupboard with a clutter monsters bursting to get out. If there is, don't let them get away,  go back to step 3 and follow the steps from there, alternatively if your clutter monster banishing skills have knackered you out, go onto step 9.

Step 9) This is an important step that you must not miss out - Wait for us to knock on your door at the pre-arranged time and date, all excited to see what pet clutter monsters you have for us to transform into a tamed beast for you.
  

We will promptly take it away and relieve you of any more responsibility of those wardrobe clutter monsters and magically turn it into a good as gold pile of bank transfer or PayPal transaction, all for you to replace it with some juvenile monsters that will take at least six months to a year to incubate. You must not move onto Step 10 until this step 9 has been completed.

Step 10) Choose your next room and go back to step 1...

eBay Neighbourhood is closing down, but the Trading Assistant Directory Lives On!

Ebay neighbourhood is closing down after a beta test of the programme that has been happening over the past 12 months, the programme was not without its flaws the main one being that only private sellers could join the program, this created a few problems in the fact that anyone selling for a profit i:e selling someone else's items for a fee, in this case 40% commission is classed automatically as a business, so this is one initial huge flaw in the ebay neighbourhood plan.

Ebay Neighborhood was not dissimilar to the continuing eBay Trading Assistant programme, the main difference being that the trading assistant sets their own terms and conditions including how much it charges in fees and commissions, this is where we started out over 10 years ago.

The programme relied on ebay inviting people to the programme, it was not something that just anyone could join, unlike the Trading Assistants Programme where you can sign up to their eBay Trading Assistant directory and be found.

The ebay neighbourhood portal matched people with a seller in their area and they could contact them directly and make arrangements to sell their items for them, you can take a last look at the portal here

The trading Assistant Directory tags onto your 'about me' page in ebay near to your feedback profile (See below) or click through to the directory here

It is quite surprising how few people know that eBay have a Trading Assistants Directory considering it has been in operation for many many years, over 10 +, years but I am unsure how long exactly, unlike many other experiments that eBay tinker with such as the ebay University that is also now debunked and replaced with eBay training videos which can be found easily on Youtube (click here)

These Trading Assistants, such as ourselves are always happy to answer questions about trading on ebay or steer you in the direction of being successful for yourself on eBay or if all else fails we are happy to sell your items for you!.

If you want to know more about our services take a look at our website here where most of your questions can be answered, or pop your question below and I will be happy to furnish you with an answer or if you feel more comfortable please feel free to email me and ask me questions!.

History Preserved, eBay's Unintended Consequences!..

One thing I love about eBay is the History that it preserves. being a huge History Lover, anything of historical value catches my eye, but some of the history floating around on ebay is quite astonishing.

I am a member of a number eBay groups on facebook, being a member of a facebook group is a valuable thing to do if you want to get serious about eBay, there are some fabulous people in those groups that share their experience and expertise around ebay and its workings, but what I love the most is the variety of ebay stores out there.

One particular eBay group has a 'share your store' post every day and some of the stores that get shared are amazing.

One particular store recently shared that caught my eye is entitled K-Town Consignments I spent quite a while browsing, with their 8,000 plus listings there is a lot get through.

What a fabulous store, the history contained in that store is amazing, here are some of my favourites.

Thomas Porter African American Slave Trader Original Branding Button

Samuel Thomson Herbalist Thomsonian System Quack Medicine Antique Manuscript

British Stage Actors and Actresses Antique Theatre Autograph Album Book 1925 

Call me a geek but there is something very satisfactory about looking through the Vintage Collectable listings on eBay.

From Bedwarmers to Sewing Boxes, bell Boxes to Vintage Knomes, it is all there, History, preserved!...

This history that is often forgotten is no longer confined to Museums and private homes, we can all access this wonderful history of humankind thanks to eBay.

With the myriad of amazing eBay stores buying and selling pieces of timeless history instead of dumping these fabulous pieces in skips, people are making a living from them. History serving the present, while being preserved, I find it quite beautiful!...

Changing with the times!..

Over the past few months eBay has seen an amazing amount of changes going on, from new fee structures to new listing requirements, all these changes could be a make or break for any business. Here at Maine Trading we are no exception.

