Turn Excess Inventory into Cash

Transcription

1 Turn Excess Inventory into Cash on The World s Online Marketplace for Clothing, Shoes & Accessories MAGIC August 2002

2 Agenda ebay Overview Clothing, Shoes & Accessories on ebay Liquidating Excess Inventory on ebay Getting Started Q & A 1

3 ebay s Business World s largest online trading community 2

4 ebay s Vision Provide a global online trading platform where practically anyone can trade practically anything 3

5 How This All Applies to You: We Connect Apparel Buyers & Sellers Seller Value Seller Proposition Value Proposition Highly liquid Market Liquid Market w/ Better Economics Better Economics New Customers Brand Distribution New Customers Marketplace Marketplace Buyer Value Proposition Buyer Value Proposition Selection & Availability Price & Value Price Selection & Value & Experience Availability& Community Experience & Community 4

6 A Day in The Life of Clothing, Shoes & Accessories on ebay 60,000 items sold Over $1.1M in gross merchandise sales $1-$15,000+ Price Range 1,035 shoulder bags, 382 sunglasses sold 1,328 women's jeans sold 680 men s short-sleeve shirts, 482 ties sold 658 pumps, 372 basketball shoes sold 509 boys sets, 580 one-pieces for 0-12m sold 110 maternity dresses sold 5

7 How Can You Use ebay? To Liquidate Your Excess Inventory Product Intro Mainstream Maturity End of Life Launch Full-price Mark-downs Liquidation ebay Focus Time Liquidate Excess Inventory Fast Turn-Over: from excess inventory to cash in 10 days or less Higher Yields: 2-4X greater recovery vs. traditional liquidation Lower Channel Costs: ebay fees average 6-7% of sales And Acquire New Customers Once a user completes the transaction, she is your customer Some partners find that up to 70% of ebay customers are new to them 6

8 Apparel Listing and Pricing Strategies: Which One Is Right For You? Auction- Style Pricing Pure Fixed Price Auction With $1 Start Price Auction with Minimum Bid Auction with Buy It Now Option Pure Buy It Now Listing Objective: Objective: Objective: Objective: Maximize bidding to drive up final price. Most aggressive pricing. Drive bidding activity and protect downside. Recover a minimum % of cost. Maximize bidding or capture fixed price buyers. Drive multi-unit fixed price sales or keep basics in stock Merchandise your entire assortment in a single destination, your ebay Store 7

9 1) Auction with $1 Start Price $0.99 Start Price 23 bids have raised current price to $68, and there are 4 more days to go Considerations: Highest risk, but usually highest return. E.g., if this handbag had a start price of $60, there would have been fewer bids and maybe a lower final price Buyers look for low prices; low-priced items can drive traffic to all of your listings 100% sell-thru 8

10 2) Auction with a Minimum Price Minimum Bid was $55.00 Considerations: Minimum bid insures you attain the price you want There may still be bidding activity Sell-through rates will depend on attractiveness of opening pricing 2 bids have placed this item at $

11 3) Auction with Instant Purchase Option: Buy It Now Start Price = $39.00 Considerations: Allows bidding if buyer is looking for best price Captures buyers who want an instant purchase Buy It Now price is $

12 4) Fixed Price Considerations: Sell one item or multiple quantities at a set price Attract buyers who prefer to buy at a set price 20% of ebay sales are now in fixed price format Buy It Now only; no option to bid 11

13 There Are Several Ways to Get Started Do It Yourself Hire an ebay Trading Assistant (experienced seller) Partner with a Preferred Solutions Provider What is This Manage and complete the sales process yourself. Have an experienced ebay seller list and manage your sales on your behalf. Have a full-service provider facilitate your ebay sales and integrate with your existing system. Who should Try This Individuals, Small Retailers, or Manufacturers. Small and medium sized retailers and manufacturers. Medium and large size retailers and manufacturers. Level of Internal Resources required Higher. Requires internetsavvy person on staff available to list and manage offers on ebay. Lowest. Requires a person internally to select sales items and coordinate with trading assistant. Moderate. Requires internal resources to coordinate and interface with third party solution providers. Fees ebay fees ebay fees + Trading Assistant fee ebay fees + Preferred Solution Providers fee How to Get Started Register on ebay; Create a Seller s Account Go to ebay.comta to find trading assistants near you. Go to ebay.com/psp to find the contact information for PSP companies. 12

14 Getting Started How do I sell a pair of jeans? 13

15 Select Sell 14

16 Register on ebay and Create a Seller s Account 15

17 Decide on Auction-style or Fixed Price 16

18 Choose the Appropriate Category for Your Item 17

19 Write Clear, Compelling Title and Detailed Description Good Titles Include New Seven Jeans Boot Cut Sz 31 $140 Include the word New if the item is new Brand Item Type Style Or Color Size Original Retail Price Good Descriptions Include More details about the item, including material, color, condition Measurements, if appropriate Return policy Shipping policies and restrictions, if any Payment terms Background about you, your sales 18

20 Add Listing Choices and Pictures Take good photographs. Clear pictures help boost sales Always include one or more photographs when selling clothing, shoes or accessories. 19

21 Enter Your Payment Terms 20

22 Enter Your Shipping Terms 21

23 Review Listing 22

24 Done! 23

25 During The Listing Period: Communicate with Potential Buyers Try to preempt questions by including as much information as possible in your listing Answer all questions you receive as soon as possible If you don t respond right away, tell customers when you ll be able to Keep buyers focused on the current auction don t sell other items Spell-check your s Always reveal problems or blemishes with your item if they exist (be honest) Have fun 24

26 After the Sale Closes 1 2 Contact Buyer Terms and conditions Where to send payment Wait for Payment Best if you offer online pay Wait for checks to clear 3 4 Ship Item Package appropriately Clear return address Leave Feedback Typically positive Ask for feedback 25

27 An Alternative Trading Assistants 26

28 Need more information? Quickest way to find answers: ebay.com/sellapparel 27

29 ebay Fees Listing Fees + Final Value Fees Opening Price Insertion Fee Closing Price Final Value Fee $ $9.99 $0.30 $0 - $ % of closing value $ $24.99 $0.55 $ $49.99 $1.10 $25 - $1, % of the initial $25 ($1.31) plus 2.75% of the remaining closing balance $ $ $2.20 $200 and up $3.30 Over $1,000 $1.25% of the initial $25 ($1.31) plus 2.75% of $975 ($26.81) plus 1.50% of the remaining closing balance EXAMPLES: On a $24.99 item the total fees are $1.62 or 6% of the total On a $49.99 item the total fees are $2.30 or 4.5% of the total 28

30 Turn Excess Inventory into Cash on The World s Online Marketplace for Clothing, Shoes & Accessories