AuctionBytes-Update Number 47 - September 23, 2001 - ISSN 1528-6703

Tell a friend about AuctionBytes-Update, a free newsletter for online auction buyers and sellers. Forward this entire newsletter or go to: <http://www.auctionbytes.com/Email_Newsletter/Recommend/recommend. html>

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IN THIS ISSUE:
1) From the Editor
2) How to Package Books Cheaply, Quickly and Safely - Part 1
3) Sniping Tools - Making Sure You Win the Auction
4) This & That
5) Collector's Corner
6) Newsflash
7) Special Report: Online Auction Community Comes Together
8) Letter to the Editor

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1) FROM THE EDITOR

I'm sure that concentrating on online auctions has been difficult for everyone over the past two weeks. It is heartening to see how individuals have pitched in to help out in relief efforts after the recent tragic events.

As of September 19th, the American Red Cross said it had received over $128 million, with $36.9 million of that coming through its Web site, according to a CNN article <http://www.cnn.com/2001/COMMUNITY/09/19/blaul/index.html>.

The online auction community in particular has pulled together. At the end of this issue, I've included a special report on how it has responded to aid in the relief efforts.

Wishing you peace and good health,

Ina Steiner, Editor
email: ina@auctionbytes.com

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2) How to Package Books Cheaply, Quickly and Safely - Part 1
By Craig Stark

Since I have been buying and selling books online, now going on several years, I've used several different packaging methods and observed dozens of others. In my opinion-and in this case it's a strongly held opinion-only one method all but guarantees the protection of a book in transit. Ironically, I've never received a book from a seller using this method, although I've had to return damaged books on several occasions, even one that was packaged with obvious deliberation and good intentions. It's a shame, because this method is not only the safest method I'm aware of, it's also the cheapest and most efficient.

As you may already know, books are especially vulnerable in two areas--the corners and the hinges. One may argue that the bottom edges are vulnerable as well (from sliding a book in and out of a shelf), not to mention the top and bottom of the backstrip (from pulling on it while removing the book from the shelf). In any case, if you've examined many vintage books, I'm sure you'll agree that, more often than not, the corners are bumped, sometimes with accompanying tears that expose the cardboard interior, and the hinges are either loose in varying degrees or split altogether. It's an obvious fact of life that packages are tossed, dropped, shoved into too-small mailboxes and otherwise abused once they hit the clerk's counter at the post office, and any of these things can result in a loosened or split hinge and one or more bumped corners.

When I first starting shipping books, I offered only Priority Mail and used the free, 'sturdy' boxes provided at the local post office. I wrapped each book in bubble wrap, stuffed in some kind of filler material to stabilize things, and sent it on its way. It seemed to work fine, and during this time I had nothing but happy buyers-not a single complaint.

Initially my motivation to look for a different method was based on cost. It's expensive to ship by Priority Mail, and I wanted to offer my customers a cheaper alternative-in other words, shipping by Media Mail-without incurring a huge expense in packaging materials. My hope was that cheaper shipping charges would translate into higher bids. Anyway, it was this investigation that eventually led me to b-flute.

B-flute is a form of cardboard that has a skin on only one side of the corrugation. It generally comes in large, reasonably-priced rolls < http://www.auctionbytes.com/images/Fig1.jpg> and is available in different widths. For packaging books, it's a dream come true. You simply place the book on it, roll it twice, cut the b-flute, tape the seam, staple the ends-and you're done. With practice (and a few refinements I'll discuss in Part II of this article) you can package a book in less than a minute. Cost? About a dime a book.

The best news, however, is that this method reduces the risk of damage to almost zero. There are two primary reasons for this. One, the corners of the book are protected by the edges of the package < http://www.auctionbytes.com/images/Fig2.jpg>, which in turn are reinforced by the linear-strengthening effect of stapling-a phenomenon familiar to carpenters who nail thin plywood to studs. Two, the hinges of the book are virtually frozen in place by the pinching action of the staples. Not only is the book stabilized, it's also immune to corner damage.

