Why Auctions

If you’re not failing now and
again, it’s a sign you’re playing
it safe.
Woody Allen

Why Auctions

If you have never sold a thing online I would definitely recommend an online auction. There
are some good reasons for it and the first is that is fairly simple. You can set up and learn
how to have an online auction for nothing. Ebay rules the universe in online auctions, so you
might as well start there. You definitely will get the most response. I like starting with
auctions for a couple of reasons. The first reason is it gives you an idea if your product is
desired. Consider the fact that the auction costs you basically nothing to start. If you
flounder or outright fail, all you really lost was some pride. (Don’t quit) However if you start
with a web page or a storefront, you would have had to put some money up front and that
would be money lost. (risk) So that’s why I start with Ebay.

The second reason is that auctions give you a taste of the Internet business without much
commitment. You could run several auctions for several months and suddenly decide you’re
not interested in the sales portion of Ebay anymore. It’s a great place to learn and that’s
definitely worth mentioning. I know a lot of people who believe in a mix of sales techniques.
After cutting their teeth on Ebay, they go on to web pages with shopping carts, Yahoo
storefronts, and sometimes tradeshows and business-to-business portals. These are all
good but most people realize it’s good to have a mix of all these. After all, Ebay does have 2
million shoppers a day.

Auctions are rapidly growing in popularity. The more people that start to use them, the more
credible they become. Remember when buying mail order was considered a high-risk
activity? Usually the items were of poor quality but priced well. How times have changed.
One of the reasons auctions are becoming so popular is because people collect things and
are always looking for a bargain. Why do people go to garage sales? Because they are
looking for a bargain. Bargains prevail and the chance at getting one certainly spurs our
online activities on.
The other reason we like shopping online is because it’s instant gratification. We can shop
around with the click of a mouse. We can compare prices on our own couches and when we’
re ready we just click to make our purchase. Imagine being able to buy a widely diverse
collection of goods in one store. That store would be the size of a small city and would have
to carry everything from baby items to automobiles. There are a plethora of opportunities for
a legitimate business. Some people start small on the side and others start with the full-blown
business plan.

Ebay

I am not going to waste your time by explaining how Ebay works. That is better left to other
sources. Like most opportunities, there are a large amount of truths and half truths. Most
people will claim that you can make a fortune using their course. I will not! Anything
worthwhile takes effort. Ebay is not the perfect selling machine, but if you have the facts
when you get started it will help you in the long run. EBay’s services page gives some great
tutorials on getting started. I also highly recommend “The complete idiots guide to online
auctions” by Michael Miller. It is very comprehensive and covers a ton of topics. (look for
one on Ebay or Amazon.com)

Ebay and Yahoo are the top two auction sites. But keep in mind there is more than these
two auctions. In fact new auction sites are popping up all the time. If you’re considering in
specializing in a particular item it would be wise to know all of what’s available. Also this list
will help you if you’re still trying to determine a product to sell.

One purpose of this article is to stimulate a plan for success through my mistakes and
extensive research.

I will not give you any commercial hype about how you can become a zillionaire by using
Ebay. This is intended to give you some tactics and more importantly stimulate some ideas
with some solid business advice. Think of it as sitting and talking to a friend who sells a lot of
stuff on Ebay and has learned a few things along the way.
The idea is to find a product that you like and figure out how to sell it and make some money
on the side. My goal started off to make some extra money to buy tools for my shop. I call
this the “found” money principle. The money I make does not come out of my budget and
thus is extra, available for spending, savings, kid’s education or paying down the mortgage.
You have your own reasons, so enough of mine.

I will give you some advice and steer you towards some research shortcuts, that way you can
work smarter. The key here is research, research, and research. I am my own victim of over
researching. I hate getting ripped off and pride myself in finding out all the information that
there is on a subject. I once spent the day in the New York Public Library looking up some
company information. I had to shuffle to two different locations in this vast library system.
The information that I found out was outdated and incomplete. There is no comparison to
the Internet today. The Internet is constantly updated and has tons more information. Even
the famous New York Library could not compete.

Web Sites

The alternative to starting with auctioning items is using web sites to show your items and
offer them for sale. See the E-commerce section for more information on these. Although
websites require a little upfront money and thought, they can be very lucrative. I generally
recommend starting with auctions and then add my online stores later. Using the auction
venue allows you to cut your teeth one sale at a time. You can learn a lot in a small amount
of time via the auctions. Auctions have the advantage of drawing the people to your item
based upon how well you write your ad and your item for sale instead of how many people
stumble across your web page or site.

Specialize

I recommend picking a category to specialize in. Pick something you like or are an expert
on. A friend of mine who got me into Ebay specializes in toys. Not only does he pick toys,
he specializes in a particular brand. He knows the brand and he knows his prices. His family
buys toys at local garage sales and they collect the parts. When he gets a set of something
he then sells them for a profit. Garage sales are great income generators. I myself love to
scour the classifieds of our small town looking for tool bargains. I bought a very nice lathe
for a good price and then listed and sold it on Ebay a week later for a $60 profit. $60 may
not seem like much but do that ten times and you have a nice chunk of “found” money. I
found that I had many items that I am interested in. I choose to specialize in tools and
workshop items because that is what I like. Besides by making my business legitimate, I can
now write off all my tools and accessories since it’s a business expense. I also enjoy the
other tax benefits of having a business in my home.

So do a little homework and specialize in something. Even if its tools, you need to narrow
down even more to a sub category such as hand tools. If you’re a craftsman, handmade
items do very well. A lot people like to get something they can’t get anywhere else. If you’re
good at it, you can definitely cater to a specialized audience and do well. I know one guy
who is the Norm Abrams type and can really build well. He likes to make cabinets and
Entertainment centers. He goes above the call of demand by making them with great quality
and unique finishes. The key word here is “unique” If you have a unique product you will be
able to sell it. Learning to make it better and cheaper is the fun of the system.

If I can impart one small word of wisdom, avoid the people that say they will make you six
figure incomes right off the bat. Any self-made person can tell you that you can’t get
something for nothing. Worthwhile things are not easy but are definitely achievable.

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