How to Start Your Own Online Auction Business

by WorkFromHome on May 30, 2011

In recent years, online auction websites have dominated the retail market and created hundreds of thousands of small business opportunities for people all over the world. Online auction sites consist of buyers and sellers that are interested in obtaining and selling items on a bidding-style platform. Almost anything can be sold on auction sites, from clothing to collectibles, and even cars! Rare, collectible, one-of-a-kind items and highly-coveted items are easily found on online auction sites. With careful planning and significant research, anyone can have a successful online auction business and earn great money from the comforts of their home.

Before starting your own online auction business, it is imperative to sign up for an account on the auction site of your choice. These sites offer a user rating system. Buyers and sellers can leave appropriate feedback based upon their perception of the transaction. It is important to establish a baseline of positive feedback as a buyer, before beginning the process of selling your items. Buyers are leery to trust sellers with excessively low feedback or no feedback. Commit to purchasing several low-cost items and pay for each of them immediately by utilizing an online payment processing site. The seller receives the funds instantly, ships your item, and leaves you positive feedback. You would then leave positive feedback, as well, if the items arrived in a timely fashion and in the condition described in the auction listing details. Once you have a few positive transactions as a buyer, you can begin the process of becoming a seller.

The next step to beginning your online auction business is to sell your own items. You can potentially earn all of your start-up money to secure future inventory by selling unwanted items from your own home. Raid the kid’s rooms, garage, and scour your closets to find highly-profitable items. Not only will you earn top dollar for unwanted items, but it gives you an opportunity to experience the transaction from a seller’s prospective. This is a great time to experiment with the auction platform, as a trial run, before beginning your business. Authentic designer clothing, accessories, and handbags sell very well on auction sites. Rare collectibles, brand-name electronics, fine jewellery, brand-name children’s clothing, and high-quality makeup and skincare brands also sell for top dollar on these websites. If you have these items lying around, take several pictures of each item and write descriptive listing details to maximize your profits. Make sure to offer several different options for shipping methods to your customers, and try to start your listings during prime time, when most people are getting home from work; this will equal more exposure and result in higher auction ending prices for your items. Make sure to ship the items in a timely fashion and pack them carefully to obtain positive feedback from the buyer.

Once you have received the start-up money from your initial listings, you can begin to obtain inventory for your business. It is always best to sell brand name items in an area that you are familiar with or have a passion for. Look for reputable online drop shippers or wholesale distributors that offer lots or pallets of procured merchandise. These lots are typically store overstock, seasonal items, or customer returns and are sold in large quantities. These lots are typically sold as-is, so it is best to obtain a detailed manifest list from the authorized distributor to determine the items in the lot, their conditions, and the individual retail prices. Compare the cost of the lot with the overall earning potential to determine if the lot is profitable. Utilize online website verification sites and check with wholesale or work from home forums to find legitimate wholesale companies. Some of these companies are fly-by-night companies with poor business practices who often sell fake merchandise. Don’t be afraid to ask for references or affiliations from these wholesalers. Reputable wholesalers will have no problem providing you with licensing paperwork and other important documents to prove their legitimacy.

Once you have obtained your first lot of items, it is best to take a free course on keyword density, online marketing, and search engine optimization, which are all important aspects of article marketing-an essential aspect of formulating profitable auction titles. The auction title is the key to your success. A listing title rich with keywords ensures that many different types of shoppers will be able to locate, and subsequently bid on, your items. A free internet marketing course will teach you everything you need to know about keywords.

If you enjoy interacting with people from all over the world and have a passion for the items you sell, running an online auction business is a profitable and enjoyable business opportunity.

Previous post:

Next post: