subject: Making Money From Online Auctions [print this page] When it comes to money, we are all struggling at the moment. Our wages are going down, but the cost of living is going up, it seems that we have few means to make ends meet at present. We hope that the economy will bounce back soon, but in the meantime, there are other ways of making money. One lucrative area is the auctions. Here, we will explain how to make money through the various types of auction sites (the traditional auctions and the penny auctions).
Research the Market
The first thing that you need to do is to research the market. This is fundamental and without proper research only luck will stop you from failure. Fortunately, market research is fairly easy, and there is plenty of advice online to help you in your endeavour. What you need to be searching for are goods, products or services, that you can purchase for relatively little, but which you can self for relatively more. You need to ensure that you have a good profit margin. For example, if you have contacts within the electronics industry, you may be able to source laptops for 300, which have a market value of 375 that is a large profit margin and a great venture because they are popular too. When selling products at auction then, you must be sure to research two areas:
Items that have a large profit margin
Items that are popular and therefore likely to sell do this by checking with websites to see what is 'trending' at present.
Find the Goods You Want to Sell at the Best Prices
You need to exhaust all avenues here. Some places that you may think about to source your products are:
Your contacts perhaps you know somebody in the industry, and they may give you a better deal than you can get elsewhere.
Think about bulk buying the more items that you buy, then generally, the cheaper they will be. Clearly, the cheaper you purchase the items, the bigger the profit margin.
Penny auctions you can use auction sites to source your products, even though you will then sell through the auctions. The penny auctions can get you some real bargains, and if you develop a good strategy, you can make good money selling the items that you win.
"Rome Wasn't Built in a Day"
Most people, when starting out in business, over stretch when they start out. This will cause cash flow problems until your business develops, which in turn can lead to closure (and often does, 4 out of 5 start-up businesses fail, and this is a key reason).
So, start small. At the beginning, keep your day job. Build up your reputation this is essential because people will trust you, and you are much more likely to get repeat custom. Keep all of your profits initially, and use them to help build your auction business.
Join more than one auction site, and sell a variety of goods across the board. You will then notice a pattern of which sites work best for which items.
by: John Samual
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