We have gone through some big changes, from our fee structure and returns policies, we have completely reviewed  and fundamentally changed how we work to ensure our customers benefit and our business benefits.

Some of those changes have been small but have made a huge improvement in the way we work and some have been pretty big changes which will see our customers receiving more of their earned money.

Over the past year we have been analysing our customer accounts to assess how much they receive of the money raised through sales and what I saw made me feel pretty sad. One customer only received 8% of their overall total sales the rest going out in expenses, ebay and paypal fees, postage and commissions. This of course is an exception to the rule but never the less a situation that we never want to see repeated again for any of our customers.

We feel that is by far not acceptable for any customer to be facing those kinds of returns, we knew some big changes had to come to ensure all our customers received a greater share of their profits, while keeping our costs down.

We looked at the biggest expense which was the postage, in most cases over 60% of revenue raised went on postage costs this is without the paypal and ebay charges that go on top.

We looked around and found the cheapest postage options that gave the most reliable service and best insurance protection, we weighed up the benefits of fast and free service which for the benefit of a small percentage off the ebay fees charged we found was not worth it, not only in terms of the threats to our business metrics if we could not fulfil the 1 day deadline, but the cost of that service that the customer did not pay for despite trying to hide it elsewhere in the cost of the item sold, the price we receive for the items would not withstand the pressure of the extra cost.

Over the past few months we have tested out new postage costings on our listing which cover all associated postage costs from packaging to ebay and paypal fees and we have found that in actual fact despite postage costs being more for the end consumer it has made no difference to our rate of sales, in fact despite making similar volumes of sales the returns have been at a much better margin.

We did spend the past 6 months using the eBay postage option to see how it went and found that not only did it cause our postage bill to be much much higher than we have ever paid before, it also created more problem deliveries, while the cash flow release with their pay monthly option was a great idea and did generate a good cash flow, it caused far to many problems for us to consider keep using it.

The loss of items that occurred despite still being with Hermes was like nothing we had seen before, lots of people complaining that their item had not turned up, despite tracking stating delivered or items being damaged. This was quite interesting to watch as while going direct to Hermes or using Parcel2go none of these problems arise. I have still not worked the reason out other than the fact that ebay go through Hermesworld and the other goes through myhermes, what the difference is between them I have no idea.

Another of the changes we have gone though is a change to our commission fees, we have started to charge a flat fee of 35%, again through the analysis of the statements from the past year the low returns the customers had been receiving we felt were unfair.

To achieve this we have had to ensure that our own stock levels are forever increasing, this allows us to absorb any insertion costs that arise from listing on ebay, our customers now pay no insertion fee at all. The commission fee incorporates the paypal and ebay fees that are charged in association with a sale, including any postage fees, so rather than charging the customer 20% commission and a further 10% to account for ebay FVF and 3.4% Paypal Fees and a further listing fee, leading to us having to create complicated statements every month, we can now issue the customer with a simple statement with a commission fee of 35% all inclusive and not charge insertion fees, this has the added bonus that statements are now far simpler and quicker to raise.

We feel this is a massive change and one of our best changes as opposed to the customer receiving anything from 8% upwards after the extraction of expenses, they will now receive 65% of the final sale, in addition to this we have changed how we deal with returns. 

As we all know returns are a massive part of any business and can cause our customers frustration with the costs associated with those returns and the inconvenience of not knowing what their percentage rate of return will be, so we have changed this so that we take all risk associated with those returns. If an item is to be returned we will still pay our customer the final costs minus our commission, we will then deal with that return as if it was one of our stock items and transfer ownership to ourselves and either re-sell the item to try to recover some of the return expenses incurred or dispose of the item. Thus removing any anxiety our customers could face while we have to deal with returns on their items. Both the end consumer gets satisfaction knowing they have hassle free returns and our customer has satisfaction that any sale we make is final and returns are not their problem.

Further changes we have made are to the way we spend time listing, instead of listing and bagging we now just box instead of bag. and we have started to use a white background and give more detail to the listings.

One change that ebay have made and are currently implementing will not affect us too much, is the use of EAN numbers, as we list mainly used items the use of EAN numbers is not something we have to be too concerned about as our category of used is exempt from those changes, for now at least!.

