Making the most of eBay
17 Sep 2013
Want to buy and sell from the comfort of your own home? Online auctions on eBay work wonders to keep your financial pocket healthy.
History
eBay, originally named AuctionWeb, was created in 1995 in computer programmer, Pierre Omidyar’s living room. The site was designed as a community that brought together buyers and sellers in an honest and open marketplace.
Initially Omidyar saw it as an experiment to analyse the impact of equal access to a global marketplace.
The first surprising result was the sale of a broken laser pointer for $14.38. Within two years AuctionWeb grew to 41,000 globally registered users trading merchandise to the value of $7.2 million.
Today the value of the merchandise bought and sold on eBay is more than $67 million, which excludes the sale of cars through the sites eBay Motors marketplace. The total net-profit for the company last year was $718 million, a growth of 14 per cent year-on-year.
On top of financial growth eBay has become far more than a marketplace to auction second hand goods. Author of eBay guide The New eBay, Todd Alexander says that when he first started working at eBay 12 years ago it was only known as the second hand auction site. Alexander says today, more than 80 per cent of everything sold on the site is brand new and sold at Buy it Now by professional sellers.
“Our technology has also evolved,” he says. “These days you can tailor your own experience by saving your favourites and re-configuring your homepage to only show products you are interested in. A faster checkout process and eBay app also means you can conveniently find and make a purchase anywhere, anytime.”
Why use eBay
Because of the volume of buyers and sellers who frequent the site, eBay offers great opportunities to score a bargain or close a quick sale. Each month more than seven million potential buyers visit the website and millions of products are listed by sellers competing on both price and service.
Before beginning your search, be sure about what you’re looking for and how much you’re willing to pay.
Alexander recommends starting with a broad search term and then using the search filters to narrow the product range down.
Once you have found the product you’re interested in, read the product description closely, inspect every image and review the seller’s terms of sale. “The key is to look for overall value, rather than just the cheapest price,” he says. For over 55s who are new to eBay, Alexander advises seeking guidance from family and friends.
“Often the best way of learning is to sit with someone and watch them buy and sell.”
Buy it Now versus Auction
There are two ways to purchase on eBay.
Buy it Now products are advertised at a set price and are great if you want the item as quickly as possible. If you are looking for a Buy it Now option, Alexander recommends checking out the deals link on the eBay homepage.
Here you’ll find discounted Buy it Now products, mostly with free postage, being sold by professional sellers.
The second method involves bidding in an auction, which while more time consuming, can be a great way to nab a bargain. To save you time eBay offers a function where it will automatically bid on a product for you up to your pre-determined maximum amount. Whether you are manually or automatically bidding, Alexander stresses the importance of deciding on a maximum amount as winning auctions can become addictive.
How to sell on eBay
If you’re looking to sell rather than buy, Alexander offers four simple rules that define good seller behavior
- Multiple photos taken from different angles. “We know from our research that good photos are the first thing that appeals to buyers.”
- Have a relevant product title. “In the case of a dress list the size, colour, material, style and length.”
- A comprehensive item description. “Be honest about any flaws and include all service information in your listing.”
- Offer great service. “This is the golden rule and means treating your buyers with respect.”
How can you be assured of quality?
The best way to be sure you’re buying a quality product is to do your research. Read everything you can about the product, examine all the photographs and if you’re unsure about anything don’t be afraid to ask the seller questions.
You should also review the seller’s trading history, which includes feedback on product quality and service from customers who have bought from them before. Using a safe payment method such as PayPal also offers eBay users a level of protection if they don’t receive the product or it turns out to be different to what the seller described.
Most importantly, look at how the seller presents him or herself. “Look at the way the seller talks about the product and their willingness to offer additional services,” says Alexander.
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