Planning to Sell Online

One of the simplest ways of making money on the internet is to advertise and sell unwanted items. But how much should you sell them for, when should you sell, how will the items be delivered or collected and who will buy them? This and the posts that follow will provide the answers. 

What Have You Got to Sell?

Before the internet, unwanted items were usually sold by placing an advertisement in the classified-ads section of the local paper, or by sticking a postcard-sized notice in the window of the post office or newsagent, or on the noticeboard of the local community centre. The internet has opened up a whole new market (a global one in some cases) and created a potentially vast audience of buyers. However, the first concern before you start thinking about selling, is listing the goods that you want to sell. If you’ve raided the shed or attic and found a wide assortment of unwanted items, note down their exact details and don’t sell them yet. First, it’s important to determine their potential value and work out the best way of selling them, giving thought to whether they can be delivered or collected.

Research

The starting point for selling items is to arm yourself with plenty of information and knowledge about the best ways and best times to sell. Speak to any experienced market trader or shop owner and they will know what type of stock sells well at particular times of the year, who their customers are, and what prices these customers are willing to pay.

Pricing 

Deciding on the price you want to sell an item for isn’t always easy. You may have paid a reasonable price for a bicycle five years ago, but it may only be worth a tenth of its value now. The easiest way to fix on a price is to look for similar items that have sold and find out how much they sold for. Websites such as eBay allow you to search for items that have been sold by selecting ‘Completed listings’ down the left side of the screen. It’s also helpful to look for similar items that are currently for sale to help determine whether you should sell on the same website at a cheaper price.

New to Old

Sometimes, second-hand prices of equivalents may not be available, so it might prove difficult to ascertain a reasonable selling price. If this is the case, find out if the item is still available to purchase brand new and how much it sells for. In many situations, sellers calculate the second-hand price as around 50% of the brand new price, but check for versions, editions and updates, which may affect the value of your item. For instance, a first edition of a book is usually worth more than a later edition.

Valuable and Collectible

Where an item is of collectible interest or appreciating value, it’s important to arm yourself with as much information about it to ensure potential buyers are assured they are buying a genuine product. If possible, look at the same items for sale elsewhere and find the features that are highlighted in the description. Does it help to have the original packaging or specific accessories? Are there any serial numbers or manufacturer’s markings that signify a genuine item? Can you obtain any information from a collector or auction house to confirm a product is genuine and collectible?

Auction Behaviour 

If you can find items already selling that are similar to what you have to sell, it’s worth spending a few days watching the auctions. Look at the history of the bidding to see whether all the bids are placed at the very end of the auction. See how many different bids are made and, although you won’t be able to see who bids, you can see the number of people bidding. 

Timing

Selling an artificial Christmas tree during summer isn’t going to be as easy as selling it during the weeks leading up to 25 December. Whilst some goods are in greater demand according to the season and weather, it may be less easy to determine the best time to sell others. Expensive items that are not obvious gifts may be easier to sell if you avoid times of the year when most people have large expenditure to outlay, such as around and after Christmas and during July and August, when many people are on holiday. 

Timing and Competition

If the marketplace in which you want to sell your product or products is already flooded with similar goods, this might not represent a good opportunity. That said, you may be able to turn this to your advantage, if, for instance, you sell at a cheaper price than the competition and offer more features or accessories to gain a competitive advantage. For instance, if you are selling an electronic toy, but don’t want to offer a cheaper price than the rest of the similar toys for sale, include extras such as batteries and accessories.

Delivery or Collection 

It’s essential to decide whether you want to deliver an item you are selling or insist that the buyer collects. In the case of delivery, you may want to use a courier service or a similar service with a traceable delivery. This will help ensure the item is delivered, minimizing the risk of the buyer claiming they have not received their goods (which can affect your ratings on eBay and other selling sites). However, it’s important to calculate the cost of delivery and state this when selling the item, so you don’t lose out on postage costs.

Collection Capers 

If an item you are selling is simply too large, difficult, heavy or fragile to post, then it’s important to stress that collection in person is the only method. However, be prepared for buyers to insist that a bicycle, for example, can be dismantled and boxed for collection by a courier. Even if the buyer arranges the collection, you will still have to source the packaging and box the item. 

Hot Tips

• Don’t try to make a profit on postage. Some buyers are dissuaded by high delivery costs.
• An item can be watched on eBay by selecting it from the results listing, then click on the button labelled ‘Add to Watch list’.
• Honesty pays. If you are trying to sell something that is defective, such as a bike with a broken chain, make sure potential buyers are aware of this.

There are So Many Ways to Sell Online.

Text is from How to Make Money on the Internet by Rob Hawkins (Flame Tree Publishing 2012). Available at all good bookshops, Amazon, and direct from the Publisher.

Coming Next:  Setting up to Sell on eBay