Tips for Improving eBay Auction Profits

There has been a surprising amount of academic study of the buying habits of people using eBay and similar auction sites. These studies have revealed a number factors that a seller can use to improve their conversion rate and profitability.

1. The vast majority of bids are placed in the final minutes of an auction. Three quarters of bids are placed when 95% of the alloted time has passed. This implies that it might be a good idea to reduce the length of the auction and raise the starting bid.

2. Buy it now options are not a great idea unless you have plenty of the offered item. When a buyer clicks that buy it now button they will be very disappointed if they can’t get the item and will possibly hold it against the seller during future buying visits. Also studies have shown that the mere presence of the but it now button often discourage bidding.

3. Vendor rating matter. Sellers that don’t live up to buyers expectations get low ratings and future buyers consider this when considering their bids.

4. First time, inexperienced buyers are more likely to place a bid on a particular visit than are experienced bidders. Sellers should cater their offerings to new bidders by avoiding jargon and abbreviations in product descriptions.

5. A shopper who looses an auction is much more likely to bid more on a similar item than are a first time bidder. It’s a good idea to stagger auction so that when one closes another for the same or similar items begins in order to catch those potential buyers who missed out the first time.