Setting Your Standards
Selling online is about earning a living, or at least generating a second income, while doing something you enjoy. Whether online auction selling is your livelihood or a hobby, you want to earn a return on the necessary investments, including the money you spend for auction merchandise, listing fees, photograph fees, and other sales features. The time you spend managing your auction sales is also worth money.
The quicker you can collect from winning bidders, the more valuable their payments will be to you, your family, and your business. The best way to ensure fast payments is to have:
A clear list of payment preferences
A definite deadline for when you expect payment to be made
A list of the shipping services you offer
A merchandise return policy (or a statement that you are selling “as is”)
Payment Preferences
Many online auction sellers post just one payment preference: “I accept PayPal only.” PayPal's instant-payment features means goods can be paid for and shipped almost immediately after an auction closes. PayPal is very popular with “weekend warrior” auction sellers who start seven-day auctions on a Saturday or Sunday. Once a listing closes and the winning bidder pays with PayPal, the goods can be boxed up, and a U.S. Postal Service or UPS shipping label can be printed with a computer and laser or inkjet printer. The shipping fees can be paid from the seller's PayPal account, and the balance — the profit — can be transferred to the seller's bank account. Meanwhile, Monday morning, the box can be dropped off at an appropriate shipping facility on the way to work.
To add PayPal to your payment preferences in eBay, click on My eBay. On the My Summary page, look for Preferences under the My Account heading. Click on Preferences and edit Payment from Buyers.
Payment methods can be different for each auction item you list. For example, if you have been accepting PayPal payments only and want to add personal checks, money orders, and cashier's checks, you can add these items in the Payment & Shipping section of a new listing. If you already have posted a listing but no one has placed a bid, you can open the listing and click on Revise Your Item. Scroll down to Edit Payment & Shipping and click on the link. Add or delete payment methods as desired. If a bid already has been placed, you can add more payment methods but not delete any of those currently in place.
Payment Deadline
In the online auction world, seven to ten days are common deadlines for receiving payment. A ten-day deadline should give adequate time to a buyer who prefers to mail a personal check, money order, or cashier's check rather than pay online with PayPal or a credit card.
If you require immediate payment (via PayPal or credit card, for example), you must specify the shipping costs and other related costs, as well as the price of the winning bid. The buyer must be told exactly how much to pay.
Shipping Services
The shipping services you offer can affect how quickly you are paid. Buyers needing a particular item in a hurry may bid in your auction or do a Buy It Now purchase because you offer faster shipping methods than a competitor does.
Return Policy
Your attitude toward merchandise returns can affect buyers' willingness to place bids on your items. Researchers at eBay have found that “difficulty in returning items” is one of potential bidders' key concerns, even though returns are rarely necessary. The eBay researchers also found that sellers with clear return policies typically sell a higher percentage of their listed items than do their competitors who don't have return policies. A clear return policy can give your buyers the confidence they need to bid on, and bid up, your merchandise.
A clear return policy states:
What merchandise cannot be returned
The conditions for return (such as “merchandise packaging unopened”)
How a refund will be issued
The time limit for returning merchandise
Items sold “as is” generally cannot be returned to the seller by a winning bidder. Be sure to specify “as is” and “no return” in the descriptions for any “as is” items you list for auction.
Your return policy should be very clear on the conditions under which you will accept an item's return, such as “opened box with all original contents” or “unopened merchandise packaging.” You should also specify: “Items will be inspected before refund is issued and must be the same items that were shipped.” There is a practical reason for this warning. Idealistically, you may believe that all businesses, including yours, should offer a policy of “100% satisfaction guaranteed or your money back.” This approach works well in a retail business where a customer walks into the store and physically returns a defective item. Store personnel can inspect it and issue a refund or swap the defective item for a new one on the spot. In the online world, however, you always have to be on guard against fraudulent buyers who will try to “return” a different or inferior version of the merchandise they bought from you.
Your return policy also should contain a clearly stated
Set a time limit for returns and stick to it. Otherwise, a buyer may try to send back an item and demand a refund several months after purchase. Online auction sellers typically set deadlines of seven days, ten days, fourteen days or thirty days for buyers to return merchandise.
