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How to get started with online auctions

admin — Fri, 25 Dec 2009 13:04:32 +0000

Online auctions are hot. Just ask one of the more than 750,000
people who make a living or substitute their income selling
merchandise on online auctions such as eBay, and they will tell
you that selling online is a great way to make money. In
addition to being a great money maker, online auctions allow
persons to start their own business with very little or no money
of their own.

And the earnings can be phenomenal. The truth is that eBay has
created comfortable lifestyles for a multitude of people. In
fact, one woman reported earning more than $250,000 in 2005 for
items she sold on eBay.

Granted, not all find their fortune in the great world of online
auctions, and phenomenal earnings are not guaranteed when
selling at online auctions. But people do succeed everyday. You
can too, but first you need to get started. Here’s how:

Choose an online auction

There are several online auctions that you can choose from; eBay
is the most popular and successful. While other online auctions
may not have the selling competition that eBay does, they also
do not have the multi-million customer base associated with this
online auction giant. All of this should be taken into
consideration before you choose which online auction to go with.

Other things to consider are listing fees, customer and
technical support, and ease of site use, all of which can be
vital to your success. Look for listing fees that are minimal as
you will pay these even if your item or items do not sell.

Become familiar with your online auction

Once you have chosen an online auction, you should browse
through each section of the site to learn all that you can about
your new store window in the e-marketplace. Learn how to use all
of the tools and features. Also pay special attention to what is
being sold and for how much. This will help you when you are
deciding what to sell.

Learn all of the terms and conditions associated with the use of
your online auction. Unknowingly going against these terms can
get you booted. On the other hand, knowing them can help you in
the event that you come across a buyer who does not play by the
rules.

Choose items

There are virtually no items, barring explosives, which cannot
be sold on eBay and other online auctions. The trick, though, is
to find which ones will sell quickly and at a great profit. This
takes research and a lot of it. Look for products that have high
bid values but low numbers being offered. These statistics will
let you know which products are likely to sell very well.

Study your facts

In addition to knowing which products to sell at an online
auction, you should also do some research to find out how much
you should start the auction at for your items. While people who
shop eBay and other online auctions are normally looking for a
bargain, they are not set against paying a reasonable price. So,
see what your items are going for retail and set a price that is
a bargain but not a give away.

Watch your competitors

As with any business, you need to pay careful attention to what
your online auction competitors are doing. What are they
charging? What are they selling? Are they doing better than you?
You can learn a great deal from your competitors.

While there are no guarantees when it comes to succeeding with
online auctions, getting the proper start can make all the
difference. Do your homework. Have fun and good luck.

