A family affair - By: Bobby Buys

Johann Smith decided to give selling on online consumer-to-consumer marketplace a try only days after he made his first online purchase. Today, his Gem Shop is a successful family business that employs additional staff. This is Johann's story:

In December 2006 I won a bid a 2.45ct ruby, which later turned out to be a rubelite. When I discovered that the seller lived close to me, I phoned him and he agreed to allow me to collect the gemstone. While we sat talking in his house, he showed me what his turnover from internet sales was - and I was amazed. R40, 000.00 turnover in one year! I could not believe that it was possible to make that kind of turnover on the 'net in South Africa.

At that time I was self-employed, working as a handyman. We did not have a lot of spare money in the house. But my wife and I decided to use our last money to buy a wireless modem and internet connection. Only a few days after registering as a seller on the local auction site I sold my first few items, which included a second hand pipe.00. And that was the start of it. Within six months I needed help with packing parcels, though by that time I stopped doing any handyman work. I engaged the services my wife and daughter; however, they became online sellers themselves and as a result they were lost to me as labour force.

By October 2007 we had to employ two persons to help us with postage and packaging. By this time we had grown so much that we turned our local Post Office from a struggling branch to one of the most profitable in the area.

By June 2008 I had to employ a third person to help me with all the paperwork. We had to add extra rooms to the house to hold all the "internet stock" and to organise the packing of all the parcels.

What were the problems we experienced?

1. Growth. In the beginning it is nice to grow so fast, but within the first six months I deliberately scaled sales down to be able to develop systems and checks. Without this I am sure we would not have been able to handle all the sales.

2. Eskom blackouts. This caused us endless problems. All those days when we could not get onto the trading site caused some serious withdrawal symptoms.

3. Copycat sellers. This is unfortunately a problem we have learned to live with, but we still get upset. It is more than annoying, because you take months to develop a market for a product and another seller will just jump on the bandwagon.

4. Bogus buyers. That is, the shoppers who win an auction or place an order, but do not pay to complete the purchase. This problem has steadily grown bigger and bigger. During December 2008 we have lodged more than 80 non-competed sales.

5. Buyers not reading. This currently is our biggest headache and the cause for a lot of time wasting. Buyers do not read the ad and then afterward they complain about the postage, the size of the item, the quality etc.

What you need to be able to sell successfully on online consumer-to-consumer marketplace?

1. Find yourself a product.

2. Get yourself a digital camera; it does not need to be the "best" on the market. Our digital camera was a little R799.00 "Special" form Kodak. However, DO LEARN TO TAKE GOOD PHOTOS!!! It is the image that sells your product.

3. Learn to be innovative. You have to be able to stand out from the crowd. Innovations we started and which other sellers just about immediately copied were: (a) Framing our photos. (b) Doing the photo in such a way that buyers can see what they buy from the thumbnails. This was copied within 3 days after we first did our ads this way, and today it is still the most copied innovation started by us.

4. Run an honest business. Do not sell something you are unable to supply. We have made some watertight agreements with some of the biggest importers in South Africa and we have a constant supply of our products. But sometimes a product might get damaged or broken. Be honest with your buyers, explain the problem and offer alternatives. We found that 99% of buyers will be accommodating as long as you are honest.

5. Ship your item on time. We ship items twice a week, Tuesdays and Thursdays, but should a customer contact me with a special request we will try and accommodate him or her too.

6. Do not ship without payment. If payment does not reflect on my bank statement the item will not leave the premises. We have had customers taking chances by sending us falsified "proof of payments".

About the Author

bidorbuy is South Africa's largest online marketplace where people can buy and sell goods in auction format or at fixed prices. Contact details: bidorbuy Marketing Department, email promotion@bidorbuy.co.za, web site: http://www.bidorbuy.co.za

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