Starting the auction bidding

The most generally accepted theory about starting bids is that setting the bidding too high scares away new bids. But again, the variable is based on how much the item is worth or even how much it costs.

Some sellers begin the bidding at the price they paid for the item, including known eBay and PayPal fees, thereby protecting their investment. This is a good tactic, especially if you bought the item at a price far below the current going rate on eBay.

To determine the current going value for your item, I recommend searching for the item through the sold listings, which I explain in Book 2, Chapter 1. If you know that the item is selling on eBay for a certain price and that there is a demand for it, starting the bidding at a reasonably low level can be a great way to increase bidding and attract prospective bidders to view your auction.

Years of advertising experience can’t be wrong. If your item is in demand and people are actively buying, start the bidding low. Retail stores have done this for years with ads that feature prices starting at $9.99 or $14.98.

When sellers know that they have an item that will sell, they often begin their bidding as low as 99 cents. Because of the eBay proxy bidding system (which maintains your highest bid as a secret, increasing it incrementally when you’re bid against), it takes more bids (due to the smaller bidding increments) to bring the item up to the final selling price.

The downside is that new bidders who aren’t familiar with the system may bid only the minimum required increment each time they bid. This can be frustrating, and they may quit bidding because it might take them several bids to top the current bid placed by someone who is familiar with the proxy bid system. eBay offers up a tip when the bidder places a bid that doesn’t meet the current bid in the system, as shown in Figure 2-1.

Very few of us remember the proxy increments by heart, so as a refresher, I give you the goods in Table 2-1.

Auction length

Another debatable philosophy is auction timing. People are always asking me how long to run auctions and what’s the best day to end an auction. You have to evaluate your item and decide which of the following is the best plan:

• One-day auction: Did you just get in a load of an item that sells as fast as you post it on the site? A Buy It Now feature on any auction can bring great results, but that will work only if the item is super-hot!

  If people are aggressively bidding up an item — and they really gotta have it — you may do best by starting the bidding low and listing the item with a one-day format.

  The best way to use a one-day listing is if your item is time-sensitive, for example, event tickets, airline tickets, vacation packages, or tee times. A one-day listing gives you the immediacy — and the time to ship a physical ticket — if necessary.

  Short-term auctions (1-to-3-day) incur an additional “Special Duration” $1 fee.

  When you list in a one-day format, your listing goes right to the top of the Time: Ending Soonest sort. Many savvy shoppers view their searches by Listings Ending First (rather than the eBay default of Best Match). With a one-day format, you can pretty much choose the time of day your item will be at the top.

  This format can also be successful if you have an item that’s the current hot ticket in pop culture. I used this format when I sold some Friends TV-show memorabilia a while back. The 24-hour auction opened at midday before the final episode of the show — and ended the next day — at a healthy profit!

  Buy It Now pricing must be at least 30 percent over your listing’s starting price.

• Three-day auction: If the item’s price will shoot up right after you post it, a three-day auction works just fine. And it’s great for those last-minute holiday shoppers looking for hard-to-find items.

  A three-day auction is good, for the same reasons that a one-day auction is good — only it’s better for the faint of heart and nervous Nellies (like me) because it gives your item more time on the site — more of a chance to sell.

  With the Buy It Now feature, you can pretty much accomplish the same thing as you would with a short-term auction. When you list your item for sale, set a price at which you’re willing to sell the item immediately; this is your Buy It Now price.

• Five-day auction: A five-day auction gives you two days more than a three-day auction and two days less than a seven-day auction. That’s about the size of it. If you just want an extended weekend auction or your item is a hot one, use it. Five-day auctions are useful during holiday rushes, when gift-buying is the main reason for bidding.
• Seven-day auction: Tried-and-true advertising theory says that the longer you advertise your item, the more people will see it. On eBay, this means that you have more opportunities for people to bid on it. The seven-day auction is a staple for the bulk of eBay vendors. Seven days is long enough to cover weekend browsers and short enough to keep the auction interesting.

• Ten-day auction: Many veteran eBay sellers swear by the ten-day auction. The extra three days of exposure (it can encompass two weekends) can easily net you extra profits.

  A ten-day auction is good for special collectibles or an expensive item that isn’t normally on the site. Putting up a ten-day auction (start Friday night so you get exposure over two weekends) is a near-perfect way to attract bidders.