You might argue, with some plausibility, that other methods work fine. It's quite possible that you've never had a buyer return a book or received a damaged book from a seller. My answer to this is that we never have the opportunity to examine the book before it's packaged, and only painfully obvious damage gets our attention. The thing is, corner bumping doesn't always happen in one event. Often it occurs by degrees, over time, and becomes gradually apparent. The same is doubly true for hinge degradation. Sometimes this process takes years. Using b-flute will slow things down, at least while your books are traveling, to a near stop.

Next time I'll discuss the actual steps of packaging books in detail, and if you aren't a true believer yet, perhaps it will become more apparent then why this method works as well as it does.
---
Craig Stark is a full-time online bookseller, working at home, and currently making in excess of $1,000 weekly selling exclusively on eBay. He lists anything that will realize a worthwhile profit, including both rare, antique titles, signed first editions, and 20th century books that for whatever reason command a strong price. In late June he will launch a Web site at http://www.braintreebooks.com and offer a large selection of hard-to-find, quality books.

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3) Sniping Tools - Making Sure You Win the Auction
by Ina Steiner

You are high bidder on an auction; you go to bed 30 minutes before the auction ends, confident you are the proud owner of the item and wake up the next morning to discover someone else came in seconds before the end of the auction and outbid you.

You have been sniped!

Sniping is an online-auction cultural phenomenon and is accepted by buyers and sellers alike, although not everybody likes it. Why do people snipe? The idea is to win the item at the lowest possible price. By waiting until the last minute, they avoid a bidding war, and hope that theirs will be the last bid received before the clock runs out.

Resourceful companies have developed tools to help snipers: "sniping" software will automatically snipe auctions for you, to ensure that YOU are the auction winner.

Sniping software comes in all flavors. You can get shareware programs, paid programs or subscription-based services; programs you load on your computer or services that will place the snipe bid for you. The advantage to the latter is that these services have high-speed connections that allow them to place bids just seconds before the end of an auction.

Esnipe <http://www.esnipe.com > has been around since 1999, and came under new ownership in early 2001. The fee-based service uses high-speed dedicated servers to place snipe bids for members, and they offer 24-hour support. Snipers pay 25 cents for auction wins up to $24.99. For auction wins of $25-$1,000 in US$, the fee is 1%, rounded down to the nearest penny. And for auction wins of $1,000 and over in US$, the fee is a flat $10.

AuctionStealer < http://www.auctionstealer.com> claims it snipes auctions in as little as 3 seconds before end of auction. It supports eBay.com and many of its international sites, and has plans to support Yahoo Auctions, Bidville and Auctionweiser in the future. The service is free; the company says it generates money through banner advertising on the site.

AuctionBlitz is a brand new service <http://www.auctionblitz.com>. You can see some screen shots here: <http://www.auctionblitz.com/help/whatis.asp> (keep clicking on the "Next Topic" box at the bottom right-hand side for more help).

One interesting AuctionBlitz feature is Bid Bin. This allows the user to set up similar auction items so if you don't win the first auction it continues to bid on your alternative auctions until an item is won. For example, you want to pay up to $30 for a Winnie-the-Pooh bear. But there are multiple Poohs for sale ending at different times. You can tell the program which auctions to bid on; if you don't win your first Pooh, the system will bid on the second Pooh auction. But if you DO win the first Pooh, the system stops bidding for you. A representative told me that the software can't bid on the second item until it knows the result of the first bid, so there is no way you would end up with multiple copies of the same item. AuctionBlitz offers a free 30-day trial to first-time users. After that, it costs $13.99/year. You can also try it for 6 months for $8.99.

Bidnapper <http://www.bidnapper.com> is also new, having started in June of 2001. Bidnapper has something called contingency bidding that works like AuctionBlitz' Bid Bin feature, but is limited to two items. It also has a feature called The Shadow that "prowls for auctions with bidders that share your tastes and interests."

New users may take advantage of Bidnapper's free trial of three (3) winning snipes before choosing a service option. You can purchase 12 winning snipes for $9.95, or, you may subscribe to unlimited service for 3 months at $14.95; 6 months at $19.95; or 12 months at $29.95. Beta testers and users who sign up before September 30, 2001, are entitled to one extra month of free service when they subscribe to 3, 6 or 12 months of unlimited service.

