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Creative Cycle Online Entrepreneurship Project
Session One:Online Selling
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT
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Aims
Set up eBay and Etsy accountsLearn the advantages and disadvantages of
each platformDiscuss the potential risks of each platform
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT
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Steps to sell a product online
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT
Register a PayPal accountRegister an account with an online selling
platformList your products
DeliveryPost-Sales Management: Returns, Reviews,
AnalyticsTax
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Requirements
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT
A computerAn internet connection
An email addressA bank account or credit card
A product (with pictures)
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Other Sites?
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT
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
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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
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT
eBay
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Advantages & Disadvantages (eBay)
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT
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
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Registration
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT
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
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Privacy
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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
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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
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT
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Listing a Product
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT
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
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Pricing
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT
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
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Delivery
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT
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
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Preview
This is how the demo item should appear on eBay:
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT
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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
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT
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Feedback
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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
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Returns
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT
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)
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Analytics
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT
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
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ETSY IS AN E -COMMERCE WEBSITE FOCUSED ON HANDMADE OR VINTAGE ITEMS
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT
Etsy
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Advantages & Disadvantages (Etsy)
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT
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
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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
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT
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Registration
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT
Then, you have to choose your language, currency and shop country
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Setting up of Shop
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Next, you can start setting up your shopComplete each of these 4 tabs and you will be
ready to open
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Choose your Shop name
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Shop Look and Branding
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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
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List items for Sale
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT
Describe who made it, what item is it and when did you make it, and whether it is a physical item
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Categorize your Item
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Select Variations
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Can include information like size, color, dimensions
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Add Images
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT
Add images to let buyers have a feel of the item
Images should be between 800-1000 pixels wide, but the height can vary
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Item Information
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT
Add a descriptive titleFor description, remember to include size,
materials used, how it was made and any unique features
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Additional Attributes
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT
We can add recipients, what occasion this is for and also custom styles
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Tag your Listing
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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?
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Selling Information
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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
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Selling Information
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT
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Tax Information
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT
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
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Adjust Photo and Publish Listing
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT
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
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Changes
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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
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Shipping
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT
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
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Returns
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT
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
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Analytics
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT
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
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THIS SECTION WILL LOOK AT INFORMATION THAT IS RELEVANT TO BOTH EBAY AND
ETSY
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT
Additional Notes
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Setting up a PayPal account
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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
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PayPal Fees
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT
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
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Shipping
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT
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
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Shipping
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT
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Shipping
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT
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
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Compensation for Damage
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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)
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Royal Mail Insurance Policy
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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
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Compensation for Loss
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Compensation for Loss
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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
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Packaging
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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
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Reviews and Feedback
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT
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
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Review: Steps to sell a product online
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT
Register a PayPal accountRegister an account with an online selling
platformList your productsDeliveryPost-Sales Management: Returns, Reviews,
AnalyticsTax
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The End
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT
Thank you for listening
Any questions?