Online Auctions - General Information

Online Auctions are a great way to buy and sell items.  Rather than deal with just people in your nearby area, you can work with buyers and sellers all over the world.  There is no better way to get wide visibility on your items for sale than with an online auctions.  I'll focus my comments on Ebay, since Ebay is, by far, the biggest online auction site.

How auctions work

A seller puts up an ad for an item.  The ads contain a description of the item for sale, often contain a photo (more on that later)., and the current bid price.

Bidders can bid in different ways - bit a little more than the current bid price, or use PROXY bidding (preferred).  Ebay has software which will bid for you.   You state your maximum bid, and the software will bid just enough that you will win the auction - up to your maximum bid.  It will NEVER over-bid - bid higher than you need to to win an auction.

After the sale

After the sale, the sellers and buyers contact each other via email.   They exchange mailing addresses.  The buyer pays for the item (usually check or money order).  After receipt of payment, the seller ships the item to the buyer.

When it's a "done deal," both parties give a "review" of the other by leaving feedback.

Online Auctions - Selling Tips

Pick your Auction Site

There's many auctions sites, and more start up every day.  To get the highest dollar possible, you want to attract the right audience.

Sometimes specialty auction sites will give you the best prices.  Other times, it's the number of people.  Bigger is better.  Ebay is the biggest.  Which will do better?  Do some research!  Pick items from one of the smaller specialty sites, and see what similar items bring on Ebay by searching through the "completed auctions."

The Auction Insider web site has an extensive list of online auctions for many specific categories.  Check it out.

Remember - timing is everything

Now would be a very good time to sell Austin Powers or Star Wars items - both are hot and in the news.

In general, auction items sell for higher prices in the months of November and December, when Christmas shoppers are out looking for "that special something."

Do your homework

Do some searches on completed auctions for similar items to get an idea of the final selling price.  Compare results on several auction sites, if possible.  This will give you an idea of what to realistically expect for your item, and help you establish minimum bids or reserve prices.

Set your minimum price

To assure your item doesn't get sold at "bargain basement prices", you can always assure you get enough money for your item by using one of two methods:

1. setting a high minimum opening bid, or
2. setting a reserve price. 

Experience shows you get more action (and higher ending prices) by starting with a LOW minimum opening bid, and setting a reserve price.  Never set high opening bids - it scares off bidders.

Be accurate in your descriptions

Probably the toughest thing is to look at your item objectively, and to give a fair assessment of it.  Remember - most collectors are concerned about ANY scratches, paint chips, cracks, etc.  You need to be accurate - even brutal, to honestly describe your item.be accurate - reputation

If there's an interesting story behind the item - tell it briefly.  People like to know about the item they purchased.

Consider having your item graded by someone knowledgeable.  A local dealer can give you a good idea what an item would sell for, or what he would pay for it.  What you obtain from the auction will probably be between these two values.

Appraisals and certificates of authenticity will greatly remove doubt from the minds of buyers, and should be obtained for higher priced items.

Add a photo

Providing a photograph almost always makes auctions close at higher prices.  You may know what your  "green Pelikan Model 800 fountain pen" looks like, but others may not.  Ideally, you can take pictures of your items and make it available to bidders as part of your listing - avoid the "click here to view item" - most people don't bother.  A tutorial explaining how to add a photo is covered in the seller's tips section on Ebay.

Show any defects clearly in the photos - so people know exactly what they are getting.  

If you cannot photograph your item, feel free to use a picture of a similar one you find on the web, but be sure to say "my item is similar to the one pictured below", and clearly state any differences in condition. 

Specify terms of sale

Do you accept credit cards?  Checks?  Money Orders only?  Who will pay for shipping and insurance?

Use the right language, but explain

Be careful with abbreviations - they can hurt and help.  Terms like "MIB" (mint in box) or "NOS" (new old stock) are meaningful to long time collectors, but may scare off new buyers.  Use them ONLY if they apply, and use them correctly.  Use both the abbreviation (in case experienced auction buyers do a search) and also write them out fully. 

Provide an email address for questions

Make it very easy for people with questions to contact you.  The easier you make it, the more bidders you may get.

Be sure to check your email often while the auction is in progress!

Use reserves instead of minimum bids

Experienced auction users know that it is much better to assure you get a decent price by using reserve prices rather than minimum bids.  Having high minimum bids makes your item look less attractive.  Starting out small will intice more bidders, and result in higher priced sales.

Give yourself plenty of time

Run the auction for as long as possible.  The more time you give people to find your item, the more bidders you will have.

Make your ad findable with a search engine

Prospective bidders will probably use the search function provided by the auciton site.   Be sure to SPELL CHECK your ad!  Misspelling a few key words may make it impossible for people to find your listing.  Also - some people just check titles, so cram as many key words into the title as possible.  Don't use this valuable search space with stupid words like "LOOK!!!"  "HOT ITEM!!!".   

Check your email often

You may receive questions about the item.  People may wait for an answer before bidding, so give them an answer quickly.

After close - email the winner

Very soon after the auction closes, send a congratulatory email to the winning bidder.   Let him know he won, and provide the address for sending payment.  Ask for his shipping address, so you can box up the item and have it ready for prompt shipment.   Tell the winner you'll give him positive feedback, and request he do the same after he receives the merchandise.

Follow up

After the deal is done, provide positive feedback for the buyer, and email a reminder for him to do the same if he hasn't already.  Remember - BOTH your reputations can be made, or damaged, on a trade.

Conclusion

Online auctions can provide an opportunity for finding "win-win" situations.   A little care and planning, by following the tips above, can make it a rewarding experience.

This page, and all contents, are Copyright © 1999, 2003 by Michael A. Solinas.  All rights reserved.