ONLINE AUCTION HOW-TO
Start your own auction house and make a mint buying and selling goods online. Here's how to get started today!
The concept of "online auctions" is changing the way Americans buy and sell good. It is growing at leaps and bounds and is now a $2.3 billion industry. Experts predict that by the year 2002--just a year and a half away--the online auction industry will hit $6.4 billion.
Up until the last few years, when we thought of "auctions" we imagined stuffy art work, classic cars and the contents of a mansion or a famed jewelry collection being sold in multi-million dollar bidding wars at classic auction houses like Sotheby's or Christie's. But when someone mentions "auction" these days, it is very likely to mean some of the same type of merchandise once sold at garage sales, flea markets and swap meets, in addition, of course, to those wonderful collectible treasures.
Thanks to the Internet, we now have a completely new take on "the auction," and an ever-growing population is stepping into the fray to get involved and empty their attics, closets and garages while making a fortune.
We've all heard of individuals who have quit their jobs to engage in the online auction business full-time. It could happen to you. You'll need to know some basics of how to auction online so here we go with a Get Rich At Home E-Commerce Crash Course on how you can get involved and win big in the online auction game.
It Starts With eBay
It would be difficult and just plain impossible to write about online auctions and not mention the grandaddy of them all: eBay. This is the online auction house usually credited with starting this phenomenal ball rolling. Most of the auction sites have copied the eBay way in some form or another.
It is estimated that eBay hosts anywhere from 2.5 million to 3.4 million auctions in more than 2500 categories each day!! The categories range from collectibles and music to books and posters, plus just about anything else you can imagine. There is even a category called "eBay's Weird Stuff" that contains more than 6000 different auctions listed as "slightly unusual," "really weird," and "totally bizarre." There is something for everyone online.Visit the eBay website at: www.ebay.com. You'll need to register to get involved, but this is not difficult or time consuming.. You'll basically be asked to list your name, address, phone and other contact information and you'll be required to list a user's email address along with a user name. The user name can be different--it usually is--from your email address. This contact information/registration is required to help provide a feedback record for auction users.
For example, say an individual is selling a 1963 Gibson acoustic guitar. They list the item and it sells. The buyer isn't really all that satisfied because the item was listed in "mint condition" and they found several imperfections or what they call imperfections. The buyer can post a message about the seller, using the seller's "user name," so that future buyers can look up and see how satisfied were past buyers. It is sort of a "better business bureau" online to provide eBay users with the most help possible. It is a "let the buyer beware" world out there in the arena of online auctions, so every bit of information helps.
When selling an item, you'll need to pay eBay some money to list your item. It is usually anywhere from 25 cents to $2 to list an item depending on the minimum
bid that you are establishing. When you sell the item, eBay will take a commission based on the final sale price. The commission is calculated at 5% of the first $25, 2.5% of the value up to $1000, and 1.25% of the value over $1000.Buying & Selling Hints
When we think of an auction, we think of the item being sold to the highest bidder. This is not necessarily the case with online auctions. In fact, if you are anxious to buy an item being auctioned you can take advantage of something called "eBay's Proxy System." In this proxy system, you tell eBay to notify you when an item you are bidding on gets another bidder who outbid you by a dollar or two. The proxy system kicks in and your bid will automatically be raised just a dollar or so to top the last bid. So technically, someone who isn't even actively bidding any more can get the item.
To prevent this from happening to you, make sure you bid what you really want to pay for an item. If you are looking for a Schwinn bike with balloon tires and no speeds and will pay $150 for it, enter your bid at $150. This will nullify the proxy system, if the last bidder only opted to bid $50 for the Schwinn bike. If you are outbid, eBay will send you an email and let you know in case you want to keep bidding.
If you are the highest bidder, eBay will notify you and you and the seller will work out the details of the payment and the shipping. You can negotiate who pays the shipping costs.
You can pay money to eBay and ask that the moneys be kept in an escrow account until the transaction is completely signed, sealed and delivered to the buyer's satisfaction. The buyer notifies eBay that the goods were received in fine shape and expectations were met. The eBay auction site then sends the money to the seller.
Each site handles this protection issue in a different manner so study the rules and regulations to prevent hardship. When you visit the eBay website, you'll learn more about their services to buyers and sellers. You'll learn about the Feedback Forum in which users can post a notice on a buyer or a seller.
Insurance Assurance
The eBay auction site offers a modest insurance policy which will reimburse buyers up to $200 (minus a deductible of $25) for goods that are paid for and never received. The insurance will also be paid to buyers who receive the goods in damaged form.
If there are other problems to resolve between buyers and sellers, check out eBay's SafeHarbor, a conflict resolution department. If fraud is suspected, SafeHarbor will investigate.
What if you are the seller and you don't want to sell your particular item unless it reaches a high bid of the price you really want? Do you have to sell the item to the highest bidder even though it might be less than you really want? The answer is "no" providing you take advantage of the online auction concept known as "the reserve."
Using this loophole, the seller notifies eBay that they won't sell an item unless the reserve price has been reached. No one knows this figure except eBay. You'll pay an extra fee to eBay for this feature, but it might be well worth it.
