The ‘Few Dollars More’ Strategy.

Here’s something you might not have thought of. If you set your auction’s starting price to what you would usually charge for Buy it Now, while setting the Buy it Now price a few dollars above, you can make a profit by setting off an interesting psychological reaction in the buyer’s mind.

Here’s what they’ll think. They want the item, but why should they bother bidding for it? After all, they could use Buy it Now for just a few dollars more, and be sure of getting it! Doing things this way makes the value of the Buy it Now option extra clear to the buyer, and makes them more willing to pay extra for the privilege.

The ‘One Dollar Less’ Strategy.

This is simple, but requires you to keep an eagle eye on your competition. As soon as they start a Buy it Now auction for an item you stock, start an auction for one of those items yourself. Match the title closely, but price your item one dollar less than theirs. This will mean that your auctions will sit together in the search results, and who’s going to see both and go for the one that’s a dollar more expensive?

The ‘Free Shipping’ Strategy.

Buyers really hate paying for shipping. With Buy it Now, you might find it easier to incorporate the shipping cost into the main price of the item, and then write “free shipping” in the auction’s title. You’d be surprised how many buyers would prefer to pay one price including shipping for the auction, instead of having shipping added on at the checkout. Again, this is psychological: they pay the same at the end, but it doesn’t feel like they’ve paid an unnecessary ‘extra’ cost for Internet shopping.

The ‘Go for It’ Strategy.

If you’d like a slightly more risky strategy, try this. List your item for the maximum duration (ten days), starting the listing on a Thursday so it goes across two weekends and finishes on a Sunday. Set the starting price to the minimum (one cent).

What you’re trying to do here is give bidders as long as possible to discover your auction, so that they push the price up themselves. Pay for a few upgrades like bold and highlight, to give them a helping hand. If you do this right, you can make a much bigger profit than you would have with any Buy it Now price, especially with a medium or high value item.

Since running your auction for longer means that more people see it, you should always take the longest duration of ten days, right? Not always. In the next email, we’ll talk about how long your eBay auction should run for.

It wouldn’t be exaggeration to say that hundreds of thousands of people from across the world visit buy and sell myriad products on auction sites. One popular site has a market share of 76%, reports 42.7 million users recording a growth rate of 100% every year!
What are these auction buyers looking for?

A poll conducted by Harris Interactive on 2,196 people shows that online auctions appeal to people for the following reasons.
- Bargains (43 percent)
- Hard to find items (23 percent)
- Collectibles (21 percent)
Not just that, a record 83% people have actually bought something!

Buying What?

People visiting auction sites buy all sorts of products from different categories, but it simply doesn’t mean that everything and anything sells. What is critical, in this context is Targeted Marketing, more so, since auctions, as days went by has become a serious business line. The buying on auction is no longer restricted to sales only, most of the firms are using the auction sites to generate business and traffic to their own sites with added offers.

In a nutshell:

It all boils down to the point that if you have what the buyer is looking for and your listing is found you get bids ad sales subsequently. The real test for the seller is figuring out what the buyer is looking for.

Online Auction – Ideal Marketing Tool

The buyers flock to auction sites for innumerable number of myriad items provided on them, therefore the issue of how to attract the buyers is solved. Different customers arrive at the site with different perceptions and different frame of mind. The auctions are all about enjoying the bids of different products and item available along with the pictures.

Then How to Make Most of it.

The advantages can be properly utilized by using the targeted strategies in line with the habits and patterns of online auction buyers with built-in categories found on the auction site.
One of the most popular site boasts of more than 3,000 categories of auction items. The idea is to make the transaction fast by categorizing the items helping them narrow down on items thick and fast. This makes self-targeting easy for sellers to find buyers easy.
Making items available on auction sites is easy!

Although serious auction sellers have a website, it is not necessary to own a website and generate traffic with advertising. You can join a reputed auction site by registering with them, which is fast and easy. And for immediate returns and to generate income with little registration fee, this a much better approach to e-commerce.

The fundamental formula for online selling:

Provide something the buyer is looking. Having a target and product in mind is important.
Make a list and put them in order
The list should be attractive.
The process is simple, costs low and formula easy. Perhaps this is precisely the reason why millions of people flock to these sites for instant gains.
Bottom line
List items that attract potential buyers from time to time.
Provide unique offering that are different from others
Classify your products effectively.
Different items in different categories with help generate multiple incomes from different quarters.

