Entrepreneurial Options (02:45)
Jim Reeder, co-founder of Consider It Sold! began his career as an engineer. As job opportunities dwindled in the high tech crash, Reeder considered his options. He turned his love of cars into a new business.
First Exposure to eBay (03:17)
Jim Reeder turned his love of cars into a successful eBay business. He specialized in selling car parts. eBay was a fledgling online business then. In his first year, he made more money on eBay than he did as an engineer.
Importance of Business Partnerships (03:13)
After having a successful year as a seller on eBay, Jim Reeder joined forces with two other engineers who had also lost their jobs. He feels that the partnership with his friends kept him motivated. The three men had a diverse knowledge base.
Legal Partnership (02:33)
Co-founder of Consider It Sold! describes how they set up their partnership, the mistakes they made, and the successful outcomes they had. As corporate officers, each took a title. In a small business, everyone has to do everything.
Interpersonal Relationships in Partnerships (02:35)
It is essential in a partnership to establish trust. Financial arrangements must be made ahead of time. In Jim Reeder's situation, each man brought in nearly the same amount of money. The profits were distributed equally. Each man put a small amount of capital into the start-up and they worked to minimize risks.
Rough Beginnings (00:56)
From very humble beginnings, Jim Reeder and his partners eventually sold products in 150 countries, built a retailer brand, and were in the top 200 global sellers on eBay. Reeder does not minimize the long hours, hard work, stress, and difficult times.
How to Build a Business (02:01)
Initially, Jim Reeder and his partners owned nearly all of the inventory they sold on eBay. To sell even more markets, they began to sell on consignment. In doing so, they learned about different market segments and online selling.
Business Priorities (02:09)
Managing inventory for Jim Reeder and his partners was of paramount importance for their success. Minimizing risk and keeping customer satisfaction at the forefront of their business, the partnership moved $1.3 million per year in the global market.
Exit Strategy (00:42)
After five years in the business of selling on eBay, Jim Reeder sold his interest in the business to his partners.
Importance of Personality for Business Success (02:56)
Having created a massive global eBay market, Jim Reeder is an expert on what kinds of personalities do best as business entrepreneurs. Topmost on his list is conscientiousness. Other traits are honesty and tough skin.
Do I Have To Be Crazy? (02:29)
Jim Reeder describes what "crazy" means in terms of what is important to an entrepreneur. Sometimes that craziness means taking a risk and making the impossible happen. Reeder cites gregariousness and good communication skills as essential to the success of a business.
Overview of Online Business Success (01:21)
Host Tom Duening looks ahead in the program to the topics successful businessman Jim Reeder will cover. Viewers will learn all the aspects of starting up and maintaining a successful online business.
Where To Find Products To Sell Online (05:17)
Jim Reeder urges viewers to stay open-minded about where they search for products. It's important to read the market and then find the products at a good price. Price the items competitively. He found his first products in the consignment and auction market segments.
How to Buy at an Auction (03:20)
Online sellers must learn about auctions by going to local ones again and again. Jim Reeder "made a killing" by showing up at the end of an all-day auction when most people had left. Apply your specialized knowledge to sniff out good deals in your area of expertise.
Market Awareness (02:37)
It is important to know what is hot and what is not in online selling. Don't buy products on impulse, and don't buy products that will inevitably be improved upon, especially tech products. Use your network to get leads on people and products.
Online Consignment Business (03:43)
Having a consignment business is a good way to find new and interesting products. Jim Reeder and his partners advertised their business in radio and TV ads as well as in print ads. Reeder describes a number of other ways to find products.
Inventory Control (03:55)
Successful online businessman Jim Reeder reminds viewers that he and his partners started small, without a warehouse and without hiring people to show them what to do. Their first system consisted of spreadsheets. Management software is available for larger businesses.
How to Ship to Customers (03:17)
It's important to know the ratio of the value of the product to the cost to ship the product. Jim Reeder worked out the ratio of 1 part cost to ship to 3 parts value.
Selling Beyond eBay (01:33)
eBay is, according to entrepreneur extraordinaire Jim Reeder, an excellent place to start online selling. There are costs associated with eBay sales that include eBay's commission on every sale and bank charges for credit card sales.
Product Merchandising (05:26)
Merchandising products varies according to the target market. Marketing rusty car parts to men requires a different strategy from marketing a sweater to women. Jim Reeder talks about ad and description content.
eBay: Competitive Marketplace (02:41)
In the eBay marketplace, lowest price is the winner. It's difficult to complete unless the product is unique, so that you aren't competing with anyone else. Be inventive about niche market appeal. Customer service and reputation can be the unique appeal you offer.
Costs for Selling on eBay (02:48)
Costs for marketing on eBay range from 11-17%. Profitability relies on the sale price minus the costs minus the price seller paid for an item.
From eBay to Independent Website (03:04)
Transitioning from eBay to selling from a website means greater profitability for the seller. eBay, however, provides a great deal of seller support services. To drive buyers to an independent website, use a distinctive seller name, set up a website related to that name, and direct buyers to the independent website.
Loss Leader Strategy (02:22)
Loss leaders can be valuable marketing tools to direct buyers to other products you have to sell. When lots of people buy the loss leaders, your reputation continues to grow and so does the business.
Advice to the Novice Online Seller (03:30)
Jim Reeder offers advice to novice online sellers. His advice includes pricing products, grouping products, doing market research, using online databases to direct you to other markets for your product.
Discipline of Buying and Selling (01:51)
The discipline of buying products includes keeping the 1:3 shipping cost to product value ratio, and selling to get a 30% or higher margin. Good business practices require good accounting to determine income vs. profitability.
Summary of the Entrepreneur's Advice (04:39)
Dr. Tom Duening offers a summary of the discussion with online seller Jim Reeder, who provided important points for aspiring entrepreneurs.
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