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Chapter 16. Selling Items at a Fixed Price

Chapter 16. Selling Items at a Fixed Price

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AddFixed-PriceSellingtoYourAuctionswith

BuyItNow

eBay'sBuyItNow(BIN)optionletsyouaddafixed-priceoption

toyourauctionlistings.ThewayBINworksisthatyounamea

fixedpriceforyouritem;ifauserbidsthatprice,theauctionis

automaticallyclosedandthatuserisnamedthehighbidder.

Note,however,thattheBINpriceisactiveonlyuntilthefirst

bidisplaced.IfthefirstbidderplacesabidlowerthantheBIN

price,theBINpriceisremovedandtheauctionproceeds

normally.

WhywouldyouaddtheBINfeaturetoyourauction?Ifindthat

manysellerswhouseBINareretailerswithalargequantityof

similarinventory.Thatis,they'relikelytoplacethesameitem

upforauctionweekafterweek;inthisscenario,theBINprice

becomesthedefactoretailpriceoftheitem.

YoumightalsowanttoconsiderBINaroundtheChristmas

holiday,whenbuyersdon'talwayswanttowaitaroundseven

daystoseewhetherthey'vewonanitem;desperateChristmas

shopperswillsometimespayapremiumtogetsomethingnow,

whichiswhereBINcomesin.

YouactivateBINwhenyou'recreatingyouritemlisting,inthe

SellingFormatsectionoftheDescribeYourItempage,as

showninFigure16.1.JustenteryourBINpriceintotheBuyIt

NowPricebox.Andremember:YourBINpriceshouldbehigher

thanyourStartingPrice.



Figure16.1.EnteraBINpricewhencreatingan

auctionlisting.



[Viewfullsizeimage]



Know,however,thatusingtheBINoptioncostsmorethan

runningatraditionalauction.AddingaBuyItnowpricetoyour

auctionwillcost

anadditional$0.05foraBINpricebetween$0.01and

$9.99

anadditional$0.10foraBINpricebetween$10.00and

$24.99

anadditional$0.20foraBINpricebetween$25.00and

$49.99

anadditional$0.25foraBINpriceover$50.00.



CreatingFixed-PriceListingsNoBidding

Required

eBayalsoofferstheoptionofrunningstraightfixed-price

listings,withnobiddingallowed.Theselistingslookandfeel

prettymuchlikestandardauctionlistings,andrunforthesame

lengthasastandardauction,butfeatureonlytheBuyItNow

purchaseoption.Potentialbuyerscan'tplacebidsonthese

items;theycanonlypurchasetheitematafixedpriceby

clickingtheBuyItNowbutton.

Tolaunchafixed-pricelisting,startbycreatinganewitem

listingasyounormallywould.WhenyougettotheSelling

FormatsectionoftheDescribeYourItempage,usethepulldownmenutoselectFixedPrice.Enteryourdesiredselling

priceintotheBuyItNowPricebox,andthencompleteyour

listingasnormal.That'sallyouhavetodo;thefirstbuyerto

clicktheBuyItNowbuttonpurchasestheitem.



"MikeSez"

There'snosenseusingBuyItNowifyou'renotgoing

tomakeanymoremoneyfromitthanyouwoulda

normalauction.IfyouwanttouseBuyItNow,seta

BINprice20%orsoaboveyourmostwildly

optimisticsellingprice.(Soifyouthinkyouritem

mightpossibly,ifallthestarsalignproperly,sellfor

$10,setaBINpriceof$12.)Thatwayifan

enthusiasticbuyerdoesendyourauction

prematurely,you'llbewellcompensatedforit.







Fixed-PriceSellingwithaneBayStore

Ifyouhavealotofitemsforsaleonaregularbasis,youmight

wanttoconsideropeninganeBayStore.AneBayStoreisa

onlinestorefrontyoucanusetoselladditionalfixed-price

merchandise,inadditiontoyourregularauctionitems.Ifyou're

aheavysellerthinkingofmakingthemoveintorealhonest-togoodnessonlineretailing,creatinganeBayStoreisarelatively

painlesswaytostart(seeFigure16.2).