Take advantage of huge number of people looking for multiple products, learn and understand from other sellers.

A recent trend showing up on a lot of websites is the addition of an audio clip. The clip is a personal message by the author or the website owner encouraging you to take advantage of what they offer.

The psychology behind this technique is really Marketing 101. It’s called personalization. An audio clip added to your Ebay auction allows you to personally tell the potential bidder about the product. Using your own voice allows you to make contact with the bidder on a personal level that written words cannot. Because, that’s what your E-Bay auction really is…It’s just a long written classified ad asking the bidder to make an offer to purchase your item.

Prior to the advent of the telephone the only reliable way to communicate long distance was by writing letters. It was not unusual back then for lovers to write each other daily or weekly. The decline of letter writing is a well documented event that coincides with the advent of the telephone. The power of the human voice to convey a message triumphs that of the written word.

With audio you can describe the item, tell the bidder why you are selling it or even communicate with them about your refund policy or provide your contact information. The possibilities are almost unlimited as a way to establish a rapport with the bidder.

There are some technical elements to adding audio to your E-Bay auctions. The simplest way is to upload a .wav or Mp3 file to a website and provide a link to the file. When the bidder clicks on the link his or her computer will automatically recognize the file and play it with the audio player on the bidders computer.

There are some drawbacks to this method. If the bidder’s computer doesn’t recognize the file it won’t play. The overall effect is not as professional as it could be and it distracts the bidder. If you are a reasonably tech savvy type you can easily deal with the drawbacks of this approach.

For the rest of us, there are a number of software solutions and websites that will simplify the task of adding audio to our E-Bay auctions. These different programs and websites range from charging a one time fee to monthly fee’s for the use of the program. The good news is that many of them will let try them for as little as $1 for a trial basis or let you download a demo version to see how well it will work for you.

Andale (http://www.andale.com).

Andale offer lots of small products instead of one solution that does everything: you can take your pick from a lister, image hosting, counters, analysers, a gallery, a checkout and an email manager. The price plans are a bit of a maze, but quite reasonable as long as you don’t go and use everything.

Andale’s real claim to fame is that they’ve been doing it for so long – they’re not some fly-by-night organisation, and many eBay sellers have been using their free counters for absolutely years. They also have a reputation for being very responsive to customers, and will often talk to you directly on their forums and implement any suggestions you might have for improving their software.

Vendio (http://www.vendio.com).

Vendio offer two editions of their software, Sales Manager: a Merchandising edition and an Inventory edition. The difference between the two is that the Merchandising edition is designed to make it easier to list individual auctions, while the Inventory edition is for sellers who sell many of the same item. They offer a pay-as-you go price of 10c per auction.

They also offer software called Tickets Manager, special software for people who sell lots of tickets on eBay – an odd product to have, but useful if you happen to sell tickets. Other services offered by Vendio include web and image hosting, fancy Flash galleries of your products for your listings, and stores.

ChannelAdvisor (http://www.channeladvisor.com).

ChannelAdvisor offer their software in three versions: Enterprise, Merchant and Pro. Enterprise and Merchant are both designed for very big businesses, though, and the chances are that the Pro version does everything you’d want. ChannelAdvisor is popular among sellers who want a solution that they know is used and trusted on a very large scale by enterprise-level customers.

It offers all the standard bulk listing and inventory features, as well as the unique feature of being able to create auctions from an Excel spreadsheet of your inventory. The cost is high, though, at $29.95 per month.

And Many, Many More…

eBay maintain a comprehensive directory of third-party software, which you can browse through anytime you have a few days to kill. You can look either for complete solutions or for each part of what you want individually – the choice is so daunting that there’s bound to be something out there for you. You can look at their directory at http://cgi6.ebay.com/ws/eBayISAPI.dll?SolutionsDirectory.

Once your items have sold and you’re about to ship them, you might be a little nervous about whether you can trust your buyer. Our next email will give you a few tips for spotting problem buyers before you send them anything.

Be specific: If you are looking for an original first edition Harry Potter books, you get more research for “Harry Potter Sorcerer Stone Rowling first edition you are looking for” Harry Potter. “You get fewer results, but you have much more important.

Writing wrong: It is a sad fact that can not write many sellers on eBay. What you need, try to think of some common typos – the likelihood that fewer people will find these elements, it will be cheaper.

Get a thesaurus: You should try to search for all the different words that someone might use to describe your item, for example searching for both ‘TV’ and ‘television’, or for ‘phone’, ‘mobile’ and ‘cellphone’. Where you can, though, leave off the type of item altogether and search by things like brand and model.