In addition to those changes we have been busy creating this blog and have updated the website so this has been a very busy few months over the summer slump in sales. Despite the low sales we have used the time wisely in preparation for the Xmas boom.

 

eBay Open Workshops

Just this week it was the eBay Open, an eBay convention held in Las Vegas.

The convention highlights up and coming technological changes and ways to help your business succeed on eBay.  Three days of speakers, tips and inspiration. eBay president and CEO Devin Wenig heats up the crowd imparting his wisdom.

If you are like me an you were not able to attend then all is not lost as the session videos and workshops are available online for you to view at your leisure, just click on the picture below and enjoy.

 

What to sell and when on eBay!...

Working with the seasons and holidays is a good way to work while selling on eBay. Since joining the ranks of eBay sellers I have learnt that there is no point selling swimming costumes in January, although with Global Shipping available through eBay this may no longer be true. 

I will list below what has worked for me while following a seasonal pattern, although I do list most and any goods all year round, I do tend to focus on and put more effort into the seasonal items more at the appropriate time.

January - This is a good month, people are getting tired of the winter weather and are gearing themselves up for Spring, so start putting out a few Spring clothing like Wellington's, raincoats and umbrellas that you have to sell, also after the frenzy of Christmas people are looking to spend their Christmas money and are on the look out for bargains in the January sales, so add some sales discounts to slow moving stock you want to clear, ready for all your wonderful new spring wares, add some colour to your store with some red and green as Valentines and St Patrick's day are not too far ahead.

February - This month can feel like a slow selling month after the frenzy of Christmas but the first two weeks of February you have Valentines, so add some sales discounts and offers to your Valentines stock, make sure you have listed underwear, perfume and some jewellery, the valentines favourite staple. 

The second half of this month you can promote your St Patrick's day wares ready for next month. Don't forget that Spring break time is also coming up so make sure you list lots of those new spring goodies.

Easter is also just around the corner so add in some Easter costumes and Easter themed gifts in the second half of the month, so whilst this can seem like a slow selling month there are ways to boost those sales. Mothers Day is also next month so start listing those Mothers day gift sets.

March - Stores will be putting Spring items on sale now so put on some sales to bring in some traffic for those left over spring items. Start to list your summer clothes, Shorts, T-Shirts, Sundresses, Sandals, Sun hats, Sunglasses,  all this needs to be on now to build up some good search positioning in the eBay algorithm. Put those Easter gifts on sale and add discounts. St Georges day should not be overlooked and is coming up next month so add in some red and white.

April - Lots of weddings coming up this spring so list wedding outfits. People will start to buy for their summer holidays so make sure you have plenty of summer apparel for your customers to choose from add some luggage sets and travel goods.

May - School proms will be starting in June and July so start to list your special occasion dresses. List more of your summer stock as people will be starting to take those holidays and Fathers day is coming up next months so add some Fathers day gifts to your inventory.

June - Start putting those back to school items into your store now, school will soon be out for summer, add some sales and promotions to your remaining fathers day gifts and clothing. As summer is in full swing summer clothing sales will be struggling, so add some discounts and bargain sales to boost traffic and get some sales. look to see what films have been released and add some film themed goodies to your store to boost those sales and keep kids occupied over summer..

July - Many people will start to buy those back to school clothes so make sure you have backpacks, shoes, jackets, binders, notebooks, keeping those prices competitive. people will be hopping off on holiday so make sure you have walking boots and camping gear available, waterproofs and wellies, put those luggage and travel sets on sale to boost traffic and sales.

August - Start to put your back to school items on sale to bring in some traffic and clear the stock. Start adding your Autumn clothing and put those remaining Spring items on a mega sale to clear and put your Summer Holiday clothing on discount offers, add some sales to your wedding and prom outfits as the season will be slowing down but there will be plenty of September Weddings so last minute bargains will sell well, add some Halloween stock as Halloween is coming up.

September - Time to add in some Christmas stock, dresses, toys, gifts as the kids have gone back to school and the parents are starting to sneek in Christmas presents. Start discounting your Halloween goods or making sure you are competitive in your price. Days will get cooler towards the end of the month so add in cardigans and jumpers.

