Expert shares do's and don'ts of online selling
BY JENNIFER AMATO
Staff Writer

NORTH BRUNSWICK - One man's trash is another man's treasure.

The popular auction Web site eBay allows buyers to sift through items that sellers are looking to part with. Where else can you find a piece of toast that supposedly has the image of Jesus on it? Or how about a jar filled with air that Pope John Paul II breathed during World Youth Day in 2002? Instead, maybe a vampire-killing kit is more up your alley.

With over 222 million users in 2006, the company relies on the United States Postal Service, which is responsible for delivering half of the world's mail volume, to deliver a million of the 1.25 million packages shipped from eBay every day. That is why Tom Ford of the postal service discussed how residents can buy and sell items using the Internet during a seminar at the North Brunswick municipal building on Feb. 27.

Ford mentioned that an online marketplace has serious community implications, in that people looking to clear clutter from their basements, attics or closets can easily make money by selling their belongings, while needing a way of transporting their goods to people who want their original clutter. He stressed the importance of eBay effectuating an "efficient business model" because the company, which has been in existence for 12 years, is the third-largest product retailer in the United States behind Wal-Mart and Home Depot.

Ford said eBay is able to generate profit for itself because of the high volume of transactions performed each day. Each step during the process has a fee associated with it, albeit a low one, such as an insertion fee starting at 20 cents to list an item, 40 cents for a 10-day listing period, 15 cents for each additional photograph after the first one or a final value fee when the item sells. Yet there are also exceptions and refunds, such as the final value fee being excluded if the item never sells.

"EBay wants you to be as successful as possible. Why? Because they make money on every single transaction. The more money you make the more money they make," he said.

On sale now

Therefore, Ford said it is worthwhile to visit www.ebay.com to try and sell an item. First off, a seller's account must be created by entering a credit or debit card number along with a checking account number so that eBay can verify identity.

Next, an item listing is formulated. Ford said that because hundreds or thousands of items may appear when searched for by a buyer, it is important to carefully word the item title and description. Category is an important aspect since there are over 50,000 categories listed by eBay. Subjective adjectives such as "pristine" or "rare" should be avoided because of their multiple interpretations. He said that the listing designer option is unnecessary because frames, backgrounds and font changes will not usually help sell the item, but that capital letters are useful.

In addition, spell check is extremely important: he told of how someone selling Barbra Streisand tickets for $1,400 switched the "e" and "i" in her name so that the only bid to come in was from someone who misspelled her name in the search engine. Because it was the only hit, the person sold the tickets for just $699.

To counteract this, Ford said, a reserve price can be set which allocates a price below which the item will not be sold; however, there is an additional fee for this option. Most importantly, a photograph is a must.

"You want to lead the buyer to you," he said. "In terms of psychology, if you look at 10 or 12 items and 10 have pictures and two [don't], what are you going to gravitate toward? Pictures. Why? Because we're Americans. We want it now," he said.

It is also important to note any inadequacies with the product either through words or photos.

"What you want to do is add enough pictures to adequately describe what you are selling. You want the buyer to see what they're buying. . .and you want to accentuate. . .but you want to be forthcoming with flaws," he said.

Afterward, the seller can choose the price at which to sell the item and decide whether it will be through a typical auction or as a "buy it now" item, in which case a fixed price is listed. For an added fee you can have both options.

A return or exchange policy should be predetermined by the seller before the transaction is completed. Shipping and handling prices are also determined by the seller, which cannot be touched by eBay. You can set a flat cost, which should be calculated based on the farthest ZIP code in the U.S. possible or a calculated cost based on the package, weight and buyer's address. Locations to be shipped to should be based on the weight and fragility of the item. For example, a grandfather clock should be transported via local pickup only.

Various shipping options are available. Click-N-Ship is available through www.usps.gov or eBay has its own Integrated Solutions package. Features exist such as online postage, shipping labels, confirmation notices, hidden postage values in case the seller overcharged the buyer, insurance for packages up to $500, and free carrier pickup as long as one of the packages is either Priority, Global or Express mail and is registered by 3 a.m. Also, Ford noted, all Priority boxes are free through the postal service and can be shipped free of charge or picked up at the local post office or contract postal unit. Flat-rate boxes that are shirt- or shoe-sized cost $8.10 to ship anywhere in the United States.

If a person is more comfortable at a post office, they can use a teller or the automated postage center if the package weighs less than 70 pounds.

The seller also determines how long the item will be available for auction. It is always best, Ford suggested, to have an item listed over the weekend because of the high rate of traffic on the site after work hours. For an extra fee of 10 cents, a scheduled start can dictate the day and time the auction begins. Also, the bids should be tracked every few days so that if there is little or no interest in the item, the listing can be changed.

At the end of a successful sale, you get paid; Ford said you should not accept personal checks in case of fraud and you should wait until money orders clear the bank. You can also set up a PayPal account to accept credit card purchases; however, PayPal receives 2.9 percent of the total cost of the item value and shipping cost.

"It seems like common sense, but so many people get taken advantage of. … This is the golden rule: Don't ever, ever, ever, ever, ever, ever - I'll add one more, ever - ship an item until you get payment and it has cleared your bank," Ford said.

Buyers beware

To purchase an item, the customer can register online using a valid e-mail address and create a user ID and password. They can use the search engine to find an item or look through the various categories for broader topics. After clicking on an item title or photograph, the description will be enhanced and the photograph will be larger, possibly with additional photographs if the seller so chooses to include them.

The buyer can then choose to bid on the item. He or she has the ability to ask eBay to proxy bid in increments up to a maximum amount established by the buyer. The company will even send out a message if the buyer is outbid and ask if they would like to raise their amount.

The person who has the highest bid at the end of the bidding period "wins" the item. Again, according to the standards set forth by the seller, the item will be shipped once payment is received.

Rate of return

A critical component of the buying and selling process is the feedback rating.

At the end of each transaction, both partners are asked to rate the other person in terms of the business deal. The higher the feedback, the better the score, and the more likely people will be willing to do business with this particular person in the future. Ford said there are over 90,000 power sellers who move around a great deal of product, generate a lot of money and receive high ratings of feedback.

"Take into consideration that it is not only the percentage of positive feedback but how high the feedback number is," he said. "The best thing you can do when you start out is to make sure when you're in the single digits and double digits that you do the right thing."

In addition, on www.ebay.com, there are navigation buttons that include community forums to share advice, a help center to answer questions, and a My eBay section, which is a personal messaging page instituted by eBay itself - the company will never ask for personal information via a personal e-mail address; instead, it will be done through this link. Ford warned users to forward any fraudulent e-mails to spoof@ebay.com.

The full eBay presentation will be broadcast on Cable Channel 22 throughout the month of March.