By the way, normal auctions, in which the highest bidder gets the goods whether or not the seller is satisfied is referred to an "absolute auction."
You'll notice in some of the eBay headlines that seller's will state "No reserves" so you'll know what this means when you scan the website.
Another tip to consider is how rare is your item being sold? Are there many of the same item available on eBay? If there are many or even several other options, it could very well bring your price down. It's the concept of "supply and demand." The more rare your item, the highest price you will command.
How To List Items
Check out how folks list their items. Copy styles that seem to do well and sell goods at very high prices. Study the auction websites before you engage in an actual sale or buy. If you are going to sell, look at the items that include photographs. They often do better than items listed that don't include this extra bonus to buyers.
It would be nice to view that 1963 Gibson acoustic guitar before you bid, wouldn't it? If you plan to engage in the online auction business, you'll likely be looking to buy a digital camera before long to capture the beauty of the items you want to sell. The good news is that the prices of digital cameras are really coming down and you can get one for less than $500. Remember, a picture is worth one thousand words, and on eBay could be worth $1000.Study the eBay categories, too, to see where your item should go. If you are selling a doll, but it is a Beatles doll, should it go with Music or with Dolls, or With Collectibles?
It's very true that eBay sells items for $1.00 and many folks have jumped the eBay ship to find more pricey auction sites. To answer these "critics," eBay has launched eBay Great Collections at www.ebaygreatcollections.com. This eBay auction site specializes in fine art, collectibles, antiques and more. The prices are much higher than the normal eBay site and bidders must prove they are worthy by giving the auction site a credit card number to prove they are viable candidates for these fine goods.
Other Auction Sites
Auction sites are popping up like wildflowers in an effort to duplicate eBay's success. Some follow the eBay format and rules while others are very different. There are now hundreds of auction sites hoping to cash in just like eBay. Some are great and others do not generate enough traffic to help you launch a small business that will generate enough revenue and movement to keep your interest.
Some of the new auction sites are very specific and focus in on just one type of item. One such auction site is auction.newline.com.
www.auction.newline.com
Movie memorabilia and Hollywoodania is the focus of this auction site. Lots of this paraphrenalia goes for a lot of money. Consider the car--a 1965 Corvette--used in the Austin Powers movies. It recently sold for $121,000 on the auction block. If you have movie memorabilia or want to start collecting it for re-sale at a whopper of a profit, check out this website. It is a "politically correct" website, too. New Line films donates a portion of all proceeds to the Legal Aid Society and to City Meals on Wheels.
www.sportsauction.com
Another specific site, this one focuses on sports memorabilia. You'll find vintage tennis rackets, sports jackets, autographed baseballs and basketballs, programs from special sports spectaculars and more. The website is owned by North Orlando Sports Promotion, a wholly owned subsidiary of AuctionAnything.com. The AuctionAnything group helps authenticate the items being auctioned.
www.bid.com
This is a Canadian company that originally focused on one topic: new and used computers. They have branched out to include electronics, housewares, sports, jewelry and collectibles. This auction site offers a 30-day return policy on most of the items although you'll have to pay a 15% processing fee.
Yahoo! Auctions @ www.auctions.yahoo.com
There are already more than a million auctions taking place each day on this website and users will love the way Yahoo structures the fee: free! Go to the website for more information on how to get started buying and selling.
www.skyauction.com
This auction site is a great one for finding travel bargains. The concept of this website is similar to priceline.com and there make-an-offer system of bidding and buying. SkyAuction offers everything from last minute plane tickets to vacation packages. Bidding starts at $1 and we include the site in this auction feature just in case you need a break running your home-based empire. It's also fun to watch and see what people are buying and how fast certain tickets and packages are snapped up. It could provide inspiration for a new business idea.
www.adventurebid.com
If you're looking for some adventure in your travel plans go to this website and bid and bargain hunt for adverturous vacations such as photo safaris, white water rafting, helicopter ski trips and much, much more.
www.auctions.com
Insurance is provided--up to $3000-- with this website on all collectibels purchased online. It is one you
might want to check out along your route to other auction websites.www.classifieds2000.com www.auctions.excite.com
These two sites are now linked and you'll find collectibles, art, posters and even non-vintage contemporary gift shop type items.
www.auctionrover.com
This is a fun site that is very easy to navigate. You type in what you want to find and the auctions will come to you. Search for that 1963 Gibson guitar and you'll find a dozen websites that offer such an item. You can even read reviews of websites at www.auctionrover.com which might help you in your quest to find the perfect auction site for your new online auction business venture.
www.egghead.com
If you are looking for electronics, visit this site and you'll find just about everything you want plus more. The listings consist of new items and those that have been refurbished so as in any auction exercise caveat emptor--let the buyer beware.
www.up4sale.com
It seems that just about any article on online auctions could begin and end with eBay. This website was purchased by the eBay company in the summer of 1998 and is generating a lot of interest. You'll find Beanie Babies, trading cards, and more. Could be an excellent venue for you to make money cleaning out your attic.
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