auction question

[mg59-8]

can someone let me know what the best way is in selling on a auction.  for example starting bid is .99  and no one bids on it, then some buyer  comes along and decides they want to purchase item paying only for shipping?  this is now a sold item.??

[hartungcards]

I'm pretty sure that if someone only pays for shipping, then you haven't sold it, you've given it away.

[titipeo]

If no one bids and auction end nothing is sold.

[klhmdg · Accepted solution]

you started the baskets at .99

there was 1 bid for .99

you sold for .99

The listing in the title has "free shipping" BUT you are charging shipping in the listing.

You need to send the baskets for .99 WITH free shipping.

[hartungcards]

I've done the math on that one, and I believe that results in a negative payout.

[allen1853]

The best way to sell in an auction on eBay is not sell in an auction. The auction format is no longer a hot bed of activity. It is mostly buyers who want to snipe items at the last minute. With few exceptions there are no bidding wars. Your best bet is to set a reasonable price for your "baskets", sell fixed price and either include an amount for shipping in price or charge shipping. To establish a fair price search SOLDS on eBay. 

[caldreamer]

Better to have "buy it now" prices (at least that way "you get paid" when customer purchases item).    Too often with "auction or make an offer" (customer will bid and never follow through and pay).

Only time auctions make sense is if you have a "rare item" that everyone in the world wants to bid on.  

99 cent auction would be a disaster.   EBAY charges fees on (purchase price + shipping + sales tax) plus 30 cent handling charge (with 1 bidder you would lose money).   Plus there would be additional fees for international buyer or promoted items.

[reallynicestamps]

Your starting price should cover all your costs.

Most auctions get only one bid.

Because auctions are not popular with buyers. Auctions make up less than 15% of transactions, but are ten times as likely as a fixed price listing to end with an Unpaid Item.

If you get only one bid, but you started with a price that covers your costs, you won't make money but you won't lose any either.

EBay is one of the very few generalist online sites still offering the auction format.

I firmly believe they only retain Auctions because that is their 'brand'.
It is noticeable that eBay encourages new sellers to go for auctions.

And we meet many of those who feel they are doing something wrong, even though they followed eBay's advice.

EBay's advice is good for eBay, not for members.

EBay is not your friend, eBay is your landlord.

[reallynicestamps]

Many newbies don't really understand what their costs are.

There is procurement cost- what you paid for it.

There are listing fees- most listings are Free, but there are some (mostly useless) options like Auction Reserves that are non-refundable.

There is a non-refundable service fee on a sale of 30c.

There are Final Value Fees charged on the selling price, plus the shipping cost, plus any sales tax the buyer pays. Usually this is 12.9% of your buyer's total payment, but in some categories, like Books, it is 15% and in a few it is lower.

[714ricki]

Don't offer free shipping & try to start the bidding at your lowest wanted profit point. If you feel the item is going to receive lots of attention and lots of bids, then you can risk starting the bidding at $0.99. Either way, you will have to make a business decision!!

[albertabrightalberta]

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@mg59-8 wrote:

can someone let me know what the best way is in selling on a auction.  for example starting bid is .99  and no one bids on it, then some buyer  comes along and decides they want to purchase item paying only for shipping?  this is now a sold item.??

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You messed up on that Longaberger listing. 

With "free shipping" in the title and his winning 99 cent bid, your buyer expects to get the item for a total of 99 cents (plus whatever tax his state charges). 

ETA: BTW, what happened to the previous November sale of the same Longaberger baskets with "free shipping" in the title and $8 shipping being charged?

[tdrake]

Starting auctions at 99 cents is not a strategy for anyone that doesn't already understand the possible outcome.

Back in the wild early days I started hundreds of auctions at 1 cent and made huge $$$'s. Those days are long gone. For that matter the auction format is long gone, nowadays it's just a tool to use for certain items in certain circumstances, and for some who have a business model that supports it. 

IMO 9 out of 10 sellers using auctions ought not to be, BUT to each his/her own and I wouldn't dream of stopping them.

[soh.maryl]

Perhaps you need to take more time to study about selling on eBay before you list anything else. 

[mrprox]

This comment from caldreamer is worth considering:

>>Only time auctions make sense is if you have a "rare item" that everyone in the world wants to bid on.  

99 cent auction would be a disaster<<

I agree with that statement, however in defense of the auction format, I offer this - 

I've done well with auction listings on various music/pop culture rarities and the like - however I *never* list anything that's worth less than $10 (maybe $8 on occasion). It's just not worth it with the various Ebay fees (which I have no problem with, btw) and the cost of shipping materials, not to mention my time.

I also do *not* offer free shipping, which probably limits the number of bids I get, but for the kind of stuff I'm selling I feel is justified, and I'm not making a living on Ebay selling so I'm not overly concerned if something sits for a while. Generally speaking, I'll relist an item 2 to 5 times (not on consecutive weeks) as an auction before I give up and put it up for a cheaper 'buy it now' or just keep it to sell at the next local swap meet, or donate it to Goodwill.

As so many people have said in this forum, so many times - read the tutorials! All the info is there if you take the time to seek it out - Ebay can be complicated, and knowledge is power.

Mr. Prox

[coolections]

I have to assume you have never gone to an auction before. Yes, an auction starts at the price you start it at and continues until the time runs out. Whatever the final highest bid was is what the buyer pays. If you want to start an auction at 99 cents make sure it is at least a 1 Oz. silver coin or something you know will get close to what you want in price.