October - Halloween will be a good selling month so add sales and discounts to your stock to make sure you clear what you have. Winter clothing should start to go on, coats and jackets, hats and scarves, boots and trousers and jumper dresses. Sales start to rise as the Christmas shoppers start to come out looking for their Xmas gifts, start to add occasion dresses and outfits and underwear, perfume and gift sets, avoid fad items that are flooding the market, unless you are at the start of the fad then there will be no profit in it but plenty of competition. Add toys and pyjama sets, personally engraved items are always popular.

November - You could start to list some Christmas decorations and clothing as a traffic  boost, there will be plenty of sales going on so make sure you set your store up with discounts and sales to clear some slow moving stock and attract those buyers. Stock up on your winter clothing, gift wares and shoes and accessories and make sure you have some competitive pricing, this month and next are going to be very busy.

December - Make sure all your winter items are on, clothing is slow this month so stock up on gift items and supplement those sales by adding sales to your slow moving stock. This month is all about toys and gifts so make sure you have plenty available.

For my own stock I tend to have the main focus in my store as clothing and supplement my listings with seasonal goods. The goods that I sell for other people tend to get promoted or discounted during seasonal times to boost my clients sales.

Also don't forget the good thing about the Global shipping is that if you can keep up with seasonal trends in other countries you can make some good sales all year round of your seasonal stock, for instance while it may be cold and rainy here in UK January it is full swing summer in Australia, so while swimwear is a slow seller in UK it may be a good seller in Australia.

So keeping your store well stocked up all year round utilising sales promotions and discounts will guarantee you some good seasonal sales all year round.

Keep an eye on the trending and events (click through to find out more) pages and make sure your deals are competitive by checking regularly on the deals pages.

In addition to my seasonal tactics I also follow a pattern of auction listings to get traffic through the door. At the beginning of the month I list and source as much as possible and list them all on a buy it now format, once the end of the months starts to kick in I use the last 7 days to make the most of my free auction listings. 

I select all the items that have not sold from the newly listed items and in addition the items that have sat there for a while and list them at my rock bottom price on the auction format, this works well and clears out some stock and frees up some cash for next months sourcing trips, it's a good alternative to using discounts and gets items seen on the ending now search preference.

Keep proactive and whilst out searching for stock, have all these things in mind and always have something your customer wants!.

eBay Computer Vision Search

 eBay just announced their vision search that helps a buyer search out an item using photographs, watch the video below to see how it works.

 
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In addition eBay is also rolling out Find it on eBay, which allows you to tap items on any website on a blog or on Pinterest, for example and find similar items to buy by sharing the URL with eBay. The eBay platform will also let you zoom in on specific items within a photo for example, a pair of shoes and search for those.

Needless to say they will probably not be very accurate and will probably bring up a load of items that are very similar but at least you will be able get somewhere near what you are looking for, at the end of the day eBay needs to harness artificial intelligence which it already does with it's search similar function, so riding the wave of AI is exciting and I can't wait to see what is coming next.

Where else other than eBay and Amazon?

For online sellers the key to make or break is finding those customers. rather than limiting yourself to just eBay and Amazon there are lots of alternative market places out there. UK is a small island with limited number of customers but if you think world wide then your world becomes your oyster.

There are a number of other places to trade besides eBay and Amazon that harness the European market and North American Market adding millions of potential customers to your wish list including those corners of the UK Market that go largely ignored.

Besides the usual Facebook Marketplaces, Linnworks have put together a comprehensive guide to other Market places which is worth a peek at and gives you links to sites such as Fruugo, Flubit and Allegro. (find that here)

If you are thinking more on the used side of things then places like Pre-loved, Depop, eBid, Gumtree, Etsy, ASOS, Vinted, Shpock.

There are also lots of online auction houses you can list your items.

There is a whole world out there outside of eBay just waiting all you need is time to get to know what will work best for the items that you sell, there are a whole host more of selling places online that I have not even covered here that are specialist sites such as those that deal in handmade goods and antiques and collectables and I also forget to mention your own webstore.