session one: online selling

1

Creative Cycle Online Entrepreneurship Project

Session One:Online Selling

CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT

2

Aims

Set up eBay and Etsy accountsLearn the advantages and disadvantages of

each platformDiscuss the potential risks of each platform


3

Steps to sell a product online


Register a PayPal accountRegister an account with an online selling

platformList your products

DeliveryPost-Sales Management: Returns, Reviews,

AnalyticsTax

4

Requirements


A computerAn internet connection

An email addressA bank account or credit card

A product (with pictures)

5

Other Sites?


There are a number of other sites to sell on such as Amazon and ASOS Marketplace

BUT eBay and Etsy are the biggest sites for the type of products you will be selling

These sites also give the sellers the choice to choose the information they wish to disclose

Thus you can opt to have no personal information showing

6

E B AY I S A N O N L I N E AU C T I O N A N D S H O P P I N G W E B S I T E I N W H I C H P E O P L E A N D B U S I N E SS E S B U Y A N D S E L L A B R OA D

VA R I E T Y O F G O O D S A N D S E R V I C E S W O R L D W I D E


eBay

7

Advantages & Disadvantages (eBay)


Simple to useHuge traffic (over 14 million active users in

the UK alone)Receive assistance

from eBay with regards to returns and

refunds etc

Fees are relatively high

Negative feedback destroys reputation

Advantages Disadvantages

8

Registration


On the top left corner of the homepage, there is a register button

Registration will require a few important details such as your name, email and a password

9

Privacy


eBay gives the seller the option to choose their own user ID

Done automatically by eBay initially but can be edited later from “My eBay”

Only the user ID will be shown to buyers and therefore privacy is ensured

10

Selling a Product

On the top right hand corner, hover over the button saying ‘Sell’

Click ‘Sell an item’After filling out an

address, you should be able to create a category for the product you are selling


11

Listing a Product


After clicking create your listing, you can add pictures of the product

Recommended high resolution pictures

Select condition and add a small description highlighting the main features of the product

12

Pricing


Choose either a fixed price or an auctionAdvised that you select fixed price as evidence shows

you will be 10% more likely to sell your itemEnter the price and the sale duration

13

Delivery


Most important option is whether you will charge the customer for delivery or whether you will pay the delivery charge yourself

In this case, as this is a small product, it is advised you pay the delivery charge yourself

Delivery fees will be discussed in the additional section

14

Preview

This is how the demo item should appear on eBay:


15

Fees

There are three types of fees on eBay:1. Insertion fee – Paid whenever an item is

listed on eBay even if it doesn’t sell - £0.40 per listing

2. Final value fees – Paid when the item is sold – 10% of the value of the total transaction

3. Feature fees – Only applicable if optional features are selected however it is advised that these optional features are avoided


16

Feedback


Buyers can leave either positive, neutral or negative feedback

This is in addition to the reviews they can write

Good sellers tend to have over 99% as it is the norm on eBay to leave positive feedback on the vast majority of cases

17

Returns


If you've agreed to issue a refund for an item, you must do so within 3 days of promising the refund or within 3 days of receiving the returned item

If the buyer doesn't receive the refund within 3 days, eBay will refund the buyer by deducting money from your PayPal account

You'll need to ensure your credit card details are added to your PayPal account to use this reimbursement payment method

The seller is liable to pay for delivery on the return unless you have opted not to (can be done through my eBay)

18

Analytics


To access data on your online shop:1. My eBay 2. Account (hover over) 3. Subscriptions 4. Sales Reports 5. SubscribeSales reports enable you to track your sales

and fees on a monthly basis

19

ETSY IS AN E -COMMERCE WEBSITE FOCUSED ON HANDMADE OR VINTAGE ITEMS


Etsy

20

Advantages & Disadvantages (Etsy)


Cheaper fees than eBay

More specific to the type of product

No risk of not receiving the money as you can post the

item out after receiving payment

Strict guidelines – must be vintage or

handmade, to be sold on Etsy

More complicated to set up

Advantages Disadvantages

21

Registration

Register an account by clicking ‘Register’ on the top left hand corner of the page

After registering, click ‘Sell’ on the top left hand corner of the page


22

Registration


Then, you have to choose your language, currency and shop country

23

Setting up of Shop


Next, you can start setting up your shopComplete each of these 4 tabs and you will be

ready to open

24

Choose your Shop name


25

Shop Look and Branding


Banner: 760 x 100 pixel image at the top of your shop page

Shop title: Description of shop and the types of things you offer

Shop Announcement: Often used to welcome buyers or promote sales

26

List items for Sale


Describe who made it, what item is it and when did you make it, and whether it is a physical item

27

Categorize your Item


28

Select Variations


Can include information like size, color, dimensions

29

Add Images


Add images to let buyers have a feel of the item

Images should be between 800-1000 pixels wide, but the height can vary

30

Item Information


Add a descriptive titleFor description, remember to include size,

materials used, how it was made and any unique features

31

Additional Attributes


We can add recipients, what occasion this is for and also custom styles

32

Tag your Listing


Titles and tags will help aid search results when buyers are looking for your item

Simply put, “What words would you use to search for this item?

33

Selling Information


Price: Enter desired price, less shipping.Quantity: Listing fee is £0.12, no matter how

many you listTransaction Fee: 3.5% of transaction priceShipping information: First, enter the processing

time - the length of time between when your item is ordered when it will be shipped.

