You can make money through online auctions without setting up a website or investing much money. Online auction websites like eBay provide a very profitable way to make money online conveniently.
It is easy to start making money with auctions on the internet. The tips that you will find in this article will teach you how you can start earning cash through auction websites.
- How Auction sites work
- The requirements
- The starting point
- How to start with little or no investment
- Use the right strategy
- Buy low and sell high
How Auction sites work
First, register by completing an online registration form.
You may be asked for your credit or debit card details during the sign-up process, but this is usually just to verify your identity.
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Once your account is set-up, you can begin making the most of your auction site.
Buying
Auction sites work by registered members bidding on an item in a chance to ‘win’ or buy the item.
- Proxy bidding is when an auction site places bids on your behalf, and with your initial permission.
- All you have to do is to enter the lowest price that you are willing to pay for an item and then the site will make a series of incremental bids on your behalf, up to your maximum bid.
Doing this means you could win an item for a price less than the absolute maximum you were prepared to bid, however if somebody else bids above your maximum specified amount, then you will lose the item.
For example, if the existing bid on an item is £1, but you do not want to sit by your computer as the clock ticks down, you can choose your maximum bid and the system will update the price in increments in hope of getting you the item at the lowest price.
If you successfully place the winning bid for an item then you will usually receive a confirmation via email.
It will then be down to yourself and the seller to arrange payment and delivery between you.
Selling
Selling an item on an auction site like eBay, will usually require making a listing for your item.
This can involve giving it a title, writing a detailed description of your item, adding a photograph, placing it in a category which includes similar items and deciding on the starting bid.
You will also have to enter the location of your item, decide how much to charge for delivery (or whether you will allow the buyer to collect it themselves) and your preferred method of payment.
If your item sells then it is down to you to organise payment and delivery with the successful buyer.
Do not worry if your item fails to sell, you will not be charged a valuation fee and you can always list it for free a second time as long as it sells the second time around.
The requirements
The buyers and sellers at online auctions form a very large community of people from different parts of the world. You have to sign up as a member before you can start to explore the opportunities that will enable you make money through online auctions.
Online auctions can be very lucrative but you should not expect to succeed overnight. You will have to overcome some obstacles on the road. It will take some time to build your credibility and you will not make much money at the initial stage. You will also need some time to find out the strategy that works best for you.
The starting point
Once you have registered an account, it is important to take some time to become familiar with the features of the website. You should also read through the rules and regulations.
Visit the categories that you are interested in to find out the items that are selling fast and the prices that they are sold for. This will enable you to know the amount of money that you can expect to make money through online auctions.
How to start with little or no investment
You can begin to make money through online auctions by selling items in your home that you no longer need. Try your hand at selling a few items so that you can start gaining some experience.
You can gradually increase your lists as time goes on. If you stick with a particular group of items, you will soon become an expert in those products. People in the auction world will start to associate you with those items.
You can increase your knowledge about auctions by checking out sellers on the website who sell similar items. You can study their strategy and try to find out how to compete with them. This is very important if there are a lot of established
sellers in your category.
Use the right strategy
Your success with online auctions is largely dependent on the type of marketing strategy you use. Your marketing starts with putting up attractive listings. If you really want to earn a living through online auctions, you have to take time to create attractive listings.
The best listings are accurate and they include very clear pictures of the items that are being sold. Photos are very important and you should ensure that they are included in all of your posts.
Prospective buyers will be more comfortable if they are able to see an image of the item that they want to
buy. You can also use other strategies such as promos, freebies, combined items, free shipping and so on in order to attract a lot of bidders.
Buy low and sell high
It is the same as with any business; reduce your overheads and sell at the best possible price to maximise your profits.
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Here is our top tips of how you can apply those principles to the world of online auctions:
How to buy low
- Try searching for misspelled words or even American spellings like ‘color’ instead of ‘colour’. If people cannot find an item then they cannot bid on them and drive the price up.
- Always take into account additional costs like delivery charges before bidding on an item.
- Just because an item is on eBay, do not always assume that it is a bargain – always check the price elsewhere online.
- Bid early* and you alert other buyers to your interest, forcing the price up.
- With an estimated 15 million users, eBay is by far the most popular auction site on the web. Buying from a less popular site like eBid could help you pick up a bargain.
How to sell high
- If you are just starting out, buy a few cheap items to build your feedback up – some buyers and sellers do not like dealing with newbies.
- Finding things to sell on auction sites is not just limited to the contents of your cupboards or garage.
- Brand new items always sell better. If you receive an unwanted DVD or video game always leave them wrapped in their original cellophane packaging.
- We all know that people love to buy brands. If you are selling Nike trainers or a Toshiba TV, make sure you mention it in your item’s title.
- Everyone knows someone who is an eBay whizz. Why not get them to sell your stuff for a cut of the profits?
- List at times so that your auction ends when people are at home – Sunday afternoons or evenings and Mondays tend to be the busiest.
- Take advantage of free listings days which sites like eBay often run at weekends.
- Think like the buyer and use the words that people will search for in your item’s title.
- The lower your item’s starting price is, the more likely you are to sell it.
- Do your research – What have similar items sold for? What kind of descriptions sell? What key words have successful sellers used in their titles?
- Spell check your listing – you do not want someone else profiteering from your mistake.
- By knocking a penny off your £15.00 starting price and listing it as £14.99 instead you could save you on fees.
- Avoid listing and valuation fees altogether by using a free classified ads service like
So there you have it. If online auctions are an area that interests you, the tip above can be of great help in getting started and making a live.
