Winning at the eBay Game

Ebay, the giant online auction site, is a household name and has been for some time. Almost everyone knows about Ebay and some may have even dabbled with buying and selling through this online auction magnate. To give an example of the magnitude of Ebay’s Internet presence, an October 2008 quarterly earning statement shows Ebay, Inc.’s third quarter earnings of 12.4 billion dollars. My friends, this is huge!

There are those who not only dabble in buying and selling through online auction sites, they actually make a good living doing so. This article is focused toward those who are looking to start an online auction business. It is not an inclusive piece, but will help “jump-start” those who are serious about working from home in online auctions.

Work full time or part time

This is the first question one should ask of him or herself. Starting a full-time business requires start-up capital and enough working capital to last at least a year. This is why most who look to start online businesses begin on a part-time basis and “grow” the business to a point the income is enough to support their present lifestyle. At this point some get cold feet about letting go of the security of their day job for the uncertainty of their own business. However the uncertainty can be overcome with solid planning and a good grasp of how to minimize risks.

It’s a good idea to research the online auction process (due diligence) when starting out. This helps in getting a clear picture of what steps must be taken to be successful. Some people have their own products to sell and this is perfectly fine. These products fill a niche market and one can become successful by fulfilling this need. On the other hand, there are those who want to sell products that are in high demand and be bought by the majority of online shoppers. This will in effect maximize their presence on auction sites. To this end, Ebay has a variety of seller tools available their site. These are located on the left-hand menu during a products search. The heading is called “Seller Central” and offers everything from seller education (information on successful selling) to workshops on effective marketing practices. There is also a “seller” drop down menu at the top of the tool bar that offers a listing of “what’s hot” and “most watched” items. This can give the beginner an idea of what products are in demand. (Note: With high demand products comes increased competition in that area. Unless products are bought in bulk and at very steep, wholesale prices, the novice would be better suited to selling niche items such as informational products.)

A good way to determine if a product is in demand is to choose “completed listings” under the preferences menu also located on the left-hand side of the page. This will show what items have been listed in that category, what they sold for, and how many bids they received. There is also a category labeled “tips for sellers” located in the seller tools section. This is good information for anyone looking to sell products on the site.

A great social tool provided by Ebay that shouldn’t be overlooked is the “seller community”. These are basically blogs by sellers that promote their products. This is more of a social community that involves networking with other sellers and offers interaction between members. It is a great way to get to know other sellers, their products, and learn more about how the online auction system really works.

Putting it all together involves solid planning and research. There are a number of great informational products available to help the serious online auction entrepreneur get started. The problem is weeding through all the scams to get to the good ones. The best rule of thumb is to, sign up for an Ebay account, become active with the seller community, and go with information that has been recommended by someone on the site.