Hot biz: eBay

Entrepreneur, Dec, 2003 by Laura Tiffany

It's easy to get started on eBay. Unearth your forgotten knickknacks of old clothing, snap some photos, and in minutes they can be up for auction. But with 16 million items up for sale, and sales totaling $61 million on any given day, transforming your weekend hobby into a full-time eBay business and really making some noise on this vast site will be your challenge.

So what's hot right now on eBay? Just about everything. Home and garden items grew 151 percent between second quarter 2002 and second quarter 2003. Clothing and accessories grew 103 percent; vehicles, parts and accessories grew 93 percent; and consumer electronics grew 63 percent in that same time period.

Gotham City Online founders Jonathan Garriss, 33, and David Topkins, 31, have found success in the clothing category on eBay, auctioning overstock merchandise for their retail clients since 1999. This niche has brought the New York City-based business an estimated $7 million in sales for 2003, and with projections double that for 2004, it's safe to say the duo has found the eBay formula for success.

They use their eBay Store a subscription-priced, customizable site that provides eBay sellers with their own discounted fees and a one-stop shop where buyers can easily search all Gotham City auctions--to let customers find what they want more quickly. They advertise their outside site (www.gotharncityonline.com) on Google and Overture, and then use it to drive traffic to their eBay auctions and to work with their retail partners.

The biggest secret to running a successful eBay enterprise is customer service, a tactic in which Garriss is well-versed. "We want to remove all barriers holding back a shopper," says Garriss. "We have a return policy, run free-shipping promos [and] offer combined shipping. All our packages are insured at no additional cost, and we posta toll-free number for our customers to contact us if they have any questions."

For more on starting your own eBay business, read Finding Your Niche on eBay at www.entrepreneur.com/ebaycenter.