Choosing a Listing Format & Selecting an Auction Category
Friday 20 November 2009
by SaleHoo.com
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What tips and tricks will you learn in this newsletter?
Today you'll learn why Buy It Now can often work better than a traditional auction, how to find out which category will give you item the most bids, and how to list 'difficult' items. Some of the things I mention will already be familiar to you from last week, so hopefully at the end of this newsletter the process will be crystal clear!
Let's get started!
Now that you know the basic auction set-up process it's time to take a look at the specifics. How can you maximize the listing opportunities you are provided with? When you're creating your auction, the first thing you will have to do is to choose your listing format. Essentially, you can choose between a traditional auction, or a combination of traditional auction and Buy It Now.
The Traditional Auction
We've already been through the traditional auction format in the last lesson, so you know how straightforward this method is. With the traditional auction format that eBay is famous for, you set a starting price, bidding begins and the highest bidder wins the right to purchase your item at the end of the auction time.
Traditional auctions are addictive, adrenalin pumping things! The thought of bargains galore ensures that people are always attracted to auctions, while the sense of ownership that they get once they place a bid ensures that they just can't stop themselves from bidding higher and higher in order to keep 'their' item!
This definately has its advantages for you the seller! Profit potential is unlimited with an auction. If a bidding war gets underway, then your grandma's old cheese grater might easily sell for $50, or your old t-shirt for $15. For all the bargain hunters out there (and there are quite a few - let me tell you!), auctions are attractive because they have cut-price potential. It's clear then that the traditional auction format is a winner. But let's take a look at the other popular format - Buy It Now.
What are the benefits of Buy It Now?
As you become more familiar with eBay, there are some real advantages to be had with a Buy It Now (or Fixed Price) format.
While half the world love the adrenalin of auctions, the other half are too impatient and want their item now please! The Buy It Now option is a great way of ensuring that these buyers can get their instant gratification.
The Buy It Now format is ideal for selling several of the same item. For example, if you have 20 DVDs of The Sound of Music, then you can list the DVD once and sell them as quickly as people will buy them.
Listing multiples of the same item means you don't have to pay a listing fee for each item, which is much more cost efficient for you! Imagine if you had to pay a listing fee for the same item 40 times! Costs would quickly add up.
Many sellers find that as their item nears the top of the listings during its final hours, they begin to sell quite a few with Buy It Now as their item becomes more visible.
For you the seller, Buy It Now has a strategic purpose. The Buy It Now price that you set gives the potential bidder some idea of what the item is worth, and what they should be bidding. If your Buy It Now price is $10 for your Sound of Music DVD, then the bidder will think they have a bargain if they purchase it with a bid of $7.
Of course, the strategically-minded seller has arranged this neatly so that $7 is a price that they are more than happy with and gives them a decent profit. The Buy It Now price of $10, or any bids over that are an added bonus.
Check out this handy table below. You can see at a glance the benefits of each format, and use the information to decide the best format for your item.
Listing Format Feature Comparison
| Feature | Traditional Auction Listing | Buy It Now Listing |
| Creates competition |
Yes | Yes |
| Allows for multiples | No |
Yes |
| Gives instant gratification to buyer |
No | Yes |
| Unlimited profit potential for seller |
Yes | No |
| Easier budgeting |
No | Yes |
| Encourages bargain hunters |
Yes | No |
| Provides an adrenalin rush | Yes | No |
Selecting an Auction Category
Once you have decided by what method you will be selling your item, you need to consider the most appropriate category to list it in.
Would you be able to find a hammer in a hardware store if it was in placed in the lighting section? No. Similarly, no one will be able to find your Whistler print if it is in the Sporting Goods category - a rather silly example I admit, but you get my point!
There are 60,000 categories on eBay (and increasing all the time!) and choosing the best one for your item can help you target the most interested bidders and therefore get the best price.
Choosing the wrong category can actually get you into trouble too. If your item is mis-categorized, you may find that eBay has gone and re-categorized it for you. And if you put an X-rated item anywhere outside of the Mature Audiences category, then that item will be removed by eBay.
Of course, there are some items that are darned hard to nail down...where do you list the magical beanstock beans you found lying about for instance?
Do the Research
Before you even start setting up your auction, search for similar items to see in what categories others have placed theirs. Also examine completed auctions of items similar to or the same as yours for more ideas. To find completed auctions, click Buy on the eBay home page & Advanced Search and then check the box to search on Completed listings only.
Browse through eBays Directory
When you are setting up your auction, use the Search for Categories tool to find appropriate categories. All you have to do is type in some words that describe your item and then click Search for Categories. Ebay will give you suggestions as to what category you item belongs in.
As you can see in the example below, categories are given a percentage rating of suitable match.
Look through Categories You Have Used Recently
If you are selling something similar to what you have sold before, selecting the category is easy. Just click the link to view recently used categories.
Think from the Point of View of the Buyer
If you were searching for your item, what category would you look in? Don't forget to think about key search terms here too. For example, 'vintage' sounds a lot more appealing than 'second-hand' or 'old'.
Listing Your Item in More Than One Category
If your item fits well in more than one category, then you do have the option of placing it in multiple categories. However, eBay charges a listing fee for each additional category you place it in, so you may just want to choose the most obvious one and stick with it.
But if you really can't decide, do a completed-item search and see which category produced the more successful sales. If they are equal, then it doesn't matter which one you list in. If not, choose the one that appears to generate more bids.
Sub Categories
After choosing your main category, you then search within that category to find the subcategory. If you are selling a push-lawnmower, then you would place it in Home & Garden & Outdoor Power Equipment & Lawn Mowers & Walk-Behind Mowers.
**Top Tip**
The more specific your subcategories, the more likely it is that your item will reach its niche market. Stop thinking of subcategories as bureaucracy and start thinking of them as market research. By defining your subcategories, you're defining your market - and this is well worth researching properly.
Of course, occasionally there are items that are just unable to be categorized and for these, eBay has helpfully provided an Other category. And in the case of the magical beanstock beans, I think that that is the only place they really belong!
eBay is also adding more categories all the time.
Work Book
- Why would you use a Buy It Now instead of, or as well as a traditional auction?
- Do some research. Make a quick list of a couple of items you think might work on a large scale and research them on eBay. What categories are they listed in? Do you notice a price difference between categories?
Helpful Links
Advanced Search http://search.ebay.com/ws/search/AdvSearch