Enter the country that you are shipping from - add as many countries to ship to as you'd like, with separate shipping costs for each country

34

Selling Information


35

Tax Information


Every individual has to sign up with the tax authorities in the first 3 months after they have opened an Etsy account

You can register it online at http://online.hmrc.gov.uk/shortforms/form/CWF1ST?dept-name=CWF1&sub-dept-n

Make sure you also complete the Class 2 NI exemption if you don't expect to make more than about £5000 in the tax year

The information is available at www.hmrc.gov.uk/working/intro/class2.htm

You can include a tax in your price

http://online.hmrc.gov.uk/shortforms/form/CWF1ST?dept-name=CWF1&sub-dept-n

http://online.hmrc.gov.uk/shortforms/form/CWF1ST?dept-name=CWF1&sub-dept-n

http://www.hmrc.gov.uk/working/intro/class2.htm

36

Adjust Photo and Publish Listing


After reviewing the listing, click adjust photo to highlight how you want your picture to be seen, whether you want to emphasize a certain part of the picture

37

Changes


To make any changes to your item, please click the gray "Edit" button

To save your listing for later click the "Save as Draft" button

For later viewing:1. Your Shop2. Listings3. DraftsIf you are satisfied with your listing, click the blue

"Publish" button to make it publicYou will be charged £0.12 when you publish your

listing

38

Shipping


Shipping and fulfillment are handled by sellers individually, leading to a lot of flexibility and also decision making

Etsy has Shipping Profiles that work well if you have similar items that ship for the same costs

You can determine your shipping costs for an item of a specific size, weight and shipping method, then create a Shipping Profile you can quickly add to your new listings for such items

39

Returns


Return policies are up to the sellerYou need to fill out your policies in order to be

covered under seller protection so it's really important to do

Look around at similar shops and read their Policies

Click on your shop at the upper right side, then look at the left side, click on information and appearance, then policies

40

Analytics


Etsy's Shop statistics show you both the volume of the traffic in your shop as well as the traffic sources

This is available under:1. Your Shop 2. Shop StatisticsYou can also use Google Analytics by linking

your Etsy account to Google

41

THIS SECTION WILL LOOK AT INFORMATION THAT IS RELEVANT TO BOTH EBAY AND

ETSY


Additional Notes

42

Setting up a PayPal account


Go on the PayPal website, www.paypal.comClick on sign up and select your country and language3 options: personal, premier and business - it is

recommended for small scale businesses that you go for the premiere account (this is required to sell)

Complete personal information and enter bank account or credit card details - No details are showed to buyers of your product

Choose website payment standard rather than pro for accepting payments online as this does not incur a monthly charge

This video summarises the steps: http://www.wikihow.com/Set-Up-a-PayPal-Account

http://www.paypal.com/

http://www.wikihow.com/Set-Up-a-PayPal-Account

43

PayPal Fees


For sellers, PayPal takes a fee of £0.20 for every transaction you make

In addition to this, PayPal takes between 1.4% - 3.4% depending on the number of monthly sales

A full breakdown is shown belowPayPal fees will also be discussed in the accounting

session

44

Shipping


Calculate rates by weighing and measuring dimensions, with a host of various mail services to choose from (Eg. http://www.royalmail.com/price-finder)

As seen from the next slide, Royal Mail 2nd class stamps would be the cheapest based on our entered weight of less than 1kg, and small parcel

It covers compensation, which will be explained later but does not have tracking services

Royal Mail Signed for 2nd class stamp would be a better alternative if you wanted a proof of delivery

http://www.royalmail.com/price-finder

45

Shipping


46

Shipping


Proof of shipping: Ask for this at the post office to protect yourself against a buyer who claimed he had not receive your item

International Shipping: If you are selling to a lot of international buyers you should check out Etsy Shipping Labels. You can enter all of your customs specifications while purchasing your label, then we will fill out the form for you, and include all information on your printed label

47

Compensation for Damage


Royal Mail may pay compensation for damage or part loss if an item in a postal packet has suffered a degree of harm that reasonably impairs the material function or contents of the item, solely as a result of its transmission through the post, and excluding liability for any pre-existing damage

Royal Mail expects customers who are posting items that have an intrinsic value to take these to an access point that can provide them with appropriate evidence of posting an item with Royal Mail. (e.g Certificate of posting)

48

Royal Mail Insurance Policy


Royal Mail’s Retail Compensation Policy for Loss covers the following products: 1st class stamped, metered and VAT exempt account

mail, including items sent using SmartStamp® and online postage

2nd class stamped, metered and VAT exempt account mail, including items sent using SmartStamp® and online postage

1st and 2nd class Royal Mail Signed for™ mail when used in conjunction with stamped,metered and VAT exempt account products above

49

Compensation for Loss


50

Compensation for Loss


Claims for loss must be made within 80 calendar days of the date of posting, or no claim will be entertained

Royal Mail advises customers to claim as soon as possible after an event has occurred to enable enquiries to be made promptly

Evidence can be proof of delivery as well

51

Packaging


Use proper packaging when packing your product. (i.e. hard boxes and bubble wrap for jewellery)

Important as you do not want to deal with the hassles of damaged product

52

Reviews and Feedback


Reviews and feedback are especially important in online selling

They are one of the main reasons a buyer will choose your product

Therefore it is important to maintain a certain standard which will encourage positive reviews

53

Review: Steps to sell a product online


Register a PayPal accountRegister an account with an online selling

platformList your productsDeliveryPost-Sales Management: Returns, Reviews,

AnalyticsTax

54

The End


Thank you for listening

Any questions?

session one: online selling

Education

credit card

paypal account

products delivery

paypal takes

optional features

user id

including

paypal account