Use the categories: Whenever you search, you’ll notice a list of categories at the side of your search results. If you just searched for the name of a CD because you want to buy that CD, you should click the ‘CDs’ category to just look at results in that category. Why bother looking through a load of results that you don’t care about?

Don’t be afraid to browse: Once you’ve found the category that items you like seem to be in, why not click ‘Browse’ and take a look through the whole category? You might be surprised by what you find.

Few people realise just how powerful eBay’s search engine is – a few symbols here and there and it’ll work wonders for you.

Wildcard searches: You can put an asterisk (*) into a search phrase when you want to say ‘anything can go here’. For example, if you wanted to search for a 1950s car, you could search for ‘car 195*’. 195* will show results from any year in the 1950s.

In this order: If you put words in quotes (“”) then the only results shown will be ones that have all of the words between the quote marks. For example, searching for “Lord of the Rings” won’t give you any results that say, for example “Lord Robert Rings”.

Exclude words: Put a minus, and then put any words in brackets that you don’t want to appear in your search results. For example: “Pulp Fiction” -(poster,photo) will find items related to Pulp Fiction but not posters or photos.

Either/or: If you want to search for lots of words at once, just put them in brackets: the TV example from earlier could become ‘(TV,television)’, which would find items with either word.

So once you’ve found your bargain item, bid for it and won it, what if it all goes wrong? Don’t worry – eBay has a thorough dispute resolution procedure, and we’ll cover it in some depth in the next article, so you’ll be prepared if the worst happens.

As an example, let’s go through what you would do if you paid for an item but didn’t receive it from the seller.

Before you open a dispute: Give the seller a chance to send the item before you get ahead of yourself and open a dispute. If you’re concerned about how long the item is taking to arrive, the first thing you should do is send a polite email to the seller saying that you haven’t received it and asking whether they have posted it. You should also check your own email address in eBay’s options, to make sure that the seller can reply to you. As a last resort before opening a dispute, you should try to call the seller on the number eBay has for them. You might have to pay long-distance charges for the call, but that’s better than dragging the auction through mediation for months.

Step 1 – You open an Item Not Received dispute: You can do this here: http://feedback.ebay.com/ws/eBayISAPI.dll?InrCreateDispute.

All you need to do is enter the item number and say that you did not receive the item.

Step 2 – eBay contacts the seller: eBay sends the seller an email that tells them that you’ve said you didn’t receive the item. Then can then choose to tell you one of three things: that your payment hasn’t cleared yet, that the item is in the post, or that they’ll give you your money back. The seller can also tell eBay that they would like to send you a message.

Step 3 – You talk to the seller: You try to work out what’s happened directly with the seller, sending messages back and forward. Hopefully they’ll agree to give you a refund for the sake of their feedback, or your item will turn up in the post during this time.

Step 4 – Closing the dispute: After 30 days (or 10 days if the seller didn’t respond), you have two options to close the dispute: either you were satisfied or you weren’t. If you weren’t satisfied, then you can claim under eBay’s purchase protection program for up to $200.

Independent Dispute Mediation.

If you don’t want to go through eBay’s own process, and especially if the auction was for a high-value item, then you can use a third-party mediator. eBay recommend SquareTrade, at www.squaretrade.com, who provide mediation to many websites where there are buyers and sellers. They will contact the seller on your behalf and then mediate as you negotiate what to do from there.

Sellers who are committed to going through SquareTrade’s mediation for any disputes can sign up to display the ‘SquareTrade seal’ on their auctions. This gives their buyers $250 fraud protection, and shows that their identity has been independently verified so they are who they say they are.

When your sellers aren’t in such good standing, though, you need to be careful to avoid being a victim of fraud. There are a few scams that you especially need to look out for – we’ll cover them in the next email.

eBay does its best to intervene and resolve such disputes. As a shopper, you can follow these 10 safety tips to avoid being conned.

1. Check the seller’s feedback. Positive feedback rating of over 95% is good. If there are many recent negative feedbacks, then this is not a good indication. Also, read all the negative feedbacks. Are these negative feedbacks reasonable? What type of response does the seller have for these feedbacks? Does the seller’s defense sound reasonable? Sometimes new members who buy items on eBay are paranoid and they leave a negative feedback in a haste so make sure if the seller has defended himself/ herself in a reasonable manner. If there are too many complaints of the same nature, then it is probably true.

