The Pitfalls of the New Top-Level Domain Names

Just as predicted, problems are already coming to light with the rollout of the new generic top-level domains being offered by Internet Corporation for Assigned Names and Numbers (ICANN), which runs the web’s domain-name system.

At $185,000 a pop, companies will have to register for several domain names again to protect them from cyber-squatters buying up the domain names and abusing them. For example, buying up any .xxx domain names that might sully their company's name.

In December, Jon Leibowitz, FTC chairman testified before Congress that the new domain system as proposed would be “a potential disaster.” In a letter to ICANN, Leibowitz elaborated:

"A rapid, exponential expansion of gTLDs has the potential to magnify both the abuse of the domain name system and the corresponding challenges we encounter in tracking down Internet fraudsters. In particular, the proliferation of existing scams, such as phishing, is likely to become a serious challenge given the infinite opportunities that scam artists will now have at their fingertips. Fraudsters will be able to register misspellings of businesses, including financial institutions, in each of the new gTLDs, create copycat websites, and obtain sensitive consumer data with relative ease before shutting down the site and launching a new one. The potential for consumer confusion in other variations of these types of scams is significant. As an example, “ABC bank” could be registered in .com, but another entity could register “ABC” in a new .bank gTLD, and a different entity could register “ABC” in a new .finance gTLD. Scam artists could easily take advantage of this potential for confusion to defraud consumers."

Many other agencies and organizations have called on ICANN to slow down the process and make changes. ICANN promises to take these concerns under consideration. Stay tuned...

ICANN Announces New Generic Top Level Domain Program

ICANN is the organization responsible for coordinating the Internet’s unique identifiers, including the domain name system. One of ICANN’s core values is promoting competition in the domain-name market while ensuring Internet security and stability.

ICANN recently announced it is opening the flood gates to allow more suffixes for domain names. Introducing new generic Top-Level Domains (gTLDs) will help achieve that commitment. Soon entrepreneurs, businesses, governments and communities around the world will be able to apply to introduce and operate a generic Top-Level Domain of their own choosing. Personalized suffixes like .coke, .amway, .help, will be potentially be available.

Here's how it works:
1. Any public or private organization can apply for a gTLD.

2. Applicants will have to pay an estimated US$185,000 if approved.
Applicants will be required to pay a US$5,000 deposit
fee per requested application slot when registering. The
US$5,000 will be credited against the evaluation fee. It was not made
clear in my research what happens to the deposit if not approved.

3. ICANN will request documents and information to prove the suffix is
justified. The application fee and documentation are to prevent
"cyber squatters" from just hoarding suffixes and holding out for the
highest bidders.

4. After a process that is predicted to last about 8-18 months,
ICANN will decide if one is eligible for the gTLD they applied for.

Will this process creat more availability? Or will it create a slow down for ecommerce? Will it just creat more legal hassles and headaches?

Stay tuned... next installment, we will discuss potential glitches.

You Can't Sell That on Here!

Millions of would-be entrepreneurs want to sell things on online auction sites. Online auctions are the #1 home-business opportunity in the world right now, so it is natural that many are eager to find highly profitable items for re-sale. However, it is important to know that there are certain items that cannot be sold. Here are a few of them ...

Some items create copyright infringement and can actually land a seller in federal prison, some examples:

1. Knock offs of music, TV shows or movies. Some individuals will sneak a video camera into a newly released movie and make “bootleg” movies for distribution. Asia churns out big numbers of these counterfeit items because their laws aren't as restrictive. However, in the U.S. the production and sale of such items is illegal.

2. Software and computer games can likewise be copied and their sale is illegal by all US laws.

(However, the items above may be sold if you have a copy that you purchased legitimately and no longer want.)

3, The so-called "replica" market for handbags, designer sunglasses and clothing is definitely forbidden although these items are often sold in physical stores around the US, either knowingly or unwittingly.

4. Alcoholic beverage sales are not allowed although a beverage "container', especially those of wine, may be sold for its value.

6. Cigarettes, cigars, smokeless tobacco or coupons for such items are not permitted on most auction websites.

There are many more examples, however to be sure, check with the regulations of each website.

How Will Rising Shipping Rates Effect Online Auctions?

As if online selling and auctioning weren't competitive enough, online sellers are being forced to reconsider their most important secret weapon.

