Posts Tagged ‘Third Party’

What is the difference between Dutch auction and OpenIPO ?

December 18th, 2012 1 comment

What is the difference between the two ? I just know OpenIPO is just like Dutch auction but I don’t really know the difference. 10 points for best answer. Thank you.

If a company is using a Dutch auction IPO, potential investors enter their bids for the number of shares they want to purchase as well as the price they are willing to pay. For example, an investor may place a bid for 100 shares at $100 while another investor offers $95 for 500 shares.

Once all the bids are submitted, the allotted placement is assigned to the bidders from the highest bids down, until all of the allotted shares are assigned. However, the price that each bidder pays is based on the lowest price of all the allotted bidders, or essentially the last successful bid. Therefore, even if you bid $100 for your 1,000 shares, if the last successful bid is $80, you will only have to pay $80 for your 1,000 shares.

The U.S. Treasury (and other countries) uses a Dutch auction to sell securities. The Dutch auction also provides an alternative bidding process to IPO pricing. When Google launched its public offering, it relied on a Dutch auction to earn a fair price.

An OpenIPO is essentially the same, a modified Dutch auction (which is usually only for a single item) which allows many shares of an initial public offering to be allocated in an impartial way. All successful bidders pay the same price per share. It is the lowest price at which all shares offered are subscribed to.

There is some confusion over terminology: some financial commentators and some third-party auction sites use the term Dutch auction to refer to second-price auctions, which are totally different from Dutch auctions: in a second-price auction, the winner pays the amount bid either by the lowest winning bidder or by the highest losing bidder.

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How can you obtain a business license to sell on eBay and craigslist out of a residence? We just got denied!?

December 16th, 2012 2 comments

We offer a variety of services, including auction assistance on eBay and craigslist – today we were denied a business license because they said we cannot sell items on eBay out of our home – we must have a retail location. There must be a way around this – as MANY have this type business.

Skip the license? That’s actually what one of my business professors advised. Don’t get a license until your level of sales proves you can sustain a business profitably. A state (or city) business license is really just a formality anyway. Yes, you can get fined or even shut down for not having one, and I am not advocating you break the law. And some form of licensing is required in most areas. You will need a reseller number to purchase items at wholesale from some wholesalers. But a reseller number is also the same number as your EIN. I offer this service for $75, email me if you need it.

First, reapply, explain that you are not selling products from your home. You’re not. You are selling products on the internet and all customers arrive soley from the internet, no one ever shows up at your home.

If that doesn’t work you can try a third party – someone who already has a license and offer to share theirs for a percentage of your income.

Next, try a third party provider – a business that supplies city, state and federal registration and licenses. You can find them with an online search.

If all the above doesn’t work, email me, I may be able to help further.

Ebay Tips For Beginners

February 4th, 2012 3 comments

Making money isn’t an easy thing to do these days. Many people want to turn their unused items into extra money, and eBay fills that need. Selling on Ebay does require some effort but is no means that hard. Keep reading to learn the basic steps you need to start your own eBay business.

These tips are for the beginners who would like to earn some money on eBay. The nessary components to have your own online store are really not that demanding. All you need to start is a computer, Internet access, a digital camera, and of course, products to sell.

You can sell used or like new items you find at garage sales, in your garage and so on. You can sell new items that you find at discount prices from liquidators, dollar stores, store closings and clearance sales. You may be even luckier if you can find a supplier who will make you a deal.

Skills for the Online Business World

Skills for Marketing
You can develop marketing skills as you educate yourself on how to sell various items on eBay. Reading some marketing books and articles to help yourself learn how to sell things is a good idea, but you can also learn from observing other successful entrepreneurs online. Take time to read and plan out your strategy. You will thank yourself later for taking this effort now.

Getting Organized
You need to maintain good records of your sales, and not just for tax purposes. You need to be able to keep track of which buyers have paid, which have received their items, and so on. Setting up a spreadsheet with all the pertinent information should help keep your business under control. You can also take advantage of third party payment systems online. There are options to choose from; however, they charge for about one percent of the item price as a fee. The small fee is nothing compared with your clients purchasing your items with ease.

The Basics of HTML
To ensure that your auctions eye-catching and appealing, you will want to know some basic HTML skills. There are a lot of easy and basic tutorials offered online. You can begin by searching for html tutorials, and then you can choose which one you like for your convenience.

Getting Started on eBay

Start by choosing a certain type of product to specialize in (for example, toys, clothes, etc.). That way, you can become an authority in those products and how to sell them effectively. You may decide to expand your product line at a later date.

Setting up an account is easy. Register an eBay user ID and you’re on your way. Make sure to read the eBay selling rules thoroughly and check out all the tips eBay offers along the way.

To start, put up only a few items and don’t saturate your auctions with too many of the exact same item. The primary goal is to sell your item at the highest price. If you are selling five of the same items, it may be more difficult for you to get a high price. Test out various selling methods and find out what works best for your particular items.

Ideas for Online Marketing
Promote your business with your own personal website. Your site can be a webpage just to promote your eBay business, or it can be an online store that links to your auctions. It gives you a more credible presence on the Internet and gives your clients a better sense of who you are. Create a mailing list. Mail out an informative newsletter on a regular basis to your subscribers. Don’t forget to promote your auctions in the newsletter too.

Other Auction Sites
Don’t limit your business to eBay. EBay is only one of the many auction sites available, but it is by far the largest. However, eBay’s fees can prove to be expensive after awhile. It may be more cost effective to sell your items on other auction sites, and you may face less competition, particularly if you are selling items at a fixed price. Other auction sites might be a more lucrative opportunity for you to buy items to sell for higher prices elsewhere.

All you need is some motivation and patience to watch your hard-earned money grow through on eBay business.

Keep in mind, though, you may also have fewer buyers for your products and may have a lower selling price. You will need to determine which is the most efficient way to sell your items.

Charles Taylor