10 ebay auction tips - Part 1

1. First principle to making money with auctions

Pivotal principle of making money with auctions:

Don't purchase any inventory unless you know that you can get your money back selling it.

It sounds like commonsense .... it is, but there's no limit to how good you can get at it; and better you are, the more money you make.

Refine your expertise of buying low and selling high to the 'nth degree - develop a reflex and six sense for finding the deal that turns a profit.

Become a master at steering clear of the bad deal ...


2. Best product around

Nothing is more integral to your success with auctions than good research...

Your goal is to uncover a source that few know about.

Find the best items to sell and start tracking them down.

Some items are consistently "HOT", designated by a flaming torch on eBay and various other symbols elsewhere.

Wouldn't it be great if you could see some of these items firsthand?

You can, visit this link:
http://listings.ebay.com/aw/listings/list/featured/index.html

And scan around. Look for a text link called, " going, going, gone..."

Some of the absolute best items on the internet are revealed right before your eyes - view the listings and find out what people want.

This also gives you a quick glance into any current consumer trends. Use this info to help you determine the kind of products you'd like to sell...

Remember to look for the flaming torch. 30 or more is good; very few make it this high. When you find a Dutch auction with this many bids, pay special attention.

People really want this item. And you should really want to sell it.


3. Goal of owning your own product.

Your goal should be: to own your own unique and successful product.

Something you have complete control over, something you spin out of your creativity. This isn't easy, but it's well worth your efforts.

Unfortunately, this is far from being the case starting out. You sell something others own. Meaning your profit is always much less than what it could be.

When you cut out the middlemen, profit comes much easier.


4. Best kinds of product to sell.

The less cumbersome the fulfillment process the better.

Anything that you can have drop-shipped is a good candidate.

Information products, i.e. CD's, software, books and ebooks have the best potential online - but you need to be the maker.

Profit margins are high since they are easily reproducible.

Second, fulfillment costs are nil.

Warning: competition is fierce selling information products on eBay - you can make money doing it, but their virtue is that it's a steppign stone away from auctions.


5. Short term goals for new sellers

If you are new on eBay, then concentrate on these 4 easy short term goals.

Get experience selling some items from around your house. It's a confidence builder and crucial experience.

Acquire some other items for resell from difference sources such as family, friends, flea markets, online venues and so on. This helps you develop research skill in locating auctionable products.

Obtain 50 positive feedbacks to get a gold star. People start to trust you and bid more. This gives you Dutch auction access. Strive to keep your feedback slate clean...

And find a niche you have a passion for. Take some time to think this one over. It's important to make certain it's the direction you want to go in advance...


6. Getting started accepting payments

High percentage of auction goers pay immediately. Convenient payment methods exist for you to exploit.

Let's focus with selling on eBay - it's the only one matters to most folks...

Here's what you'll need to have:
- Checking/savings account
- Paypal account
- Driver's license (for ID verify if you choose to do it)
- eBay account

If you have this, then you can accept these essential pay types that hook right up to your bank account:
- Paypal
- eBay Billpoint
- eBay Electronic Checks

If you have a feedback less than 10, you may want to get ID verified for $5. This allows you to accept popular "Buy Now" payments.

Almost all payments are paid with these methods - funds go right to your account.

You can actually have money streaming in just a few short days of your first auction, depending on auction duration.


7. Merchant account, do you need them?

If you plan on doing business a good deal via a website, then the answer is yes.

Otherwise, you can get by without them.

Remember, auctions are just a really great form of getting customers,a popular venue amongst many others.

If you plan on expanding and becoming successful, you must have them, here's why:
- You can process a customer's credit card manually
- You can take orders over the phone. The person can call in their information.
- You get a huge boost in credibility. People trust you more - this results in more post auction sales.
- You can process orders automatically and securely on your website. This is the biggest reason long term.
- You can take advantage of sales that other sellers miss. That means more money for you, but...

Don't rush out and commit to them until you see clearly that they are going to benefit you.

The more business that comes directly off the eBay site the less you need them. The ebay auction marketplace is supersaturated with competitive payment services...

If you want to do business outside of eBay in the future then you should look into it.


8. Profitable pain & painless profits

Be mindful of what you sell in temrs of the amoun of sheer physical effort you have to do, unless you are industrious Hercules or something.

You are the embodiment of every department - executive, advertising, fulfillment, accounting, and customer support...

As a human being, if you aren't careful, you can quickly approach your limits with this if you get semi-successful with it.

Selling bulky and obtuse odds and ends for meager amounts alongside continual searching for inventory, product fulfillment, customer concerns, paperwork, etc... quickly leads to eBay burnout.

Leave yourself enough space in your business to improve your process and acquire better and better things to sell.

And...

Pay close attention to the amount of profir per sale for certain items.

Profit margins need to be healthy enough to justify time being spent doing the work.

If you are selling material goods with low profit margins, then prepare to work your tail off to get anywhere.

Only if you are able to generate decent return can you expect to make a good living at selling.


9. Sell eveything approach

Do you have unbounded enthusiasm and little patience? If so, auction will suit you. Approach: buy everything that you could sell for a profit.

You want to develop a good sense for finding one -

It's a perfect way for a novice sellers to learn the ins-and-outs of the process.


10. Focused selling approach

Reckoning day came - laziness set in after the initiation. Either you make things simpler or face disappointing career options.

Focused selling means - selling a few related types of items in volume and selling them well and taking advantage of your customer base.

This is an advanced approach to making money with auctions - few sellers get to this point because they remain on the level of hobbyists.

But those who become focused do quite well for themselves.