Selling on Auctions Versus Fixed Priced Marketplaces
Thursday, September 26, 2013
Auctions have been an integral piece of the Internet since the beginning. AuctionWeb (which became eBay) was founded in San Jose, California in 1995 by French born Iranian-American computer programmer Pierre Omidyar. One of the first items sold on AuctionWeb was a broken laser pointer. When Pierre called the buyer to ask why he bought a broken product, the buyer told him he was a collector of broken laser pointers. This answer helped reinforce the idea that the Internet was made up of lots of little niches of interest and a robust auction site could bring them all together.

As eBay grew, so did the fees that were charged the sellers (those listing products). EBay generates revenues from all kinds of fees. There are fees to list a product. There are fees when the products sell and optional marketing fees to sell products. To the long time sellers on eBay, the increase of fees over the years has become quite disheartening. So out of this frustration, several alternative auction sites sprang up.

The auction site DollarDays sees as the fairest site for both buyers and sellers is http://dollardays.com/landing/auction. Sellers pay only $8 a month and they get a free storefront and can list up to 8,000 products. Sellers don't have to worry about any other hidden charges. This site seems the best way to move overstocks, shelf pulls, leftovers and end of season inventory. Hundreds of thousands of interesting products from coins to collectibles help drive committed buyers to this site.

As a seller, the other way to move your products through Internet sales is to get involved in marketplaces. Online ecommerce marketplaces are sites where the platform of a site containing sellers products, is provided by third parties and transactions are processed by these third party marketplace operators. Some of the most well-known include Amazon, Newegg and Rakuten (previously known as buy.com) If you own your own products, all you need to do is contact these sites directly and add your products. These sites take a percentage of all sales, so make sure you have built enough margins into your pricing to cover these expenses. If you don't own your own goods and want to sell on these sites, become involved in a drop shipping program which is a technique where you do not keep the inventory in stock, but transfer customer orders and shipment details to a company like a manufacturer or wholesaler who stocks the goods and ships directly to your customer. I obviously recommend our drop shipping program at http://www.dollardays.com/aboutus/dropship.htm.

Don't kid yourself. Both listing and selling products for auctions and marketplaces takes work. The philosophy of "build it and they will come" does not work on the Internet. You need to have the right products, at the right price at the right time and then find the right venue that has the right amount of customers shopping for your goods. The easiest way today to see if you have the right products at the right price is to throw them up on http://dollardays.com/landing/auction. At $8 a month, how can you go wrong and if it does not work, just shut it down, but if it does work, laugh all the way to the bank as you think about how much those poor sellers on eBay are paying just to get their sales!