"We find snipers to be enthusiastic, knowledgeable buyers that are looking for more control over the bidding process and price," said Taylor Abercrombie of Bidnapper. "Obviously we are biased in our opinion, but we feel that each bidder should be free to develop their own bidding style."

Note: Amherst Robots <http://www.vrane.com> also has sniping tools available, but failed to reply to our recent inquiries about them.

Because sniping services do the bidding for you, you must hand over your auction user ID and password. eBay recommends you never hand this private information over to anyone, and you are taking a risk by doing so. AuctionBytes does not endorse or guarantee the reputation of any of the services mentioned in this article. Use your common sense whenever you deal with third parties.

If you have experiences that you'd like to share about any of these services, or ones that weren't mentioned, go to < http://www.auctionbytes.com/forum/phpBB/index.php> and let us know.

In the meantime, "Happy Sniping!"

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4) THIS & THAT

Charity Checklist
The FTC Web site has useful advice about checking up on the validity of charities. One piece of advice: "Beware of organizations that use meaningless terms to suggest they are tax exempt charities. For example, the fact that an organization has a 'tax I.D. number' doesn't mean it is a charity: all nonprofit and for profit organizations must have tax I.D. numbers."
<http://www.ftc.gov/bcp/conline/pubs/tmarkg/charity.htm>

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AuctionWatch Slashes Staff, Discontinues News Service
As we reported in the September 19th Newflash newsletter, AuctionWatch has laid off a large percentage of its staff; AuctionWatch President Rodrigo Sales would only tell us that it laid off "fewer than 50%" of its employees. AuctionWatch will no longer update its "News & Information" feature on its Web site. Sales said they are still evaluating whether to continue their discussion forums.

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FREE Delivery Confirmation on USPS Priority Mail
(This first ran in the Newsflash newsletter on September 17, 2001)
You can create and print USPS Priority Mail labels with bar-codes from your computer with no special forms required. These labels allow you to have FREE delivery confirmation. The "label" will print out on regular 8.5" X 11" laser-printer paper. You can see a sample by going to the Web site, filling out the form, and checking "Create an online label as a sample (not to be used for shipping)."
http://www.usps.com/cgi-bin/api/shipping_label.cgi

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Online Payment Services - Lacking in Fraud Protection
When I contacted online payment service PayPal about a case of fraud, a spokesperson told me that if user is defrauded by someone through the use of PayPal, the user can:
a) file a buyer complaint with PayPal. It will attempt recovery (per its terms of use) to recover any money that is in the PayPal account.

b) if the account has no money, the user can contact legal authorities to pursue further recourse.

PayPal cannot access someone's bank account for recovery, and the only time it charges a credit card on file is for chargeback liability. From what I can understand, in most cases users must pursue recovery through other channels (legal, fraud insurance claims through auction sites, etc.).

I recently read an article about person-to-person (P2P) online payment systems. "The anonymity of P2P, the lack of user verification, and an unregulated market, mean that 'crooks need only set up multiple accounts under different names, transfer funds from one account to another, and then withdraw the money.'" This statement comes from Lafferty Publications, which sees P2P as "the ultimate money laundering tool," according to an article in ePayNews.
http://www.epaynews.com/index.cgi?survey=&ref=browse&f=view&id=10 0080581121212015050&block=

The point is, don't assume you have any special protection when you use an online payment service - many users are unverified!

UPDATE: Right before going to press, there was a happy ending to a fraud story I was following - PayPal was able to recover funds from the perpetrator's account.

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Auction Crossword Puzzle
Want to take a break from listing auctions? Grab a cup of coffee and relax with an online crossword puzzle!
< http://www.auctionbytes.com/crossword/crossword1.html>

The subject of the latest AuctionBytes Crossword puzzle is Photography
and was submitted by Sharon Devine. If you'd like to submit a crossword puzzle, email dsteiner@auctionbytes.com for details. If we use your puzzle, we'll send you $20 and an AuctionBytes Mug (while supply lasts)

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New Marketing Insert for Auction Sellers
David has created another customizable marketing insert for sellers to use inside their auction packages <http://www.auctionbytes.com/insertmenu/insertmenu.html>. This one is a chart of commonly used online abbreviations. You can read more about marketing yourself with inserts at <http://www.auctionbytes.com/Email_Newsletter/45/45.html#insert>.

