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Online Auction



Online auctions are a great way for you to sell various items you may have laying around the house. To ensure that you're getting the most out of your online auction, here are a few tips. Describe what youíre selling, say what condition itís in, and state whether itís new, used or reconditioned. Anticipate questions a buyer may have for you and address them in your description. Include a photograph, the buyer always wants to see what he or she is paying for.

As far as minimum bids and pricing goes, think about the lowest fair price youíre willing to accept for your item and state that amount as the minimum bid youíll take. You could also use a Reserve Price (the minimu price a bidder needs to bid to win) and start your auction at a lower opening price. Decide whether youíre paying for shipping or whether you want the buyer to pay. State that clearly during your online auction. Also, state if youíre willing to ship internationally. Whoís responsible for shipping fees (and restocking fees) if the item is returned?

If the item youíre selling through an online auction requires follow up service, are you willing to provide it? If not, make thsy clear, and suggest where the buyer can get that service, if necessary. Print all information about the transaction, including the buyer's identification; a description of the item; and the date, time and price of the bid. Save a copy of every email you send and receive from the auction site or the successful bidder. After the bids stop, contact the winner to announce to him or her that they won.

What are Online Auctions and how do they work ?

Online Auctions are actually virtual auctions that you find on the world wide web. Online Auctions start with the seller who sells the product or service to the person who bids the highest price. For sellers, online auctions open up new sales channels for new products and offer buyers favorable purchasing conditions.
Online auctions have efficiently manufactured a giant virtual marketplace where people can gather to buy, sell, trade or verify the goods of the day. Online auctions are enormously popular, high-traffic venues where you can start selling product almost immediately :
No need for overhead or upfront costs
No need for sales staff or distributors
No need for website of your own
No need for initial investment (you'll pay between 2 and 5 percent of your final sale price to the auction site)
In this vast virtual marketplace, the auction site that rules the game is eBay. According to the Neilson Ratings, eBay is the auction site with one of the highest traffic on the Internet right now, making it a leader in online auction industry with as much as 60 percent share on the market in contrast with its nearest competitor Yahoo! Auctions which has only half of eBay's market size. Next on the list is Amazon.com but not very far from the rest.
These online auction sites appeal to many people on the web, making it a dreamy place to capitalize and spead exposure worldwide. Nevertheless, you should know that the competition is very intense in the popular online auction categories and the product you are selling or buying can get lost among the other products sold in the online auction websites.
So, here are a number of things you must do to control the volumes of traffic heading your way and generate the highest profits possible:

First, select your online auction site.
You have to think about which online auction site you want to use. eBay is the definitive choice because of its good reputation compared to the amount of traffic it receives. But other auction sites tend to indulge to different markets. To determine which site is best for your product, check out the top three or four in your field--look at specialized auction sites as well as the big ones mentioned above. There are hundreds of specialized online auctions that cover the spectrum from antique books to business liquidations.
Check out item quantities and bid lists to see how much demand there is for your product on the online auction sites. While you're there, you might even want to try bidding on a few items to get a feel for the process and the competition involved. (But don't ever bid on an item you don't plan to buy!)

Choose wisely the products you are selling or buying from the online auction sites.
Are you going to sell one of a kind products item by item?
Or do you have a product you can sell in quantity?
Is there a demand for your product?
What kind of profit margin do you expect to be making?
In the world of online auctions, specific appeal online auction markets are responsible for 54 percent of total sales. Not bad, hey? But don't disregard the remaining 46 percent that covers non-appealing markets. What matters is that you can make money both ways.
We have found that collectibles are the bestselling items at auction sites, with computer hardware and event tickets in second place, and toys and books hovering around third. But while popular items may be easy for you to sell, you could also make a killing on a unique item with a high profit margin. Believe it or nor, people are making money from trademark items like tobacco or special types of fish.

Look at the online auction sites for listing options.
The next thing you need to think about is how you'll sell your product. Auction sites typically offer a variety of listing options for you to choose from, including:
Regular listings. A regular listing is just that--you pick your category and your product gets listed in it. While this is the most common (and really the least effective) way to list your product, you should definitely start with this option. You'll want to see how your product does before you decide to spend money on featured listings.
Reserve auctions. If you place a "reserved price" on your item, it means that you've specified the amount at which it should sell. This is done to prevent "auction sniping," which happens when bidders lay low until the very last moment, then grab your item without starting a bidding competition. Reserved price auctions can be to your benefit, but they may discourage bidders who are looking for the best deal.
Dutch auctions. Also known as "English auctions," these are one of the best ways for people selling in quantity to place their products because you can list multiple identical items at once in each auction. However, on eBay you must have a "feedback rating" (see Step 6) of 50+ and you must have been registered for more than 60 days before you can choose this option.
Featured items. On most of the larger auction sites, you can get your item rotated through the site's homepage as well as listed in the "featured items" section for about $20. For approximately $15, you can have your item appear in your category's "featured items" section, or simply at the top of the list. You can also have your photos displayed in a gallery for about 25 cents, or featured as a large photo at the top of a gallery for close to $20.

