Increasing Sales with Online Auctions

By Anna Traylor

Originally considered a fad for individual Web shoppers, online auctions have gradually been attracting small and large businesses from all markets around the world. With low fees for sellers and membership in the tens of millions, sites like eBay provide an ideal channel for increasing both buzz and sales.

Auctions are an excellent way to reach out to a broader audience and build lasting relationships.

Auctions provide the chance to build your customer base. Given that an estimated 80% of your business will come from repeat customers, auctions are an excellent way to reach out to a broader audience and build lasting relationships.

Not sure if your pricing structure is optimal? Use auctions to find out what people are willing to spend.

If your inventory isn't moving as quickly as you expected, move it off the shelves to eager bidders. You may not get your original price, but you will make room for new inventory.

Online auctions often attract shoppers looking for a special product. By getting your merchandise in the auction format, your name may get to that particular niche market you were unable to find through your site or store.


Before your business goes on the online auctioning block, be sure to consider the following:

• Product Selection: Determine which items you want to sell based on your potential profit and your interest in selling the product.
• Cost vs. Benefit: How much will the product cost you to sell, including auction fees? How much can you reasonably expect to sell it for? If the ends don't justify the means, you may want to reconsider your options.
• Supply and Storage: Is the item you plan to sell available, or will the buyer have to wait to receive it? Do you have space to keep inventory of the products you want to sell, or will that be an additional cost?
• Packing and Shipping: Consider what's involved in packing and shipping to customers. Are the products fragile or do they require special handling, meaning more time and energy on your end? If so, you probably want to include an additional charge for handling.

Which Site?

eBay is among the most-trafficked sites on the Internet and has three million items listed in 3,000 categories, getting 1.5 billion page views per month.

eBay is among the most-trafficked sites on the Internet and has three million items listed in 3,000 categories, getting 1.5 billion page views per month (Neilson Ratings). Although it holds more than a 60 percent share of the market, it may not be the best choice for your business.

Do your homework to see where you best fit in.

Yahoo! Auctions or Amazon.com Auctions may offer a better setting for your product, so do your homework to see where you best fit in . In addition to these sites, there are hundreds of others for specialized items. Check the item quantities and bidding amounts for products similar to yours to get a feel for the demand at that Web site.

You don't need to know any coding, you don't need special software, and you don't need a merchant account.

Using online auctions to sell your products is incredibly simple. You don't need to know any coding, you don't need special software, and you don't need a merchant account. Individuals around the world have made their living on auction sites with only a computer, printer, digital camera and Internet access.

Pre-Selling Checklist

• Visit the sites you are planning to use.
• Check out the various product categories, the item descriptions and the registration process.
• Bid on items so you'll understand the process that shoppers go through. This will not only help you decide which auction site is best for your business, but it will also put you in the shoes of the bidder so you'll be able to target your descriptions better.
• Be sure to spend time looking over the ÒHelpÓ section or FAQ of auctions to learn about different types of auctions, rules for bidding and selling, and general regulations.

As online auctions grow as business ventures for individuals and companies alike, more books are popping up in stores on how to be successful. Do some additional research with these guides on the finer nuances of online auctioneering.