Some successful eBay sellers do not post a return policy. Instead, they deal with problems, if they occur, on a case-by-case basis. When an item in question is not very expensive, a seller will often refund the buyer's bid price and possibly the shipping costs, too, and let the unhappy buyer keep the item. This avoids the hassle of trying to recover the merchandise, and it minimizes the chance of getting negative feedback from the transaction.
As Is
At times, you will want to sell certain items “as is.” An “as is” item is auctioned off in its current state with no guarantees that it will meet its intended purpose. Likewise, it usually is sold with no opportunity for return. The buyer has to gamble that the item will work or can be repaired. “As is” items are often bought to cannibalize for parts that can be used to repair a similar item. Or, all useful parts are removed from the “as is” object and put up for auction by someone who knows, and can describe, how they are used and replaced.
To get the highest bids for an “as is” item, follow these steps:
Check current and closed listings for similar items.
Make notes on the categories used, how the item is described, and how it is shown with photographs in the most successful sales.
Create similar photographs for your item.
List your item in the best category and set the opening price low. Use a reserve price, if necessary, to avoid selling the item for less than the minimum you want to get for it.
Write a careful description of the item, listing any visible flaws and any mechanical or electrical problems that are known to you.
If you don't know the condition of the item, make this very clear to potential bidders. State that the item is being sold “as is” and that your return policies will not apply.
State that the buyer assumes all responsibility for the condition of the item and has bid with the understanding that the item may not meet its performance requirements or expectations.
Pick and Choose
Examples of good (and bad) selling standards are easy to find on eBay and other online auction sites. Make a buyer's tour of several auction listings posted by experienced sellers, those who have had at least 100 positive feedback postings from buyers. Read the information posted for shipping, payment, and return. Notice how the successful sellers handle special requirements such as shipping insurance. Take notes on any instructions or requirements that you can include in your own standards. For example, you might want to include statements similar to these in your sales policy:
“I accept PayPal, money orders, cashier's checks, and personal checks.”
“Payment should be received within ten days after the end of the auction.”
“I ship in one to two days when payment is made with PayPal.”
“Shipment will be delayed until personal checks clear.”
“Shipping insurance is optional but recommended. It may be required on some items.”
“Negative feedback will be left for winning bidders who do not pay.”
If you are not sure that your policies are clear enough, have a friend review them and point out any areas that raise questions.
Payment Preferences: Buyer's View
A cautious buyer may ponder several questions while examining your payment preferences, including:
Are your preferred payment methods easy to use?
How do you report that payment has been received?
Do your preferred payment methods provide proof of purchase?
Can payments to you be traced?
How secure are the payment methods you offer?
What liability coverage is available if something goes wrong with the transaction?
You can't please all of the buyers all of the time. Some may ask, or demand, that you accept a payment method you do not wish to use. Stick to your standards. Ask the potential bidder to use one of the payment methods you have specified. If they refuse and post a bid anyway, you may be able to cancel it and block them from bidding in your future auctions.
According to eBay, sellers and buyers should contact each other within three days after an auction closes. The Auction Police will not arrest you if you take four days or longer. However, a buyer may become restless, bombard you with e-mails, and consider negative feedback. Make it a policy to contact winning bidders as quickly as possible.
Terms of Sale
Be sure your terms of sale specify the following very clearly:
How to pay
What shipping methods are available
How often you ship (daily, three times a week, once a week, and so forth)
Whether shipping insurance is optional or required
After you establish your terms, stick to them. You may get several requests from potential bidders, asking you to offer another payment method or shipping method. Be polite, but explain that the methods you have chosen work best for you. Encourage them to use one of the payment methods you have chosen.
Many online auction experts recommend offering as many ways to pay as possible, including accepting personal checks and credit cards.
Other experienced auction sellers, however, have benefited from the explosive growth of PayPal. They have found that stating “I accept PayPal only” is not a deterrent to bidders. Indeed, PayPal's instant payment capabilities means the winning bidder can pay with a credit card or debit card, and the auction merchandise can be shipped the same day or within a day or so of the auction's conclusion.
