There are many methods for product sourcing including:

• drop shipping – you get a smaller profit margin but it’s a great way to start
• light bulk wholesaling – some wholesalers can have a large minimum order requirement. Light bulk wholesalers have a lower minimum order requirement that helps you build your business.
• overstocks and liquidations – these can be a great resource but it’s not a renewable source. Once the items are gone they are usually gone for good.
• importing – prices may be cheaper importing from overseas, but the fees associated with getting the products to you can be very expensive.

There are plenty of companies that will sell you a “complete solution”, but it’s important to understand the difference between a good, customizable solution and a “one size fits all” solution. The last thing you want is an online store that looks like a thousand other online stores. It’s often better to take control of your business from the start, so you can be in control of the creative process.

In the long run you’ll be in a better position if you learn the basics of purchasing a domain name, and setting up web hosting rather than leaving it all to another company. This gives you more options down the road rather than being locked into a set-up you no longer like.

You can purchase complete internet store solutions, and also e-commerce hosting providers. The latter is a “framework” that you use to set up your own store and put products on it. It takes a bit more of a learning curve, but gives you more control over the look and feel of your store. An example of an e-commerce hosting provider is Yahoo Merchant Solutions.

Once your store is up and running, traffic or visitors is your next focus. The free option is called SEO or Search Engine Optimization. This involves developing the content of your site so that the search engines give you a good ranking for the search terms you want. This can takes months but is always a good long-term strategy. Alternately, you can purchase ads on search engines such as Google. This is called PPC or pay-per-click. You pay an amount for each time your ad is clicked, driving traffic to your site.

Many turn-key stores will provide search engine optimization, meaning they have optimized the use of words and web page tags to help your site rank higher.

Your next step is to find products to sell…

When posting your auctions you’ll want to make sure and have high quality photos and well written listing text. It seems simple but you’d be amazed at how many listings have spelling errors (even in the name of the product!) and poor photos. Either of these mistakes will send your customers packing. You want to always make sure to maintain a professional, trust-worthy image.

Make sure you answer questions quickly and treat potential customers with respect and courtesy. You want to build a long relationship with regular eBay shoppers.

Always look for new products. By doing regular research and keeping in touch with your wholesaler/distributor, you can be ahead of your competition by offering the latest items.

Treat what you are doing as a business. Sometimes it’s easy to just get on eBay and throw up some auctions, but you’ll be much better off if you carefully document what you’ve done, track how well auctions go, track the average selling price, etc. Having your own good data to reference when making decisions about how to move ahead puts you way ahead of the pack. Make to-do lists of each step you need to accomplish and stick to it. Cutting corners, especially early on, will only cause headaches later. The more organized you can be from the start, the easier it will be to get into a rhythm.

Once you have an idea of products that sell, keep in touch with your distributor to make sure they have the stock you expect to need. The last think you want to do it run an auction and then find out the item is back-ordered. Keep your customers happy by shipping promptly.

The benefits include:

1. You don’t need to store anything – not products and not shipping materials.

2. You don’t have to pay shipping to receive the products from the distributor.

Potential Issues:

1. There is often an extra fee you pay for each item, generally between $2 – $5.

2. Even though you didn’t ship the items, your customer will still contact you if an item arrives damaged or not at all.

3. You won’t always know when your drop shipper has low inventory. You could sell something that is potentially out of stock.

The easiest place to start is by looking through magazines and newspaper ads. These sources will give you great insight into what’s new and in-demand. Hang out in the magazine section at a book store and look through magazines you might not normally read. You’ll be amazed at the range of products out there. Some people like to start with their own hobbies. That’s a great idea as long as your hobby involves items that sell for a decent amount. Make sure you choose something that will net you a good return for your efforts.

Ebay has a great “What’s Hot” section that lists the hottest selling items. Make sure to notice that some items are seasonal. They may be hot in summer, but might not sell at all in winter.

Try asking people with interests different than your own. For example, ask a teenage girl what she wishes she could buy if she had $100. You may be surprised that it’s something you’ve never even heard of!