The suggestion for this insert came from "Abovethemall." If you have a suggestion for a marketing insert, drop an email to David at dsteiner@auctionbytes.com .

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5) COLLECTOR'S CORNER
Stocks & Bonds: Worth the Paper They Are Printed On?
by Michele Alice

Whenever I hear the terms "stock certificate" and "bond certificate," I picture ornately engraved pieces of paper, somewhat like our pre-redesigned currency, only larger. Well, it now appears that those certificates are going the way of index cards and carbon paper.

Since 1975, Congress, the SEC (Securities and Exchange Commission), and the Securities Industry Association (SIA) have pushed to eliminate the issuing of paper certificates in favor of electronic transactions. In fact, the number of certificates has been steadily declining. Today, less than 13% of all shares traded on the New York Stock Exchange are held as paper certificates.

In addition, the SEC has proposed that it "mandate the destruction of old (i.e., canceled) certificates." Historians and collectors have vociferously objected, but the suggestion, in conjunction with the already dwindling number of old-style certificates issued, has helped to fuel interest in the collectibles market, and certificates have quickly begun to increase in value. As of this writing (09.08.01), there are 622 active auctions listed on eBay under "stock certificate", with a 1907 W. M. Mining Co. certificate leading the way with a current bid of $317. And in case you think that high prices apply only to OLD paper, there is currently a certificate for egghead.com stock that is up to $152.50. (Not bad for a bankrupt dotcom!)

A check of the completed auctions (1,930 of them at this time) revealed that the top-selling certificate was a 1938 Bicardi at $350, though it has been reported that one 1898 bond certificate with artwork by Alphonse Mucha recently closed at $399.

If any of this has piqued your interest in scripophily (the hobby of collecting stock and bond certificates for their artistic or historical value), you can find much, much more information at the following Web sites:
<http://www.stocksearchintl.com>

Stock Search International, Inc. Comprehensive site with gallery, tips on grading and care, Old Certificates Collectors' Club, lots more!

< http://www.scripophily.net/index.html>

Scripophily.com Superstore. Has pics and histories for hundreds of certificates.
<http://www.epfl.net/slrc/bst/OldStockCertificates.html#Company>

The Enoch Pratt Free Library. Has a nice introduction to scripophily along with help for research into company histories.

The following books are also recommended:

The Art of the Market : Two Centuries of American Business as Seen Through Its Stock Certificates. Bob Tamarkin and Les Krantz. New York : Stewart, Tabori & Chang, 1999.
< http://www.amazon.com/exec/obidos/ASIN/1556709382/auctionbytescom >

Scripophily : Collecting Bonds and Share Certificates. Keith Hollender. New York : Facts on File, 1983. Out of print

Scripophily: Art of Finance. by Keith Hollender (Hardcover - November 1994).
<http://www.amazon.com/exec/obidos/ASIN/0964263009/auctionbytescom >
---
Michele Alice is AuctionBytes-Update Contributing Editor. Michele is a freelance writer in the Berkshire mountains of Massachusetts. She collects books, science fiction memorabilia and more! Email her at makalice@adelphia.net eBay ID: Malice9

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6) NEWSFLASH HIGHLIGHTS

These are just some of the headlines from our daily Newsflash feature - if you aren't reading Newsflash, you are only getting part of the story!

eBay Adds Features to eBay Stores
Check IRS Rules for Charitable Donations
Half.com Adds Categories to Its Site
PayPal Extends Customer Service Hours
Auctionworks Waives Fees for Charity Auctions
CheapPins.com to Manufacture WTC Commemorative Pins
Dept. 56 Purchases Axis Corp.
AuctionWatch Slashes Staff
ChannelAdvisor Pitches In for "Auction for America"
Pen Auction Site to 'Sign Over' Money to Charity
New York City Memorabilia for Auction
Company to Host Convention for Computer-Game Fans
Gegy.com Auction Site Plans Launch for October
Take to Auction Changes Name to Nimbus Group
BidBay Introduces Search Engine Site
eBay Censors Auctions, Bans Mention of World Trade Center or Pentagon in Auction Titles
USPS Files for Another Rate Hike
ePier Institutes Fees
eBay Serves Up Cookies to All Members
USPS Enhances eBillPay & Priority Mail Services

