Preliminary Thanksgiving Day Sales Data from eBay

Hi Accidental eBay Entrepreneurs!

Please take a moment to put-down the leftover pumpkin pie, and peek at some data RBH at the eBayInkblog.com just shared from the eBay Mobile Team:

Mobile shopping highlights from eBay Inc. include:Thanksgiving (Nov. 24, 2011, 12:01 a.m. – 11:59 p.m.)

eBay Mobile (U.S.):

· The busiest eBay Mobile shopping hour on Thanksgiving was between 6 and 7 p.m. PST

· Shoppers in the U.S. purchased more than twice the amount of items via eBay on mobile devices this Thanksgiving compared to last year

· The amount shoppers in the U.S. spent via eBay Mobile more than doubled this Thanksgiving compared to last year
The five most popular categories shopped via eBay Mobile, excluding vehicles (by GMV), were:

1. Clothing, Shoes & Accessories
2. Computers & Networking
3. Sporting Goods
4. Jewelry & Watches
5. Cell Phones & PDAs

The five most popular categories shopped via eBay Mobile, excluding vehicles (by number of sold items) were:

1. Clothing, Shoes & Accessories
2. Cell Phones & PDAs
3. Jewelry & Watches
4. Collectibles
5. Toys & Hobbies

Fashion:

1. Toms Classic Shoes
2. UGG Australia Classic Short Shoes
3. Tory Burch Tumbled Shoes

Electronics:

1. iPhone AccessoriesApple
2. iPhone 4 – 16GB – Black
3. Apple iPod Touch 4th Generation 8GB

Toys & Hobbies:

1. Traxxas Slash 4X4 Ultimate 6807 Radio Controlled Truck
2. Webkinz Reindeer
3. Team Associated SC10 Radio Controlled Truck

Shoppers in these five cities spent the most via eBay Mobile on Thanksgiving (by GMV):

1. New York
2. Los Angeles
3. Casa Grande, Ariz.
4. Houston
5. Miami

Shoppers in these five cities made the most purchases via eBay Mobile on Thanksgiving (by sold items):

1. New York
2. Chicago
3. Houston
4. Los Angeles
5. Miami

PayPal Mobile (Global):

· Thanksgiving 2011 resulted in 511% more mobile payment volume compared to Thanksgiving 2010· There was a 350% increase in the number of customers shopping through PayPal mobile on Thanksgiving 2011 compared to last year
Shoppers in these cities made the most mobile purchases through PayPal on Thanksgiving 2011:

1. New York
2. Houston
3. Los Angeles
4. Miami
5. Chicago

GSI Commerce Mobile (U.S.):

· GSI Commerce reported a 345% increase in U.S. mobile sales this Thanksgiving compared to 2010
The full story can be found here, on the eBayInk Blog.

How were your sales this Thursday?

John "Colder ICE" Lawson just released his second episode of Ecommerce Bits TV.

In this episode he examines the 20% Final Value Fee discount eBay is offering sellers this holiday season (and explains why it only saves you 2.4%); gets us to start thinking about devising 2012 business strategy now; and offers 5 ways you might be a Christmas Scrooge (I need to work on #5, Yikes!).

Happy Thanksgiving everybody!

(And if I'm not back before then, Happy Black Friday!)

Business Plan Adjustments for the Holidays

OK, take a deep breath.  Black Friday is in 4 days.  Breathe in, breathe out...

I used to get excited (and still do) about all the great deals I could find shopping on Black Friday.  Then last year, I was surprised to see my eBay sales went up on Black Friday even though I didn't do anything different in my store.

I quickly realized that when shoppers are in a frenzy spending money, they spend it EVERYWHERE as long as they feel they are getting a deal.  Even with me, whose primary product is pre-owned business clothing (not exactly the sort of thing you buy for a gift). 

This means e-tailers like you and I don't have to wait until Cyber Monday for the customers to find us.  Cyber Monday is the Monday after Thanksgiving, where the trend is people start Christmas shopping en masse from their offices.

This year, I am modifying my business plan to maximize sales and delight the customers in the post-Thanksgiving shopping rush.

My holiday-adjusted business plan includes the following:

• Free expedited domestic shipping with 1-day shipping options
• Free shipping to Canada (First Class Mail International), with $5-10 Priority Mail options
• Discounted flat-rate shipping to the rest of the world ($10 FCMI, $25 PM)
• Returns accepted until January 31, 2012
• E-mail blast to all former customers thanking them for their business with notice of a 25% off store-wide sale (sale runs this Tuesday - Cyber Monday).
• Effective December 10th, all domestic packages will be sent Priority Mail (even the light ones)

Through aggressive goal setting and tracking, my sales have already increased 30% Month-over-month since August.  I'm excited to see if this pro-active holiday marketing helps maintain the trend!

Delighting the Customer: 6 Reasons to Accept Returns

Have you ever shopped at a Nordstrom? From the moment you walk in the door, your senses are filled with pleasure.

There is soothing piano music, played live on the grand piano adjacent to the central escalators.

Employees are well dressed and smiling.

Polished marble shines.