Choose your category on the online auction site.
Explore the product categories on the various online auction sites to broaden your perspective of what goes where. After that you could do a search on similar and related products, determine which ones sell best, and see which categories they're in. You'll usually be able to pick one main category and one sub-category--use this method for both. And be sure to check to see how easily your product can be found using the site's search tools before you settle on a category.

Create your ad on the online auction site.

Once you've decided how and where to list your product, you need to turn your attention toward selling it. And that means you need good advertising. So focus on your target market, that means, who's going to buy your product and, more significantly, why buy your product from that online auction site. You need to catch the buyer's attention and somehow persuade them to buy your product.
Well, first you need a very good title. It's really important that you're specific: Instead of saying "Monitor" in your title, for example, say "24 Inch TFT Monitor Brand Name." Don't assume your bidders will understand you--make everything as clear as possible for them. And make it as interesting as possible, too. You'll probably have to pay a bit more for special formatting like bolding or highlighting ($1 to $2), but these can be a good way to grab the attention of potential buyers. Use exciting and convincing words that draw the buyer to your item: "42"" Plasma TV - With HDMI full support."
The same techniques apply to your product description. Try to construct a story around your product to sell it on the online auction site.
Think about other ways you can motivate your bidders. Can you provide money-back guarantees, free shipping or bonus products? Tell them what you have to offer! And don't forget about photos! People don't want to buy what they can't see, and on average, they'll pay at least 10 percent more for an item that's accompanied by a photo.

Make others trust you when creating a product on an online auction website.
The best way to establish yourself as a respectable seller in an online auction site is by having a good feedback rating. A feedback rating is a listing of the online auction website's customer comments, rated as positive (+1), neutral (0), or negative (-1). If you're not respectble, your feedback rating will warn other buyers to stay away from you. If you have a positive rating, you can strengthen your sales by as much as 4 to 6 percent (and this number will steadily increase as the feedback online auction rating system follows).
To guarantee you get a good feedback rating, here are some tips for you:
List shipping costs or additional costs on the online auction site from the beginning.
Deliver your product you added on the online auction site right away.
Deliver exactly what you've advertised on the online auction website.
Answer buyers' questions immediately through the online auction website.
Always, always continue your great customer service.
Another very important thing is that you keep a list of all your buyers and e-mail them "thanks for purchasing" messages, new offers, complementary product information, and newsletters on a regular basis. Your best customers are your repeat customers--they'll be responsible for 80 percent of your sales! Once you get your name out there, you'll do nothing but profit by keeping it out there.

Test your auctions listings on the online auction site.
You should always be testing and improving your auction listings. Even if they're really good, you may discover that one or two simple changes dramatically increase your sales. Start by doing regular listings on two or three different auction sites, and, changing only one element at a time.
When find the combination that works best, try out different online auctioning options to see which will sell more products for you at higher winning bids.
eBay, one of the top online auction websites, reports that as many as 65 percent of the items listed for auction on their site result in being winning bids, so if you're near this percentage, keep working on it: With these tips under your belt, you can do much better.
Your ability to set prices that attract bidders, write convincing ads, choose the best categories that draw the most potential bidders, and ensure that your online auction closes with the highest profit margin will have a dramatic impact on your success in the competitive arena of online auctions. But you need to educate yourself and test the waters carefully before diving in if you plan to be successful. People do make money through online auctions, so it's not unreasonable to think you can profit, too. Just proceed with caution. And market smart.


How Auctions Work:
Internet auctions are like vast open air markets. Sellers on the online auction website may offer one item at a time or multiple lots of the same item. In theory, online auctions run much like local auctions, but behind the scenes there is a collection of data inside a database that continues to work non-stop. Just like local auctions, in online auction websites there are sellers and bidders or as some others say winners and losers. Winners are expected to pay for what they bid on at the conclusion of the auction.

