Make Your Trash Someone's Treasure

Twenty tips for using online auction sites to sell your unwanted stuff--safely.

If you're like a lot of people, you have an attic full of things you've been meaning to get rid of since the Carter administration. And the strange truth is that someone would probably give anything--or at least a few bucks--to own your 1976 Bicentennial commemorative fondue set. Finding the ideal buyer for your treasures is where online auction sites come in.

Sites such as EBay and Yahoo Auctions make posting a description and photo of your item only slightly harder than placing a bid. If you've caught the auction bidding bug, selling some equipment you no longer use--last year's digital camera, say, or the electric guitar your son abandoned--is a great way to finance your habit. Before you start, here are a few tips to ensure that everyone logs off happy.

Before You List

>>TIP Sell to others as you'd have them sell to you. Try to equal a time when you received exceptional customer service.

>>TIP Study the auction site's rules and policies thoroughly, including all payment options and requirements. Know which kinds of items can't be sold on the site. Some things, such as plants, animals, and tobacco products, are prohibited; and items like airline and concert tickets may carry restrictions.

>>TIP Make sure you understand the auction site's charges, which can be complicated. In most cases, sellers pay at least two fees (more if you want special placement, color banners, or other features to distinguish your offering). The first charge is a "listing" or "insertion" fee, which is usually nonrefundable and is generally based on the starting bid amount or minimum selling price that you set when you first list an item. The second fee is a percentage of the final sale price (known on EBay as a "final value fee"). Different auction sites have different fee structures, and the fees themselves vary by category of item, sale price, and other factors.

>>TIP Know the charges you'll incur for using payment services such as PayPal and EBay Payments. Using these services expedites payment and is more convenient for the buyer, but you should plan on paying a small percentage (typically 2 to 3 percent) of the selling price, plus an additional transaction fee.

>>TIP Consider holidays, seasons, and other factors that could affect the number of bids you'll get. For example, you might have better luck selling cross-country skis in January than in July, and you probably won't get barraged with bids if your auction is timed to close on Christmas Eve.

Setting a Price

>>TIP Don't set the minimum bid at the price you hope to get. If you're listing a watch worth about $100, don't set a minimum of $100. That kills prospective bidders' interest by removing any chance that they'll get the item at a bargain price. Instead, set the minimum bid low--many sellers set it at a dollar, even for valuable stuff--and let the magic of auction economics push the price up.

>>TIP You can set a reserve (an undisclosed minimum selling price) if you can't bear to part with an item for less than a certain amount. But most sites charge extra for this option, and many bidders won't bid on items with reserves.

>>TIP To learn how to set realistic minimum bids and reserves, look up the results of past auctions for similar items.

Creating a Listing

>>TIP To find a suitable category for your item, search the site for similar goods. If your item falls logically into two categories, consider listing it in both (for an extra fee). For example, if you're selling your great-grandfather's violin, list it in "Musical Instruments" and "Antiques."

>>TIP Many buyers will find your item by searching, so list all relevant keywords in the item's title. For example, if you're selling a copy of the Saturday Evening Post with a Norman Rockwell painting of Uncle Sam, list "Saturday Evening Post 1/21/28 Norman Rockwell Uncle Sam." This will ensure that Post collectors, Norman Rockwell fans, and Uncle Sam aficionados all see your listing.

>>TIP When you write your listing, describe the product honestly and in detail, even if it has faults: Disclosing that your Wedgwood platter is chipped on one edge ensures that you won't have an unhappy buyer later. Include a photo if possible, but make sure it's clear and crisp; buyers might think you're trying to hide something with a fuzzy picture. And don't include a big picture that will take a long time to load over a dial-up connection.

>>TIP Offer a money-back guarantee. Buyers will be more comfortable bidding if they know they can get their money back. But be sure to set a relatively short time limit--say, a week after receipt--so a buyer doesn't try to return your old scuba gear months later after flunking the certification test. To limit your expenses and discourage frivolous returns, state up front that you'll refund only the bid price, not the shipping charges.

>>TIP Include with the item description an estimate of shipping and insurance fees as a courtesy to bidders, who typically pay the fees. Visit the USPS site for information on shipping costs.

Managing Your Listing

>>TIP Use a counter, offered by most auction sites, to see how many people look at your items. If you sell similar items regularly, counters can help you determine the interest in that category.

>>TIP Check the feedback on people who are bidding. Most sites allow you to refuse to sell to bidders with shabby records, block unwanted bidders, or approve people before they're allowed to bid.

>>TIP Consider whether you want to sell internationally. Many U.S. sellers opt not to because there may be restrictions on goods that can be shipped. Another obstacle is arranging payment. Buyers may be required to pay large third-party fees with some types of payments, so you might want to stick with checks or money orders for international buyers.

Closing the Sale

>>TIP When the auction is over, send the winner a prompt e-mail confirmation that includes the winning bid amount and your contact and payment information. Ask the buyer to confirm receipt of all the necessary information.

>>TIP Never ship a product until you have payment in hand. (Depending on how the buyer pays, you may have to wait for an electronic or paper check to clear.) Be wary of any buyer who pressures you to ship an item before you have the cash.

>>TIP When packing your item, use lots of protective materials. The U.S. Postal Service's Priority Mail option is a good choice because it's fast and inexpensive, and you also get free, high-quality boxes.

>>TIP When the entire transaction is complete, post feedback about the buyer (positive, neutral, or negative) on the auction site. This will help make the site a safer, more reliable place for everyone.

Follow these rules and you'll be clutter-free by 2003--and possibly a few bucks richer. Come to think of it, maybe you could use the extra cash to bid on that mint-condition set of golf clubs you saw posted on EBay....

Anne Kandra

Contributing Editor Anne Kandra can be contacted at consumerwatch@pcworld.com.