Figure16.2.Theauthor'seBayStore.



[Viewfullsizeimage]



DoYouQualify?

JustaboutanysellercanopenaneBayStore.Allyouhaveto



doismeetthefollowingcriteria:

BearegisteredeBayseller,withacreditcardonfile

Haveafeedbackratingof20ormore,orbeIDverified

HaveaPayPalaccount(inordertoacceptcredit-cardsales)

Giventheselightrequirements,youcanseethatyoudon't

actuallyhavetobeabigtraditionalretailertoopenaneBay

Store.Anyindividualmeetingtherequirementscanalsoopen

aneBayStore,thusmakingeBayStoresagreatwayfor

entrepreneurialtypestogetstartedinretailing.



Tip

AnotherbenefitofsellingmerchandiseinaneBayStore

isthateBaywillautomaticallyadvertiseitemsfromyour

storeontheBidConfirmationandCheckoutConfirmation

pagesitdisplaystobiddersinyourregularauctions.

These"merchandisingplacements"helpyoucross-sell

additionalmerchandisetoyourauctioncustomers.



WhywouldyouwanttoopenyourowneBayStore?Well,it

certainlyisn'tforcasualsellers;youdohavetosetupyourown

webpage,andkeepthestorefilledwithmerchandise.Butif

you'reahigh-volumesellerwhospecializesinasinglecategory

(orevenahandfulofcategories),therearebenefitstoopening

yourownstore.Theseincludebeingabletosellmore

merchandise(throughyourstore)thanyoucanotherwiselistin



auctions;beingabletodisplayaspecialeBayStoresiconnext

toallofyourauctionlists;andbeingabletogeneraterepeat

businessfromfuturesalestocurrentpurchasers.



"MikeSez"

eBayStoresaregreatforsmallmerchantswhodon't

otherwisehaveaWebpresence.They'reoverkillfor

thecasualseller,howeverandprobablynotworththe

effortforlargerretailers.



TheCostsofRunninganeBayStore

Naturally,itcostsmoneytoopenaneBayStore.(eBayisn'tin

thisforthebettermentofmankind,afterall.)Youpaya

monthlyfeetobeaneBayStoremerchant,andtherearethree

subscriptionlevelstochoosefrom,asshowninTable16.1.

Table16.1.eBayStoresSubscriptionLevels

Subscription Price



Description



Basic



$15.95/month Storelistedineverycategorydirectory

whereyouhaveitemslisted;position

basedonnumberofitemslisted;receive

monthlystorereports;send100emailsa

monthtobuyers;create5customizable

pages;freesubscriptiontoeBaySelling

Manager



Featured



$49.95/month AllfeaturesofBasic,plusstorerotated

throughaspecialfeaturedsectiononthe

eBayStoreshomepage;storereceives

priorityplacementinRelatedStores

sectionofsearchandlistingspages;store

featuredwithinthetop-levelcategory



pageswhereyouhaveitemslisted;

cross-sellproductsonviewitempages;

receivemoredetailedmonthlyreports;

create10customizablepages;send

1,000emailsamonthtobuyers;andyou

getafreesubscriptiontoSellingManager

Proand$30/monthtospendontheeBay

Keywordsprogram

Anchor



$499.95/month AllfeaturesofFeatured,pluspremium

placementinRelatedStoressectionof

searchandlistingspages;yourstorelogo

rotatesthroughcategorydirectorypages

(1millionimpressions);send4,000

emailsamonthtobuyers;create15

customizablepages;andyouget

dedicated24-hourlivecustomersupport

and$100/monthtospendontheeBay

Keywordsprogram



YoualsohavetopayeBayforeachitemyoulistandeachitem

youselljustasinanormalauction.Thedifferenceisyou'renot

listingfora(relativelyshort)auction;you'relistingforlongerterminventory.WhileeBayprovidesadetailedfeeschedule,it

prettymuchboilsdowntopaying$0.02permonthforeach

itemlistedinyoureBayStore.Ifyoulistanitemfor60days,

youpay$0.04;ifyoulistanitemfor90days,youpay$0.06.

