Net profits

Posted on 7 May 2009 at 15:51

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It is worth noting that no matter how detailed the body of your product listing is, the most important part is the summary description, or title - the headline 55 characters that eBay provides for you to promote your sale. This short description is all that potential buyers will see when scanning search results, and since eBay's basic search system uses these titles for keyword searches, writing a good one is vital.

For example, here's a description of precisely 55 characters (the spaces count, too): 'Laptop, Intel Core 2 Duo, 2GB RAM, 160GB HD, 14" screen'. It's not very catchy, but potential buyers can see all the key specifications at a glance. If these happen to tally with what they're looking for, they're more likely to click this listing over the one next to it that simply reads: 'Laptop, as new. Good working order'.

What to charge?

We've already mentioned the different sale types offered by eBay, but in all cases, you'll need to decide on a price. This could be the starting price for a traditional auction, or a set figure for a fixed-price lot or Buy It Now option.

The price will depend on several factors, with what you think your item is worth being just one of them. EBay's charges are an important consideration; the more you try to control an item's sale price, the more eBay will charge you. Set a low starting price of say, 1p, and you'll pay very little in fees but risk the possibility of your auction actually closing at 1p.

It's unlikely that our reasonably modern laptop will sell for 1p, but if we set that as the starting price, there's still a chance it could happen. So, when selling more valuable items as auction lots, it makes sense to set a higher starting price. The realistic minimum you'd be prepared to accept is a good starting point.

To determine the value of your item, you should search eBay for similar lots and see what others are charging and, more pertinently, what sale prices are being achieved.

Managing sales

Once an item is up for sale online, it's mostly a case of sitting back and waiting for it to sell. However, it's important to log in regularly and use the site's activity tools to monitor sale items. Potential buyers may email you questions, and in response to these queries, you may decide to tweak the description, price or payment options.

When the sale finishes, you'll also need to communicate with the winning buyer to organise payment and delivery. The exact process will depend on your own requirements, but typically the payment will be processed by PayPal and the delivery usually involves a trip to the post office. For more about receiving payments, see 'Show me the money' below.

Beyond eBay

We've talked a lot about eBay so far because for many people, it represents the best way to sell online. However, it's far from the only way.

Amazon (www.amazon.co.uk) runs its own web browser-based bazaar called Marketplace. This allows anyone to place their own used or new items alongside Amazon's stock. Unlike eBay, Amazon Marketplace doesn't facilitate auctions. The listings are for fixed-price items and stay on Marketplace for up to 60 days, but you can instantly relist any unsold items. You're free to set your own price, even undercutting Amazon's own if you can do so profitably.

Fees and other costs

Amazon takes a sizeable cut of every sale (up to 17.25 per cent of the price), as well as a completion fee, so you do all the hard work and Amazon receives up to almost a fifth of your earnings.