Simple ways to improve your eBay auctions

One man’s rubbish is another man’s treasure, and online auction site eBay has become renowned as a goldmine of goodies, selling everything from cars to computer parts. But while it’s easy to pick up a bargain, selling is a whole different ball game. So whether you want to make some extra money from your unwanted tat or start a new online career, we’ve enlisted the help of an expert to find out how to make a mint from eBay.

Chris Dawson is a ‘power seller’, which means he’s ranked as one of the top sellers on the site. Three years ago he started his company Mountcomp, which trades only on eBay and is his sole source of income. “Absolute beginners who want to get started should just get out there and buy things,” he advises. “You don’t have to spend much money, but you’ll become familiar with the processes of eBay.”

There are loads of gadgets available for the Windows Vista Sidebar to help you maximise your eBay presence. One available from www.auctionwatchgd.com, for example, enables you to track the progress of any auctions you nominate. This is a great tool for sellers who want to watch the competition, as well as buyers watching specific items they’re interested in.

“When you’re ready to start making money from eBay, it’s a really good idea to get some practice on small items before you go ‘big’,” advises Chris. “Sell some unwanted stuff, such as DVDs you don’t watch any more, to get to know the processes of selling, and any logistical problems such as getting your packaging and stamps.”

It’s a case of practice makes perfect and can involve a bit of trial and error to begin with. “My first experience of selling involved an unwanted gift which I had bought on eBay. The sale ended in a substantial loss, mainly because I blundered my way through it with no thought at all. Luckily, with a little knowledge and planning, I discovered that making a profi t is surprisingly easy.”

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There are a number of charges applicable when selling on eBay, and after everyone has taken their cut your profit can be seriously diminished, so it’s a great idea to look at the fees beforehand and price your product accordingly. The charges are too extensive to be listed here but follow a general pattern: a fee will be levied depending on which band the starting price of your item falls in.

The easiest way to reduce these fees is to start your price below a particular threshold. For example, if you want to start your auction at around £5 drop it to £4.99, which will save you up to 20p in fees. The saving may seem nominal but reducing any of the selling fees means that you can maximise your profit potential. eBay will also charge a percentage of the fi nal bid price, plus extra for marketing tools such as pictures and bold outlines for listings.

If you use PayPal, the payment transfer system started by eBay, you’ll be charged an additional transaction fee. Many people are critical of PayPal for taking fees but Chris thinks the fee is worthwhile. “Lots of people get upset about the PayPal charges, but getting paid instantly for your goods takes a lot of the headaches away,” he says.

Image conscious

There are a few more things you can do to maximise your profits. All auctions need a photo of the item being sold to accompany it, for reassurance purposes. A good photo will make your item stand out among competitors, while a bad one means your auction will die an unprofi table death.

Make sure you take the time to clean up your item and present it well in the picture. Invest in some white card for a neutral background and take a good shot, perhaps accompanied by some close-ups. When advertising on eBay you have to pay more for extra pictures, so only provide more if the item warrants it.

Try snapping your wares outside on an overcast day, when the light is more even. Don’t take photos indoors, with the flash on: your item will look as appealing as a dog-eared novel at a car boot sale. The attributes of your picture can also be changed when you open it in Windows Photo Gallery: a slight change to the colour temperature can make your image look warmer and the colours look even better.

Profit potential

Once you have your first few sales under your belt and the eBay bug firmly manifested in your psyche, you may feel you want to start making real profits. Lots of people buy in stock to resell on eBay and as long as you have access to cheap goods, this is a great way to make a fast buck. Remember, though, that you must first declare your intentions to the Inland Revenue. As soon as items are bought to be sold, your hobby has now become a business – and the taxman searches eBay looking for frequent sellers.

“Anyone who wants to make a living out of eBay needs to appeal to a niche market,” says Chris. “If you’re buying in stock, be individual and supply something no-one else has – although try to make it something that you’re knowledgeable about. The biggest mistake people make when they first start selling is to buy in things no one wants, or items that are too expensive. You need to know your market and the price you’re buying at.

Another mistake many new sellers make is accepting too little profit on their items. Making a couple of pounds per item is great but isn’t going to put you in the world’s rich list any time this millennium. Look to make at least 33 per cent of the price you bought it for, and you’ll have something to show for your efforts at the end.