Your auction closes exactly one, three, five, seven, or ten days — to the minute — after you start the auction. Try not to begin your auctions when you’re up late at night and can’t sleep: You don’t want your auction to end at two in the morning when no one else is awake to bid on it.

The specific day you close your auction can also be important. eBay is full of weekend browsers, so including a weekend of browsing in your auction time is a definite plus. Often auctions that end late Sunday evening through Monday close with high bids.

You’ll need to do some research to determine the best times to run your auctions and for how long. The best person to figure out the closing information for your auctions is you. Use the tools and, over time, you’ll work out a pattern that works best for you.

Automotive? Go eBay Motors

Anything and everything automotive can go in the eBay Motors category (see Figure 2-6), and it will sell like giant tires at a monster truck rally. Following are just a few of the car-related items that fit in this category.

Cars

Yes, you can sell cars on eBay. In fact, used-car sales have skyrocketed online thanks to all the people who find eBay to be a trusted place to buy and sell used vehicles. The most expensive vehicle ever sold on eBay was a 1959 Ferrari 250 GT California; it sold for $3,260,100. Sold via the mobile app was a Mercedes SLR McLaren for $240,001. (I told you those odd amount bids can make a difference.)

Selling vehicles on eBay is a natural business for you if you have access to good used cars, work as a mechanic, or have a contact at a dealership that lets you sell cars on eBay for a commission or on a consignment basis. (For the ins and outs of consignment selling, check out Book 4, Chapter 3.)

To complete your sale, eBay Motors features Vehicle Purchase Protection that covers up to $50,000, vehicle history reports, vehicle inspection and escrow services, and one-click access to vehicle shipping quotes from uShip. Access eBay Motors and its services from the eBay home page or by going directly to www.ebay.com/motors.

Different fees apply when you sell a vehicle on eBay Motors nationally. To encourage sellers to list and sell vehicles on the site, eBay has set up a tiered system of fees. The first six vehicles you list in a 12-month period are charged no insertion fees, but have a higher transaction fee when the sale is successful. The fees are based on the final selling price. Take a look at Tables 2-3 and 2-4 for significant differences.

Category	Insertion Fee	Sale of up to $2,000	Sale over $2,000
Cars & Trucks, RVs & Campers, and Commercial Trucks	Free	$60	$125
Motorcycles, Powersports, Trailers, and Boats	Free	$60	$125
Powersports under 50cc	Free	$10	$10
All other vehicles	Free	$60	$125

Category	Insertion Fee	Sale of up to $5,000	Sale over $5,000
Cars & Trucks, RVs & Campers, and Commercial Trucks	$50	Free	Free
Motorcycles, Powersports, Trailers, and Boats	$20	$30	$60
Powersports under 50cc	$10	$10	$10
All other vehicles	$20	$30	$60

Although many people who have found the vehicle of their dreams on eBay are more than happy to take a one-way flight to the vehicle location and drive it home, shipping a vehicle is a reasonably priced alternative. On your listing, eBay can supply a link to give you a quick estimate of shipping fees to the buyer’s Zip code. Figure 2-7 shows the estimates I got to ship a car from Indianapolis, Indiana to Northridge, California.

Here are just a few things to keep in mind if you plan to sell cars on eBay:

• To sell a vehicle on eBay Motors, you must enter the Vehicle Identification Number (VIN) on the Sell an Item page. This way, prospective buyers can access a vehicle history report to get an idea of the condition of the car.

• An item that you’ve listed on eBay Motors will appear in any search, whether a potential buyer conducts a regular eBay search or a search in eBay Motors.

• If your reserve isn’t met in an eBay Motors auction, you may still offer the vehicle to the high bidder through the Best Offer option. You may also reduce your reserve during the auction if you feel you’ve set your target price too high.

Real estate: Not always an auction

eBay Real Estate at www.ebay.com/realestate isn’t always an auction. Because of the wide variety of laws governing the sale of real estate, eBay auctions of real property are not legally binding offers to buy and sell. However, putting your real estate on eBay (see Figure 2-8) is an excellent way to advertise and attract potential buyers. When the auction ends, neither party is obligated (as they are in other eBay auctions) to complete the real estate transaction. The buyer and seller must get together to consummate the deal.