<http://www.auctionbytes.com/Email_Newsletter/newsflash/newsflash.html >

RECEIVE NEWSFLASH VIA EMAIL!
Send a blank email to: auctionflash-subscribe@topica.com

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7) Special Report: Online Auction Community Comes Together
by Ina Steiner

The online auction community has always been generous - eBay members alone have raised over $6,080,000 for non-profit organizations since August 1999. This is a look at how some companies have reacted to help out in the wake of the 9-11 terrorist attacks with the help of their members.

eBay made the biggest splash with its Auction for America program <http://pages.ebay.com/auctionforamerica>. Its goal is to raise $100 million in 100 days through auctions and donations. eBay Foundation kicked in the first million dollars. Members can list auction items under the program, with 100% of the proceeds going to charity (listing and FVF are waived). Some sellers who make a living selling on eBay balked at having to compete with charity auctions, especially since the charity auctions come with free shipping and handling for buyers (paid by the charity sellers).

After the program was announced, PayPal wrote an open letter to eBay asking that its payment service be accepted by eBay's program. eBay had limited transactions to its Billpoint payment system so it could ensure that 100% of the proceeds go to charity and as a condition of its partners, including Visa, Mastercard, Wells Fargo and Discover, which agreed to waive all processing fees. PayPal posted the letter in the auction forums, a public relations effort that was the only low point in the week.

PayPal had its own fund-raising effort in place soon after the tragedy. PayPal is allowing members to make online donations to the American Red Cross through its online payment service. It is waiving all process fees so that 100% of money will go to charity. Yesterday the site reported that 47,609 donations totaling $1,778,325 had been made. The donation program is advertised on PayPal's home page at < http://www.paypal.com>.

Yahoo Auctions <http://auctions.yahoo.com> has a banner that clicks through to a page, "Emergency and Relief Information in Wake of Terrorist Attack On U.S." listing charities and emergency contact information. While Amazon.com has a one-click online donation program with proceeds going to the American Red Cross, it is not advertised on the Amazon Auctions page.

Other online auction sites reacted in different ways. BidBay has a large banner on its site that clicks through to a message of condolence <http://www.bidbay.com>. Auctionweiser set up a relief fund that will "assist the city of New York in the clean-up and rebuilding of lower Manhattan" < http://www.auctionweiser.com/WTC-Relief.htm>.

Bidville organized a "Bidville Cares" auction charity event running from September 18 - 25. Individual sellers collect the money and decide how much will go to which charity.

BargainAndHaggle.com has a pop-up box with a message of condolence and some suggestions on how to help along with charity contact information. The message also says that its holding company, mindpepper LLC, will donate 10% of BargainandHaggle.com total revenues during the month of August 2001 to the American Red Cross <http://www.bargainandhaggle.com>.

Auction management software companies also came forward to help. Andale <http://www.andale.com> said it is working to make sure sellers can list through Andale to eBay's Auction for America program. The company said its customer support team called and emailed all of its New York and Washington, DC, customers on Tuesday and Wednesday to ensure they were okay, and it created an internal fund to raise money.

Auctionworks donated all revenue received on September 11 to the American Red Cross and will waive standard sales commission fees on all items launched to eBay's "Auction for America" program <http://www.auctionworks.com>.

ChannelAdvisor is waiving all fees for their marketplace management services to assist retailers and manufacturers in selling items through the Auction for America <http://www.channeladvisor.com>.

Other donations worth noting:
Disney Auctions said that all proceeds from items auctioned during the week of September 17 will be donated to September 11th Fund <http://www.disneyauctions.com>.

CheapPins.com, an independent retailer of lapel pins in the world, has announced it is manufacturing a memorial pin for the World Trade Center disaster. It will donate 100% of the profits (no less than $4.50/pin), to a charity to benefit WTC disaster-relief efforts <http://www.cheappins.com>.

