I would like to pull some points out of the glacier DVD interview on auctionbytes which was a very interesting article on the factors which brought down the largest eBay seller.
- Spread your risk. The importance of having a multi channel sales strategy. Glacier DVD limited themselves mainly to eBay which they now admit was a mistake. One of the reasons for their ultimate downfall was that eBay introduced pre-filled information which made it easier for the competition to enter the market. This is a simple example of someone who put all their eggs in one basket and is a graphic illustration of why you should spread your risk across multiple marketplaces.
- Feedback. I think that Randy Smythe makes some interesting points about eBay’s feedback system. The current system does not allow allows for differentiation between sellers (lets face it your rating is either above 98% or your are not trading). There is also that problem of reciprocal negging, which makes it difficult for honest feedback to be left.
- Google adwords. Randy seemed to think that it is difficult to see the benefits of google adwords without spending $10,000. On the contrary, an adwords account can be set up for £20 and you can start tracking the ROI immediately!