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Words: Allison Tait
Get up to speed on … online auctions Selling goods online might be easier than you think. Start with small, inexpensive items in good condition from around the house, then spread your wings. Need some extra dollars in the run-up to Christmas? Well take a look around your home and see what you could sell online. A survey by Galaxy Research has found that Australian households are hoarding 120 million unwanted items, worth more than $5 billion – that’s $785 per household. The survey also revealed that people living in regional areas could have the most to make, with an average of 17 unwanted valuables per household. How does it work? Most online auction sites offer two ways of selling. The set price or “buy it now” option is definitely the easiest and often the fastest. The idea is you list your item with a set price and sell it to the first interested buyer. But if you’re selling by auction, your item will be on display for a set period (usually between one and 10 days). During that time potential buyers will visit your item and, hopefully, make a bid. When the listing period ends, the buyer with the highest bid gets the goods. WHAT WILL IT COST? Different sites have different fees (the best known is www.eBay.com.au but there are others, including www.oztion.com.au). At eBay, you’ll pay an “insertion fee” of up to $3.50 to list the item plus a “final value fee” of around 5 per cent of the sale price. At Oztion, basic listings are free but you’ll still pay a “sale fee” based on the final sale price, starting at 4.5 per cent for anything under $100. HOW do I make a listing? For starters, you’ll need to register with the site. Then you’ll need to give your listing a title. Try to be simple but specific and use keywords that a potential buyer might use in a search. For example, don’t just say “sofa” if you could say “red leather sofa”. Next, type in a description, including as much detail as possible. Remember to list any flaws as well.
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Finally, take some digital photos of the item and upload them to the site. Some sites require you to list postage and handling costs and, even if they don’t, it can be a good way to put your buyers at ease. Go to auspost.com.au/calculator to estimate your costs using Australia Post’s online postage costs calculator. What price will I get? Before you start selling, spend some time on online auction sites and get a feel for how much an item like yours could sell for. If you’re using the set price option, you can then simply nominate a price for your item. If you’re selling by auction, you’ll have less control. Usually you can’t set a reserve price for your item so you’re obliged to sell to the highest bidder, regardless of the price offered. With that in mind, make sure you give your item a starting price that isn’t too far away from your minimum selling price. How do I get the money? As soon as you’ve made a sale, it’s your responsibility to contact the buyer, inform them of postage costs and details and advise them of what payment options you’ll accept. Those options can include direct bank deposit, credit card payments, cheques, money orders and online payment services. How do I send the item? That’s up to you and, to a lesser extent, the buyer. If it’s a bulky item like a ping pong table and the buyer lives within a short drive of your place, then it might be easiest to have them collect it. Otherwise, wait until you’ve received payment, then bundle up the item securely and send it off by mail or courier, as agreed. What if a buyer doesn’t pay? According to Jenny Thomas from eBay: “Non-payment is really not a big issue, and eBay has really good systems to
WE’VE GOT IT COVERED! Need to send an item to a buyer? Australia Post’s Click and Send online lodgment system makes it easy to get purchased items to your buyers, whether they live across town, across the country – or on the other side of the world. Go to the website listed below to select from a range of services, print off your address label, pay online (for a courier pick-up), or you can lodge and pay at an Australia Post retail outlet. Registered users can also email shipping information to their customers while online. Find out more at auspost.com. au/clickandsend.
help you follow up with bidders.” For regular sellers, she suggests setting clear guidelines for when you post items – say twice a week – so you’re not dropping in to an Australia Post retail outlet every day. Anything else I need to know? When you’re trading via the internet, communication needs to be clear. Make sure potential buyers know exactly what they’re getting, and keep them up to date so they know when you’ve posted their item and when they can expect it to arrive. It saves anxiety all round.