Jay Sugarman Online's Underground Blog

All Online Auctions are Not Created Equal

2009-11-17T10:32:00.000-08:00

There are literally hundreds of on-line auctions. Each one is different. Some generate income from advertising and others from charging fees for different features. Still others are totally free. Whatever the case, it’s important to know what’s available and which ones may be right for you

When deciding to use an on-line auction, be sure and read the terms and conditions and their privacy policy. That can tell you a lot about their integrity.

Thing to Check about On-Line Auctions:

Insure that your private information is not shared . Follow this link and click the lock in the browser. A real lock should provide options when clicked. (In a Fire Fox browser there should be a blue page before the http:/)
Are Buyers and Sellers responsibilities outlined?
Check out the Fee Schedule. Is it competitive?
Is “Contact Us” and “About Us” information offered?
Is the auction local, national or International.
Satisfy yourself with these issues before deciding to use any on-line auction site.

We’re about to go over several features and conditions that on-line auctions may or may not include. When considering an on-line auction, use the information below to compare.

Get ready, there’s a lot to go over.

Types of Listing Include:

Regular Auctions Straight forward – you bid and if you win, you own.
Dutch Auctions Multiples of items are up for sale. Generally, the price is fixed.
Reverse Auctions An item being requested is for purchase for the lowest offer.
The listing is for purchasing and not for selling. That’s why it’s reverse.
Fixed Price Items are being sold for a fixed price. There is no bidding involved.
Trade Listings Listing for trades and not for sale.
Classifieds Personal or business ads. Not an auction.
RFQ Listings Request for Quote Listings – Not an auction.

Look in the On-Site Help Section for further information

Types of Listing Options Include:

Category Selection: Is there an adequate number of categories for your listings?
Duration Is a selection as to how many days you wish your listing to be active.
Number of relists How many times can your item be automatically relisted if it does not sell.
Relist Charge Is there a relist charge?
Start & Stop Dates Do you have control as to when your listing starts and/or stops?
Images Can you upload images to include pictures in you listing.
Are any images free? What is the maximum # of images allowed?
Payment Options Does it provide a selection of payment methods that you accept.
Consideration might be Paypal, Check, Money Order, Credit Cards, and of course, Cash in King.
Google Base Does the auction site communicate with Google.
This helps in selling your listing by promoting it on Google.com.
Shipping Does the auction offer a choice of shipping options?
Bid Increments Review the bid increments provided by the auction site. Are they OK?
Buyers Premium Is there a buyers premium? Most auctions do not charge it.
Types of Fees may Include:
Listing (or Posting) Is there a fee for listing? It could be fixed or tiered to the value.
Bold Listing Adds bold to your listing. It helps to make it stand out.
Category Featured Features your listing in the category that your listing is in.
Home Page Feature Features your listing on the home page. It rotates with others
Dutch Auction Is there an extra fee for Dutch Auction listings?
Pictures Are there fees for using pictures?
Selling Fees They can be fixed or tiered. Check in the Fees section.
Gallery Features Is there a fee for having a picture appear with your basic listing?
Highlight This feature places a background to your basic listing.
Store Creation Are on-line stores offered? What are initial and/or monthly fees?

Other Features an On-Line May Include:

Proxy Bidding The ability to place your maximum bid. Your bid will be considered until you limit is reached. This allows you to place a bid and not have to watch the bidding as it progresses.
Sniper Protection Sniper protection does not allow a bid to be won at the very last second. It extends the auction a fixed amount of time each time a bid is placed until there are no more bids for that fixed amount of time.
On-Line Help Review the on-line help to see if it is helpful with explainations.
Membership Plans Are membership plans offered? They provide savings for active users.
On-Line Stores They provide a place to post multiple listings in one place. It provides for promotion and is an excellent way to have viewers see only their products.
Easy to Navigate How easy is the auction site is to navigate? Is it simple or cluttered with advertising and offers. Often it is difficult to figure just what to do as there is too much non auction related things going on.
Number of Postings How many listings are posted? Some on-line auctions offer thousands of listings and other only a few. Browse the site by category to see how many listings there are in any particular category.

Online Auction Tips

2009-11-10T07:22:00.000-08:00

Have you ever thought about using online auctions to sell stuff you have laying around the house? I know I have. If you have never done this before it may seem a little intimidating but no fear, it’s really quite simple.

First of all you must decide which format will work best for you. The most common formats are:

Traditional Auctions: You can choose a reserve price and a starting price, bids climb upwards.

Dutch Auction: An online auctions Dutch Auction allows several identical items are offered for sale together, and bidders have the option of buying any number of them, from a single unit to any combination they desire.

Bulk Listing: A bulk lot listing works much the same way as a traditional auction except that it consists of multiple items that are all sold at once to the winning bidder for one price.

