[M103]Make Money On Ebay Auction

There are different types of Ebay auctions. As an Ebay seller one should be familiar with all of them. The very first question that comes into mind regarding this is - what was actually the requirement of having different kind of auctions. The primary reason for this is Ebay is a huge platform for online shopping. There are thousands of sellers and millions of buyers. To cater to everyone’s needs Ebay has introduced all these various ways of business interactions.
There are many different sellers who have come to Ebay with different intents and different business targets. For example say a wholesaler of computer peripherals might want to sell a bulk of his goods at a lower per unit price. And another seller may want to sell single a piece of antique at a very high price. So there are people of different tastes. And Ebay has to provide platform to satiate all needs. So there are different kinds of auctions available in Ebay as explained below:
1. The Normal Auctions
These are the most common and prevalent auctions in Ebay. Here the rules are pretty simple. A listed product will have a minimum bid price i.e. the lowest price in which the seller wants to sell that particular item. A buyer has to bid on that product. Another buyer will have to try and exceed his bid. Like that many people will bid and the person having the highest bid is going to win and the seller has to sell his product to him. There is also prefixed time limit till when the potential buyers can place bid for that product.
2. Buy It Now Auctions
These are also called Fixed Price auctions. That is because this is about selling an item at fixed price. This can actually be done in 2 ways. There is something called a “Buy Now" button which can be used to incorporate a fixed price in which the buyer can buy the product if he wants to avoid the bidding process. The seller adds this button to his normal auction listing. So if some one wants to bid, he can and also if someone wants to avoid bidding he can just go ahead and pay the fixed price and buy the product. The other way is to completely avoid the auction process and simply sell the item in a fixed price. Many sellers opt for this option also.
3. The Reserve Auctions.
Some sellers in Ebay will not sell any item lower than a predetermined price. Now for one item if the bidders did not bid price according to the seller’s expectation and it did not reach that predetermined price then he will not sell it. These auctions are called Reserve auctions. The Reserve auctions and Fixed Price auctions are special formats of Ebay and hence to use them in an item listing sellers has to give an extra charge Ebay.
4. The Multiple Item Auctions
This is the rarest and most complicated auction types and designed for sellers who have multiple pieces of same items for sale. Here buyers bid on price and also quantity. There can be multiple winners. All winning bidders then pay the minimum bid price among all the bidding winners. These auctions are also called Dutch auctions. Sellers generally don’t go for such complicated procedure. What they generally do is that they simply list how many items they has to offer and fix a per unit price. The buyer can just enter the quantity and buy by paying for all of them at the rate fixed by the seller.
So these are the different Ebay auction types. To know how to make money on Ebay these knowledge are necessary for any seller so that he can decide on his selling strategy depending on his business goals.