Nonetheless, eBay real estate sales are popular and the sales are growing by leaps and bounds. You don’t have to be a professional real estate agent to use this category, although it may help when it comes to closing the deal. If you know land and your local real estate laws, eBay gives you the perfect venue for subdividing those 160 acres in Wyoming that Uncle Regis left you in his will.

For less than the cost of a newspaper ad, you can sell your home, condo, land, or even timeshare on eBay Real Estate in the auction format. You can also choose to list your property in an ad format, accepting not bids but inquiries from prospective buyers from around the world. On the Sell an Item form, you must specify special information about your piece of real estate.

In Tables 2-5 and 2-6, I provide a listing of fees that you can expect to encounter on eBay Real Estate. Note: When your listing sells in the Land, Manufactured Home, and Timeshares for Sale categories, you’re charged a Notice Fee of $35.00.

Is what you want to sell legal?

Although eBay is based in California and therefore must abide by California law, sellers do business all over the United States. Therefore, items sold at eBay must be governed by the laws of every other state as well. As a seller, you’re ultimately responsible for both the legality of the items you sell and the way that you transact business on eBay. Yes, you can sell thousands of different items on eBay. But do you know what you aren’t allowed to sell?

The eBay User Agreement outlines the rules and regulations regarding what you can and can’t sell, as well as all aspects of doing business on eBay. If you haven’t read it in a while, do so. You can find it at the following address:

http://pages.ebay.com/help/policies/user-agreement.html

eBay’s policies can change from time to time. As an active seller, you should make sure that you’re notified of any changes. You’ll be notified when eBay makes changes to the User Agreement, through your eBay Message Center.

By now, you should have a firm grasp of the rules and regulations for listing items. But in addition to knowing the rules for listing items, you must consider the items themselves. In this section, I detail the three categories of items to be wary of: prohibited, questionable, and potentially infringing. Some are banned, period. Others fall in a gray area. You’re responsible for what you sell, so you’d better know what’s legal and what’s not.

If you’re found in violation of eBay’s listing restrictions, you may be penalized in a variety of ways, including

• Listing cancellation
• Limits on account privileges
• Account suspension
• Forfeit of eBay fees on cancelled listings
• Loss of PowerSeller status

Prohibited and restricted items

A prohibited item is banned from sale at eBay. You can’t sell a prohibited item under any circumstances. Take a look at the upcoming list. A little common sense tells you there’s good reason for not selling these items, including liability issues for the seller. (For example, what if you sold alcohol to a minor? That’s against the law!)

Restricted items involve more shades of gray. They may involve the sale of dangerous or sensitive items that may not be prohibited by law. eBay sets these limitations as a result of input by members of the eBay Community and others. eBay has a strong Offensive Material Policy which covers items of merchandise that “promote or glorify hatred, violence, racial or religious intolerance, or items that promote organizations with such views.” As you can imagine, this is a slippery slope for some sellers.

The following is just a partial list; the current complete list can be found at http://pages.ebay.com/help/policies/items-ov.html

• Adult Material
• Alcohol*
• Animals and wildlife products
• Art
• Artifacts, grave-related items, and Native American arts and crafts
• Counterfeit currency or stamps
• Counterfeit items
• Credit cards
• Drugs and drug paraphernalia
• Embargoed goods from prohibited countries
• Firearms, ammunition, replicas, and militaria
• Government IDs and licenses
• Human remains and body parts
• Lockpicking devices
• Lottery tickets
• Mailing lists and personal information
• Medical devices
• Multilevel marketing
• Postage meters
• Prescription drugs
• Recalled items
• Satellite and cable TV descramblers
• Stocks and other securities**
• Stolen property
• Surveillance equipment
• Tobacco
• Travel***
• USDA-prohibited plants and seeds

*No alcoholic beverages can be sold on the eBay U.S. website, except for pre-approved sales of wine.

**Old or collectible stock certificates may be sold, provided that they’re canceled or are from a company that no longer exists.

***All sellers wanting to rent out their own lodging must first register with eBay Travel verification.

Check the following address for updates:

http://pages.ebay.com/help/sell/questions/prohibited-items.html

Questionable items

Determining whether you can sell a questionable item is tricky. Under certain circumstances, you may be able to list the item for sale at eBay. To fully understand when and if you can list a questionable item, visit the links that I highlight in Table 2-7.

