Buying & Selling on eBay

Buying & Selling on eBay Richard Kershenbaum Endacott Society Computer Study Group 01-06-2009

“The world’s online marketplace” • 88 million active users • Over one billion page views per day • Started in 1995 by programmer Pierre Omidyar of Echo Bay Technologies • First sale was a broken laser pointer • Now over 15,000 employees • Annual revenue $7.7 billion

Millions of items sold daily • Collectibles, appliances, automobiles, services….you name it • Used by individuals and businesses, including some of the largest corporations • It’s a world-wide marketplace

How does it work? • Auction-style listings • Fixed-price listings • Fixed-price with “best offer” • Sellers pay a listing fee + 1.5% of the selling price • No fee for buyers • Buyers and sellers rarely meet in person

Auction listings • Uses “proxy bidding” • eBay bids for you up to your maximum bid • The winner pays the second highest bid amount plus one bid incement

Example: Richard sells his DSL modem • I take digital photos of the modem • I compose a description – • Model # • Condition (any damage or problems) • New or used? • Original packaging and manuals? • I decide to use an action with “buy it now” option

Example: Richard sells his DSL modem (cont’d) • I decide on a starting bid of $4.95 • Low starting bid encourages bidding and keeps listing fee low • I know the modem will sell for more • I decide on a “Buy it now” price of $49.95 • …after looking at “completed listings” for similar items • I decide on a one-week auction period

Example: Richard sells his DSL modem • I decide on a flat shipping charge of $9 for Priority Mail shipping • I decide to only accept PayPal payments • I login to eBay and post the auction • I obsessively look for bids

Example: Richard sells his DSL modem -- bidding • First day – Joe bids $5 (If no one else bids, he’d get it for $4.95) • Second day – Mary bids $8 (If no one else bids, she’d get it for $5.50) • Third day – Mike bids $20 (eBay has now raised the minimum bid to $8.50) • Jane bids $10, but eBay automatically enters a bid of $10.50 for Mike – he’s still the high bidder

Example: Richard sells his DSL modem -- bidding • Last day – Eric bids $40 (eBay bids $20.50 for him) • Joe comes back and raises his bid to $45 • Auction time expires and Joe wins at $40.50 • I use the eBay site to send an invoice to Joe for $49.50 • Joe sends a electronic PayPal payment

Example: Richard sells his DSL modem -- bidding • I pack the item and ship it to Joe • I use PayPal to generate a printable paid shipping label • I drop the package at the post office • Joe leaves positive feedback after receipt • I leave positive feedback for Joe

PayPal • Provides a secure and convenient means of transferring money for eBay purchase – or anything else • Started in 1999 as X.com • Works much like a checking account • Not legally classified as a bank • Accounts can send and receive payments • Accounts can use a backup credit card • Similar to an escrow service

PayPal • Allows sending money to anyone with an e-mail address • Receiving party is charged 2.9% + $.30 • Sender is not charged a fee • Money can be withdrawn to a bank account or credit card account electronically

eBay tips • Your bid is a contract to buy • Know what you’re bidding on • If you’re not sure, e-mail the seller • Check feedback scores and comments • Watch out for high shipping charges • Don’t get caught up in bidding wars • Use a sniping service such as www.justsnipe.com

Buying and selling safely • eBay fraud is extremely widespread • You can protect yourself by following some simple rules: • If it sounds too good to be true, it probably is • Only pay using PayPal or credit card • Only accept PayPal payments • Only ship to a confirmed PayPal address • Use signature confirmation for large purchases

Buying and selling safely • NEVER send cash or a Western Union payment – anyone who demands that is a scammer • In case of a problem, use PayPal’s resolution service • Contact eBay’s security department

Buying & Selling on eBay