Selling on the WWW.

The main problem of online selling, be it eBay, Amazon or your own Site, is locating merchandise that you can sell for a decent profit. The other problem is: When you list your merchandise for sale on the Internet your competitors can immediately see your asking prices. They can then adjust prices to beat yours. Your only option really is to re-price and undercut them. There is re-pricing software available to help you to do this. The chances are that your competitors have this same software. The re-pricing software sellers are really playing all the sellers against each other. And so the online sellers begin an almost suicidal race for the bottom.
Most on-line shoppers myself included search the Internet to find the best price of the merchandise we need to buy. Most on-line buyers are experienced enough to add the shipping cost and the cost of the actual item before placing the order. I think many of us have seen ads for low prices on goods with ridiculously high shipping costs and "handling costs" whatever handling costs are. In addition to price the shipping costs the seller's feedback and reputation and the shipping speed is a consideration. I can only assume that most Internet shoppers do the same. I also, because I'm buying goods sight unseen look carefully at the company's return policy.
I think that to compete successfully online in these tough economic times you have to ship faster than your other sellers, you have to have a better, easier return policy than other sellers, and you have to ship less expensively. On sites like eBay you also need to have very good to excellent feedback. In this way you can compete by charging the same or even a little bit more for your merchandise. Another consideration is the location you are shipping from. Buyers will sometimes buy items from locations nearer to themselves thinking that they will receive the items faster.
I really think the only way to compete, the only way to thrive and survive selling on-line is to actually give the customer more than they pay for. By exceeding the customers expectations, by giving them more than they pay for you can assure yourself a better feedback which in turn should lead to higher sales and you will probably even get repeat custom from your very satisfied customers. You have to compete on not price alone but on service and quality.
When you do get a dissatisfied customer for whatever reason you really should try to work with them. If the goods is broken non-functioning in any way and you can't return it to your supplier for refund then you really don't want to have it returned. A lot of online merchants insist on having the broken or defective goods returned hoping that the custom the will be too lazy to or even forget to return it and so they won't have to issue a refund.
I think this is the wrong policy. If something is broken nonfunctioning and you are not going to resell it. I really don't think that you want to get the returned goods mixed in with your good inventory and run the risk of reselling it. You really don't want to store or dispose of broken/damaged goods. You probably really don't even want to sell it as a second or as scratched and dented, broken/damaged items. You also have to consider as well that your time is usually far and away more valuable than the cost of the refund. In the long run it's cheaper in many by far to just give them their money back and tell them to keep the items. Make refunds quickly and courteously and be sure to ask for positive feedback when you issue the refund.

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