Can't find the shoes you want in your size? No problem. They will have them shipped from their store 3,000 miles away at no charge. You can pick them up Thursday.

Every aspect of the Nordstrom experience is carefully designed to delight the customer.

When I was in business school, one of the first things we learned was the "Nordstrom Snow Tire" story. It goes something like this.

"A woman walks into Nordstrom to return the snow tires her husband bought. The tires had 'Sears' printed across them. She says her husband bought the tires here, and she needs to return them."

Of course Nordstrom doesn't sell tires, but in their effort to delight the customer they accepted the return and gave the woman her money back."

This is, quite literally, the textbook definition of going above and beyond what is required to make a customer happy. So why do it?

Nordstrom's liberal return policy one small piece of their culture of customer delight.

But let's get real, as eBay sellers we HATE the concept of returns: they cost us time and money.

Brick and Mortar stores take returns, and to be competitive in eCommerce we need to accept them too.

I've accepted returns since the first day I opened my eBay business over three years ago, and I've never regretted the decision.

As a whole, accepting returns has not hurt my cash flow. For the first 10 months of this year, my return rate (by dollar value) is only 3.8%.

6 Reasons to Accept Returns:

REASON 1: I want to delight the customer, so he/she will come and shop with me again. By accepting returns, there is an added level of confidence in the transaction.

REASON 2: I sell clothing, and sometimes garments just don't fit - even if the measurements are in the listing! Not all customers understand how to compare clothing measurements to body measurements. Heck, some customers don't even own a tape measure! Sometimes the part that doesn't fit was not measured. I recently returned a sweater I bought on eBay because the diameter of the sleeves was too small for me (the sweater had been washed in hot water and the sleeves contracted). This was not a standard measurement, but it sure would have kept me from wearing the sweater if I'd bought from a seller who didn't take returns.

REASON 3: Personally, I won't buy from a seller that doesn't accept returns. I get the impression they can't be bothered or that something is wrong with the garment.

REASON 4: DSR scores and positive feedback. If I sell a flawed item and accept returns, the buyer can contact me and say "Hey, there is a loose eye-hook on this skirt you didn't disclose in the listing. How can I return it?" If I don't accept returns, odds are she will contact PayPal or eBay directly, open a dispute or a claim for the dreaded SNAD (Significantly Not As Described). And if eBay or PayPal rule in the buyers favor, guess what. They take money out of your PayPal account, give it back to the customer, and the customer doesn't have to return the item! So now you have bad feedback, no skirt, and no money. Ouch!

REASON 5: Buyers can now filter search results so that only merchandise from sellers who accept returns will be displayed.

REASON 6: eBay is giving a visibility bump to listings that accept returns within 14-days or longer.

During the holiday season, eBay is encouraging sellers to extend their return period until January 31st. You see this policy in place now at most department and discount stores. To stay competitive, eBay sellers need to do the same.

If you want to learn more about why Nordstrom is hailed as customer service heroes, I recommend reading "The Nordstrom Way: The Inside Story of America's #1 Customer Service Company" by Robert Spector.

E-Commerce TV

I am excited to share the news that one of my favorite bloggers, John Lawson, is now starring in a new video series "Ecommerce Bits TV".

I have learned a LOT from him, and I think you will too!

You can watch the pilot episode here:

Managing Your Personal, Professional, and Learning Networks

Growing as an eBay entrepreneur will be much easier if you take the time to manage three types of networks: Your personal network, your professional network, and your learning network.

YOUR PERSONAL NETWORK
The Accidental eBay Entrepreneur doesn't start with a business plan - and things at home start to change very quickly when sales increase. A lot of sellers who start their eBay business in this way are reactionary to their eBay business, instead of being proactive.

This can cause a lot of new tension with your personal networks (close friends and family – your emotional support system) who don't understand how things are changing. Unexpectedly and suddenly there will be new stress at home similar to what you'd experience with a marriage or a death in the family. Everything will change, and you need to manage your personal network's expectations to be in-line with your new business.

Include them in the planning. Explain WHY this is important to you. Tell them up-front what is going to be different. For example, if you have children, you may not be available to drive them around on a moment’s notice any longer.

Sometimes there will be unintended consequences you will encounter when running an eBay business, and you need to keep your eye open to recognize them when they come up and manage them quickly so problems don’t develop. Be aware of how your changing habits will affect the ones you love.

Here’s a big one: Your cash flow is going to change. You will need to plan up-front what to do with the money that comes in with your spouse/partner who may have his/her own ideas about how incoming money should be spent. To grow your business, you will need to re-invest additional income into the business to buy inventory, computer equipment, shipping labels – all types of new expenses.

Discuss strategies to separate work from home. If you have roommates, you may be at home more often during daytime hours when they don’t expect you to be home. Talk about your new routines and put yourself on a schedule.

The people you live with might get annoyed when the family room turns into the eBay room. Talk about where you will physically work, and how you will separate your work space from home space. And most importantly, schedule to set aside special family time and make it a priority to follow-through.

