Auction 101

Quite often when you are cleaning out your home, office, or garage, you come across a few items that you feel are too good to simply put in the "donate" box. You might discover a rare book, an expensive item of clothing, or a hard-to-find piece of sporting equipment -- something that you think has VALUE and is worth SELLING. However, you can't find anyplace in your town to consign these -- and it's not worth the trouble of having a yard sale. What do you do?

THE ELECTRONIC OPTION: For some people, participating in an online auction seems intimidating -- too "high tech." But sites like Yahoo! Auctions and Ebay have made it easy for you to sell your discards from the comfort of your own living room.

If you can use the INTERNET, you can sell your items online. Essentially, it's like placing a newspaper ad -- only on the internet. And instead of having to speak with dozens of people over the phone about your product (describing it and dickering over the price, again and again), it all takes place AUTOMATICALLY on the web with very little interaction from you. The process is easy. You simply post a DESCRIPTION of your product, set a TIME-LIMIT for how long you would like people to bid on your item, and wait to see what happens. Of course, on occasion, you will receive a question or two from a potential bidder -- but these are easily handled with a quick email. Finally, when your bid expires, you receive payment from the buyer and SHIP out your product. When done correctly, it's as easy as pie! Of course, you can always run into snags -- but here are a few suggestions for creating a smooth transaction process.

WHAT'S IN A NAME?: The first thing that a potential bidder will see about your product is the TITLE. When searching for a specific item or scanning through a category (like "sports equipment" or "household goods"), your product will be listed on a main page as nothing more than a title and a hyperlink to your product description. Since your title is generally short and limited to one line, make it count! If an item is new, include the word "new" in the title -- and use the acronym NWT (new with tags) to indicate that an item has never been used. If it is a recognizable and respected BRAND-- like "Nike" or "Donna Karan" -- be sure to include that information. With clothing, indicate whether it is "mens," "womens," or "kids." And don't forget the size and color. While this isn't the appropriate place for a lengthy sales pitch, you want to catch a customer's attention on that first pass. You will also want to make sure you choose an appropriate CATEGORY for your product. Try to place your items in a category where other similar items live -- you will benefit from the fact that shoppers will already be searching in that category for related products. If you are having a hard time deciding on a category, ask yourself, "Where would I LOOK for this item if I were trying to buy one?

YOUR DESCRIPTION: Make sure that your description is as DETAILED as possible. In most instances, you won't have a space limit for describing your product -- and the general rule of thumb is the more information, the better. People don't want to have to contact you to see what size something is or if the attachments come with it or if it has any scuff marks. And you will save yourself time and effort by being THOROUGH up front -- you will receive fewer "clarification" emails from potential bidders. Remember, the goal in an online auction is not just to make money -- it's to make the process as automated as possible. The less you have to be involved after the auction starts, the better! Another important factor in your success with online auctions is HONESTY. In today's climate, people are leery of incomplete descriptions because it feels as though the vendor may be trying to pull something over on them. Be honest upfront about the age of the item, its features, and any FLAWS or damage. Too many people throw the phrase "like new" around indiscriminately. You may be able to pawn a shabby product off on someone the first time -- but they will hurt you more in the long run by ruining your credibility and reputation as a vendor with negative feedback.

GET VISUAL: When you sell an item at a consignment store or yard sale, potential customers have the benefit of personal interaction with the object -- they can see it up close, touch it, and examine it thoroughly. However, on the internet, the only method that buyers have to evaluate a piece of merchandise is through your description and any PHOTOS you include. Be sure to take pictures from several different angles -- and include "close-ups" of any important features or small parts. If you are selling an item with "minor damage" in an area -- such as a scuff or a small stain -- take a close-up picture of the DAMAGE to show exactly how minor it is. And try to photograph your items on a neutral color background so the focus is on your product. One of the biggest mistakes sellers make is leaving the photo out because it seems like too much work. Think about it -- if you are searching on Ebay for a food processor and find 25 of them but only 10 have pictures, which ones will you consider buying first? And many shoppers won't even bother looking at a product description unless it says "photo attached." So taking the few extra minutes to shoot a DIGITAL picture or SCAN a standard photograph mean the difference between a sale and a waste of time.

PRICING OPTIONS: Many web auctions - Ebay in particular -- offer a couple of different options for pricing your product. You may choose to participate in the traditional AUCTION format -- where you set a starting price for your item, allow people to bid in discrete increments ($1, $5, $10, etc.), and ship the product to the highest bidder when the auction ends. However, if you have a product that is worth a considerable amount, you may want to include a RESERVE PRICE. This is a minimum amount that you are willing to accept for your merchandise -- and if the reserve is not met, you are not obligated to sell it. For example, you may have a starting bid price of $10 on a used set of Ping golf clubs, but choose to set a reserve price of $75. If the final bid is not at least $75, the bidder does not get the clubs. Finally, you may want to offer bidders the option to simply BUY your product for a set price at the start of bidding. Let's use the golf club example again. In this instance, the bidder would have the option to go through the normal auction process and risk losing out to another buyer - or, could choose the "buy now" option and simply pay you a pre-set price (let's say $95) for the clubs. This makes life a lot easier for a bidder who knows what he or she wants and is willing to forgo a potential bargain to get it. And it allows you to get a fair price from a determined buyer.

SHIPPING: Another area that you need to think through ahead of time is how you will SHIP your product to the winning bidder. It's best if you can decide on a shipping method that will allow you to send an item anywhere in the country for one price. If not, take your product to the post office or UPS (or whatever shipper you prefer) and find out how much it would cost to ship to the farthest point from you in your country -- that way, you can list the shipping price in your description and know that you are covered. It is completely acceptable to indicate that shipping charges may be higher for bidders outside of your country. Also be sure to indicate the shipping METHOD in your description. And let the buyer know if INSURANCE is included in the shipping price, or if they will be expected to pay extra for it. Quite often, vendors make insurance optional, but it's a nice service to your customers to include it in the shipping price. It will also save you untold headaches and disputes later if your package fails to arrive at its intended destination or is damaged.

PAYMENT: This is the one issue that intimidates potential sellers more than any other - how will you get paid for your sale? You can hear dozens of horror stories on the web about sellers who were cheated out of their payments by accepting rubber checks or fraudulent credit cards through services like PayPal. So what do you do? According to consumer advocate Clark Howard, the safest way to either buy or sell an item on an online auction service is through an ESCROW account. This is a third party company that will receive a cash payment from your buyer, hold it until your product has been safely delivered, and then pay you. However, you need to be on the lookout for the latest internet scam -- phony escrow services. The best route to take is to use one of the escrow companies RECOMMENDED by the online auction service. These companies have earned a solid reputation and should be completely above-board. But if you have any doubts, be sure to check them out with the Better Business Bureau first.

ONE FINAL NOTE: Selling online is not a guaranteed proposition -- just as holding a yard sale or listing your items in the newspaper is not guaranteed. Check up front with the auction service to see if you will be charged a FEE -- and if that fee is based on your earnings or is applicable even if your product doesn't sell. Also be sure to find out what PROTECTIONS the auction service offers you in the case of a dishonest buyer. Know your rights and responsibilities before you ever sign on.

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