Selling an item on eBay

A typical eBay auction takes just a few minutes to set up. A basic auction page includes a text description of the item being offered, with extras such as photos, bold text, and premium placement available for small fees. The seller also sets a flat shipping rate that’s added on top of the winning bid, and can be accompanied by specific shipping instructions. eBay profits from each auction in two parts: the seller pays a listing fee that’s anywhere from a few cents to a few dollars (depending on what options they select for their auction), and then must give eBay a small percentage of the winning bid.The seller has a few options for how long their auction may last, with the most common choice is seven days.

Reserve & “Buy It Now” prices

There are two features of an auction that let the seller influence price they receive for their item: Reserve Price and Buy It Now.

A Reserve Price is the minimum amount of money that a seller is willing to accept for their item. The reserve price is hidden from all bidders; no bidder may win the auction without meeting the serve price. A reserve price is an optional auction feature, available for an extra fee.

An auction with a Buy It Now price can end before the bidding even starts. If an auction with a Buy It Now price has not yet received any bids, any eBay member may purchase that item immediately for the Buy It Now price. Once the first bid is placed though, the item is no longer available for the Buy It Now price.

Buying an item on eBay

The basic bidding process is equally simple: each bidder sets the maximum price they’re willing to pay for the item, and eBay continually updates the highest bid according to a preset incremental amount as the auction progresses. For example, if you tell eBay that you’re willing to pay at most $100 to win an auction, eBay will keep bidding on the auction for you until it hits that $100 ceiling. If the maximum bid then exceeds your own $100, you’ll have to increase that $100 amount in order to stay in the bidding.

When you bid on an eBay auction, you are entering into a legal contractual agreement with the seller. If you win the auction, you are obligated to purchase the item from the seller.

The most important moments of an auction are usually the last few minutes. As closing time approaches, many bidders will increase their maximum bid at the last possible moment in an effort to win the auction at a moment when the other bidders do not have adequate time to respond with higher bids. This process is referred to as Auction Sniping.

When you win an auction on eBay, you must pay the seller according to the payment methods they have outlined in the auction (but remember: never give any sensitive information such as your bank account or credit card number to someone). The most common method of delivering payment to a seller is through PayPal, a service that lets you send payments to a person via e-mail address. PayPal is owned by eBay.

Keeping track of your eBay activity

All eBay members have their own “My eBay” page. My eBay aggregates all of your eBay activity – items you’re bidding on, items you’re selling, your feedback, and more.

The eBay feedback system

Buyers and sellers can evaluate each other through eBay’s feedback system. The seller and winning bidder of an auction are both given the chance to rate each other on their experience with the transaction. Recipients of negative feedback may respond with their side of the story. While some say this system leaves a bit to be desired, it does give a fair amount of insight into the history of a member’s dealings with the eBay community.

Risks to buyers and sellers on eBay

While most people have pleasurable experiences on eBay, there will always be some members who are looking to exploit the system or defraud the community. The eBay page at Wikipedia is an excellent source of information on both questionable and fraudulent eBay practices that you should be on the lookout for.

Source : http://www.ofzenandcomputing.com/zanswers/236/