2. The sellers must have some kind of identification or recognition seal like Paypal verified, or Square trade or a Powerseller seal on the auctions. Such sellers are more reliable. This is especially a good check when you buying an expensive item.

3. Ask seller a question before bidding on the item. Responsible sellers reply promptly to questions. Also, if the seller actually has the item, he/ she maybe able to answer a valid question otherwise not.

4. If you are buying something expensive, then get the contact information of the seller at http://search.ebay.com/_W0QQtZvbQQsofindtypeZ9. You have to login to your eBay account and send a request. You can get the seller’s address and phone number. In doing this, your address and phone number will also be emailed to the seller.

5. The items must have pictures unless it is a service that is sold on eBay. If there is no picture, then the items is probably not there. Almost all sellers will put at least one picture of the item. Let’s assume that the item is there but the seller has been lazy in not putting the picture in the auction ad. Would you like to deal with someone who is so careless? It just shows that the item may not be in good condition, maybe defective or broken.

6. Check description of the item. Research other websites for the same item. Some of the shopping websites to research would be shopping.yahoo.com, overture.com and shopping.msn.com. These sites are adequate for researching items and get the description that you need. The eBay description should match item description on other sites.

7. Research prices for the item on sale. If the item on sale is Gucci handbags, then search for this model of handbag on shopping.yahoo.com. If it retails for $800 on Yahoo and seller on eBay is selling a brand new one for $90, then this item may not be authentic! Large wholesaler are able to sell items for around 50% of retail but something like an original Gucci handbag, it is unlikely that a seller would let go for $90 because these items sell like crazy. Just a note on fraud items – a lot of fraud eBay occurs on fashion items. This is very unfortunate and eBay has taken a lot of steps to eliminate fraud.

8. If the seller has not mentioned any shipping and handling terms, then ask before bidding. There are many auction ads, where the seller mentions that shipping and handling will mentioned to the winning bidder. Surprisingly, there are bids on that item! If you start bidding on the item, then it means that you agreed to the terms and condition of the sellers and there is less room for you to dispute later so ask for the clear instruction on shipping and handling.

9. Reliable sellers have clear description on their refund policy. If it is not there, then ask the seller for it. If the seller has no refund policy, then do not bid on the item. If the there is no refund policy in the auction description, then make sure you get the refund policy in an email from the seller. In this way, you have a document of the refund policy.

10. Do a search for the sellers past items on eBay. Check to see if the seller has sold similar items in the past. To search on the past auctions, go to the Advanced Search page. Here click on the items by seller link and type in the sellers ID and check the box for Include Completed listing. It is always good to check this especially if you are considering buying something expensive.

Automobile Scams.

With cars, you will generally find that scammers try to get you to send them money in advance, for whatever reason. For some reason, some people aren’t all that reluctant to pay 50% or 25% of the money before delivery using a relatively insecure payment method, especially on a car. They reason that the seller will obviously deliver it, as they’ll want the other half of the money.

But there never was a car! Pictures of cars aren’t hard to find, and the experienced scammers will have a whole library of pictures of different cars. The seller just got your $5,000 for nothing, and you can leave them all the negative feedback you like. They’ll just go and open another eBay account and find their next sucker.

While it’s not an outright scam, what you might find is that the car does turn up, but simply doesn’t live up to the description – it has been oversold, in the tradition of used car dealers through the ages. If this happens to you then you should open an eBay dispute and say your item was not as described – you might get a partial refund.

Computer Scams.

If you bid in a computer auction but don’t win, the seller might email you to ask whether you would like to buy a computer the same as the one they just sold through their own website.

This is a bad idea! You have no guarantee that the item will ever arrive, and you haven’t just given them your money – you’ve given them your credit card details too.

There are sellers with nothing but positive feedback who use this scam often – and since you won’t be able to leave them any feedback on the transaction, their reputation will stay that way. If you complain to eBay that you bought an item outside the site and got scammed, they will tell you to get lost and not do it again.

How to Beat the Scams.

There are lots of ways to beat the scams. First, whenever you buy anything expensive, be sure to check your seller’s reputation thoroughly. Make sure they have sold items of a similar high value before, and haven’t just sold a string of $10 items to get their feedback rating artificially high. If you want to be even more cautious, insist that the money is placed in an escrow service (eBay recommend escrow.com – don’t use any other service unless you’re sure of it).

