How to Make Money from online auctions
Do you need to empty your loft? Are you freeing up space in your warehouse? Would you like to do something with the unwanted gifts cluttering your home? If you have items that you would like to get rid of, and they are in good condition, you should consider selling them online auction website.
How Online Auctions Work
To use the auction site you need to register. Most sites have a simple registration form.
Most sites will ask you for debit or credit card information when you sign up. This information is used for identity verification.
After your account is set up, you can start using the online auction and make full use of the site.
Shopping
On the auction site, registered members bid on the item. This application gives them the opportunity to buy or “win” an item.
If the site offers proxy bidding, the member can automatically place a bid on your behalf. You must give permission to purchase.
To place a proxy bid, you must enter the highest price you are willing to pay. If you are excluded, the site will automatically make incremental bids, up to your maximum bid amount.
Proxy bidding allows you to win an item for less than your maximum amount. However, if someone bids more than your highest bid, you will lose the item. Therefore, you should make sure that you use your maximum amount in the proxy bid.
For example, if the current bid is £1, but you know you are willing to pay £5 for the item, you can place a proxy bid. That way you don’t have to sit at your computer waiting for the clock to go down.
The system will update your price each time you are charged and will stop after the bid exceeds £5. You can get a lower price if other bidders stop before it reaches your £5 limit.
You will usually receive a confirmation email when you place a winning bid. Then, you can arrange payment with the seller and get shipping or delivery information. Here are some auction tips.
It sells
On auction sites like eBay, when you sell an item you usually need to list the item.
Be careful
Never ship or deliver an item to a buyer before receiving payment, no matter how good they look.
Creating a listing includes creating a listing title, a detailed item description, adding a clear image, selecting a similar item category and determining a starting bid.
You may also need to include the location of the item, if there is a delivery charge, whether the buyer can pick up the item himself, and what payment methods are preferred.
You will need to collect payment and arrange delivery or pickup once your item is sold.
Don’t worry if your item doesn’t sell the first time, you won’t be charged an appraisal fee. Some people find success in online auctions after posting their listings a second time.
eBay fees
eBay and sites like it, charge a listing fee every time you list an item. If the item sells you will be charged an appraisal fee.
Jump over
If the starting price is 99p, you can create a listing without paying a listing fee.
Always remember, the initial bid price determines the deposit amount. When an item is sold, the final bid is used to determine the appraisal fee, which is a percentage of the sale price.
You can upgrade your listing with additional features, including a “Buy Now” feature or additional phones. Adding more photos can improve your chances of selling your home. The “Buy Now” feature allows the buyer to purchase an item at a set price rather than going through the auction process.
Note that if the buyer uses Paypal or other payment processing services they will be charged a fee. PayPal charges 1.4% to 3.4% of the total amount plus a 28p transaction fee.
Buy Low and Sell High
As with any type of business, you want to keep your costs low by reducing your overhead and sell your products at the best price to maximize profits. But how do these ideas apply to online options?
Buying Low
Many people set their initial listing price at 99p to avoid paying a listing fee. Most of these things cannot be bought. That means you can bid 99p and get these items at a bargain price.
Use the online auction search tool. Last minute sales can search for low-priced items and out-of-date listings.
You can also search for misspelled words or other spellings such as “color” and “color”. If someone can’t find the listing because the job is misspelled you can get these prices for a profit as buyers won’t be able to find them.
Before bidding, be sure to check for any additional charges such as delivery charges. Sometimes the delivery charge can increase the price significantly.
Don’t think that everything on eBay is a bargain. Check prices from other online sellers before placing a bid. Always be sure to compare like-for-like items, look at model numbers or detailed specifications to make a fair comparison.
“Don’t bid early”. Your bid will let other customers know that someone is interested and can raise the price.
eBay has approximately 187 million users. The most popular online auction site. Therefore, you may find it easier to find bargains at less popular online auctions Bid.
To place a bid at the last minute, you can try auction software like Lastminute Auction.
Top Selling
You can start with online auctions by buying a few cheap items. You can use these auctions to estimate your response. Since some buyers and sellers don’t like working with newbies, having a good rating can help you sell more.
You don’t have to limit yourself to selling things you find online. You can sell things you find around the house or in your community.
If you can’t trade, you can sell for a profit. Be creative, look for things to sell:
Look for things that give you a good profit margin.
You can also find bargains on online auction sites by looking for items with incorrect listings. By adding a good description and some photos you can resell the item at a higher price.
If possible look for new things. For example, if you find a video game or DVD that you don’t want, just leave it in the original package.
People like to buy brands, so make sure you write the names of the products in the description. For example, you should list whether you are selling a Toshiba TV or a Beats headset. If you add a logo to the article it can bring more views to your listing.
If you know someone who is an eBay whiz, ask them to sell your items for a share of the profits.
When you create a list, set it to end when people are home. Some of the best times are Sunday afternoons or evenings. The worst time is Monday. You want to choose a time when potential last-minute buyers are available.
Take advantage of special promotions on the auction site. Sometimes eBay offers free listing days on weekends, this can help you save money on your listing.
When creating your headline, think like your potential buyer. What words will they use to search for this item?
Items with a lower price are usually more likely to be sold. Consider that fact when choosing your starting price.
Do some research on the item you are trying to sell. What is the average selling price of similar items? Which definition sold the most? What keywords are used in the titles of the listings?
Use a spell check system on your list to make sure no one is profiting from your misspellings.
Consider kicking your list down a few cents. Choosing the £14.99 list price instead of the original £15.00 can save you 15p on fees.
Use classified ad site like Gumtree if you want to avoid listing, rating, and other online auction fees.
Dos and Don’ts
We cannot guarantee that you will make a fortune by using it online auctionsbut these tips can prevent you from writing your material a third or fourth time.
- DESCRIBE your item honestly and include details of any damage.
- USE a safe and easy payment method like PayPal.
- DO list your item in the appropriate section.
- Do NOT charge high postage. It shuts down consumers.
- DO NOT use blurry, out of focus, low resolution photos of the item.
- DON’T PAY to have last minute money. It will turn away buyers.
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