eBay: Don’t Believe All the Hype

admin — Wed, 16 Dec 2009 19:50:51 +0000

Three billion dollars (that’s billion with a “B”) in revenues, 135 million users, millionaires all over the place at eBay! Yeah, eBaby!!!, to steal a line form another great author. (See “EBay: No WayYes Way (Ten Seller Themes) by Barbara Snyder M.A.” at http://www.sbmag.org/howtosellonebay.html)
Yeah! Wow! Make a million! Open a store on eBay and get rich! Man this is easy!!! -NOT!!!
It’s way to easy to get caught up in all the hype out there about eBay and to start thinking all you have to do is set up an eBay store and you are on your way to the life style to which you would like to become accustomed. Don’t believe it.
Before you start primping for your own segment of “Life-styles of the Rich and Famous,” there are a few things you should learn about eBay and small business start-ups in general.
The rate of survival of a traditional small business reads something like half of all new business start-ups fail in the first year and half of the survivors do not survive the second year, and eBay is probably no different. In fact, it’s not easy at all anymore (if it ever was) to carve out a fortune on what has been dubbed “the world’s largest garage sale”.
“But Floyd, take a look at all that money”, you say. Sure eBay is doing just fine, but of that three billion dollars, how much of it is actually spent on items in “your” category or product line “you” have for sale?
Everyone has to decide exactly what business he or she wants to be in. Then they have to decide if they are going to be a niche player or try to carve out significant market share. Either way you decide to go, you may find out that the pool you are swimming in is not as deep as it may first appear. Unless you are selling automobiles or real estate, not all or even a large percentage of that three billion dollars is spent in your merchandise category. Make sure you check the water before you dive in head first.
When you do decide to jump in, make sure you are ready both financially and mentally to go through a learning curve of some months. Back in the earlier days this may not have been the case, but today eBay has become extremely competitive and significantly more expensive for sellers. And don’t expect a lot of help from eBay directly. They are not the greatest company in the world at customer support. They have a lot of information available, but they also have a tendency to answer help questions with loads of boiler plate “fixes” that usually serve more to confuse then to actually help.
Speaking of fees, this is how eBay lives. They literally nickel and dime you to death (actually its more like quarter and dollar) thirty cents for the cheapest insertion free, thirty-five cents for a gallery picture, a buck for “bolding” and on and on. And then there’s the fair value selling commission and the PayPal fees (PayPal is a must have!). All these small fees add up fast. Don’t forget, you pay the listing and insertion fees whether your item sells or not. You will quickly learn that your selling percentage becomes crucial and why it is so important you learn how to make very efficient listings at the lowest cost possible as fast as possible. If you fail to learn this, before for you know it, eBay is taking half or more of your total sales just in fees, not counting your cost of product and shipping.
eBay has been called the “world’s largest garage sale” for good reason. You know what people are looking for at garage sales, cheap prices. In the beginning, if you were the only one on eBay selling a specific product, you could demand and get higher prices. Today it’s a bit different. The competition is brutal. You are competing against people and business of all sizes, and there is always someone selling your product at very, very low prices, or worse yet, using it as a loss leader. Some of these people are huge jobbers and or the manufactures themselves, hard to compete against. Some sellers are part time or hobbyist and don’t need or care if they make much money (and they probably don’t). Unless you have a very unique product or are in a position where you can bring a new, hot product to eBay first, you must be prepared for extremely aggressive pricing competition in a market where the average buyer is looking for cheap beer prices on high quality champagne.
So, all said, you may be wondering if it’s even worth the effort. That depends on you and how well you prepare.
Before you open your eBay Store or run out and buy a bunch of product, visit Strictly Business Magazine’s “How to Sell on eBay Resource Center” at http://sbmag.org and read all the “free” articles. Then buy and read a series of books about eBay, there are a number of them listed there. Start out with a book on the basics and then the more advanced volumes.
After you have read up on the basics, set up a seller’s account. Not a Store yet, that starts the meter running after the thirty day free trial. Not a lot of money, but why pay it until you have the necessary education you are going to need to be successful.
Once you have a basic education, experiment with a few items you have lying around the house you’d like to get rid of. This will give you the chance to experience the eBay process and give you an idea of what you are in for. Pick items that sell for under $10, this will give you the cheapest listing fees to experiment with. (A $9.99 item lists for half the price of a $10 item, same thing as $24.99 vs $25). Also make sure you pick items that are easy to ship. Check with the post office for shipping fees and packaging. If you use Express Mail, most of the shipping materials are free and in some cases will more then offset the higher postage fees and will get your product to your customer faster, resulting in better a Feedback Rating, something you will soon learn is very important in eBay.
As you’re reading the books you have just bought, watch for important subjects such as Feedback Rating, shipping and handling, product selection, effective listings, taking and using photos and using hmtl in your listings. Also make note of other tips and ideas on keeping your listing professional but at the same time keeping the cost down. Other topics of importance include “keywords” and how they affect eBay search engines and auctions vs fixed price listings.
Don’t be misled into believing that the buyers are clamoring all over themselves to bid up every item you offer up for sale. Go browse the listings in the category that you will be listing in. You may be surprised to see that most items don’t have a single bid and will not sell at all and others have only a single bid. You may also want to find out what are the best days and time frames most successful auctions close.
The price you pay for a few books and the time it takes to read them and do a little research may be returned ten fold or more in just the first few months after opening your eBay store.
Floyd Snyder is the founder and former owner of Executive Advertising, Camera Ready Art and Strictly Business Magazine. Currently he is the owner of Strictly Business Magazine at http://www.sbmag.org, http://www.FrameHouseGallery.com, http://www.EducationResourcesNetwork.com/and http://www.TraderAide.com.