Classified Ads: are great ways to showcase your business or your items without having to provide any type of selling price. This format allows dynamic communication between a buyer and a seller and leaves room for negotiation of price or the possibility of a trade. To see some classified ads in action, click here

Fixed price sales: provide another alternative to auction formats. These sales provide an easy way for buyers to locate and purchase you item instantly. Using this format also allows you to sell multiple quantities of the same at a set price. An example would be selling 30 pair of shoes at $29.99 each. You could sell 4 pair to buyer A and 8 pair to buyer B or any other combination of transactions. Additionally there are a lot of individuals who prefer to buy this way for many reasons.

Once you have determined which format you will use follow these 4 simple tips for creating a quality listing then sit back and collect your money!

1) Provide an accurate title
This is key to your item being found by potential buyers. The search boxes in most websites search by title.

2) Give a detailed description.
By providing a detailed description you can eliminate unnecessary questions from buyers that could have been answered in a description box.

3) Use Quality Photos
As they say "A picture is worth a thousand words". And there's no need to worry, anyone can take a good photograph. Just find a background (a sheet works fine) use a well lit space, fill the camera frame, steady you hands and that's all.

4) Know the value of your item
Finally, know the value of your item. If you price too high it won't sell. If you price too low you're going to loose money.

GOOD LUCK FROM

JAY SUGARMAN ONLINE!!!

The History of Auctions

2009-11-09T08:06:00.000-08:00

The history of Auctions dates back to 500 B.C. There are accounts of the Babylonians holding annual auctions of women for marriage. The auction would begin with the woman considered most beautiful and continue to the least. This was considered the only legal means of selling a daughter.

During the Roman Empire auctions were often used to liquidate the confiscated property of debtors. Even the emperor Marcus Aurelius held an auction lasting for months, selling household furniture to pay off debts.

Auctions were often held after military victories. Typically a spear would be driven into the ground where the spoils of war lay and the auction would be conducted. Prisoners of war were taken back to the forum and auctioned off as slaves. The proceeds of these auctions were used to fund the military.

However, the most important Roman auction occurred in 193A.D. After killing the emperor Pertinax, the Praetorian Guard auctioned off the entire Roman Empire to Didius Julianus who paid 6,250 drachmas per guard, about $27.46 USD. Only two months later, Didius was beheaded when Septimius Severus conqured Rome.

The European Middle Ages, under King Henry V11 of England saw rise to some of the earliest auction laws, including auction licenses.

During the 15th century (1600’s) the taverns and coffee houses of Great Britian were beginning to hold auctions selling art and other collectible items. These auctions were held daily, and catalogs were printed to announce available items. Such Auction catalogs are still printed and distributed before auctions of rare or collectible items today. Announcements of sales devoted to land appeared in the London Evening Post in 1739.

Stockholm Auction House holds the title as the oldest auction house in the world. However the most well known firms are Sotheby's which was established in 1744 and Christie's, founded in 1766.

Auctions in America

Auctions in America began as soon as the Pilgrims' arrival on the eastern seaboard in the 1600s. With the colonization of America, the auction process quickly became the accepted manner of selling merchandise. Furs, clapboard, tobacco, corn, and other necessities were often sold through this way. As the country continued to develop, settlers on the western frontier bought and sold their land, crops and other items of necessity, including animals, lumber, horses, debt, credit and, unfortunately, slaves at auction.

During the American civil war, taking from the Romans, goods seized by armies were sold at auction. However, only officers of the Colonel rank could conduct them. That is why many auctioneers today still use the moniker "Colonel" today. Other names of auctioneers include “Knights of the Hammer,” and “Brothers”.” The tools of these auctioneers included the Colonel style hat, a cane, bell, hammer or gavel, and a red flag. The flag, often boasting advertising, was placed above where the auctioneer would sell on the day of the auction.

Started by, Cary M. Jones, The Jones’ National School of Auctioneering and Oratory, is believed to be the first school devoted to the art of auction. Although many auctioneers of the time did not believe this was a skill that could be taught, the early 1900’s saw rise to many more schools focused on the art of auction.

After World War II the sale of goods and real estate was booming. There was a need in certain cases to move real estate and personal property faster than the private market would allow. Thus, the modern day auction business was born. Auctioneers were now businessmen who dressed in suits and ties. They began to nurture the business and raise the reputation of auctioneers. Besides links to the public, auctioneers began to have links to banks, attorneys, accountants, the court system and government agencies. Auction was now a respectable means of sale.

The last two major changes that occurred in auction history were in the dot com era which saw rise to online auctions. This was followed by technology that allows buyers to bid online in a live auction.

Auctions have been around for a long time and for good reason. They were and remain an excellent way to quickly move excess merchandise and to turn physical assets in liquid capital.