Online Auction Sellers
Advantages and Disadvantages

Online auctions are a market where thousands of buyers and sellers trade goods on a daily basis, A seller would be a fool to let such a large market pass him by.

But like any other market there are traps for the unprepared. To stay safe you should know the advantages and disadvantages of selling at online auctions.

Advantages

1. Convenience - Set up your sale from the comfort of your home or office.

2. Information - You can reasearch the sort of price other similar items have sold for. Once bidding starts you can check the feedback ratings on your bidders.

3. Time Saving - It is a lot quicker to set up your sales pitch on an on-line auction. No need to spend all day at the local car boot sale or market.

4. Price - If you are lucky you will get a number of bidders competing agains each other this can sometimes push the price up beyond your original expectations.

5. Guarantee - you can sell the item 'as is' - a good way to get rid of stock that is shop soiled or not perfect - make sure this is made clear in your description to avoid negative feedback.

Disadvantages

1. Price - Most bidders at auctions are looking for a discount and cut-price items so prices can tend to be on the low side. Also if the demand is not there the final price may be very dissapointing - set a reserve to avoid this.

2. Fakes - If you are selling quality items you may find yourself competing against fakes and items that have "fallen of the back of a lorry".

3. Scams - sellers as well as buyers may be subject to scams. As a seller you may find you send the goods but the cheque bounces. Avoid this one by only accepting electronic payment, say via paypal. Check the auction trading terms and beware of approches outside the 'normal' channels.

Auctions are a good way to trade for both buyers and sellers, but it is a good idea to be aware of the advantages and disadvantages before getting involved.

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