Friday, June 02, 2006
Is selling your way to Entrepreneurship?
http://www.msnbc.msn.com/id/13089171/
eBay store: eBay makes money by charging fees to list items, ranging from 25 cents to $4.80, depending on the starting value of the auction. If the item sells, eBay takes an additional 5.25 percent of the selling price for items up to $25. Items sold for more than $25 have an additional 2.75 percent commission charged for the value between $25.01 and $1,000, and 1.5 percent on top of that if the value is over $1,000.
Amazon store: Amazon charges a 6 percent to 15 percent commission, depending on the type of product, plus a 99 cent transaction fee, and a closing fee that ranges from 65 cents for music to $1.23 for books, or 45 cents plus 5 cents per pound for larger items such as electronics or sports equipment. However, Pro Merchants don't pay transaction fees.
Direct sales: You collect payments from customers and use that money to pay the wholesale cost of the company's merchandise, keeping the difference for yourself.
Cart or kiosk: As an independent retailer, you pay the wholesale price of the merchandise and set your own prices on the products. You must also lease the kiosk from the mall at which you sell.
Where to Start?
Before you begin your business, you'll need to square away these details.
Unlike traditional retail stores, smart and easy retail businesses can be set up quickly, with little risk and few resources required. Here's the lowdown on what you'll need to get started:
Online store: Inventory, regular access to a computer, and shipping supplies, which you can get for free if you use U.S. Priority mail
Direct sales: The initial investment, which can be as little as $100, and a phone
Cart or kiosk: A monthly lease, which can cost anywhere between $800 and $2,000, as well as your inventory and a cash register
eBay store: eBay makes money by charging fees to list items, ranging from 25 cents to $4.80, depending on the starting value of the auction. If the item sells, eBay takes an additional 5.25 percent of the selling price for items up to $25. Items sold for more than $25 have an additional 2.75 percent commission charged for the value between $25.01 and $1,000, and 1.5 percent on top of that if the value is over $1,000.
Amazon store: Amazon charges a 6 percent to 15 percent commission, depending on the type of product, plus a 99 cent transaction fee, and a closing fee that ranges from 65 cents for music to $1.23 for books, or 45 cents plus 5 cents per pound for larger items such as electronics or sports equipment. However, Pro Merchants don't pay transaction fees.
Direct sales: You collect payments from customers and use that money to pay the wholesale cost of the company's merchandise, keeping the difference for yourself.
Cart or kiosk: As an independent retailer, you pay the wholesale price of the merchandise and set your own prices on the products. You must also lease the kiosk from the mall at which you sell.
Where to Start?
Before you begin your business, you'll need to square away these details.
Unlike traditional retail stores, smart and easy retail businesses can be set up quickly, with little risk and few resources required. Here's the lowdown on what you'll need to get started:
Online store: Inventory, regular access to a computer, and shipping supplies, which you can get for free if you use U.S. Priority mail
Direct sales: The initial investment, which can be as little as $100, and a phone
Cart or kiosk: A monthly lease, which can cost anywhere between $800 and $2,000, as well as your inventory and a cash register
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