1. A coffeemaker with filters and a bag of coffee
2. 2 bags of a special coffee instead of just one
3. A body wash, body lotion and shampoo in the same scent
4. A pair of interchangeable shoes with a couple different tops
5. A Corduroy stuffed teddy bear with the book, Corduroy.
6. A McDonald’s Happy Meal!

So why would you want to bundle your products? To increase your profits, of course.

On eBay each sale brings a cost of between five and fifty cents for insertion fees, and a variable rate Final Value Fee (FVF) percentage, as well as a FVF percentage on the cost of shipping.

The FVFs are a percentage of your sales, but the insertion fees are a straight cost, from five cents up to fifty cents. Your PayPal fees are also a percentage AND a flat fee.  PayPal fees on most accounts are 2.9% and a flat rate of thirty cents per transaction.  So even though part of your fees are a percentage of the sale and therefore the amount of the sale doesn’t affect the percentage, the flat rate can be as high as eighty cents per transaction. Eighty cents on an eight dollar transaction is a hefty percentage- a full ten percent of your sale. Eighty cents on an eighty dollar transaction, on the other hand, is only one percent. That is a big difference.

Shouldn’t your goal be to keep your fee percentage as low as possible? One way is to increase your selling prices. In my last article I wrote about selling low cost items on eBay. This example of fees as a high percentage of your sale is another reason to avoid that. So increasing your Average Selling Price (ASP) is one strategy to increase your profit on eCommerce sales.  And product bundling is a great way to increase your ASP.

Bundles are most effective when they are related products that consumers typically buy together anyway. One bright Amazon seller came up with the idea of using Amazon to give ideas. When you purchase something on Amazon, right on the item page Amazon will tell you “other buyers who purchased this also bought . . . ” So you have an idea source for product bundling right there!

Bonus points for Amazon sellers also when bundling as it creates a unique product that is hard for competitors to copy and helps you maintain your price point and profit margin.

So if raising your ASP or eBay or avoiding the ‘race to the bottom’ pricing on Amazon appeals to you, perhaps product bundling should become a tool in your arsenal.

Thoughts and ideas welcome, please post so we can all continue to learn from one another!

Build Your Brand

Your brand is you.  It’s what matters in a first impression, it’s what counts on a sale, and it’s what keeps customers coming back.  Creating your brand and keeping it consistent should be top priority.  Everything from your logo to your business cards, from your packaging to your website – when everything is consistent, you know you will make an impact.

When building your brand, answer this question and you’ll be on your way to the brand you want: How do you want your customers, fellow artists and crafters and your friends and family to describe you and your business?

Start Blogging

Have you ever thought to yourself “why do I need a blog?” or “how can a blog help my creative business?”  There is a myth that blogging is reserved for authors and newspaper columnists, but it’s a myth.  Blogging is one of the best things you can integrate into your online business especially if you’re an artist or crafter.  Customers want to hear the story behind your work and the process of creation.  A blog gives you the opportunity to share your story and to describe ‘how and why’ you create your work.  Yes, there are things to learn about blogging and it takes some effort to create and maintain a blog, but it’s definitely worth it so don’t waste any more time and start blogging today!

Use Social Media

Social media isn’t just for individuals, more and more businesses are using social media every day to reach out and directly interact and innovate with their customers.  Using social networks like Facebook and Twitter help your customers, fans, followers (your community) realize that there is a real person behind all the cool products you make and that builds awareness…plus it can build really fast using these social tools to share your products with others.

Advertise

Answer the question…who are you creating your products for? Once you answer this, then you can go find them.  Starting with everywhere they’re visiting and everything they’re reading…try and advertise your business and get your brand out there!  You don’t have to spend buckets of money, just do your research and see what you can afford.  For example, buying advertising space on your favorite blog can cost anywhere between $5 and $500 per month depending on the blog’s traffic numbers and readership.  The best times to buy advertising are during the seasonal holidays when gifts are being purchased so think about the weeks leading up to Christmas, Valentine’s Day, Mother’s Day and Father’s Day as opportunities to buy advertising.

Submit Your Work

There are a lot of organizations, both online and offline, which are always looking to showcase and feature artists and crafters.  Everything from an online art forum to a local school, you can usually find an event or space that will feature your work so give it a shot.  Participating usually only requires a little time, although it will pay big in gaining awareness and exposure for your business.

What marketing insights do you have for the artist and craft community?

Meylah is devoted to helping the creative community learn, share and support each other’s business growth online.  With Meylah, you’re able to blog, promote and sell your creative work all from one easy to use online storefront.  And, it’s free, sign up today!

What is Sales Tax?

