A Newbie's Guide To The Different Types Of Ebay Auctions
There are four main types of auctions you need to be aware of when buying and selling on eBay. Each offers unique opportunities to both the seller and the buyer. If you're a seller, selecting the right type of auction can make a big difference on what you'll get for your item.
Normal Auctions.
This first type of auction is what you typically expect when you hear the word "auction". The seller sets the minimum starting bid and then buyers bid on the item from there. Bidding continues until the time limit of the auction runs out, at which point the highest bidder wins the auction.
Reserve Auctions.
Reserve auctions are listed by sellers who want to make a certain amount on their item while still keeping it as an auction style listing. Most of the time, you won't know what the reserve amount is until you place a bid that is accepted. If your bid does not meet the reserve price, you will be shown a message telling you that you need to bid higher. If no one bids up to the reserve amount, the seller keeps their item when the auction ends.
Fixed Price 'Buy it Now' Auctions.
Fixed Price 'Buy it Now' auctions are my favorite type of auctions, as a seller, because they give you the most control over your profit margin. When you think of 'Buy it Now', think about walking into any normal retail establishment and looking at the price tag on an item. There is no negotiation involved. You must buy the item at the fixed price, or not at all.
You can also add a Buy it Now button to a regular auction. This gives the buyer the option of bidding on the item or buying it immediately at the fixed price.
ebay also has an option you can add to your fixed price auctions called 'best offer'. Typically, a seller will set a price on the item that they think is the most they could get for it. By adding 'best offer' to the auction, buyers can negotiate on the price of the item. Sellers have the option of handling each offer personally or inputting settings on eBay of what offers to accept and which ones to reject.
Multiple Item 'Dutch' Auctions.
Multiple Item 'Dutch' auctions can be a bit confusing. They occur when a seller lists several of the same item in a bidding auction. Buyers bid on whatever quantity of the item that they want. When the timer runs out on the auction, everyone pays the bid amount off the lowest bid. These types of auctions are extremely rare.
More commonly is when a seller lists a bunch of the same item under a fixed price listing. Imagine walking into a store and buying two packs of the same kind of gum. The price doesn't fluctuate per pack just because you bought two. It's the same concept. Seller's list the amount of the item that they have in stock, and buyers can select the quantity they want before clicking the Buy it Now button.
Now you should have a solid foundation on the different types of eBay auctions. It's helpful to know when it's time to list an item. Whether you have one of a certain type of item or a million, eBay has an auction type for you to list under.
