Selling Stuff on Ebay in Today’s Economy

Posted on December 8, 2008
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I’ve done pretty well on EBay over the last couple of years. I mostly sell items that have some collector value – models railroad items, vintage electronics, etc. In other words, stuff that probably wouldn’t sell if I was limiting my sales to a local market. The beauty of EBay, of course, is that you have a potential market of thousands, and it only takes a couple of them to decide they really want your item in order to get a good price. As recently as 6 weeks ago, I got $47 for a set of 5 magazines, $71 for a small model engine part, and $153 for a CDROM of obsolete computer software.

In the past month, though, I’ve started to notice a trend – less bidding and lower selling prices. I guess the econmomy is finally starting to affect sales on EBay. As a result, I’m changing the way I do business on EBay. Here is what I’m doing different:

1. Setting higher starting prices. Previously, I would just set my starting price at $0.99, both for the lower insertion fee and to encourage earlier and more plentiful bidding. Buyers were prevalent, and the price would soon go up to “market value” or higher. Lately though, many items might only get 1 or 2 bids. Setting the minimum price to $0.99 could very well result in the item selling for that price. Now, I set my starting price to the minimum I am willing to sell the item for. I figure the higher insertion fee into my price. It may discourage bidding, but at least I don’t get low-balled.
2. Maximize visibility. I’m not talking about the extra cost options that EBay offers, but making it easier for buyers to find and bid on my items. Previously, I did both 5 and 7 day listings, not worrying too much about what day the auction ended, or what time. Now, I list all my auction items for 7 days, and make sure they end on a Saturday or Sunday. This gives potential buyers more time to notice my items. I also make sure my auctions end between 1:00 and 5:00 pm. This makes it more likely buyers will have time to get in a last minute bid and not be busy doing something else.
3. Being more consistent. EBay has always been sort of a haphazard affair for me. I’d need some extra money, I’d look through my stuff to find a couple things I didn’t want or need any more, and just like magic, I’d have an extra $200 or so. Since I can no longer depend on a few desirable items selling at a high price, I’m relying more on less expensive, “bread and butter” items. It takes more work to generate a certain level of revenue this way, but the upside is that I’m getting rid of a lot more stuff than I otherwise would. I try to consistently prepare 3 items per day to list. I photograph the items and write descriptions throughout the week, then list them on Saturday or Sunday.
4. Pulling items with no bids. One thing I’ve noticed is that some items attract a lot of watchers but no bids. Before, I would just let the auction run its course, counting on late bidders to drive the price up. Now, it’s more likely that a single bidder will get the item for your starting bid. Even when following New Rule #1 above, sometimes I feel an item has better potential than my minimum acceptable price. In such instances, I will pull the auction early if I’m within 30 hours of ending time and the item has no bids. If the item does have a bid, you are ethically bound to sell, even if you’re not happy with the price.

I still think EBay is still a good way to make money, but the old ways of doing business don’t work as well any more. The changes I have made have helped me keep my income level consistent. If you sell stuff on EBay, I hope you find these suggestions useful.

Cheers,

Ken

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