Sales tax is money charged on goods sold above the purchase price. Not all states have sales tax; however, those that do use the money for a variety of expenditures, like maintaining roads, schools and community works, among other things. When you go to the grocery store, the store charges you tax on the items you purchase. If a consumer comes to your online or physical store to purchase an item, he/she may also be required to pay tax on the item bought.

What Should I Do Before Charging Sales Tax?

Before you start charging sales tax, it’s important to make sure your business is set us as an actual business. Even if you plan to sell as a hobby, your state may require that you charge sales tax. So you’ll need to be prepared. Consider these things to get started:

• Set up your business: Decide how you will operate your business. This helps identify your business to the state when applying for a business license. Most home-based business operate as a sole proprietor, meaning there is no separation between your assets and those of your business. A limited liability company, or LLC is another good choice for small businesses who wish to separate personal assets from business assets.
• Doing Business As: If you operate as a sole proprietor and have a separate business name, i.e. your legal name is Jane Doe, but you call your business Doe’s Designs, you’ll need a DBA (doing business as) filing. This allows you to have a legal business name, but still operate as a single owner.
• Get the correct forms: You may need these things to start operating as a business: Employee identification number (EIN), business license and sales tax permit or seller’s permit. This varies by state, so be sure to check on all the proper paperwork you need to get started.
• Get a business bank account: A business bank account makes it easy to separate your business money from your personal money. When you collect sales tax, you can keep it in your business bank account until it’s time to remit it to the state. Be sure the account you use for holding sales tax is a dedicated account, meaning it doesn’t get used for anything else. This ensures you’ll always have the money you need to remit to the state.
• Get a business accountant: Your accountant is your best resource when it comes to collecting and filing business taxes. Though the paperwork to remit taxes to the state is relatively easy to do yourself, your accountant is invaluable if questions arise. Just be sure your accountant has experience working with small businesses and dealing with sales tax issues for your state.
• Ensure the product you are selling requires sales tax: Not every product requires sales tax. Other products, like food items, may be taxed at a different rate than other goods, like clothing. Products that don’t require sales tax will be listed as ‘exempt.’
• Learn your state’s tax rate, city and country rates: Some states have a complicated sales tax system. Tax rates may be different for certain counties or cities within the state. This means, if you live in Wyoming and sell to a customer in Wyoming, you will have to charge Wyoming sales tax, but may also need to adjust rates based on the customer’s county.

Who Should Charge Sales Tax?

One of the most common questions new small business owners ask is, “Should I charge sales tax?” Depending on your state laws, you’ll likely be required to collect sales tax anytime you sell, even if you only consider yourself a hobby-business.

• Online sellers: Online sellers are usually required to collect tax on sales made to customers in their own state. This applies if you have an Etsy shop, sell on Ebay, have your own website or sell on another online venue. If you live in Minnesota, you must collect taxes from online sales to customers who also live in Minnesota. As of now, you aren’t required to collect sales tax from buyers who live in a different state than you for online sales.
• Craft shows/trunk shows: If you sell products at craft shows, vendor fairs, farmer’s markets or trunk shows, or other in-person events in your state, you may be required to collect state sales tax on items sold. You would collect tax from all buyers, regardless of which state they live in, as they are buying from you, in-person, in your home state. Some states require that you have clearly marked information available at your booth about sales tax rates. Some seller’s have a highly visible card that says, ‘Sales tax of 5.5% is added to all purchases.’ Be sure to check with your state to see what customer documentation may be needed if you sell in-person.
• Wholesale: Your state may have separate laws governing products you sell at wholesale. Wholesale sales include selling in bulk and at a reduced rate (wholesale rate) to another business. For instance, if you sell 45 handmade necklaces to a retail store, at a wholesale price, you may pay a different sales tax rate on that sale.

How Do I Charge Sales Tax?

Charge tax is charged in addition to the price of the item you are selling. As a business owner, you can’t tell a customer that you’ll absorb the cost of the sales tax on a purchase, but you may include the price of sales tax in the price of an item. If you’re selling baby hats at a craft show and price them $15.99 including tax, be sure to have a notice posted that the purchase price includes tax. This helps prevent confusion or the possibility of double-taxing on sales.

For instance, in Wisconsin the sales tax rate is 5.5%. If we sell a baby hat for $15.99, we add 5.5% to the purchase price, or 0.88 cents, bringing the total to $16.87. We could also make the purchase price of the baby hat $16.90, which includes the 0.88 cent sales tax charge.

