The fact is Internet auctions are a new kind of home- based
business created by the Internet with no capital investment and
no risk.

An online auctions business has the following advantages:

* No start-up costs.

* No financial risk.

* Work whenever you choose.

* Targeted customers brought to you by auction sites such as
Ebay.

* Notechnical skills required.

* Start-up in 5 minutes.

How do I start an online auctions business?

First, if you are not familiar with the process of buying and
selling, you need to understand how auctions operate. By far
the biggest online auction site is Ebay (http://www.ebay.com),
boasting millions of users worldwide.

However, this is the tip of the iceberg. Other popular auction
sites include:

Yahoo Auctions - http://www.auctions.yahoo.com

uBid - http://www.ubid.com

OnSale - http://www.onsale.com

QXL - http://www.qxl.com

Start off by buying an item yourself to get the feel of how it
is done. This will give you an overall insight into the process
of registering with the auction site, bidding, paying for your
goods and the delivery arrangements.

Don't Feel Forced to Buy

As a buyer you should not feel pressured into buying something
that you know is overpriced because you think it is the last
item. There are many online auctions and there is a good chance
that you will come across the same item at another site.

Leave Your Bid Late

Experienced online buyers will leave their bids until the last
few minutes before an auction closes to prevent the price being
driven up too high.

Use Automated Bids

If you don't want to spend a lot of time waiting for an
auction to close, you can use an automated bidding service such
as eSnipe (http://www.esnipe.com). You can open a free account
and type in the auction number and the amount you want to bid.
ESnipe can then place a last-minute bid for you just before the
close of the auction. If you win the bid, you pay eSnipe a small
fee and if you lose you pay nothing.

Search for Misspelt Items

Savvy buyers know that many items listed for sale at Ebay are
misspelt. You can use this to your advantage by searching for
wrongly spelt items. You will have far less competition as most
people search for correctly spelt items.

Once you have bought something and paid for it, you will know
how the auction process works from the buyer's point of view.
This is vital as it will give added insight into how you can
provide good customer service when you set up your own
business.

So now that you have bought and paid for an item on an online
auction, you are ready to sell something yourself as a first
step to setting up an online business. At this point, most
people look around their own homes to rid themselves of some
unwanted items for which they have no use. This is a good way
to get started. When you list your item on auction sites, make
sure you provide a photograph. This will grab the attention of
the buyers.

Description of Goods

A good description of your 'for sale' items is essential. Give
all relevant details including technical specifications and
dimensions where necessary.

Guaranteed Refund

Give a guaranteed refund to potential buyers to reassure them
of your integrity. Most buyers and sellers on the Internet are
honest but there are a few rogues, and buyers like to be
reassured.

Positive Feedback

Getting positive feedback from your previous customers is the
best way to prove you are trustworthy. Always request feedback
politely after a successful sale.

Reserve Price

Set a reserve price to ensure that your goods do not sell for
less than you want. Make it reasonable. If you set it too high,
you will not receive any bids.

Payment Options

The more payment options you offer your buyers, the more
likely you will be to make a sale. Ebay auctions offer the
online payment transfer system Pay Pal (www.paypal.com) which
is free to set up. Credit cards also offer security and are
popular.

If you intend to set up an online auctions business, it is
best to specialise in a niche which is a little out of the
ordinary. Thereby facing less competition and guaranteeing your
profitability. Setting up an online auctions business can
become a reality for anyone who is prepared to do the necessary
research and put in the effort. The enormous interest in auction
sites created by the success of Ebay has provided huge numbers
of targeted visitors ready to part with their cash for a great
variety of goods.

(C) John Lynch

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