Registration:
At online auction websites you will be required to register before you can buy or sell an item. This is required standard policy to track items you bid on or sell, keep up with the bids, determine the winning bids and build a database on seller and bidder feedback.
Tip: Setting up an online email account different from your basic email account is recommended to help you track the progress of the auction and prevent spam from coming into your main account.
Winning Bids:
The bidding for each auction closes at the scheduled time. In the case of sales of multiple lots, the participants with the highest bids at the close of the auction are obligated to buy the items. If no one bids at or above the reserve price, the auction closes without a winner. At the close of a successful auction, the buyer and seller communicate, usually by email, to arrange for payment and delivery of the goods.
Kinds of Auctions:
There are two types of Internet auctions - business-to-person and person-to-person. Sellers of business-to-person auction sites have physical control of the merchandise being offered and accept payment for the goods. In person-to-person auctions, individual sellers or small businesses offer their items for auction directly to consumers. Generally, the seller, not the site, has physical possession of the merchandise. After the auction closes, the seller is responsible for dealing directly with the highest bidder to arrange for payment and delivery.
Payment Options:
Buyers may have several payment options, including credit card, debit card, personal check, cashier's check, money order, cash on delivery and escrow services. However, all sellers do not accept all forms of payment.

Credit cards offer buyers the most security, including the right to seek a credit from the credit card issuer if the product is not delivered or if the product received is not the product ordered.

Typically, sellers using business-to-person online auction sites accept payment by credit card. But many sellers in person-to-person auctions do not. Usually they require payment by cashier's check or money order before they send the item to the winning bidder.
Escrow Services:
Some sellers on online auction sites agree to use an escrow service. For a fee, generally 5 percent of the cost of the item paid by the buyer, an escrow service accepts payment from the buyer via check, money order or credit card. The service releases the money to the seller only after the buyer receives and approves the merchandise. This helps protect buyers from ending up empty-handed after paying their money. Using an escrow service can delay the deal. As with any business transaction, investigate the escrow service's reputation before signing on to the service.
Consumer Concerns:
According to the Federal Trade Commission, Internet auction fraud has become a significant problem. Most consumer complaints center on sellers who:

Do not deliver the advertised goods.
Deliver something far less valuable than they advertised.
Do not deliver in a timely way.
Fail to disclose all the relevant information about the product or terms of the sale.

Where to Turn for Help:
If you run into a problem try to work it out directly with the buyer or seller or with the auction web site. If that does not work, file a complaint with the Federal Trade Commission by calling toll-free 1-877-FTC-HELP (382-4357) or visiting the FTC's web site. Although the Commission cannot resolve individual problems for consumers, it can act against a company if it sees a pattern of possible law violations. You also may want to contact your state Attorney General or your local consumer protection office.

Government Auctions

What can be purchased at government online auctions covers a tremendous amount of merchandise including business furniture, luxury cars and boats, personal items seized in drug busts, and commercial and residential property. All information about the items being sold is free information and easily obtained if you know where to look.
Browsing the following government online auction sites will get you started in finding out where and when auctions are held.
The General Service Administration (GSA)
This is a good resource for buying surplus merchandise but be prepared to shuffle through a lot of junk. The GSA Auctions is completely web-enabled, allowing all registered participants to bid on a single item or multiple items (lots) within specified time frames.

GSA Auctions offer federal personal property assets ranging from commonplace items, such as office equipment and furniture to more select products like scientific equipment, heavy machinery, airplanes, vessels, and vehicles. The system's online capabilities allow GSA to offer assets located across the country to any interested buyer, regardless of location.

What to expect from an Online Auction Site
Buying and selling items on online auctions from an online auctions website should be fun, convenient and secure. Online auction sites have to be uncomplicated to navigate, provide a wide selection of categories and subcategories, several custom selling options and an elementary feedback forum.
Furthermore, online detail pages should contain all information about the item and the auction including online auction pictures, descriptions, auction bid history and several other information about the seller.