• Adding it to your shop: If you sell on Etsy or Ebay, you can set up sales tax rates right in your shop or store.  Both of these venues offer the ability to enter multiple sales tax rates so you can adjust as needed for where and what you sell. When a customer from your home state makes a purchase, sales tax is automatically added to their total. If you have your own website, be sure your payment cart system is equipped to add sales tax to applicable orders.
• Adding it to show purchases: Your state website may have a handy sales tax chart that you can print out and take with you to shows. This is a clear outline of how much sales tax you should be charging for the current year. When making show sales, add sales tax on at the end of a purchase. Or, add the cost of sales tax into the purchase price. Be sure to indicate on the customer’s sales receipt, how much sales tax was charged. If you can’t get a sales tax chart, just be sure to keep a calculator handy to figuring total purchases with tax.
• Adding it to shipping: Some states require that you charge sales tax on shipping cost. While not common, be sure to find out if you’ll have to add a tax charge to the shipping cost for online orders.
• Paypal: If you accept Paypal payments, you can add sales tax via the Paypal checkout system. This is a good option of your website doesn’t have the ability to add sales tax at checkout.

How Do I Keep Track of Sales Tax?

Because you collect sales tax and hold the money until it’s time to pay the state, you need a good way to manage it. Having a separate business savings or checking account is a good idea. When you collect sales tax on an item sold, transfer the cost of the sales tax to your designated business account. You can also keep track of all sales requiring sales tax for later accounting purposes, if needed.

• Spreadsheet: Some small business owners choose to create an Excel spreadsheet to keep track of sales tax. You can create columns for the item sold, purchase amount, date and sales tax charged. You can keep a monthly spreadsheet, or quarterly, whichever is easier to manage.
• Accounting Software: In Outright.com, you can see your sales tax due in your Taxes -> Sales Tax Tab.
• Notebook: If you don’t mind the old fashioned way, good old pen and paper can do the trick. Keep an accounting notebook just for sales tax.

When keeping track of sales tax, remember to have separate records for different items sold, if they require a different tax rate. For instance, if you sell kitchen towels and homemade fudge, your state may require you charge a different sales tax rate for both the towels and the food items. At the end of the year, print out your sales tax totals for accounting purposes. The more organized your sales tax tracking system is, the easier it will be monthly, quarterly and when taxes are due and at the end of the year.

How Do I Remit Sales Tax?

You’re required to remit all sales tax that you collect, to your state. Some states like to receive payments monthly, some quarterly and some are annually. You’ll need to fill out your state’s sales tax payment form, which should be easy enough to complete on your own. If not, rely on your business accountant to help with any questions to make sure you fill it out properly.

You may be able to complete sales tax remittance forms and make a payment online. Or, you may use a check or debit card to send a payment, along with your completed form.

Uh-Oh. What if I Didn’t Charge Sales Tax?

If you’re new to selling online, you may not have realized that you needed to charge sales tax on certain items sold. Some sellers have a hard time differentiating between a hobby and a business, and if and when sales tax should be collected.

If you’ve been selling online or at shows without a seller’s permit or sales tax license, you need to get these ASAP. Speak with your business accountant immediately and let her know your error. Then, go back through all of your past sales in which you should have collected sales tax. Figure out which ones occurred in your home state, then figure out how much sales tax should have been collected on each.

If you sell online and didn’t make any sales to someone in your home state, you’re probably safe. However, if you do have uncollected sales tax, you’ll need to cough the cash up yourself. Some states also require a fee or penalty for doing business without the proper paperwork or sales tax collection. Be very clear with your business accountant so you can work together to fix your past mistakes and get squared away for the future.

Several states offer amnesty for overlooking sales tax collection for very new business. This means, you may be able to remit past, uncollected sales tax without a fine or penalty. Even if you are an established business, there may be a time when you forget to charge sales tax. Be sure to rectify it as soon as you realize the error.

Remember, if you’ve been selling without the proper clearance to collect sales tax, you probably overlooked filing income on your sales as well. Before you go any further with your business, ensure you have all the required legal paperwork you need from the state, and the federal government, to operate as a business.

What if I sell Out-of-State?

You may have the opportunity to sell your products out-of-state. If you attend a craft or vendor fair or exhibit at a trade show in another state, you’ll need to abide by that state’s sales tax laws. You may be required to collect sales tax on items sold in the host state.

If you’re attending a large or well-organized event, like a trade show, the exhibitor manager should be able to help you obtain all necessary seller paperwork for doing business in the host state. Besides a temporary sales tax permit, you may also need a seller’s permit to legally sell at the event. Be sure to find out all the laws regarding sales tax and selling before you attend the event.

