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Sellers on consumer-to-consumer online marketplaces often have a difficult time deciding whether to sell their goods at a fixed price or to put them on auction. Fixed price offers the comfort of certainty. The buyers will either pay the asking price, or not buy at all. However, if there are no takers, the seller may experience pangs of regrets, thinking: if only I had put it on auction, I might have sold it, albeit at a somewhat lower price... And if it does sell for the asking price, the seller may also experience pangs of regret, thinking: if only I had put it on auction, I might have achieved a higher price... However, putting your item on auction requires nerves of steel. That is because auctions do not make sense unless the starting bid, determined by the seller, is set well under the market price (about 30 per cent), or, even better, at the very rock-bottom. The "rock-bottom" start is usually R1. When you decide to put your item on a R1 auction, that item will almost certainly attract attention of the shoppers who are always looking for bargains. The disadvantage is that you as a seller are obliged to let go of the item even if you are not happy with the final price. With some research, you should be able to tell in advance which items will appeal to the buyers. If buyers want the item on auction badly enough, they will place ever higher bids and end up making your day by offering perhaps even more than you expected. Novice sellers would usually do well to start by selling at a fixed price or on auctions with an acceptable starting bid - and an "acceptable" starting bid is the amount at which you know you can let go of your precious items without having your heart broken. The auction format is considered suitable for items that are unique, the items that are in high demand, or items that do not have a well-defined market value. Antiques, collectibles and works of art fall into that category. The fixed-price format is ideal for mass-produced items, as well as for some seasonal listings. At Christmas shopping time, for example, fixed-price format may work better than auctions because that is when people want to get their shopping done quickly, without having to wait for the end of the auction to see whether they won the item intended as a gift for a family member. What will work for your particular item? The best way to find out is to research what other sellers are doing. Hand-made items are most often sold at a fixed price, or on auctions with a (presumably) acceptable starting bid. As a rule, mass-produced items are more suitable for the fixed-price format: sowing kits, sowing machines, embroidery designs, etc. Items that appear on auctions are usually finished pieces like framed needlework; old objects that may be of interest to collectors, like an antique sewing basket or an antique wooden sock and stocking mender; or bulk items like balls of wool or teddy-bear fur. In any case, whether you decide to list your items predominantly in the auction format or as a buy-now, remember that auctions are great for testing the water. Experienced sellers often run a few auctions to estimate the interest of the buyers before they go out to buy or make a stack of a specific item for re-sale.
Article Source: http://www.a1-articledirectory.com
bidorbuy is South Africa's largest online marketplace where people can buy and sell goods in auction format or at fixed prices. Contact details: bidorbuy Marketing Department, email promotion@bidorbuy.co.za, web site: www.bidorbuy.co.za
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