Participating in an online auction is among the various activities that became more accessible online that you should check out if you’re considering selling soon. Since almost all activities are now held online due to the pandemic, you might be eager to experience how it works.
Today, you’ll enjoy several benefits if you buy and sell online. For instance, there’s the unbeatable convenience that entices both consumers and sellers to utilize an online auction platform. Moreover, the internet has provided sellers with better tools, more options, and a wider reach.
What’s more, you don’t need an extensive inventory to start selling at an online auction. However, you do need to be familiar with what goes on in an online auction. So, if it’s your first time, here’s a few online auction selling advice to ensure a good start:
Be Familiar With The Trade
Before selling in an online auction, you need to know the basics. Doing so will prevent any confusion along the way and you won’t feel out of place. Thus, familiarize yourself with the following basic terminologies you’ll encounter in auctions to build a strong foundation:
- Auctioneer – A person who takes bids and closes the deal once the highest bid is made. Generally, you’re going to pay a pre-determined commission to the auctioneer, either a fixed fee or a percentage of the total sales.
- Hammer price – This refers to the winning bid. Once the auctioneer no longer receives a higher offer, the auctioneer closes the auction by dropping the hammer.
- Lot – This refers to the batch of products available for sale at an auction.
- Valuation – The assessment by the auctioneer on the current value of the item for sale
Although there are many terms you’ll encounter, these are the basics you need to understand first.
Look For The Right Platform
Today, you’ll find a vast selection of online auction sites. However, remember to be careful when selecting one that requires you to register. If you want a good experience on your first try at an online auction, checking out reliable online auction sites such as William George and others would be a good starting point.
Check the seller commission fees or other related charges. Don’t forget to look over the number of visitors present during their auctions. The more visitors attend, the higher the number of bidders will be.
Moreover, depending on the products you want to sell, the site you’ll choose must cater to various items. Some online auction sites specialize in electronics, luxury items, automotive, pet supplies, or real estate.
Prepare Your Products
In most auctions, you’re likely to find unusual and rare items. Depending on what you plan to sell, try to take a creative approach to boost the selling factor of your products.
Always remember that presentation is a crucial element when selling at an online auction. Make sure you’ll use and provide several high-quality photos. Take close-up shots of all the essential details, including photos of any components with damages or anything you want the buyers to know. Create a captivating title for your product and optimize the description in the best way possible.
Proper Price Structure
It would be best to decide on the price depending on your product’s estimated fair market value. A product with a standard retail price should serve as a fair market value. You can readily look up the product online to check on the average prices.
If your product doesn’t have a standard retail price, such as memorabilia, it’s best to consult the auctioneer or a professional to decide on a reasonable price.
After determining the fair market value of your product, set the minimum bid price to around 30% of this price. Setting below the 30% mark will not provide you with any returns. Avoid overpricing your opening bid as this might cause potential buyers to back out.
Indicate The Terms Of Sale
The terms of sale should be well-structured to ensure a hassle-free transaction. Cover all the crucial details such as the payment terms, warranty, returns and refunds, and order cancellation. By doing so, both parties can set expectations and fully understand their respective responsibilities. If either party breaches the stipulations, the terms of sale will serve as a reference.
Figure Out The Shipping Costs
Shipping your product to the winning bidder might entail significant shipping fees, so you need to determine the costs. If the shipping fee is too high, potential buyers are likely to back out. One approach worth trying is cutting the shipping costs by offering free shipping but including the charges in your product’s price. Buyers will be excited if you have a free delivery option.
Additionally, make sure to ship on time and ensure the item arrives in good condition. Doing so will guarantee customer satisfaction. Over time, satisfied buyers will continue to check what you have or even refer other buyers to you.
Final Thoughts
If you’re looking for a venue to sell products online, it might be time to consider an online auction. If it’s your first time selling at an online auction platform, you need to know the basics. By keeping these valuable tips in mind, you can ensure a good start for yourself when selling at an online auction.
