Investment ProspectusPage 3defective goods, largely, but not completely, eliminating the need forthe company to maintain a customer service department.Products successfully sold on eBay will then be added to the catalog of the Online store. Store purchase prices will be determined by theaverage price obtained from auction activity.
Resolving barriers to profitability
The chief barrier to achieving profitability in such an operation is thefact that at the present time, there are more than a half-million otherindividuals engaging in the same process as has been described above.Customers having interest in a specific product, if popular, will befrequently confronted with tens of auctions showing very similar pricingoffers, and often with converging bids. Thus, the challenge is that of selecting products which will attract the interest of bidders, andpresenting sales information in a form most likely to motivate selectionof Company offered auctions, or store catalog items.
Multiple Product Streams
To accomplish these objectives requires most careful attention to thecontent and format of sales and marketing materials. Beyond theseelements, research findings conducted by eBay suggests that sellersconducting multiple auctions (16 or more, simultaneously) achievesignificantly better results than those with fewer.
The Product Selection Plan
Whether sold at auction or from the online store, the potential forproduct sales is quite separate from the sales and marketing materialsused to promote them. Popularity of the product, success in salesachieved by other sellers, the margin achieved between the cost of product, and the average sale price, along with the immediateavailability from a supplier are all critical when considering theselection of a product. Substantial available resource material makesoptimum selection of product readily obtainable. With an extensivedatabase of all items sold on eBay, a rigorous research protocol hasbeen developed which yields the probability of a successful auction orstore sale, (Listing Success Rate or LSR) along with the Average SalePrice (ASP), from which the likelihood of successful sale and the mostprobable profit or loss can be calculated. To assure a consistent flow of quality listings, the development of competitive multiple product listings requires effort beyond the abilityof a single individual. To that end, The Company will hire a number of independent contractors who will be used to first use the above