The Internet has opened up many wonderful opportunities for people to buy
and sell merchandise and services online. An important Internet sales
channel that any home-based entrepreneur should not miss is the online
auction.
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From eBay to Yahoo! Auctions, auctions can offer you a means to promote your
products to millions of buyers, increase your sales and cheaply attract
traffic to your site. You could even start a lucrative business trading at
auctions!
To help you get started, we
interviewed Larry Jordan, Vice President for Marketing of AuctionWatch (now
Vendio.com),
the leading provider of software solutions that helps auction merchants
efficiently market, sell and distribute their products. Vendio.com's
services are used by tens of thousands of sellers to sell $40 million worth
of merchandise.
Below are Larry's insights on the
importance of auctions as a sales channel for small and home-based
businesses.
What
benefits can auctions bring to a small and home-based entrepreneur?
For a seller just starting out, auctions give instant access to millions
of buyers. Without the extensive reach provided by the Internet and auction
sites like eBay, small sellers would be limited to their immediate
community, local events and what ever personal network they create over
time. Online auctions level the playing field for small sellers by providing
equal footing to the bigger, better branded retailers. Some sellers, who
simply started out selling a few items per week, have grown their business
into a full time job – making more than their "day job" over
time.
For those with
existing e-commerce sites, how can auctions help them?
Online auctions are a terrific means of customer acquisition. By simply
placing some of their items for sale on auction, the seller immediately
creates a steady stream of new customers. If these new relationships are
properly managed, the seller can easily redirect them to their existing
e-commerce site. This practice, while frowned upon by eBay, is a
cost-effective way of acquiring customers. Many Vendio sellers have opened a
Vendio Store to reap the benefits of direct selling to
customers they met through an auction.
Can you compare
the different online auctions (Ebay, Yahoo, Ubid, etc)?
Clearly, eBay is the leading site in terms of traffic, volume of
transactions and most importantly, selection. You can almost guarantee that
you can find just about anything for sale on eBay. No matter how eclectic or
rare the item, it will probably be there. Other sites like Yahoo! have many
buyers and sellers, however, they are best used for finding more common
items, like music, movies, electronics, etc… uBid is more of a specialty
site focusing on discontinued computer equipment and consumer electronics.
How can one start
selling at auctions? Is it easy to start?
Yes, it is simple to get up and running as the mechanics of selling via
online auctions are straightforward. First, you’ll need something to sell.
Once you have chosen the item you want to sell a digital camera comes in
handy so you can post a picture of your item that’s up for sale. Shipping
supplies are important so you can send the item once it has been purchased.
Lastly, you’ll need a credit card to pay for the posting fee. Spend some
time looking at how others sell similar items and ask yourself – how can I
stand out? Consider using a service like Vendio to help appear
professional through the use of templates and automated communications.
What is the
difference between a part-time amateur seller and a successful business
owner?
In my experience, the most successful sellers are the most dedicated to
their business. It is more than just a hobby to them, and their customers
are the center of their universe. Treat your customers like gold, and they’ll
continue to do business with you. Like most businesses, you tend to get out
what you put in.
Not all products
are suitable for auctions. What kinds of products are "hot" right
now at auctions?
This is the time of year where consumer electronics and related
merchandise sell like hotcakes. It’s the beginning of holiday season, and
everyone is looking for deals on computers, stereo equipment, video game
consoles, DVDs and televisions. Buyers only tend to buy these items from
established sellers with good reputations, so if you are considering selling
any of these items, you’d better get cracking!
How quickly can a
seller expect major success?
Again, it really depends on how dedicated you are to your online sales
business. The most successful sellers use auction management tools to help
automate the sales process and stay in constant contact with their buyers.
Once you get a good reputation and a high feedback rating, success is
limitless. Although, keep in mind that you get out what you put in. It does
require some effort on the sellers part, especially at the beginning, but it
gets easier as the seller gets more experienced.
What factors
contribute to the success of a seller's auctions?
It’s the simple things, really. Spending the time to copy write a good
description of the item. Accepting multiple types of payments. Making the
shipping terms really clear. Using well-lit photographs to show buyers
exactly what they are getting. And managing it all with a sales management
tool, like Vendio!
Once a seller gets
going, how can they grow their auction business?
Some sellers grow their business by beginning to offer new lines of
products, in addition to the products they began with originally.
Vendio sellers, for example, can offer buyers related items at the
point of checkout; i.e.: toner and paper with a printer purchase.
How can one avoid
fraud and protect their interests in auctions? What tools are available to
the seller?
The biggest issue sellers have is the deadbeat bidder. And,
unfortunately, there really is not much a seller can do. There is a tool
available on eBay that enable sellers to block specific buyers from bidding
on your listings, but unless you are diligent in entering in their user ID,
expect deadbeat bidders to occasionally win an auction. To mitigate this,
some sellers simply communicate with the runner up and offer them the item
at the amount of their last bid. This usually works in getting the item out
the door.
Selling at
auctions can be a time consuming process, especially if one is selling
hundreds of items. What tools are available to help a seller manage their
auctions?
Glad you asked! Vendio is a valuable service that can help you save
time and money as an online seller. We have a number of powerful services
and features that can benefit any size of online business. Some of these
include:
- Inventory Management and Listing Creation
-
Simplifies the merchandising process by enabling sellers to efficiently
create professional listings while leveraging an inventory management
system to keep track of all their merchandise.
- Online Stores
- Allows sellers to easily create a branded online
store displaying fixed price and auction listings in a single location.
Sellers can also up sell additional items at checkout and combine orders
in their shopping cart.
- Merchandising and Listing
- Helps sellers promote their
merchandise to millions of buyers through their online store and the
Internet's leading marketplaces including eBay, Yahoo! Auctions and
Amazon.
- Direct Marketing and Promotion
- Enables sellers to
cost-effectively promote their products in their stores and at auction
through direct email marketing and promotions.
- Automated Check out, Tracking, and Order Fulfillment
- Helps
sellers reduce order fulfillment time by over 75 percent by simplifying
and automating the tasks associated with invoicing, receipt of payment,
printing of packing and address labels, sending of shipping notifications,
order tracking, and record keeping.
What advice/tips
can you give a prospective auction seller?
The best advice I can give is to remember to have fun and play nice.
Online auctions are very dynamic and filled with buyers looking for
bargains. Plus the bidding process adds a layer of excitement because buyers
cannot be assured they will get the item. So when selling, be sure to feed
the excitement – display your items as professionally as you can with lots
of good photos and riveting copy. When you actually find a buyer, treat the
person with the respect and professionalism you expect from the places you
like to shop. And lastly, take an honest look at using an online sales
management tool like Vendio – we can help you get to profitability
faster than simply going it alone.
About the Author:
Isabel Isidro is the Editor of Power Homebiz Guides.
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