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September 21, 2006

Mastering eBay: Selling

This is the second of two Tech Talk issues covering eBay, the popular Internet auction site. The first issue provides a general introduction to eBay and suggests strategies for buying merchandise, while this issue gives several tips on selling items. If you missed the first issue, it is available at the Reference Desk and on the Tech Talk blog.

Why would I want to sell on eBay when I can just place a classified advertisement in my local paper?
An item on eBay can potentially reach far beyond your metropolitan area or region. eBay’s user base reportedly exceeds 100 million people across the world. Still, classified ads are probably the best way to sell bulky or heavy items which are difficult to ship.

How much does it cost to sell an item on eBay?
It varies based on factors such as minimum bid, the ultimate selling price and various auction listing options. For an unofficial estimate of costs, try one of these free eBay fee calculators available on the Internet:

• eBCalc
• PM Photo’s eBay fee calculator

For example, an auction with a few typical listing options, an opening price of $50, and a final price of $100 would result in eBay fees of $7.11.

How do I begin selling on eBay?
The best thing to do is follow eBay’s official guide to the selling process entitled “Selling — Getting Started” . It covers the entire selling process and provides links to other official eBay documentation.

How can I become a better eBay seller?

Tip 1: Research the price of the item.
It is essential to learn the market value of your item. Part I of this series discusses using price comparison tools and recent auction results to assess the value of your merchandise. Unless your merchandise comes with extra accessories or is in unusually good condition, don’t expect to get more than the average “eBay” price for recently sold items of the same type.

Tip 2: Take a few high-quality pictures. Don’t skip this step.
High-quality pictures are critical to maximizing the price of your auction. Use a decent digital camera (any recent model will be fine) to take a few pictures of your item from various angles. Photographs destined for the Web don’t require high resolution. A 1024 x 768 pixel setting is more than adequate. Read your camera manual for instructions on setting the pixel resolution of your camera.

If possible, try to light the item with a diffuse light source (like from a north-facing window) rather than the camera’s built-in flash, which is often harsh and unforgiving.

Resist the urge to borrow product photos from a manufacturer’s or a retailer’s Web site for your auction. When people are buying an item on eBay, they are not just buying a generic make and model, they are buying a specific example of a product, and pictures provide the best possible documentation of its condition. That said, if your item is new and still shrink-wrapped, don’t break the seal to take a picture of the merchandise within; simply take a photo of the box showing its sealed condition.

But what if your item is not in good condition? How extensively should you photograph the flaws? If the item suffers from only one or two minor cosmetic flaws, take a wide shot of the item which shows its general appearance. Next, take a couple of close-up shots showing the specific flaws (perhaps with a finger pointing to the problem areas). This disclosure will enhance your trustworthiness, showing you are trying to be completely straightforward with the buyer.

If the item doesn’t look very good, it’s probably best to show only a single picture of the entire item, avoiding unnecessary visual attention to specific defects, though you should still discuss the problems in the description.

Tip 3: If possible, include original packaging materials and product manuals.
An item with an original box and manual will often garner a higher selling price than one without. This is especially true in consumer electronics categories like audio equipment.

Tip 4: Be honest in your description.
The more upfront and honest you are in describing an item’s condition, the more credible you will seem. Don’t attempt to describe a flawed item in deceptive or overly broad terms, hoping to gloss over any problems. Chances are, the buyer will become disgruntled and record a complaint against you with eBay.

Tip 5: Choose auction listing options carefully.
When you’re ready to list your item on eBay, you’ll be faced with a number of choices. Some of the critical ones are discussed below:

• Main category: Take care in choosing the category of your item, as this will determine whether a potential buyer can find your merchandise while browsing.
• Item title: Make sure your title contains as much information as possible within eBay’s 55-character limit. For example, to sell a new (with original box) 9-foot Walter jump rope, try the following title:
  New 9ft. Walter jump rope NIB 9 foot speed skipping
  
  The key is to provide alternate terms in the title. In the above example note the following:
  • New and NIB [“new in box”]
  • Jump, speed, and skipping [words found in other auction titles to describe jump ropes]
  • 9ft. and 9 foot [an abbreviation and the entire word]
  • By providing alternate words in the title, your auction can be found using many different search queries.
• Reserve auction: A reserve auction allows the user to select a secret “magic number” price which is hidden from the buyer. If the auction price fails to increase to that reserve price, then the seller has no obligation to sell the item. Auctions with reserve prices can be a turnoff to some bidders, so be careful when selecting this option.
  
• Auction length — 3, 7, or 10 days? 7 days seems to be the most common length of an auction. Try to time your 7-day auction to begin (and end) in the evening, so that potential buyers will be home and available to bid at the last minute.
  
• Minimum price: Set this price to the lowest amount you will feel comfortable accepting. If you set your minimum too high, you may get no bids whatsoever. If it’s set too low, you may regret the sale.
  
• Buy it now: The “buy it now” option allows a bidder to end the auction immediately by agreeing to your “buy it now” price. Buyers like this because it ensures a winning bid (though they may pay more), and sellers may find it attractive because they can get money more quickly (though they may get a lower price). If you select this option, set your “buy it now” price somewhere in the neighborhood of the market value for your merchandise.

Tip 6: Consider limiting forms of payment.
In order to protect against fraud, it’s a good idea to restrict the forms of payment that you’re willing to accept. Generally speaking, avoid cash, personal checks and wire transfers. U.S. Postal Money Orders and Cashier’s Checks are safer bets. You also may want to accept Paypal, a popular Web-based electronic payment service, as it allows you to receive payment via credit card without a merchant account (additional Paypal fees will apply).

Tip 7: Ship promptly.
Try to ship the item on the business day after you receive payment. If you are unable to ship on that day, you should indicate your shipping schedule within the auction description.

Tip 8: Keep the buyer informed.
There are few things more unsettling to eBay buyers than poor communication from the seller. Be sure to inform your buyer of payment receipt and item shipment via email.

Tip 9: Get professional help.
If you don’t have the time or the patience to auction items yourself, you can pay someone to do it for you on a consignment basis. Fees generally range between 30% and 40% of selling price. The Auctionbytes site has a list of companies which will sell your items on eBay via consignment. eBay can also help you find a seller in your area.

Final Thoughts
Making your first sale on eBay is exhilarating, especially if the bidding becomes heated in the closing moments of the auction. Listing an item does take time and effort, but it gets easier with each auction. If you’re strapped for time, consider having someone sell your items on eBay via consignment.

Posted by moetting at 9:36 AM