Bags Unlimited, a seller of collectible supplies, links to the American Red Cross - Greater Rochester Chapter on its home page < http://www.bagsunlimited.com>.

This is by no means a comprehensive look at all the efforts being done by companies and individuals to help in the disaster relief efforts. I apologize in advance to those left out of this article. Feel free to email me or post a message in the forums if you have anything to add.

Remember to get receipts for all donations made to charity so you can deduct them at tax time. The IRS has strict rules about what is allowable when donating items - either the fair market value or what you paid for the item, whichever is less. (Totally unfair to the auction seller, in my opinion!) Check out the IRS Web site <http://www.irs.gov> or check with an accountant if you have questions.

Finally, how did AuctionBytes react to the tragic events of September 11th? We posted a link to the American Red Cross and the Salvation Army on our Web site. David and I made appointments to donate blood, and we will be making a donation to the Salvation Army, a worthy charity we have supported for years.

Here's to everyone who helped out in any way that they could - you are a strong, caring community!

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8) Letter to the Editor

In response to last week's letter warning people about scammers setting up bogus charity sites to try and profit from the 9-11 terrorist tragedy, I received this letter.

Hi !
I feel you should define "profit from this tragedy."

Selling an American Flag for the same price a store has been selling them for all year is NOT profiting from a tragedy.

Selling an American Flag for DOUBLE or TRIPLE the old price WOULD BE profiting from a tragedy.

As would jacking up the price of gasoline, etc. Selling Tee Shirts, Bumper Stickers, etc. with Flags on them is NOT profiting from a tragedy.

People want these things, and someone needs to supply them. The small merchants selling them are already being hurt by the economic impact of reduced Consumer Spending, reduced Tourism, etc. Is it Patriotic to further assure the bankruptcy of many small business people by telling them they should be giving these things away for free? NO!!

Small Businesses do not get their products for free, and they must pay taxes, rent, heat, and they must eat!!

They do not get paid Holidays or Vacations. Most do not have Pension Plans. Many cannot even afford Health Insurance!!

It is outrageous when people on the street, with significant, guaranteed incomes, point their fingers at a corner vendor with his American Flag T-Shirts and then accuse the merchant of some moral deficiency.

Please SUPPORT THE SMALL MERCHANTS OF AMERICA !!!
R.

--
Hi R.,

I struggled with the issue of "profiting from this tragedy" last week when a reporter asked us what we thought about eBay's banning all WTC/Pentagon memorabilia.

While I understand eBay's offensive items policy, which would cover things like rubble from the tragedy, I believe their extension of the policy to ban any item with WTC/Pentagon in the auction title went too far; the ban includes New York City postcards and calendars. I think the policy was well meaning, but unrealistic and unenforceable. I put in a search for the term "terrorism" on eBay and came up with over 100 auctions. I entered the term "Titanic" and "War" and came up with thousands of auctions for each.

Many people won't agree with me. But I don't think any of us want a corporation to dictate to us our morals. There are a lot of people voicing their opinions on forums; THAT is one of the things that makes this country so great - free speech. I hope the terrorists don't take that away from us.

Ina

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Please use the AuctionBytes Yellow Pages when you are shopping for supplies and services for online auctions and collectibles!
< http://www.online-auction-directory.com>
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AuctionBytes-Update ISSN 1528-6703
AUCTIONBYTES.COM CONTACT INFORMATION
Editorial: ina@auctionbytes.com
Advertising: advert@auctionbytes.com or 508-655-5697
Letters, Comments, Suggestions: feedback@auctionbytes.com
Want to Write for AuctionBytes-Update? Go to http://www.auctionbytes.com and click on "write for us" to view author guidelines. If you are interested, send email to ina@auctionbytes.com.

Ina Steiner, Editor, Publisher and Co-founder: ina@auctionbytes.com
David Steiner, Webmaster, Technical Editor, President and Co-founder:
dsteiner@auctionbytes.com
Michele Alice, Contributing Editor
AuctionBytes.com
c/o Steiner Associates
PO Box 668
Natick, MA 01760
508-655-5697
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