What is an online auction retailer? 

Online auctions were first introduced by eBay in 1995 as a desire to connect buyers and sellers around the world. The popularity grew and other retailers including Amazon and Yahoo quickly followed.
Quite simply, an online auction retailer is someone who sells items via these online auction sites. An online auction business can be as simple as selling books collected at garage sales, library basements, and a home collection or as advanced as becoming a seller and distributor of brand new electronics. The choice, and the size of the business, are completely up to the retailer.

The general online auction procedure begins with an auction retailer listing an item for sale on an auction site like eBay. A general description, photograph of the item and a starting bid price are usually included as well as the length of the auction.

Now the retailer sits back and waits. Buyers step in at this point and begin bidding. The more people interested in an item the higher the bid. It can be quite exciting to both bid on a desired item and to watch the price go up if you’re the one selling it. When the bidding closes, the winner is then notified that they won the item and directed to pay for it.

Now the retailer steps in and once payment is received, a process usually handled or facilitated by the online auction site, then the item must be shipped to the winning bidder.

That’s the process in a nutshell.

So, what items might work best for online auction sites?
You may be surprised to find that there are hundreds of categories and sub categories ranging from health and beauty items like perfume or air purifiers to tools, cars, homes, and event tickets. Just about every possible item is represented on eBay. Other auction sites deal with specific categories like antiques or cars.
When deciding what to sell take a look at the following considerations:

Are you interested and familiar with the item? Sell products you can speak about with some interest and education. For example, if you’re selling gemstones it would be important to know a lot about how stones are categorized, rated, and priced.

Do you have room to store the inventory and if not, can you afford outside storage?

What will packaging and shipping cost?

Where will you find inventory items? For example, if you’re selling used books then garage sales and library basements might be a good place to find inexpensive inventory. If you’re selling jewelry, estate sales and pawn shops may be a good place to look.

Online auction retailing is a great option for many people who desire to make a living while being able to work from home and set their own hours. It can be a very lucrative business with high demand. Take a look at the information available here at Internet Based Moms before getting started to make sure the transition into an online auction retailer is a smooth one.

The remainder of this getting started tutorial is devoted to optimizing your online auction business including lessons on:

Evaluating Online Auction sites
Tracking and Inventory
Headline and description writing
and more.

Let's get selling!

Recommended eBay Resources:

NEW! Learn how to start your own eBay Business with the Moms Talk Biz Guide to Making Money with eBay.