Using eBay - Rules for Avoiding Idiots
May 3, 2007 Posted by Jeff in : How-to, Humor, Opinion , trackback,
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I’ve been posting things on eBay since 1998, and I can definitely say, it can be an idiot magnet. One rule I have: the cheaper the item is, the more of a pain the buyer is likely to be. I will try to express some of the pitfalls I’ve experienced and hopefully you can be the wiser for it. Please read on…
For example, when I closed my studio in 2003, I sold off all the equipment on eBay. These pieces ranged in worth from a couple hundred dollars to a couple thousand dollars on the used market, so obviously not low-cost items. For each of these pieces that I sold on eBay, the buyers were fast payers, had no complaints and wrote positive, glowing feedback.Â
Then I decided to sell some records. This time, my buyers included some normal people and some nuts, but overall, a decent experience. Then I decided to sell cookbooks (I used to collect them). Well, it’s as if someone email blasted all the nut-jobz on the planet to let them know. I received lots of questions but no bids, and these books were practically brand new! Finally I actually sold 2. One buyer sent me a 4-page diatribe on how to package and ship books. It was written in BIG BLOCK letters… kinda scary. I wrote back to her expressing the fact that I was actually afraid to sell her anything, and I would be refunding her money. Then the other winner decided to play “Let’s Make a Deal” after the auction had closed. So, Rule #1 on eBay: The lower the price, the more nuts you attract; stick to big ticket items.Â
Next, let’s discuss the fees. eBay charges a lot of fees, and the fees are growing. So make sure you allow for the fees by building them into your item price and handling costs. Here is an example:
I recently sold a Linksys Wireless Router. It sold for $25.99, and I only charged $6.99 for priority mail shipping. I should have charged $10.74. Here’s how I got that figure:
Auction Price = 25.99Â + 6.99 shipping = $32.98
(Actual shipping was almost right on the money)
Fees:Â $1.26 (Paypal fee)
             .35 (Gallery fee)
             .20 (Buy it now fee)
             .60 (Insertion fee)
           1.34 (Final Value fee)
——————————-
      $3.75 total fees
$25.99 - $3.75 = $22.24
The illustration shows how I actually lost $3.75 on the deal because of all the fees. Had I included the fees in the handling costs, I would not have lost anything. That’s not including the box I had to get, and the bubble wrap, along with the paper & ink I used to print the packing slips, and the Avery labels to print the postage label. So add on another 2 bucks.
Now, consider this — suppose this was a piece of video gear costing $2599.00, instead of $25.99. Insertion fees go up the higher priced the item, and the Final Value fee is a percentage of the closing value. You can see how the fees would really eat away at your profits. Now picture an eBay merchant who sell hundreds of things a week on eBay – those fees really start to add up.  eBay policies allow sellers to charge the price of shipping plus a moderate increase to cover packaging and other fees you incur getting the product to the buyer. This brings us to Rule #2: Make sure to cover all your costs in the shipping, item price, & handling costs.Â
It’s also important to include good pictures in your auction. This protects both you and the buyer. Make sure you note any blemishes or other things that could trigger a disagreement. For example, if you’re selling a cassette deck, and you need to give it a good whack to get it going… you might wanna mention that. This leads us to Rule #3: Be truthful and honest by providing detail.
Some general eBay guidelines:
- State all your conditions plainly in your auction, like how and if you handle returns, how you will accept payment (don’t encourage cash payment or the auction will be terminated by eBay), and what shipping method you’ll use. eBay provides estimating tools for this. Get a decent scale for yourself to weigh stuff.
- Payments must be received within a reasonable time (5-7 days max). Read other people’s auctions for hints on ensuring prompt payments, but don’t make your auction sound mean or crazy, otherwise nobody will buy from you.
- Don’t argue with people, especially if you suspect they might be insane. Just refund their money if they complain. But don’t do it unless you have the product safely back in your hands, in the same condition as you sent it out. I actually had a guy remove a small PC board module from a piece of test gear I sold. He complained it didn’t work and returned it, then demanded his money back. I told him that unless he also sent back the PC board module within a week , he’d get nothing.
So that’s my eBay experience. Please add yours below.
Jeff Gross
Image courtesy of eBay
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