And,ofcourse,foreveryitemyousellinyoureBayStore,eBay

chargesafinalvaluefee.Table16.2liststheeBayStoresfinal

valuefees.

Table16.2.eBayStoresFinalValueFees

ClosingValue



Fee



$0.01$25



8%



$25$1,000



8%onfirst$25plus5%onremainingbalance



$1,000andup



8%onfirst$25plus5%onthepartbetween



$25.01and$1,000plus3%ontheremaining

balance



eBayStoresalsooffersafullassortmentoflistingupgrades,

justliketheonesyoucanuseinregulareBayauctions.These

enhancementsgallery,bold,highlight,andsoonarepriced

accordingtothelengthofyourlisting.Youcanalsooffer

multiplesofthesameiteminDutchauctionformat.



SettingUpYoureBayStore

OpeningyourowneBaystoreisaseasyasgoingtotheeBay

Storeshomepage(stores.ebay.com),clickingtheOpenaStore

button,andthenfollowingtheonscreeninstructions.There's

nothingoverlycomplexinvolved;you'llneedtocreateyour

store,customizeyourpages(otherwiseknownasyourvirtual

storefront),andlisttheitemsyouwanttosell.Justfollowthe

onscreeninstructions,andyou'llhaveyourownstoreupand

runninginjustafewminutes.



Note

LearnmoreaboutsettingupyourowneBayStorein

mycompanionbook,MakingaLivingfromYour

eBayBusiness(Que,2005).







Fixed-PriceSellingonHalf.com

eBayisn'tjusteBay.TheeBaycorporationalsoownsasite

calledHalf.com(half.ebay.com),whichletsanyonesellcertain

typesofmerchandiseinafixed-priceformat.Listyouritemsfor

sale,waitforsomeonetobuythem,andthencollectthe

money.InthisrespectHalf.comworksalotliketheAmazon

Marketplacewhich,bytheway,isanotherviableplaceforyouto

sellyourstuff,ifyou'reinterested.

AsyoucanseeinFigure16.3,Half.comspecializesinspecific

typesofmerchandise:books,CDs,DVDs,videotapes,video

games,andgamesystems.Buyerscanpurchaseitemsfrom

multiplesellers,andhavealltheirpurchasesconsolidatedintoa

singleshoppingcartandcheckout.Theymakeonepayment,

theneBaydepositsfundsintoeachseller'saccountindividually.



Figure16.3.ItemsforsaleonHalf.com.



[Viewfullsizeimage]



Note

LearnmoreaboutHalf.comfromabuyer's

perspectiveinChapter9,"BuyingFixed-Price

Items."



TosellonHalf.com,allyouhavetodoisclicktheSellYourStuff

linkatthetopofthepage.WhentheSellYourItemspage

appears,asshowninFigure16.4,youcanclickacategorylink

foryouritem,orentertheitem'sUPC,ISBN,ormodelnumber

intheQuickSellboxandclicktheContinuebutton.Onceyou've



enteredtheappropriateidentifyinginformation,Half.comthen

insertspre-fillediteminformationfromamassiveproduct

database.(It'sthesamedatabasethatfeedseBay'spre-filled

informationinthesamecategories.)Therearenolistingfees,

butyoudohavetopayHalf.comacommissionwhenanitem

sells.You'llpaya15%commissiononitemsunder$50,and

lowercommissionsasthepricerises.Insteadofabuyerpaying

youdirectly,Half.comcollectsthepayment;thesitesendsyou

yourpaymenteverytwoweeks.



Figure16.4.GettingreadytosellonHalf.com



[Viewfullsizeimage]







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Chapter 16. Selling Items at a Fixed Price

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