Online sellers are being squeezed between the consumer demand for free shipping and the ever-increasing costs of shipping. This month, the cost of sending UPS, FedEx, and USPS Priority Mail and Express Mail packages rose, and a few weeks ago, the USPS filed plans to raise rates for First Class and Standard Mail rates in April.

Merchants are paying 25 cents more for a USPS Priority Mail Small Flat Rate Box, and will pay up to 15 cents more per package for USPS Media Mail beginning April 17, 201.

Sellers must pass along higher shipping costs by raising shipping & handling fees or by raising the price of product, or somehow just eat the higher cost of shipping. Either way, they face higher payment processing fees and in some cases, higher fees to online marketplaces and inventory management services that take a percentage of the transaction.

How will you deal with higher shipping costs in your business? Are you increasing your S&H, rolling costs into the price of the item, or taking the loss on margins. Any chance of finding a happy medium?

Cookies to Super Bowl Rings, Online Auctions Benefit Charities

From bake sales to swanky galas, there are countless ways to raise money and awareness for meaningful causes of all sizes. But move over Rice Krispie squares, there’s a new way to raise money for your cause or charity!
Through online auctions, charities and nonprofits can not only reach more people from all over the globe in a cost effective way, but, potentially can raise much more money than Grandma’s snickerdoodles can. (No offense to Grandma) With online auctions, the sky is the limit!

There are great examples of online auction benefits done on a much larger scale. There have been auctions to benefit the victims of earthquakes in Haiti and China, Hurricane Katrina, and even soldiers severely injured in the War in Iraq. There is even an online auction website dedicated to raising money for charities and causes, www.celebritiesforcharities.com. A popular auction that is going on right now is a Super Bowl ring belonging to last year’s champs, the New Orleans Saints to benefit the victims of the Gulf Oil Spill. This one has a twist though, instead of bidding, you buy tickets as you would in a raffle, more tickets bought equal more chances to win!

Online auctions to benefit a cause are easy to operate. It is not necessary to recreate the wheel and set up a new website, there are plenty of sites ready and waiting for you to use. So, let’s start raising money to help those in need!

Businesses, Not Just Individuals Can Benefit from Online Auctions

In the beginning, online auctions mostly consisted of everyday people who were
trying to get rid of an item here or there. Essentially it was a glorified
garage sale to the highest bidder. But now online auctioning is becoming a
viable business model for small and large businesses alike.

Online auctions appear to be an effective way to do business, with a relatively
small amount of money needed to start. It is an ideal business model for someone
who has easy and cheap access to a lot of "things" that others may want. Of
course, attracting customers is one part of the challenge, that is why there
are several options for online auctioning. Some businesses auction direct right
from their own website, some set up shop on larger auction sites like e-bay,
ubid, ebid or Overstock.com. Particularly, auctions can be a great help for your
business if you have excess inventory or need to quickly liquidate.

If you feel that auctioning is the way to go for you, then you need to
concentrate on the five things listed below:

1. Having items to sell that people will buy
2. Getting people to look at your auctions
3. Building trust among customers
4. Maximizing the amount they pay
5. Providing amazing customer service that garners repeat business

Starting an auction site from scratch probably isn't the best option for
everyone. It maybe best, instead of reinventing the wheel, for small businesses
to use existing mass market auction services like Yahoo, Ebay and others.

Should small businesses drop their existing and successful business plans and
start auctioning? That would not be wise, but supplementing with online
auctioning could add a nice boost in business.

Online Auction Tips: Save Time by Automating

If you are the type of seller who only lists a few items “here and there” at online auctions, it only takes a few minutes to get your items up for sale. However, if you have built an online auction business with hundreds of items for sale, you’ll run out of time and energy fast listing your items in that same fashion. That’s why a great little process called automation is so important. Even if you find a glorious one stop online auction shop where you can sell all your items in one place, automation will still be necessary to keep the business going – and keep your sanity! What does automation mean? It means having items and processes that you know you are going to use regularly, ready to go at all times. Here are a several items you should always have on hand or ready to go in order to automate your auction tasks:

•Email templates for “Thank You” messages after sales have shipped
•Order confirmation templates
•Templates for up-sell offers
•Shipping Items: boxes, bubble wrap, flat rate boxes, padded bags, packing slips
•Bidding Schedules: Schedule your bidding to end around the same time so you can easily deal with them once the auctions end.

Automation will help you save time and money; it will enable you to list and deal with more items in an efficient manner. You’ll also have a better chance of getting repeat business by sending regular mailings or e-mails to buyers. The more money you can save the better the bargains your customers will receive!