To be honest, it’s generally quite a bad idea to use eBay to buy things like cars and computers to begin with – you can get them anywhere, and the discounts aren’t that big any more. It’s better to use eBay for those rare, special things that you can’t find anywhere else. The next email will give you some tips for buying collectibles.

Lie about an item: Say it works fine when it sometimes doesn’t work. Say it’s in perfect condition when it has a scratch. Your customers will hate you!

Post whenever you feel like it: Make sure to leave your customers hanging around, wondering when their item is going to turn up. This makes sure they buy from someone else next time.

Let items end anytime: Few people will be around to care about your auction if it ends in the middle of the night. Why go to the trouble of working out whether auctions will end at a good time?

Don’t bother with email: Customers are just timewasters anyway. eBay businesses are supposed to run themselves! Never give informed responses to questions about your item.

Sell rubbish: Really, it’s just eBay. You can just sell any old tat from the market for a 200% profit. Let quality be someone else’s concern – I mean, really, what do they expect for that price?

Refuse to give discounts: You know what your items cost, you know what your profit margin is going to be, and you’re not going to negotiate. Remember that giving customers special deals might make them feel good and come back to you again.

Make your listings ugly: As many colours, flashing lights and animations as possible will really give those customers a headache. Write as much in CAPITALS!!!! as you can. Preferably big, red capitals. Be sure to use the fonts Impact and Comic Sans. For an extra special touch, see if you can figure out a way to add some music.

Don’t take photos: It’s such trouble, after all. If buyers are picky enough to actually want to see items before they bid on them, then screw ‘em, that’s what I say.

Write short descriptions: Be as brief as possible, and use lots of mysterious abbreviations. This obviously makes you look very cool. You can even just write the title again in the description box. Think of the effort you’ll save!

Use reserve auctions: Now, this is a fairly controversial final choice, but it really is one of the best ways to scare away your customers. They’ll see ‘reserve not yet met’, and click that ‘back’ button before you know it. Luckily, they can always bid in a normal auction for the item somewhere else.

Now that you know the ten ways to kill your eBay business, how about we explore what to do if you want to do the opposite, and make a success of it? The next email will give you ten steps to successful selling on eBay.

Step 1: Identify your market. Take a while to sit and watch for what sells and what doesn’t out of the items you’re interested in. Any market research data you can collect will be very useful to you later on. You’ll probably see the ‘sweet spots’ quite quickly – those one or two items that always seem to sell for a good price.

Step 2: Watch the competition. Before you invest any money, see what the other sellers in your category are up to, and what their strategies are. Pay special attention to any flaws their auctions might have, because this is where you can move in and beat them at their own game.

Step 3: Find a product: Get hold of a supplier for whatever it is you want to sell, and see what the best rates you can get are – don’t be afraid to ring round quite a few to get the best deal. If the eBay prices you’ve seen are higher than the supplier’s, then you’re set.

Step 4: Start small: Don’t throw thousands at your idea straight away – get started slowly, see what works and what doesn’t, and learn as you go. Remember that it’s very cheap to try out even the craziest ideas on eBay, and who knows, they might just work!

Step 5: Test and repeat. Keep trying different strategies until you find something that works, and then don’t be ashamed to keep doing it, again and again. The chances are that you’ve just found a good niche.

Step 6: Work out a business plan: A business plan doesn’t need to be anything formal, just a few pages that outline the market opportunity you’ve spotted, your strategy, strengths and weaknesses of the plan and a brief budget. This is more for you than it is for anyone else.

Step 7: Invest and expand: This is the time to throw money at the problem. Buy inventory, and start spending more time on your business. Set a goal number of sales each week, increasing it each time.

Step 8: Make it official: Once you’ve made a few thousand dollars worth of sales, you should really register yourself as a business. Don’t worry, it’s not expensive or hard to do – a lawyer is the best person to help you through the process.

Step 9: Automate: You’ll probably find that you’re writing the same things again and again in emails or item descriptions. This is the time to give up on the manual method and turn to automated software that can create listings for you, and respond to completed auctions and payments with whatever message you provide.

Step 10: Never give up: Even when it looks like it’s all going wrong, don’t stop trying until you succeed. If you keep working at it then you’ll almost always find that you make a real breakthrough just when things are starting to look desperate.

Once you get into the swing of things, you might start thinking that you should quit your job and take up eBay selling part time. But it’s not always as easy as that – there are all sorts of factors that you need to consider. The next email will weigh up the case for and against taking up eBay full-time.