Where to Get Help

Sometimes, you just need help! Dealing with the government can be scary, especially when you’re trying so hard not to break business laws or do anything wrong. There are several resources available to help you learn more about sales tax and applying it to your business:

• List of State Government Websites: Here is a list of state government websites across the United States. If you don’t find what you’re looking for here, try an online search using, ‘Texas’ and ‘sales tax law’ (simply replace ‘Texas’ with your own state). If your state government has resources available, you should be able to find them. Many state government websites have all necessary forms available online so you can fill them out, pay any required fees, and in some cases, instantly receive your seller’s permit, DBA or other licenses. Even if your state website doesn’t offer online access, it should list a phone number and/or contact person to reach for live help.
• Small Business Association: The Small Business Association is another great place to look around for help. Visit the SBA website to find a counselor who may be able to help you with questions you may have.
• SCORE: SCORE.org offers a wide variety of free small business mentoring and advice from people who know – because they are successful entrepreneurs, too! From choosing a business entity to sales tax and more, you may be able to find help here.
• Etsy’s Guide to Collecting Sales Tax: Etsy’s Tax Tips Guide offers information on getting started collecting sales tax. This is especially helpful no matter if you sell on Etsy a little, or a lot!

Ultimately, the more you know and the more you prepare, the easier maintaining sales tax will be. Before long, it will become less scary and second nature for your growing business.

Also, just how much of an impact does a small business closing make on the economy? It may be more than we thought. Plus links, a tip on how to make more time during the day, and clarification on a common 1099K issue!

Tax Watch

There still seems to be some confusion about the 1099K – namely, where to put the information on your Schedule C! It seems the Schedule C form has a line on it, line 1a, that mentions “merchant cards” and other similar transactions. This is clearly where you put the info Paypal, Etsy, and the others send you in the 1099K, right?

Not so, at least this year. This IRS advises not putting anything but a big fat goose egg “0″ on line 1a. For whatever reason, that line is just a placeholder this year, possibly to get people used to the idea for NEXT year. For 2011, insert the 1099K info (along with ALL of your business income) on line 1d, “total gross receipts.” Now you’re all good to go. And remember to consult an accountant (you can find some in the Outright Community!) if you have any questions at all before doing your own taxes.

Oh, and remember to do your own expense and deduction calculations!

The Outright Community

eBay Trading Assistant tax woes – Business owners have it ok when using a trading assistant, but what if you ARE the trading assistant? Be the first to answer!

How do you evluate a potential accountant? – I want to make the switch, but don’t have the time for research. With no referrals, what should I look for?

How do you account for startup funds you raise through crowdsourcing? – Crowdsourcing is a great way to raise the funds you need for your projects, but how do you account for them when it’s tax time?

Around the Entrepreneur Web

Infographic: Customer Loyalty – An infographic detailing just how important customer loyalty is to the longevity of a business.

eBay List Auction Style Free Stores Special – Through February 21st eBay is letting sellers list auction style items with no insertion fees!

Employment by the Self Employed – If you’re looking for a job working for someone in the business for him or herself, focus on the incorporated self-employed.

Small Business News of the Week

While small business is commonly known as the “backbone of American business,” there may be an ugly truth we’re not paying attention to. Not every single business succeeds, and most businesses close within the span of a year. But what happens to the economy when most businesses suddenly put up “OUT OF BUSINESS’ signs?

A recent New York Times article seems to indicate it’s doing more harm than previously thought. Each store closing is a loss for the property owner, the local economy, and of course everyone who was employed there. While everyone wants to have the billion dollar idea, it may not be doing the most good for everyone and their brother to open a new store.

Outright Pro Tip of the Week

Need more time during the day? Don’t we all! While you can’t literally add more time during the day (unless you can…I would recommend getting a patent immediately!), there are little ways you can squeeze in a little bit more work during your work day.

We both know you goof off periodically during the day – who doesn’t? Otherwise we’d go crazy. However, over time you may be doing less and less “nose to the grindstone” work.

Try recording how much time you spend taking breaks versus buckling down and getting things done. You may be in for a shock, as time has a habit of slipping away from us!

That’s all for today’s Outright Weekly Round Up. See you next week!

eBay Goodies Inside Outright

Login to your Outright app and be prepared for some treats that will help you further understand your eBay store:

Sales by State – Ever wondered just where your customers live? Well, Outright’s Sales by State report can help. Look for it in the grey left-hand column under your “Reports” tab and discover if you’re hot in the Midwest or beloved in Boston. Not only is knowing your Sales by State interesting, it can help you with your eBay strategy, such as ending your listings at peak online shopping days and times in the area where the majority of your customers reside.

Your Spending – Do you keep your business receipts in a big shoebox near your desk? Then chances are you might not realize just how much you’re spending on your business. Once you’ve imported your eBay account and other business banking accounts into Outright, we can help you straighten that out and see just how much you spend where. You may discover an unchecked office supply addiction that needs to be curbed pronto! You can also find this report under your “Reports” Tab in the Outright application.

Biggest Vendors – To whom exactly does all that money go? If you find that you spend most of your money with a certain wholesaler, for example, perhaps you can bring that up and perhaps negotiate a discounted rate! Find your “Biggest Vendors” report under the Reports tab, too.

eBay Advice

Not only does Outright help you get a handle on your business finances, we can also help you in the day to day running of your business. Check out some of our recent blog articles for eBay sellers!