Potentially infringing items

Potentially infringing items follow a slippery slope. If you list a potentially infringing item, you may infringe on existing copyrights, trademarks, registrations, or the like. Get the idea? These items are prohibited for your own protection.

Items falling under the “potentially infringing” category are generally copyrighted or trademarked items, such as software, promotional items, and games. Even using a brand name in your auction as part of a description (known as keyword spamming) may get you into trouble.

Repeating various un-trademarked keywords can get you in trouble as well. eBay permits the use of as many as five synonyms when listing an item for sale. A permissible example of this might be: purse, handbag, pocketbook, satchel, and bag. Adding many un-trademarked keywords would cause the auction to come up in more searches.

Duplicate listings

Remember the old supply-and-demand theory from your economics class? When people list the same items repeatedly, they drive down the item’s going price while ruining all the other sellers’ opportunities to sell the item during that time frame.

eBay allows you to list as many identical auctions as you want, but only one without bids will show on eBay at a time. And you may not have more than one listing of a fixed-price item. Sellers who want to “game” the system in this way, by listing a huge number of the same item, need to think twice.

eBay policy states that the display of multiple identical items from the same seller will be limited to only one at a time without bids in search results. So what’s the point? If you’re going to list an item that many times, at the very least be sure to list it in different categories. That’s a rule, but it also makes sense. Nothing drives down the price of an item faster than closing identical auctions, one after another, in the same category. eBay also requires that you list your item in a category that’s relevant to it.

State it up front: Drop-shipping and product-sourcing listings

In many situations, being the first seller to put a popular item up for sale can get you some high bids. And if you can guarantee in your auction description that the item will be available to ship within 30 days of the purchase or the auction closing, you can sell items from a product sourcer or drop-shipper. However, if you’re not completely sure that you’ll have the item in time, I don’t recommend that you even attempt such a listing.

Before you set up such listings (for presale or drop-shipping), check out the Federal Trade Commission 30-day rule covering these matters, which you can find at the following address:

www.ftc.gov/tips-advice/business-center/guidance/selling-internet-prompt-delivery-rules

Ix-nay on bonuses, giveaways, raffles, or prizes

Because eBay sells to every state in the United States, it must follow explicit laws governing giveaways and prizes. Each state has its own set of rules and regulations, so eBay doesn’t allow individual sellers to come up with their own promotions.

If your auction violates this rule, eBay might end your listing.

Search and browse manipulation by keyword spamming

Keyword spamming happens when you add words, usually brand names, to your auction description that don’t describe what you’re selling (for example, describing that little black dress as Givenchy-style when Givenchy has nothing to do with it). Keyword spamming manipulates the eBay search engine by including an unrelated item in the listing for a copyrighted or trademarked item, and then diverting bidders to an auction of other merchandise. Sellers use keyword spamming to pull viewers to their auctions after viewers have searched for the brand name. To attract attention to their listings, some sellers use not or like along with the brand name, such as like Givenchy.

Here are the problems with keyword spamming:

• It’s a listing violation and causes your auction to fall under potentially infringing items for sale on eBay. The wording you choose when you run this kind of auction manipulates the eBay search engine and prospective bidders.
• It’s frustrating to the potential buyers trying to use the search engine to find a particular item, and it’s unfair to other eBay sellers who’ve properly listed their items.

Keyword spamming can take many forms. Some merely mislead the prospective bidder; others are infringements on legal rights. A few of the most common are

• Superfluous brand names in the title or item description
• Using something like “not brand X” in the title or item description
• Improper trademark usage
• Lists of keywords

• Hidden text

  This violation is often white text on a white background or hidden text in HTML code. The white text resides in the auction HTML, so it shows up in the search but is not visible to the naked eye. Sneaky, eh? And prohibited.

• Drop-down lists

To get the latest on eBay’s keyword spamming policy, go to

http://pages.ebay.com/help/policies/search-manipulation.html

Limited linking from your listings

Few issues set sellers to arguing more than eBay’s rules on linking. In your auction item description, you can use the following links:

• One link to an additional page that gives further information about the item you’re selling, such as product videos, freight shipping services, and other legally required information.
• A link that sends a member to eBay messages so that the buyer can send you an email.
• Links to your other listings on eBay.
• One link to your Profile page, besides the link next to your User ID that eBay provides.

Here’s where you can get the official (ever changing) word from eBay:

http://pages.ebay.com/help/policies/listing-links.html