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Some answers for you... *PIC*

Posted By: Jim Wilson
Date: Thursday, 4 April 2002, at 7:07 p.m.

In Response To: New to auctions...many questions (Missy)

Hi Missy,

I will try to tackle your questions each one at a time...

Pricing and shipping are indeed difficult. The rule of thumb is simple though. The customer pays for their own shipping plus just a little extra to cover your cost getting the item to the shipper. And the item is priced with about 42% markup over what you paid for it.

Basically the item anyone is selling is worth exactly what someone else is willing to pay for it. But there are ways of making the item *seem* more valuable.
- make sure to include photos, and lots of them
- add some kind of bonus that noone else has. Anything small that's free can end up really making a difference.
- be very specific regarding your item in description and leave nothing to question. Also make sure your ad shows how to contact you.
- allow lots of ways to pay you. The easier it is for them to give you their money, the faster and more likely they will!

I have some great news for you. The USPS literally gives you everything you need....free. That is if you ship priority. Which is what you want to do because it will tell the customer that 2 or 3 days post payment they will have their item. Instant gratification goes a long way. You can go to the post office and ask for whatever you need. Tape, boxes of all sizes, labels, and all. If you call their toll free number they will even send them to you by the case. And the labels can be ordered with your name/address preprinted professionally on the return area to add to the credibility of you as a seller.

Postage...do I only charge actual postage or do I charge more? If I add a handling charge for having to physically go to the post office how much is reasonable. I wouldn't want the postage fees to scare off bidders.
Usually, for priority mail for my Cds, I charge $4.00. The actual cost is $3.50. I "make" $0.50 per shipment BUT...it takes time to package and label them. And gas and time to get them there. Making a little on the shipping is acceptable afterall it cost you money getting the item to them. Just make sure that your ad tells them up front how you ship and how much it will be. Word of warning...if you don't want to ship Internationally make sure to say this in your ad. I ship to Canada all the time but elsewhere is sometimes a bit of a hassle. Customers want their items in less than 6 weeks which is how long it took one item I sold to a guy in the outback of Australia to get his.

EBay is indeed the bargain hunter's dream. BUT...nothing can stop you from bargaining yourself. If you approach the manager of the store and ask "If I were to buy the entire stock of that item would there be any further discount?" The most they can say is no. As far as your pricing, as I said a good rule of thumb is about 42% over cost. This should cover your ads and time and allow a little extra for you. This does not sound like much if you are selling things for only $2 over what you paid. But...think small...be small. You need to think like a powerseller. Basically you will want to set the goal of selling 200 items per week at $2 profit or so per. That's $400 per week clear AND you would be building a client base to send more ads to for future specials.

Not a problem. Welcome to the world of online auctions! I sincerely hope that this reply helps you out...

Jim Wilson