Selling Low Priced Items on eBay? Stop it!

What to do Before Selling Your First Oversized Bra on eBay

5 Conflicts You’ll Encounter in Your eBay Business (And How to Solve Them)

eBay Gurus: Who should you REALLY listen to?

The Most Important Thing I Wish I’d Known as a New eBay Seller

8 Non-eBay Ways to Promote Your eBay Store

8 Tips for Making Your eBay Listings Stand out from the Crowd

Not an Outright user? Sign up today for a free Outright account and make managing your business finances simple!

There are some everyday success tips that will work well for almost any Etsy shop. The good news is these tips are simple, basic business steps. Though they are simple and basic, they must be implemented correctly. What if you’re not sure how to take apart a bit of advice and make it work for your shop? Here are some proven Etsy success tips, decoded, to make them easier to understand, implement and benefit from.

Pricing Decoded

It seems every Etsy shop owner struggles with pricing at some point. You don’t want to overprice or under-price your items. In order to make a profit (and that’s what it’s all about, isn’t it?) you need to have your product priced correctly. Additionally, offering fair prices with alternating price points can help attract customers.

Price effectively by:

• Pricing your products to reflect the value of handmade (not homemade) – Etsy is a boutique market. Imagine walking into a clothing boutique anywhere in the world. You’d automatically expect to pay more for the specialty items inside. Your Etsy shop is a boutique market, so price accordingly.
• Avoid the lure of pricing low – Perhaps you’re scared that if you price your items too high, no one will purchase them. However, prices that are too low can shoot you in the foot. Customers may consider the low price as a reflection of poor quality.
• Don’t be afraid to change your pricing – If you start out too low; don’t be afraid to raise prices. Customers will adjust and it won’t hurt your business as much as you think. If items aren’t moving as well as you’d like, try raising your prices a bit. Again, this reflects high quality. Higher price=higher quality.

Alternate Price Points:

One trick to success is to lure all types of customers to your shop. You can do that by not only offering a range of similar products, but also by offering varied price points. Then, price items in both the low range and the higher boutique range. For instance, if you make jewelry, create a $10 pair of earrings along with your $100 earring and necklace set. By having a range of products and a range of prices, customers are more tempted to grab ‘just one more’ item. And, they are more likely to find more of what they want, i.e. a gift for a teenage girl and their grandmother at the same time.

Branding Decoded:

You want to look professional because, let’s face it, no one wants to purchase from a shop that’s little more than a hot mess. A shop that is unorganized, non-cohesive and sloppy will project the same image about your work, even if you create top-notch products. A beautifully designed shop, with a consistent theme actually facilitates purchasing security for consumers, so put some time and work into it.

When you think about branding your shop, remember all of these things work together:

• Your shop header – Create your Etsy shop header and smaller banners and logos to match. Have a variety of logo styles so you can use them on blogs, in print and on business correspondence. Make sure your logo reflects your business immediately. Use colors, fonts and a design that immediately points to your business.

• Your writing style – Your writing style also acts as a method of branding. Do you use humor, lots of description or a straight-forward style? Whatever your voice, find it and use it consistently. How you write will become as recognizable as your logo.

• Your business correspondence and collateral, like business cards, thank you notes, invoices, etc. – All of these things must be consistent with your logo, colors, font and voice.

• Packaging – Packaging doesn’t have to be fancy, but it should be recognizable. Find your style and stick with it.

Customer Service Decoded:

Great customer service is the cornerstone of any successful Etsy shop. The first half of a pro shop is one that looks the part. The other half is one that acts the part. You want/need/must have excellent customer service in place if you want to thrive. Why? One big reason: word of mouth referrals. The more your customers loved their shopping experience in your shop, the more they will tell everyone else about it.

The foundations of great customer service include:

• Clearly stated business hours - When can customers expect to hear back from you if they email with questions or concerns? Post your hours of operation just as any brick and mortar store would do to help customers feel more comfortable.

• Clear production schedule – If your products are made to order, let customers know when to expect their items. What is your turn-around time? Turn-around time refers to the length of time, starting from when the customer approves the order (any customization details you may have been discussing) until you ship the product.

• Return and Exchange Policy- Not all Etsy sellers accept returns, but some of the most successful do. Why? It’s just good business. There is no sense in a customer paying money for something they don’t like when it arrives. Consider accepting returns on all non-custom items. Make it easy for a customer to make a return by including pre-paid postage and packaging if feasible, or reimbursing return shipping. Be very clear about your return or product exchange policy so customers know exactly what to expect.

• Prompt Shipping – Be clear on when ready-made items will ship. If you choose to ship internationally, be clear on shipping times, shipping options and that duty fees. (Duty fees are the responsibility of the international buyer, not the seller.)