Selling Antiques & Collectibles Online: What You Need to Know to Get Started

admin — Sat, 05 Dec 2009 15:02:13 +0000

You want to sell your antiques or collectibles online but before you get started there are a few basics that you need to know. Online auctions from Ebay to uBid.com to Yahoo! Auctions are becoming a more common venue for sellers of everything from teddy bear collectibles to antique armoires.
Research
Before you list any item on an online auction, search for your item or similar items. Watch some of these auctions until they close. Do this over the course of several weeks. This will give you a good indication of how many similar items there are currently up for auction, how many auctions are successfully completed and, the prices commanded for the item. If there are many similar items to yours listed that are not selling or selling for a low price, price your item accordingly. Conversely, if there are only a few similar items that are selling for a high price, you’ll be able to price your item appropriately.
Understand the Listing Procedures
Take some time to do an online tutorial for new sellers. Ebay offers a very thorough tutorial. You’ll learn how to set up a listing, the importance of good photos and how to include them on your listing. This is the time consuming part for new sellers and takes some time to get up to speed. Good photos and clear description are key to ensuring a successful auction because your listing is all that that potential bidders have at their disposal to make their buying decision.
Accuracy
Online auctions simply post your merchandise as described. They do not verify the accuracy of the item, that the merchandise actually exists or even guarantee that you will follow through with the sale. As a seller, you want to be as accurate in describing the condition of your item, both the good and the bad points. If there is damage, mention it in the description and show photos. The more upfront and accurate the description, the more likely the buyer will be a satisfied customer who doesn’t demand his/her money back. Buyers will call you on any unmentioned flaws and cause you justifiable grief.
It’s A Buyers Market Online
Online auctions are more of a gold mine for collectible buyers, rather than for sellers. Buyers can search for the manufacturer, colour and/or style number. The old days when the world seemed larger and items seemed scarce are gone. Online auctions have reduced the perception that an item is rare. Before online auctions, antique hunters would have to scour high and low for their favourite item and often end up paying a high price. Now, with online auctions, the scarcity of collectibles is reduced when you can search, for example, a Coca-Cola picnic cooler and see that there are currently 78 available for auction on eBay. It brings the price down of these items – not so good for sellers.
Fees For Seller
Online auctions are set up so that there are no fees charged to buyers. All fees associated with an online auction are the responsibility of the seller. Keep in mind that listing fees, reserve fees, final auction fees and display fees are how the online auctions make their money. You’ll need to factor these costs when you are determining your selling price. Buyers generally pay for shipping and handling in addition to the final selling price. However, you can factor shipping into your price and indicate so on your auction. This is attractive to bidders because they know the final cost including shipping and handling and can help to draw bids to your auction.
Ebay offers a “Buy It Now” feature where sellers can list items at a fixed price rather than through an auction. The advantage to a seller is that you may sell an item quickly if a buyer is willing to meet your price. The disadvantage is that you’ll never know if an auction might have given you a higher price.
Determining Your Selling Price
The lower the starting price the more attractive the auction is to bidders. Don’t start your auction so high that bidders are turned off. You want to start a bidding frenzy, not scare off bidders. Avoid putting a reserve on an item unless it is of great value. You pay an additional fee and it doesn’t make sense for a low priced item.
Check Buyer’s Feedback
Feedback sections are common feature on online auction. This is the place on the auction website where buyers and sellers can check the reputation of the seller or buyer. Moreover, previous buyers and sellers can post their comments on their experience with an individual. It’s a good indicator as to whether the seller or buyer is an individual you would feel comfortable doing business with, but even a spotless record doesn’t mean that your experience will go as smoothly. After the auction is completed, check the buyer’s feedback immediately for any warning signs of non-payment or multiple returns. This information may help you to proceed carefully to complete a smooth transaction.
Post Your Return Policy
Let bidders know if you will accept returns or if all sales are final. However, a flexible return policy will make your auction more attractive to bidders.
Payment Methods
Avoid cash payments because if there is a dispute, there is no paper trail to document how much you paid. Credit card payments through PayPal, a secure third party company, are a very common payment method. Credit card payments protect both the buyer and seller if there is a dispute.
Insurance & Escrow
Insurance protects the buyer and the seller. It protects up to a preset amount but there are limitations with any insurance. Escrow services are widespread and a good idea for more expensive items.
Unhappy With Your Selling Experience
There are a few avenues of recourse if you are an unhappy seller. First, contact the buyer immediately by email and/or phone to clarify the problem if they are unhappy with him or her. If this doesn’t happen or is unsuccessful, you can leave negative feedback or contact the online auction house as they will likely have a dispute resolution process or contact the police if you feel fraud is involved.
Martin Swinton owns Take-A-Boo Emporium, an antique shop located in Toronto, Canada. He does furniture restoration, caning and rushing repairs, custom reproductions, upholstery, teaches courses on antiques and does appraisals for estates and community events. He can be reached at 416-785-4555 or by visiting http://www.takeaboo.com
Article Source: http://EzineArticles.com/?expert=Martin_Swinton