How to Create Working Models for Complex Businesses with Non-Physical Inventories.
If you plan to sell a purely physical inventory with a simple business model, your margins will be slim.
This is especially true if you plan to stock your inventory with new items – or items that have just recently hit the market, such as popular electronic items.
Rather than using clever methods to try to get higher margins for your product, you will simply have to find ways to continue to increase your sales volume.
This means that the amount of work you do will also increase. Selling electronic goods for a profit of $1 each is already considered very good.
However, to make it big, you have to sell in mass volumes. Thus making it very difficult if you are planning to juggle a physical inventory.
You will have to spend time processing more orders, packaging more products, and waiting in line at the post office.
Of course, you can bypass some of this by using a dropshipper. (see Dropshipper)
Now, if you want to increase your profit margins per unit and reduce the amount of time you spend doing “physical work,” such as packing and shipping, you will have to take a different approach.
WHAT IS NON-PHYSICAL INVENTORIES?
One of the best ways in which you can do this is by using a non-physical inventory and selling it with complex, not simple, marketing methods and sales/business models.
If you plan to create a non-physical inventory, which might include such things as software, ebooks, PDFs, DVDs, audios, and downloadable videos, you will also want to create a website to integrate into your business model.
BUILDING AN INVENTORY FOR YOUR NON-PHYSICAL, COMPLEX EBAY BUSINESS
Building an inventory for your non-physical, complex eBay business is not similar at all to building a physical inventory.
Unlike with a physical inventory, you can purchase your non-physical inventory once – and then sell it a virtually unlimited amount of times.
Purchase Ebooks / Articles with Resale Rights (PLR Information)
One way you can build your eBaystore inventory is by purchasing ebooks with resale rights.
If you do this, you will want to take one of two approaches.
PLR TERMS AND CONDITIONS
The first approach you can take is to purchase resale rights products with a limited amount of licenses.
You will want to read the licenses terms on these products carefully before you purchase them.
Make sure it clearly states that you can resell the product – and also make sure that it limits the products to a small amount of licenses (perhaps 100 to 200).
Make sure that the PLR material are also relevant to you.
This means check to see that whether the articles are on general ongoing rather than very specific topics such as biology or physics topics.
General topics are easier to customize and reused, not to mention the customer base is larger too.
Also check to see the other T&C such as the minimum resale price, and how much you have to change the article if you decide to give it away for free.
POWERFU SALES PAGES
If you decide to resell these products on eBay, you will want to sell them at a relatively medium price and concentrate on creating a powerful sales page for your auction.
After all, your potential customer cannot preview the E-book, so all they rely on will one on how powerful your sales page is.
One good sales technique that works wonders with E-books is to give a way the first chapter (along with the index page) of your E-book.
That way, your potential customer will get a feel of what the E-book contains (from the Index) and how good is the E-book (from the preview of the first chapter)
COMPETITION ON EBAY
You will also want to scan eBay ahead of time to make sure that no one else with a license is selling that same information product.
If so, you will want to look for something else. After all, PLR products are sold to more than 1 person, so just check to make sure that no one is selling the exact same item as you.
The easiest way to overcome this is to simply change the title of your E-book a little. That way, it will look like you have a totally unique product.
Now, the other approach you can take is to purchase resale rights products with an unlimited amount of licenses. In this case, your goal will be high sales volume.
You can stock your inventory by purchasing resale rights product packages. A good place to find resale rights products is actually by searching for them on eBay.
Another good place to find them is by purchasing them from firesales and from Internet marketing and ebook sales sites.
EBAY: PRICES, PRICES, PRICES!
There are three important things to remember when selling these packages on eBay.
The first is to sell them at a relatively low price, since all of your competition will be doing this. The key is to sell in mass volume.
The second thing you will want to remember is to make sure that the person you purchase them from actually has a valid license to sell them.
You can do this by searching around on other sites for that product bundle to see if other people are selling the same products. Additionally, some products will actually have a license validator program.
MULTIPLE EBOOK NICHE ON EBAY
If you’re planning to use this approach, you should frame your store as an “ebook store,” which will allow you to penetrate multiple eBay niches, rather than just one.
For instance, you could sell ebooks that are filled with recipes and you could also sell ebooks with information about car repairs.
The last thing you will want to do is bundle multiple ebooks together – and sell them all together.
You can do this by category or you could offer a “mega bundle” with everything.
Additionally, if you purchase ebooks with “master resale rights,” you can sell them to resellers in addition to normal eBay buyers.
Purchase Audio and Video
Both audio and video has the potential to bring in higher prices than ebook packages, which generally sell for low prices on eBay.
Again, similar to ebooks, you can purchase licenses for these products.
These licenses, too, can vary in terms of what they allow. If possible, try to purchase products you can edit.
For instance, if you own CamTasia, purchase video products that have private label rights that allow you to edit them.
This will give you the opportunity to capitalize on back-end sales from the product, rather than allow the original creator to make money off of the original sale to you – and then continue to capitalize off of all of the sales you make on eBay, too.
If, for instance, you have CamTasia, you can edit a number of things that will allow you to make back-end sales.
For instance, you could insert your eBay ID into the video; or you could use the “jump to” function to send watchers back to your store at the end of the video.
Purchase Software with Resale Rights
Downloadable software is another good non-physical product you can sell on eBay.
As with ebooks, audio, and video, you will have to purchase software that has resale rights or you will have to purchase a licenses to resell it.
Likewise, you will want to find a product that has the type of resale rights you are specifically looking for (i.e. ones that will interface well with your business model).
Purchase Rebrandable Software, Audio, Video, and Ebooks
What are rebrandable products? They're products that contain affiliate links – but that also have a built-in mechanism that allows you to change those affiliate links to your own affiliate links.
Rebranding is relatively popular with ebooks, but not quite as popular with other types of products, including audio, video, and software; however, if you look specifically for it, you should be able to find it.
If you decide to stock your inventory with rebrandable software, audio, video, and ebooks, you may find that much of it is being given away completely for free.
This is because the bulk of the money made from rebrandable products is in the back-end.
One place you can find these rebrandable ebooks completely for free is at ebook directories. You may need to dig to find rebrandable ones, as most are not.
Creating Your Own Products
Most eBay sellers do not create their own information or software products.
This is because margins are very slim on eBay – and production costs are generally too high to warrant creating an entire inventory out of products you actually created or paid someone else to create.
However, if you do create your own products, you may want to stick to selling cheap, upsell products, rather than full versions, unless you are planning to raise the price.
As a rule, mid-level price downloadable products do not sell well at retail prices on eBay.
If you raise the prices to several hundred dollars (and can warrant the increase) or if you sell them for a few dollars, you are likely to make enough sales to justify your production costs.
If you sell them at retail prices, you may not sell any copies at all.