• Problem Resolution – How will you handle problems when they arise? It’s not if a problem will come up, it’s when. A customer may be upset over a delay in shipping, receiving the wrong package or not like the item when it arrives. How will you kiss and make up with an unhappy buyer? Have a plan in place, but don’t be afraid to handle each situation as it arises.

Etsy Support Decoded:

Etsy has a multitude of built-in tools to help you be successful. Take advantage of all the free resources and you may be surprised by how well they will boost your business. A few of Etsy’s best tools are:

• Merchandising reports – Some great advice from successful sellers is to follow Etsy’s merchandising reports. They release these reports specifically to help you target what you’re selling to what people are buying. Merchandising reports come out each season and for holidays so you know what’s hot for seasonal buying. Take the merchandising reports seriously; use them to formulate your selling plans for the future.

• Seller’s help guides – Etsy offers a full seller’s help guide that’s not just helpful when you’re new to selling. It is invaluable for anyone who needs a reference or perhaps a boost in how to do something better. The seller guide covers everything you need to know about running a successful shop. Great sellers have read this and refer to it as needed.

• Photography Guide – Product photography has to be good. Its how customers window shop in your store. It might be necessary, but great photography can be hard. The trick? Use a white background and natural lighting (early morning works best). Know your camera and how to use its settings properly. Then, snap the best shots you can. Take multiple pictures of your items so you have more to work with. Then, upload your pictures to Fotofuze.com and easily edit them into a white background for a professional effect (and its free to use!)

• Etsy Labs & Teams – Etsy produces something called Etsy Labs. These labs discuss many topics and provide visual and step-by-step information on business-related topics. Additionally, Etsy teams are a more personal way to connect with other sellers and get real advice about what it takes to be a success. Search teams to find one that fits you and jump right in. Teams can help you make vital, supportive connections with other Etsy sellers who can help you in trouble areas or support you when you need it.

Networking Decoded:

Networking is an important tool for spreading the word about your business. Networking helps you make connections with customers, suppliers and other business owners that can help your business thrive. Having a social presence also gives you that human element that customers like. It lets them know there really is a person behind the business and that provides reassurance that you’ll deliver.

There are several ways to network, however common networking routes that Etsy sellers use are:

• Social Media
• Blogging
• Product Promotion

Social Media: Not all successful sellers tap into the power of social media, but some do. Facebook and Twitter are two social media powerhouses that can help spread the word about your Etsy shop. If you don’t have a Facebook fan page, hop over to Facebook and create one. Use your Facebook fan page to add links and images of new products, promote specials, coupons and give-aways, provide customer service and engage in conversation with customers.

Twitter provides another platform for connecting with others, but on a much smaller scale. You’re only allowed 140 characters to socialize with. You can post links and snippets of information, along with links to your store and product images. The key to successful social media? Engagement. Update your Facebook page and Twitter frequently. Ask your followers questions and engage them in conversation for a more person-to-person interaction.

Blogging: Who has time to blog? Etsy sellers who rake in the sales, that’s who! Having your own blog can be a highly successful move for your business. Blogging is perhaps the best way to blend a little of your personal self into your business self. You can create posts on any topic you choose, share how-to information, and give away goodies and share images and video. Even better, you can connect your blog to the blog-roll of others. This helps promote your blog to all the readers of other blogs who connect to you. What a great way to promote your shop and start forming a following! Both Blogger and WordPress offer free blog hosting options. Or, if you have your own website, connect a blog right to your site.

Product Promotion: At some point, you may be asked to provide a free product for a blog to use as a promotional give-away. Etsy sellers have mixed feelings about this; however, providing product for a give-away can be great exposure. You may also choose to contact blogs that you love and that fit your target market and see if they would be interested in using your product in a promotion. Simply, the blog runs a contest and your item is among the prizes. In return, the blog talks a little about your business and provides a link back to your Etsy shop. Before you hand over products for a give-away, consider:

• Does the blog’s demographic fit your target market?
• Does the blog have a large enough reader/follower base to make it worth it?
• How long will it take for the blog to feature your product?

Product promotions can be a good alternative to paying for advertising. Really dig deep to find blogs that fit your target market and be sure they’re a good fit for your product before giving anything away.

A key to social media that is easy to miss? Connecting with people who can leverage your business. This includes other business that may be willing to cross-promote your business with theirs, and vice-versa. For instance, if you sell baby clothing, you may want to look for a bath & body seller who sells baby bath products. Generate a rapport with the baby bath product seller. Ask her if she’d like to cross-promote your store on her blog, in her social media networks or on her website. Make sure this favor is mutual and you are willing to return the favor.

Thinking about selling to boutiques and other retail stores? The same networking applies. When you find other business that seem like a good fit to cross promote with yours, check to see if that business is selling to retailers.

