Part 1 : Exploiting eBay

David, you've been selling on eBay since 1996. Why did you originally decide to sell your stock through an online auction service?
Becoming a work-at-home father in 1992 was a large part of why I went onto the net selling on eBay and starting a website. I had operated my business through mail order by doing targeted solicitations, using lists and a database I had developed by going to shows etc. Looking for new ways to do business, I turned to the computer.

I first created an offline bulletin board. I went on to the internet and started advertising my bulletin board in newsgroups. This was somewhat successful. I learned about eBay on the newsgroups in 1996. It was a small and unsophisticated place back then and I just lurked for a while trying to understand it.

Eventually, I became a registered user and started buying items. Then I started selling a few items and was very successful. In general, 80-90% of my items were selling, and selling at higher prices than I was asking in the real world.

What are the key advantages for a small retailer of using a site like eBay?
If your business has a particular focus like mine does, eBay can help you find new customers. eBay categories are subdivided into specific interest areas which help to target real buyers. Linking from the listings to my website using a banner has been exceptionally successful; eBay brings lots of hits and sales every month.

It has also brought people to my site who want to sell items. This has been a really tremendous advantage in a world of shrinking supply. There is no better targeted advertising than eBay in my opinion. I tried banner exchanges with very little success.

eBay creates new collectors/customers too. People with subject- specific interests use the search function to cut across categories and discover entirely new areas in which to collect items which relate to their interests. I have encountered many people like this in selling stereoviews. Once they discover the medium, they buy more.

Is it possible to get higher prices than through normal retail sales?
Very often eBay brings prices that are higher than normal sales. Sometimes it doesn't though. The supply side has grown in the last couple of years, bringing fewer bids per item.

What's the highest price you've ever achieved at auction?
I'm not sure on this one. I tend to sell lower priced items on eBay and sell the better items on my site. There needs to be a difference.

Continued...