Criteria on how to choose the best online auctions website for you

Commission
Sellers want to make the most of their online auction listings without paying extra commissions. Some online auction websites charge extra registration fees, listing fees, and other extra value fees. The desirable for a seller is to pay no listing fees, but sometimes a few extra dollars in commissions goes a long way in selling potential.
Selling
Sellers on online auctions websites should have a large amount of control over the items they add to the online auctions website. They should have the prospect of blocking bidders, choose their own listing and category and disclose all information about the item in the details page. The auction site should also provide tools to assist in listing and selling products as well as managing personal product inventory. This may include features like editing images, adding item descriptions and canceling bids.
Buying
Finding what you're looking for should be fun and easy. Online auction sites should provide resources and tools to help users find and bid with confidence. The auction site should also provide helpful information about the products and help the bidders feel safe. Some sites provide mobile features and other customizable options to further advance browsing, bidding, and buying.
Online auctions website Security
Helping buyers and sellers feel safe is important for online auction services. Sellers should have control over their auctions and bidders should have assurance that they're buying from a reputable source. Most online auction sites utilize a feedback system where sellers and buyers can rate each other based on transaction experiences. Checking out a user's feedback helps potential bidders and sellers evaluate other members' reputation and credibility.
Online auctions website Help and Support
Auction services should provide receptive and comprehensive customer support through several methods including email, live chat, telephone and FAQs.
Ebay, WebStore and eBid are the three leading sites because they offer the best mix of features for buyers and sellers. All three are solid options and give people the opportunity to buy and sell things right from the comfort of their home.

Top online auction sites list

Ebay
http://www.ebay.com
Maybe the best online auction site and market place. Different catagories of items are available.Ebay was founded in 1995 and it is one of the notable success stories of the dot-com bubble; it is now a multi-billion dollar business online auction site with operations localized in over thirty countries. eBay later expanded from its original "set-time" auction format to include "Buy It Now" standard shopping;

Bidorbuy Online Auction site
http://www.bidorbuyindia.com/
Provides innovative auction options to net users. online auctions available for so many catagories

Aus Auction- New
http://www.ausauction.com/auction/
Australian on line auction site

Commreceone
http://www.commerceone.com/
The leader in global e-commerce solutions for business & auction. It enables buyers and sellers around the world to trade in a barrier-free environment and creates new business opportunities .

Freemarkets
http://www.freemarkets.com/
This online auction site conducts online auctions for industrial parts, raw materials, commodities and services. The suppliers compete in real time for the purchase orders of large buying organizations by lowering their prices until the auction is closed.

Yahoo Online Auctions
http://auctions.yahoo.com/
Yahoo Auctions is user-friendly online auction site for both buying and selling and it has the best buyers and sellers anywhere.

Amazon Online Auctions
Amazon Amazon
World famous online auction site and online marketplace for different items including books

uBid.com Online Auctions
http://www.ubid.co
The premier e-commerce online auction site where customers can set the price on thousands of brand name products. uBid is constantly expanding its list of categories and the number of products offered to the customers.

AuctionWatch.com
http://www.auctionwatch.com
An e-commerce platform that enables businesses of all sizes, both large and small, benefit from dynamic pricing environments

International government tenders
http://www.financenet.gov/financenet/sales/saleint.htm
Official US government site for international government tenders, auctions, surplus, sales, tenders and unclaimed property by Financenet

Teri Meri Online Auctions
http://www.terimeri.com
An online auction site, where you can buy or sell antiques, art pieces, automobiles and spares, books, business, clothing, collectibles, etc.

Nickleby's International Auctions
http://nicklebys.com/
Nickleby's is an international art auction house, specializing in fine art, antiques, collectibles, lithographs, photography, contemporary and rock & roll artwork.

Federal Communications Commission Online Auctions
http://www.fcc.gov/wtb/auctions/Welcome.html
FCC auction schedule and reference materials.

Government Online Auctions
http://www.governmentauctionsite.com/
Features seized and surplus cars, boats, airplanes, computers, and furniture.

IndiaEcho Online Auctions
http://www.mathsminds.com/index.html
The first online B2B e-commerce and online auction portal for agricultural products.

Matexnet: Material Stock Exchange
http://www.matexnet.com
A superb b2b auction and e-commerce portal. From surplus inventory to finished products to technological inputs you can buy and sell

Homebid.com
www.homebid.com
Real estate professionals can find software and services to aid in online auction endeavors. Learn about its other Web marketing visions.

CityAuction Online Auctions
www.cityauction.com
Search for auctions by US city or international region, including Australia, Asia and Europe. Browse the categories and item photos.

Tea Auction Online Auctions
http://www.teauction.com
A comprehensive site for tea or chaai. In the auction segment, buyers and sellers can participate in the auction.

Government Online Auctions Guide
http://www.bestauctions.net
Guide to getting the most of the government auctions, foreclosures and surpluses.

United States Treasury Online Auctions
http://www.treas.gov/auctions/
With information on and links to government managed seized property auctions.
US Customs Public Auctions
http://www.treas.gov/auctions/customs/

Auctionghar Online Auctions
http://www.auctionghar.com/
An online auction site which gives users a global platform online to auction any product they feel like.

 


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Article by Svetlana Lozovenko,Panos
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