Then, peek at which retailers they are selling to. These retailers may also be a great fit for your business. You can source retailers and boutiques this way, quietly and on the fly, and amass a nice list of retailers to send product information to.

Relevancy & Recency Decoded:

There are many different ways a customer may land in your shop, but two have pretty powerful influence. Etsy uses relevancy and recency to help customers find your products.

• Relevancy: When a person hops onto Etsy and uses the search bar to look for a ‘wedding veil,’ Etsy will give them results based on all the items labeled as a ‘wedding veil.’ Simply, only products related to a specific search will show up in search results. If you sell ‘wedding hats,’ they will not show up in a search for ‘wedding veil.’

Implement Relevancy: Be sure your items are tagged and titled correctly. Only use keywords and tags that are relevant to the product you are selling. Nothing bugs customers more than products that are tagged incorrectly. For instance, don’t add the keywords ‘wedding veil’ to your satin wedding hat, unless, of course, the hat also comes with a veil. Be sure your item is placed in the correct category as well.

• Recency: Items that have been recently listed show up in the ‘recently listed’ category on Etsy. Recently listed goods may appear on the ticker at the very bottom of the Etsy homepage, and also show up when a customer goes into Etsy search and uses ‘recently listed’ to look for items.

Implement Recency: To keep products available in the ‘recently listed’ category, consider spreading out new listings throughout the day. Instead of listing all of your new products at the same time, spread your listings out during the day or week, whatever works best for you. This helps ensure you always have something available in ‘recently listed.’

Ultimately, keep learning about ways to tweak your shop and make it better. The Etsy forums are a great place to source real-time information about what’s working for other sellers and helping them sell more. Be sure to keep notes about changes you’ve made to your shop and things you’ve tried so you know what’s working and what’s not. Running a successful shop takes work and time; give it both and you’ll be on your way!

Amazon FBA is the best thing since sliced bread!  Well, maybe not, but it is certainly the best thing to happen to commerce since the Internet. Okay, maybe that is over-reaching too. Let’s just say… I’m excited about Amazon FBA!

The advent of Amazon’s FBA program is an incredible opportunity for the vast audience of solo-preneurs I have been working with for the last few years as a teacher, coach, and podcaster.  This is a real game changer for us, a chance to become a “Big Boy” in eCommerce: to finally achieve the levels we have dreamed of for years.

First, a few facts about Amazon Prime and the FBA program:

• FBA is just starting its fourth year
• FBA now represents a growing 38% of Amazon’s revenues
• Amazon Prime started in 2005
• In 2009 Prime had 2 million members; by 2011 there were over 5 million
• Prime represents only 4% of Amazon’s total customers so far
• Prime is growing at over 20% Year Over Year
• Prime customers spend 130% more than regular Amazon Customers
• 40 % – 50 % of Amazon customers have never purchased from an third party merchant

Why did I tie the Amazon Prime program in with Amazon FBA? To understand how well FBA works, you have to understand one of the largest benefits.

Amazon Prime is a program where an Amazon customer pays $79 per year (there are many ways to get a free Prime account also, and free trials abound) for totally free shipping for ANYTHING they order from Amazon. Not just free S – L – O – W shipping, either: free TWO Day shipping. Upgrading to Overnight?  That’s only $3.99 for ANYTHING. Yes, that includes the generator you needed yesterday when the power went out.

How does Prime tie in with FBA? All items you as a seller send in to the FBA program become automatically eligible for Prime free 2-day shipping! This is a huge advantage you have over so called ‘Merchant Fulfilled’ sellers who ship items to their customers from their homes.

Selling merchandise on the Amazon platform can be very lucrative and another stream of income, but using the FBA system to sell on Amazon brings you to a whole new level.

The opportunity of FBA is huge. It can take a one man shop and turn you into a flourishing million dollar a year business. Yes, it really can. How? Scalability! Just think if you could take all the time you now spend in photography, writing up listings, dealing with customer service issues, buying and organizing packaging and shipping supplies, organizing and finding inventory when it sells, sending out newsletters, posting your listings on advertising and social media sites, etc, and use ALL that time to source product. What amazing opportunities could you discover? What deals could you make? What volume could your business do?

There are two main things that limit small sellers; time and space.  Sellers have only so much space to store product and only so much time to process orders. Even if you could GET 200 orders every day, could you handle that volume? With FBA the space constraint goes away because you are paying (extremely low rates, by the way) to store your items in one of Amazon’s warehouses. Amazon has recently added 17 new fulfillment centers and their total on-line right now is 69. And the time constraint goes away as you have hired (at pennies per order) a staff to handle your order processing, shipping and customer service.

The FBA seller has only to source product, then spend a couple of hours processing those items and shipping them to Amazon (using the incredibly LOW rates Amazon has negotiated with UPS).  Then watch the sales flow, or as we refer to it on my FBA Radio Facebook Group, enjoy the rain.

