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Auction action - smh.com.au Home > Technology > IT News > Article national world opinion business technology it news opinion reviews sport entertainment multimedia classifieds jobs property cars place an ad extra personal finance travel education subscribe home delivery eNewsletter archives today's edition: am past 10 days site guide contact us Auction action By Jason Hill July 24 2003 Livewire Bruce Nichol used to "loathe" his nine-to-five sales job, so he quit when he realised he could turn a hobby into an online business. Now the father of two works full-time selling antiques and collectables at online auctions, listing about 100 items a week and earning enough to support his family. "I like being my own boss and I love handling the china and pottery," he says. "Like any collector, I get a thrill when I find a piece, but I get a big thrill when I sell it. "While I work a lot I don't really consider what I do as a grind, I love it. The first thing I do when I get up is turn on the computer, and the last thing I do at night is turn it off." Online auction sites are one of the few internet businesses to survive the dotcom collapse. Australians are flocking to buy and sell online, particularly on eBay. ");document.write(" advertisement"); } } // --> When you are surfing through the thousands of listings, never has the adage "one man's junk is another man's treasure" been so apt. With a worldwide audience of millions at your fingertips, the profits can be lucrative. eBay estimates that more than 150,000 people around the world are full-time sellers. Families are also finding auctions a great way to help the household finances. Melbourne mother Janelle Goossens started a "Stay-at-Home Mothers" eBay discussion group. There are now 20 women in the group, all of whom make money on eBay so they can spend more time with their children. Goossens, who has two pre-schoolers, started by selling her children's outgrown clothes and quickly became hooked. "It's absolutely amazing what you can sell," she says. "You just never know what some people out there are interested in unless you put it up for auction. One person's trinket is another person's collectable." Goossens spends an average of three hours a day online. Her best earners include Strawberry Shortcake porcelain that she bought for 50 cents and sold for $45, and a DOS game that she was going to throw away that sold for $70. "The biggest money makers are things that I'd normally just give away," she says. "It's great when I can sell my kids' clothes that they've outgrown and that pays towards their new clothes," she says. Ian Mavric has also built a thriving business on eBay. The IT specialist, who sells retro electronic gear under the moniker "Dr Ian's Fine Computers and Junque Emporium", has been selling online for several years. eBay came to Mavric's attention after he heard someone complaining about the high prices that items were attracting. "The main advantage is that nothing really sits around for long," he says. "Items are procured, listed, paid for and sent in about two or three weeks. Once the auction has finished, that is what it sells for. There is no making counter offers." Mavric says he usually procures his most profitable items from deceased estate auctions and schools that are clearing out old equipment. "Garage sales, second-hand shops and flea markets are increasingly turning up less and less valuable items and they want too much for them besides." Most items Mavric buys end up selling for about double what he paid. But recently he sold some printer consumables for $740 that cost him $40, and a TRS-80 hard drive for $500 that he bought for $15. Because most sellers do not have the overheads of a shop, buying items at online auctions can save money. They are also a haven for both collectors and the isolated. Businesses use online auctions to shift excess inventories at reduced prices. And TV networks offer merchandise from popular programs such as Big Brother. eBay was founded in the United States in 1995 by Silicon Valley programmer Pierre Omidyar because his fiancee had trouble trading her Pez dispenser collection. This year, more than $20 billion worth of goods will be sold on eBay, with an average of two million items listed every day. More than  69 million people have used the site. Simon Smith, eBay Australia's managing director, believes some of eBay's success can be attributed to the changing landscape of retailing from main street traders to superstores. "(Consumers) lost discovery, selection, personal service, passionate sellers and importantly, they lost the fun and enthusiasm," he says. "eBay makes inefficient markets efficient for millions of people by giving easy access to practically anything while bringing back the fun and the passion." Nielsen-NetRatings report that more than 1.6 million Australians visited online auction sites during April - an increase of 73 per cent the same month last year. ebay.com.au attracted more than one million visitors, while sold.com.au had 200,000 and stuff.com.au 30,000. The average visitor spent an astonishing 80 minutes browsing. Fairfax, publishers of The Age, and News Limited, publishers of the Herald Sun, set up online auction sites Sold and Go Fish before eBay landed in Australia in October 1999. But both bowed out in the wake of the eBay juggernaut. Sold was launched in June 1999 and enjoyed early success head-to-head against eBay. It was acquired by global internet giant Yahoo! in February 2001. Yahoo! commerce manager Brian Boys says online auction sites are more than just buying and selling. "(They) are a great hub for communities - a place where people have formed friendships," he says. "I also believe that the good old value for money and the ability to find rare and interesting items from all around the world in one spot has meant that online auctions have thrived." Boys says some of Sold's more interesting auctions have included a gargoyle from Sydney University, a mobile pretzel wagon and 25 cartons of two-minute noodles. Low-cost venture Stuff has carved out its own budget niche. Managing director Simon Van Wyk says Stuff was strong in categories such as children's clothing and sports equipment. "eBay works very well for people auctioning collectables because more often than not there is an international market. People sell different products on Stuff. Generally our listing and commission rates are lower than our competition," he says. Van Wyk says he is constantly surprised by the unusual items that get sold. "The best item was a cigar donated by Monica Lewinsky. She had been given it by Fidel Castro," he says. "It sold for a lot of money." You don't have to register to browse auction listings, only to bid or sell. Both eBay and Sold have excellent "Getting Started" tours for beginners. Bidding is free, while sellers pay listing fees and a percentage of the final price. Fraud is reasonably rare but new users are the most vulnerable. Australia's three major online auction sites say they are constantly looking at new security measures but education is the best tool. Joseph Sinclair, author of eBay the Smart Way, says most victims of fraud have only themselves to blame and strongly recommends doing research before bidding. "Only four out of 10,000 listings are actually fraudulent," he says. "If you're careful, you can avoid even them." Van Wyk says users "should pay the same level of attention they would to buying something out of the newspaper classifieds. If it sounds too good to be true it normally is". Sold, eBay and Stuff all use a feedback system, allowing users to leave a comment for the other person involved in the transaction. Comments can be accessed by other users. Buyers should do background checks on the seller and read the item description and payment terms carefully before bidding. Check the feedback and consider contacting the seller. Newcomers should also be wary of getting caught up in the excitement and bidding too high or on too many items. Every bid you make is a contract. Do not assume that you will win the auction if you are leading with even an hour to go. Usually the most frenzied activity happens in the last few seconds of the auction. This is referred to by addicts as "sniping". eBay and Sold provide limited insurance for buyers if they do not receive what they pay for. Escrow services, which act as third parties between buyer and seller, can also be used for a fee. Paying by credit card gives security as refunds can usually be claimed if goods are not supplied. Services such as PayPal and PayMate allow even small sellers to accept credit card payments. When selling, a low starting price can create interest while a reserve ensures the item does not sell too low. You can also get money fast by offering a "Buy Now" price. Experienced sellers recommend learning some HTML to jazz up your listings and including pictures by using a digital camera, scanner or getting photos processed on to CD. It is wise to buy a few items before selling to get an idea of how the system works, learn about customer service and get feedback comments. Many buyers would be wary of dealing with a "newbie". Bruce Nichol says you must "never lie or use tricks to make your stock look better than it actually is. Get into something that you know a lot about or that you have a passion for. You don't need to be an expert, but if you are you will do a lot better." Printer friendly version Email to a friend React to this article Submit a news tip SEARCH ALL FAIRFAX ARCHIVES (*Fee for full article) More on technology Feel factor Parlez-vous? 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