Most eBay Storees will fail; but most eBay Store owners that create a business plan do not.
Which group do you want to be in?
Where can you find the right eBay Store Business Plan?
- Complete eBay Store Business Plan - click here
- If you require current U.S. information for your American eBay Store - click here
- If you require current U.K. information for your British eBay Store - click here
- If you want someone to write your eBay Store Business Plan with you - click here
Increasing Your eBay Store Businesses Revenues
There are only four ways to increase your eBay Store Businesses revenue:
- Increase the number of customers that your eBay Store has.
- Increase the average transaction size.
- Increase the frequency of transactions per customer.
- Increase your prices.
Here’s how to apply these strategies in your eBay Store:
- Increasing the number of customers means you’re trying to bring more people through the doors of your eBay Store or to your website. This strategy is relatively straightforward: more leads will equal more sales, which (assuming the average transaction size stays the same), will bring in more money.
- Increasing average transaction size means you’re trying to get each customer in to purchase more. This is typically done through a process called upselling. When a customer purchases a product, you offer them deals on other products or value-added-services. The more they purchase, the more they spend, and the more revenue you collect.
- Increasing the frequency of transactions per customer means encouraging people to purchase from you more often. If your average customer buys from you once a month, offer them deals and additional products and services once a week. The more frequently they interact, the more revenue your eBay Store will bring in, assuming the average transaction size stays the same.
- Raising your prices means you will collect more revenue from every purchase a customer makes. Assuming your volume, average transaction size, and frequency stay the same, raising your prices will bring in more revenue for the same amount of effort.
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eBay Store - Gaining or Increasing Market Share
To increase its market share your eBay Store must take buyers from its competitors or open a new sector in the marketplace. Managing this demands a thorough appreciation of, not only your own customers, but that of competing eBay Store Businesses.
Knowing answers to the following questions will assist you in creating a comprehensive picture of your organizations marketplace, and also pinpointing your direct rivals, placing you in an excellent position to gain a larger share of the market:
- Who are your existing customers? Could there be other groupings that might require your items that you have not focused on before? Can your product or service be utilized in ways that you had not previously thought about, meaning they are more appealing to a broader marketplace?
- What are your competitors strong points? Does your company have these too? If not then why not - and should you have them?
- What are the reasons that customers buy from other businesses? What benefits do you offer that your competition does not, which may deliver their current clients to your company? How could you market to your competitions clientele to make sure they switch and buy from your eBay Store instead?
- What is your unique selling point?
- Apart from obvious competitors, are there any further businesses with customers your products and services may be interested in?
- Is there anybody that has stopped buying from your organization? Have you found out why? If you have not done it already, you must check with them.
- Are you looking to change prices, advertising, distribution and service levels? If you are, could those modifications annoy current clientele? Will your staff remain motivated?
Many small-scale organizations grow by taking opportunities to branch out, albeit there are issues due to the insufficient resources that you may have. You must recognize the uncertainties, and the expense of opting for growth, as opposed to the benefits.
Diversifying your business could take quite a few forms, that include:
- redesigned, interconnected goods and services advertised to the existing buyers of your eBay Store,
- fresh markets for your organizations existing goods and services and
- new items for new markets.
Determining how you branch out depends upon you having:
- accurate market and customer analysis for any new product or service,
- a positive growth strategy - including trialing a new line or service for a test period with prototypes and trial promotional campaigns ahead of wholly committing to the new program and
- sales, promotional and supply chain operations that can handle the extra demands for your eBay Store.
You must be truthful about your organizations development costs and what your choices are if any setbacks arise. Whenever feasible, try to limit any headaches by securing orders or commitments up-front.
Whilst diversity can present some risks, like expensive hold-ups and errors through a lack of understanding or savvy in the new area that you are looking at, it also reduces the repercussion of changes in your new marketplace. In simple terms, if you sell a lone product or service and customers stop buying it, your eBay Store is exposed. If you supply a number of items and the revenues from one of these plunges; at least there will be money coming into your business from the rest.
However, if you grow too fast, then you might lose track or dilute the principal product or service of your eBay Store.
Ordinarily, diversifying with comparable products or services and marketing them to your existing clients is not as risky than establishing a product for a totally new market for your eBay Store.
You might also grow your organization by working side-by-side with another business. While this will probably produce sluggish decision-making, compromises, and probably management and staff problems to iron out, there can be clear benefits.
Prosperous relationships can give your organization:
- increased resources,
- splitting of the managerial burden,
- a bigger knowledge and talent base,
- a larger pool of potential customers for your eBay Store,
- a broadening of markets,
- diversification and natural growth taking advantage of expanded assets and
- lower commercial risk for your eBay Store.
A Great eBay Store did not just happen - It was planned that way.