Another great blog article on FBA selling by my mentor, Chris Green of FBAPower can be read on The Anthead Syndrome Blog.

Still not sure you ‘Get It’?  You can purchase this small book for $4.99 on Amazon (free shipping if you are a Prime member!) and understand it better than anyone except its creators at Amazon. Understanding Amazon’s FBA Program by my mentor, Chris Green.

Etsy is located on the 5^th floor of a discrete building in the DUMBO area of Brooklyn.  (For those of you who don’t know DUMBO, it’s the area of Brooklyn near the Brooklyn Bridge.)  Etsy’s floor is under construction, as they are expanding and adding in a lobby.  The office itself is very colorful, with lots of handmade items in orange and tan all around.  Etsy’s unofficial mascot, a very large owl, sits in the front and greets visitors.  Even the pipes are unique – they were covered in knitting by a local knitting group!  Overall, the Etsy headquarters is a very welcoming and friendly place.

We had a chance to meet with Seller Education team.  They were hard at work making sure the sellers have what the need to be successful.  Later, we headed up to the Etsy Labs, a separate area in the building where Etsy does their educational seminars and allows crafters to come and make things.  When we arrived, Chad Dickerson, Etsy’s CEO, was there, talking to a group of new employees.  We were honored to meet Chad in person, as he’s done a great job of continuing to grow Etsy into a thriving marketplace.    As our last stop of the day, we spent an hour hosting a Live Stream discussion to teach Etsy sellers about the 1099-K.  You can watch that Live Stream here.

Have you received your 1099-K? Login to Outright.com and head over to your “Taxes” tab to verify it against your Outright income today!

With tax season in full swing, Shoeboxed and Outright want to make sure that you are as ready as possible for April 17 (yes, you have two more days this year, but that doesn’t mean you should actually take two more days to do your taxes… You know what they say about procrastination!)

In order to make tax time a little less taxing, we have put together a contest.  Starting tomorrow, we will post 1 daily question on our Facebook pages to test your knowledge of all things Taxes. The first 10 people to answer the question correctly each day will enter a drawing for a 6-month subscription of Shoeboxed Classic (which includes prepaid envelopes and up to 150 receipts/month – a $180 value) or 1 year of Outright Plus (which includes expanded tax time and business finance reporting options – a $120 value). Either prize will make your 2012 taxes so much easier!

Questions will be posted at 1 PM EST, Tuesday through Friday. Winners will be announced the following day. Click HERE to see the daily question!

EVERYONE’S A WINNER!  Even if you don’t win, you can still try  Outright and Shoeboxed for free! There is no better way to prepare for Tax Time.

About Outright: Outright.com is the easiest way to manage your business finances online. Outright allows you to seamlessly integrate your business bank accounts, credit cards, PayPal and ecommerce accounts like eBay and Amazon in order to effortlessly keep track of your business finances, see where your money comes from and where it goes, and quickly and easily fill out your Schedule C tax form at the end of the year. Sign up for a free Outright account today for a less taxing tax time! Better yet, Outright integrates seamlessly with Shoeboxed!

About Shoeboxed:  Shoeboxed scans your receipts, extracts and human-verifies all the data you need for taxes, bookkeeping and expense reports. They also create a secure, digital, IRS-accepted archive of all your receipts in case you ever get audited.

You can send documents through the mail in one of their pre-paid envelopes, by e-mail, with one of their free uploaders or from one of their Android, iPhone or iPad apps. Shoeboxed integrates seamlessly with  Outright.

This was our first MeetUp after the 1099-ks had arrived in houses, so the sellers had lots of questions about how to reconcile their 1099-Ks.  We talked about doing this through PayPal’s CSV download or through Outright.

Additionally, there was lots of discussion about the Marketplace Fairness Act (requiring sales tax collection from online sellers) and the 1099-K Overreach Prevention Act (repealing the 1099-K).   Both bills are pending in Congress.  Regardless of how a seller feels about these bills, it’s important for sellers to have their voice heard.   You can express your opinion on these bills to your Congressperson and Senator at VoxPop.com.

The morning after the Seacoast MeetUp, Outright headed out on the long drive down to Hartford, Connecticut.  When in Hartford, we visited the Connecticut Sellers Group.  We had a great discussion about selling on eBay and Amazon.  One of the sellers explained how it’s sometimes better to sell large ticket items on eBay because it’s more economical in the long run.

After we left Hartford, Outright headed by train to the Big Apple.  Our last stop on the East Coast was the Etsy Headquarters for a Live Stream.  More on that in another post…

Have you received your 1099-K? Login to Outright.com and head over to your “Taxes” tab to verify it against your Outright income today!