I found this good resource where you can get more home stress management tips:
http://www.wahm.com/articles/family-stress-management-tips-for-entrepreneurs.html

YOUR PROFESSIONAL NETWORK
Working from home can be lonely, but one of the greatest things about being an eBay entrepreneur is that you aren't the only one! There are tens of thousands of other smart people doing what you are!

Find a professional network (made of business friends and acquaintances) that you can learn from, and they can learn from you! eBay Meet-up groups (www.meetup.com) are a great place to start in larger cities. They usually meet once per month, and you can meet other eBay sellers in person.

eBay on Location and the eBay Radio Party are great learning events and ways to meet other sellers. Last year, I brought my husband to eBay On Location in San Jose. He was able to meet people who had successful eBay businesses, and that gave him hope for me! He’s an academic and has no experience with business management or retail. He attended Griff’s ‘Know Your Numbers’ workshop and got a basic understanding of behind-the-scene business math.

Not everyone has access to these in-person networks. Luckily, there are lots of on-line options! When you are on eBay's site, click on the “Community” tab and browse through the Discussion Boards and Groups. On Facebook you can ask to join The eCommerce Group or Thrifting-with-the-Boys.

No matter what challenge is facing your eBay business, from dealing with new seller restrictions to the struggle to make yourself take a day off, the people in your professional networks can help!

Especially helpful for me was finding a group that is specialized in women who runs eBay businesses selling used clothing. We chat on-line every day, and learn from each other's experiences. We cover topics like new hot brands that sell quickly, sharing strong keywords, recipes for Crunchy Chicken Salad, helping each other learn. (I actually met many of my chat board friends in-person at the last three eBay On Location events!) You can find specialized on-line groups for all product types.

YOUR LEARNING NETWORK
This last network is often the most overlooked. E-commerce moves lightning fast, and to keep up you will be constantly learning. It is not a waste of time to dedicate as much as 1 or 2 hours each day to learning.

If you commute to a day job and work eBay nights and weekends, read or listen to audio books while traveling. Always have something to read with you, and when you find yourself open you book/magazine/iPad and learn.

Mike Michalowicz, has written a brilliant book called “The Toilet Paper Entrepreneur: The Tell-it-like-it-is Guide to Cleaning up in Business, Even if You Are at the End of Your Roll”. The basic premise is how to grow a business on a shoestring budget, and how entrepreneurs who begin without piles of cash from the ground up run leaner, stronger businesses. I loved this book so much, I bought a copy for my best friend when I couldn't bear to part with mine after I'd promised to loan it to her. Mike has a blog at thetoiletpaperentrepreneur.com, where he shares many of his insights.

Blogs are the fastest way to get new information. Google has a free tool called Google Reader that will keep track of new posts on any blogs you choose to follow and all your blogs are organized in one place.

AuctionBytes, is invaluable to keep-up with the E-commerce news - not just on eBay but they track all the common selling platforms.

John Lawson has a great blog, ColderICE, which is dedicated to Internet commerce education. I especially like his infographics. He's a smart, funny guy and I’ve learned a lot from him.

Richard Brewer Hay (RBH), is eBay's official blogger. On eBayinkblog.com he shares important (and sometimes exciting) news from every part of eBay corporate. This was a great site to learn more about the eBay Holiday ad campaigns when they were launched last month.

TAKE AWAYS:
The fundamental theme of all networks is you have to participate to get anything from them. You get what you give. You can’t just show up and take what you need from them, you need to share and offer in return.

The Fundamental problem of all networks is they can overlap (especially on Facebook), and that can get complicated. But this is another topic for another day...

Accidental eBay Entrepeneurs - Thank You

Accidental eBay Entrepeneurs start selling on eBay casually, without initially intending to run a business. Maybe they start selling on eBay to make a few dollars selling used toys the kids are done with, or perhaps someone in the family lost a job and they start selling their personal belongings to keep the bills paid.

My favorite story of an Accidental eBay Entrepeneur is of Linda Lightman, the owner of Linda’s Stuff, an eBay store. When she started she was a lawyer-turned-stay-at-home-mom who sold some of her son’s old video games, and now she runs a multi-million dollar corporation with over 60 employees.

Linda was interviewed on Nightline last year:


I’m not an Accidental eBay Entrepeneur. I put myself through college as a 30-something re-entry student, and earned a business degree from the Haas School of Business at Berkeley. I started my eBay business with a plan in mind. I worked nights and weekends and carefully planned so my business would grow, and now I've created 2 jobs and have wonderful employees that are helping me grow it further.

A lot of my eBay friends don’t have my classroom experience. I learned so much from them when I started selling women’s business clothing on eBay (such as what brands to buy and how to write strong titles – the things they don’t teach in business school) that I want to return the favor. Privately, I’ve been doing this by encouraging them to think of their business as a business: setting goals, calculating margins, and to understand ROI. I share the things I did learn in school as my way of thanking them.

I wouldn’t have made it this far if they hadn’t held my hand, explained the difference between St. John and St. John’s Bay, and all the countless other things they’ve taught me.

This blog is my thank you. My hope is to pay their kindness forward, and help someone else the way they helped me.

Sandi Garcia, Owner, http://www.likenewsuits.com/