Making a profit through an online business

If you have been dreaming of setting up your own lucrative business or just want to make some extra money but don't know how to start, why don't you consider an online business? Today, Ms Pimtip Imnoy, an eBay PowerSeller, comes clean about her secrets to success.

A great love of art

Ms Pimtip is an indefatigable entrepreneur. She has been drooling over traditional handicrafts and artworks since she was a teenager. Although she doesn't have any background in art and crafts, she is lucky enough to have friends, who are artists.

With her strong marketing and managerial skills, backed by her friends' abundant supply of high quality hand-made art products, Ms Pimtip made a firm decision to start up her own online business in 2005.

She began by creating her website, http://www.thaicraftsgallery.com, in order to sell a wide variety of exquisite Thai handicrafts and artworks. From Lanna-style paintings, vintage Mexican handmade embroidered dresses and batik clothing to patchwork skirts, ceramics and papier mache pets, these quality products are uniquely crafted by Ms Pimtip's friends and villagers in northern Thailand. In addition to finished products, she also offers made-to-order goods to meet the exact requirements of her customers.

"I chose to develop an e-commerce website because I believe it to be an effective way to have a successful enterprise when making online business," Ms Pimtip recalled.

Hoping for the best, Ms Pimtip went to several training sessions on how to establish an online business. Before the start-up of her website, she spent a couple of months planning the exact details on how her online business will be presented. She also did some online market research on who she will be targetting in order to find out the best format for her website.

However, life isn't always a bed of roses. She struggled from the beginning when she found out the payment method was restricted only to money transfer, meaning the number of customers would be limited.

"I haven't made much money from selling on the website because I usually sell goods at wholesale prices, which has generated a low profit margin," she said.

Although going through a tough time, Ms Pimtip didn't give up. To support sales on the website, she decided to take over a brick-and-mortar store in Chatuchak Weekend Market in early 2006. At the market, she retails similar goods to those on the website. Most of her products are vintage Mexican handmade embroidered dresses, clothing from northern Thailand and papier mache pets.

Becoming an eBay seller

To expand her sales channel, and generate a larger income, Ms Pimtip made a great leap forward by starting an eBay online business in 2007. Actually, she was inspired by the book,Get Rich with eBay, written by Kit Junyaprasert.

"Truly, eBay is one of the premier environments that has helped me reach new customers globally. It's quite safe and convenient when doing business through eBay. This is because it provides useful programmes and tools to help me run my business smoothly. While the growth potential is unlimited,"the entrepreneur continued.

She explained that selling products on eBay is not complicated. However, one of the most important concerns is that sellers have to open a PayPal account if they don't have any accounts with credit card companies. PayPal is the preferred payment approach for most eBay buyers and sellers. This system allows buyers to send payments securely online using a credit card or bank account.

"The PayPal system is convenient both to sellers and buyers. But they have to ensure that both parties accept the same payment method when doing business on eBay," she warned.

During the first month of her eBay business, Ms Pimtip received orders for four to five items of her products. Since then, her eBay shop has gone from strength to strength. In the first two years, she achieved considerable success, generating an income of approximately US$3,000 to $4,000 per month. With the world's economic and financial crunch, however, revenues have gradually decreased to about $1,000 per month these days. A growing number of her customers are Americans, followed by Australians, French, and Japaneses respectively.

Find a niche market

With a long list of products, the papier mache pet is one of the most popular items among her customers. Before adding the papier mache pet to her list, Ms Pimtip did some market research on eBay because she wanted to differentiate her products from those of rival operators. From her research, she found that it's hard to find papier mache pets on eBay.

To catch the customers' attention, Ms Pimtip has developed the papier mache pets under the theme of "a truly green product". Papier mache products themselves are environmentally friendly because they are made from old newspapers and mulberry paper. To this end, it helps to reduce negative impacts on the environment and global warming.

To capture the heart of green consumers, she also includes search keywords such as "re-used" and "recycle" into her product descriptions. By doing so, she believes it is easier for environmentally conscious buyers to find her products.

"The majority of my eBay customers are repeat buyers, who collect papier mache pets. On average, I retail 200 items of papier mache pets per month. This means approximately 3kg of newspapers are used each month. In other words, I can help protect the environment," she said.

A recipe for success

According to Ms Pimtip, as a seller, it's imperative to create an "ask a question" link. This is because buyers often have some questions before, during and after a sale. Also, sellers should always communicate with their buyers if they have the chance. Sellers have to ensure that they answer every question they receive about their listings.

Communicating with potential buyers can help the sellers to retail their products by establishing trust and confidence between them. Most importantly, if buyers give the sellers positive feedback, they will become a stronger seller on eBay.

"I've always kept in touch with my customers. I've tried to respond to their queries within 24 hours after their orders have been made," she pointed out.

When it comes to shipment, punctuality and safety is equally important. In the shipment process, it is crucial for sellers to ensure that the shipment information is correct and remember to include the return addresses. They should also keep track of all their items.

In addition, the sellers should give buyers feedback on receipt of payments and shipment. This way, feedback can help create trust and confidence. Feedback from buyers is also vital to other sellers.

"I've received positive responses from the buyers. My products and shipment services have been satisfactory. A large number of customers compliment me on my products. They say their quality is superior to the photos shown on eBay, while my shipment rate is a little cheaper than other sellers."

Ms Pimtip revealed that selling on eBay has generated the highest profit margin for her when compared with her own website, and the weekend market. On eBay, a papier mache pet retails at US$20 (682 baht), while at the market one goes for 450 baht.

"To be successful in selling on eBay, sellers must find a niche market and offer exceptional quality products in order to impress buyers, and always communicate with your buyers. Using all these factors, I'm sure that your customers will make repeat orders" she concluded.

Relate Search: http://www.thaicraftsgallery.com, Chatuchak