Posted on: Tuesday, February 22, 2005

HELP DESK
Tips for the auction newbie

By Kim Komando

Is your closet or garage overflowing with stuff you no longer use or want? You're not alone. According to a 2004 Nielsen survey, the average American stashes $2,222 worth of unused items.

Your junk could be someone else's treasure. To find out, tap into one of America's fastest-growing sensations — online auctions.

These sites let you list items for sale and give interested buyers a chance to bid on your wares. The highest bidder, of course, gets the goods. In return for this service, auction sites generally charge a fee, ranging from a nickel to more than 8 percent of the item's sale price. If you auction a camera and get $100, for example, the fee charged by an auction site generally will be around $5.

Sellers post a description and photograph of their wares on the auction site. Buyers search for offerings by category, such as digital camera, or item, such as Nikon D100. Buyers also can put items on a watch list so they're notified as soon as an item is put up for auction.

The Web is home to hundreds of auction sites. The biggest is eBay; other popular auction sites include Amazon and Yahoo! To get started,

set up an account at an auction site and buy something small to learn the process. Pay careful attention to sellers' ratings. Sellers with high ratings generally are reliable.

The help sections also include insider tips to boost your chances of selling success. For example, Amazon says posting extra photos of your items will net you buyers. However, these extras normally cost extra.

Auction sites make selling simple. They supply a template that you fill out to advertise your item. Describe your item honestly and in detail. Also, explain what forms of payment you accept and how you plan to ship your item. Most importantly, attach a clean digital photo using the auction site's recommended dimensions.

The best thing you can do is set an attractive price. Start your auction bids low to rev up interest. Don't worry because a secret "reserve" (or minimum sales) price can be set before you begin. You also can list items with a "Buy Now" fixed price. Packing and shipping are routinely paid by the buyer.

When your auction has ended, the winning bidder will pay you. Most auction sites offer an escrow service. It acts as an intermediary between buyers and sellers. The escrow service collects payment from the buyer and holds it for the seller until the transaction has been completed. The cost ranges from about $4 to $25 on a $100 transaction. Don't ship until you receive payment. If payment is made by check, make sure it has cleared the bank.