Ebay Auction Home Business Tutorial: Start Low To Sell High!

I sell items on eBay and enjoy teaching others how to make money with eBay auctions, but I admit to doing my fair share of buying, too. Recently I found a few items I wanted to add to my collection, and even though I knew the items would go for several hundred dollars, I noticed the seller began the auction price at 99 cents. Is this a good idea?

Turns out that it’s an excellent idea. A recent study performed by the London Business School and two professors from Northwestern University proved that items that were posted with an opening price of one penny actually ended up selling at “significantly higher” prices than auctions for the same item that began at higher prices.

Why does this work so well? The biggest reason is the psychological impact on buyers. Everyone loves a bargain, and a price of one cent is going to get everyone’s attention. Obviously the item won’t end up selling for that price, but it does tend to get more attention. Let’s say you do a search on Nikon cameras (one of the items included in the study). You see 20 of them, and one of them has a price of 99 cents. Even though you know you’re not going to win the auction with that bid, you’re very likely to click on the listing. And as an eBay seller, we know that the first battle is to get potential buyers to look at your listing!

There’s always an exception to the rule, and according to the study, if you’re selling a “niche item” – an item that is intended for a specialized audience that you’re not expecting a great deal of bidding on – then you should start with a price closer to what you actually expect to get.

Even if you’re concerned about getting less than you hoped for, don’t try to lower the price on the item by making it up with shipping overcharges. I’ve seen sellers put a “Buy It Now” item up for a couple of dollars less than other sellers, but they were charging $7 to ship something that should have cost no more than $2. eBay is also starting to crack down on shipping overcharges, and even if that proves to be ineffective, I can tell you from personal experience as an eBay buyer that your customers will never forget being overcharged for shipping – and there’s a good chance that these overcharges will stop them from becoming your customers to begin with!

Aim for a fair profit, price your items accordingly, and you’ll be on your way to making money with eBay auctions.

Just as your item description and starting price affect the number of bids you get, so does the timing of your posting. We’ll discuss that tomorrow in my next eBay home business tutorial!

Understanding The Different Ebay Auction Types.

Over the years, eBay has introduced all sorts of different auction types, in an effort to give people more options when they buy and sell their things on eBay. There are many people who don?t like the idea that their item might sell for a far lower price than they intend. Equally, there are people who have hundreds of the same item and don?t want to sell them individually. This email gives you an overview of the different kinds of auctions and how to spot them.

Normal Auctions.

These are the bread-and-butter of eBay, the auctions everyone knows: you bid, others outbid you, you outbid them, and the winner gets the item. Simple.

Reserve Auctions.

Reserve auctions are for sellers who don?t want their items to sell for less than a certain price ? a concept you?ll know about if you?re familiar with real auctions. They work just like normal auctions on eBay, except that you will be told if your bid has not met the reserve price set by the seller. If no-one is willing to meet this price, then the auction is cancelled, and the seller keeps the item.

You can spot these auctions by looking out for ?Reserve not met? or ?Reserve met? written next to the current bid on an item?s description page.

Fixed Price (?Buy it Now?) Auctions.

Buy it Now auctions can work in one of two ways. A seller might add a Buy it Now button to a normal auction, meaning that you can choose either to bid normally or to simply pay the asking price and avoid the whole bidding process. Some sellers, though, now cut out the auction process altogether and simply list all their items at fixed price. Recently, eBay added a twist to fixed price auctions: the ?best offer?. This means that you can negotiate a price to someone who offers their items using Buy it Now, which could be a great way to get a bargain on things that don?t seem to be selling.

Fixed price auctions are easy to spot, as they have a little ?Buy it Now? logo either next to or instead of the current number of bids on the search listings page.

Multiple Item (?Dutch?) Auctions.

These are auctions where a seller is selling more than one of a certain item. Dutch auctions can be done by bidding. Buyers bid a price and say how many items they want, and then everyone pays the lowest price that was bid by one of the winning bidders. If you have trouble getting your head around that, then don?t worry ? everyone else does too! These auctions are very rare.

What is more common is when a seller has a lot of one item, and lists it using a combination of two auction types: a multiple-item fixed price auction. This just means that they say how many they have, and offer them at a fixed price. You can enter how many you want and then just click Buy it Now to get them.

After all this, you might find yourself facing a dilemma: when you have the option, should you bid, or should you just use Buy it Now and save yourself the hassle? That?s what the next email will be about.

Online Auctions — How To Make Auctioning A Profitable Business

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 has 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 sites 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 a small 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 is 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.

Know The Winning Penny Auction Strategy to Get Branded Products For Pennies

Some people consider penny auction as a game of luck. They contend that you need to be very lucky to win a bid. However, penny bidding is not all about luck. You need to employ a good system in order to get what you want from the auction site. In other words, you have to use an effective penny auction strategy. With the help of a good strategy and a dose of patience, you will be able to get high end branded products at half the market price. In fact, you might get a good product for pennies as long as you know how to win penny auctions.

Like any competitive multiplayer games online, penny auctions require a system. You can not win a bid if you will not use a defined penny auction strategy. To learn how to win penny auctions, you have to unlock the secrets of successful bidders. This means that you need to study and analyze the bidding systems, methodologies, and techniques of other players in the auction sites. If you are a newbie, you need to spend time educating yourself about proven strategies and techniques. You may also use the services of a penny auction review website to access real time analytics, strategy tips, and information about the methods of successful bidders.

If you want to learn how to win penny auctions, then you should avoid getting greedy. Do not splurge bids on highly competitive items. It is important to start small and stay conservative if you are just starting. Any type of penny auction strategy will work perfectly if you start small. Just refine your strategy and increase your bids as you learn the inner workings of penny auctions. Furthermore, it is also important to spread your bidding system. For example, you should consider making a bid during off-peak periods. However, such strategy will be discovered eventually by other players. You need a back-up plan by closely monitoring the best possible time for placing bids.

To learn how to win penny auctions, you must learn how to place bids at the right time. Penny bidding is all about timing and intuition. The right penny auction strategy relies heavily on correct timing. You need to place bids when the auction clock is about to close. This strategy is very popular and many players use it. So you should carefully study how to outmaneuver your competitors by learning the proper patterns of bidding at the right time. You may also use a surprise strategy. If there are only two players left competing for a product, then try to surprise them by placing a bid at the last minute. Your action can unnerve the other players and you might win the bid eventually.

Penny bidding is an exciting endeavor. It is a highly competitive game that requires patience, skill, and cunning. But most importantly, you have to use an effective penny auction strategy in order to win your bids. You need to develop a good system and change your tactics to outbid other players.