AuctionBytes-Update Number 7 - February 6, 2000

ABOUT AUCTIONBYTES-UPDATE
AuctionBytes-Update is a free newsletter for online auction buyers and sellers. AuctionBytes-Update will show you how to make money and is useful to anyone who uses online auctions -- business people, collectors and hobbyists. AuctionBytes-Update is published by email twice a month.

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IN THIS ISSUE:
1) FROM THE EDITOR
2) ARTICLE: A LOOK AT FEES ON 4 ONLINE AUCTION SITES
3) ARTICLE: YOO-HOO? TRY YAHOO!
4) ARTICLE: SEARCHING ON 6 AUCTION SITES - HOW DID THEY DO?
5) FOLLOW-UP TO BIDPAY.COM ARTICLE
6) COLLECTOR'S CORNER: NANCY DREW & BEANIE BABIES
7) FOUND IN THE ATTIC
8) LETTER TO THE EDITOR
9) AUCTIONBYTES.COM READER QUESTION

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1) FROM THE EDITOR

Many of us use eBay exclusively - with 10 million registered users and over 4 million items listed, eBay is the biggest online auction site. But what about the other auction sites? We decided to take a look to see how the other major online auction sites stack up.

In this issue, you'll find a chart comparing the fees of four sites - eBay, Yahoo Auctions, Amazon.com Auctions, and Gold's Auction. Elise James interviewed some auction users to see what their experiences have been with Yahoo. It seems everyone has his or her own favorite auction site!

We also searched for random items on 6 auction sites to see how many items each site carried at any one time. Our empirical conclusions? Well, no real surprise, eBay is number one in terms of number of listings, with Yahoo doing very well in second place. Yahoo, in fact, actually came up with more items than eBay in one popular category. Amazon is a distant third. This falls in line with numbers from Gomez Advisors, who estimated that eBay had over 3.5 million listings, Yahoo Auctions had 1.5 million listings, and Amazon Auctions had anywhere from 200,000-300,000 up to 700,000 listings.

For buyers, this means you should delve into more than one site - there are lots of items on all the online auction sites. You have nothing to lose, since buyers pay no fees, and if you find something you like on a site with fewer buyers, that could mean a lower price!

Sellers, on the other hand, need to go where the buyers are if they want to get the highest price for the item. Though Yahoo appears to offer fewer eyeballs than eBay, there are no fees! Yet if you could get a higher price on eBay than on Yahoo, it makes sense to pay the fees; there is no clear-cut answer here.

Like the people Elise interviewed, I'm sure you have your own opinion. I'd like to hear from you - what is your experience as a buyer and seller? How many online auction sites have you tried? Email me, or share your comments on the AuctionBytes.com General Message Board at http://www.auctionbytes.com/bin/messagebbs/view.pl .

*****

We are looking for people to write about collectibles. We have Collector's Corner Editors who contribute regular columns (Win - comics, Ray - toys, dolls games, John - stamps and pulp magazines, Marlene - advertising memorabilia, Michele - books, Wayne - sports). And of course our knowledgeable pottery contributors (Chiquita, Pam & Nancy). But there are a lot of categories of collectibles, and we'd love to include articles about more items.

If you have a love of collecting, consider writing for us. You do not have to be a professional writer, you just have to know about your area of collecting and be able to talk about what online auction users should know about buying and selling online. Share your love of collecting with AuctionBytes.com readers. Email me if you are interested.

Happy online auctioning!

-Ina Steiner, Editor
ina@auctionbytes.com

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2) ARTICLE: A LOOK AT FEES ON 4 ONLINE AUCTION SITES
By Ina Steiner

Online auction sites are a great way to buy and sell things online. Many of us find it a way to add to our income part-time, while others have made it a full-time occupation. But, what's in it for the auction site?

Well, besides the advertising revenue that is generated by a site with high traffic, there are generally listing fees and commissions. Do all of these 25 cent fees add up to a profit for the online auction site? Well, actually, not so far. eBay is the only major auction site that has earnings in the black with a modest .04 cents per share. But activity has increased on ALL of the major sites over the past year, and it's only a matter of time before well-managed auction sites start to show a healthy profit.

So what are the online auction sites charging us to post auctions? Take a look at http://www.auctionbytes.com/Email_Newsletter/Email_Graphics/auctionf ees.html for a table comparing the fees of 4 major sites.

The fee structure is similar among all sites, except for Yahoo, which charges no listing fees and no completion fees. eBay charges a 25 cent listing fee for any item under $10, and Amazon.com charges 10 cents for all items. (Amazon says it will increase its fees in the future.)

Take a look at the table to see exactly how the fees are determined, including Featured Auction Fees.

3) ARTICLE: YOO-HOO? TRY YAHOO!
By E. S. James

When RD, an online art dealer known to haunt New York area auctions, tried selling on Yahoo last summer, he was encouraged by a small flurry of winning bids on smaller, minor works. So, he decided to list an "important" painting.

"These two guys drove up the price against one another," RD recalled. The winning bid? $10,000.

"I never saw a dime of it," he said. "We contacted both bidders, got some 'Er, Uh' excuses, then never heard back."

RD now almost exclusively sells on eBay. He's not the only one. Comments by eBay sellers on Yahoo sales run the gamut from "Poor" and "Non-Existent," to "It's all the eBay rejects" and "There's no serious money there."
But, why?

Yahoo Auctions have a lot going for them: site traffic on the largest and most popular Internet directory, free listings, and a host of other features that "the big boy," eBay, doesn't, such as choosing the precise day and time for a seller to end an auction. What it doesn't have, according to some hard-core eBayers, is serious bidders.

"Two buyers of the first three auctions I put up disappeared and never paid," said Angela R., an eBay seller dealing in jewelry. "My results on Yahoo have been very poor when compared to Ebay."

However, Yahoo-ers beg to differ.

"Yahoo is the best auction site on the web," according to Steve B., a postcard and collectibles dealer, who added, "eBay is a joke!"

Steve has been on both sides of the fence. He was an eBay user for about a year, he said, but jumped over to Yahoo and is "glad" he did. He cited Yahoo's free listings and image-hosting services among the reasons. So did a host of other online auction users, including Carol Ann E., another eBay refugee and, now, very busy dealer on Yahoo.

"In December, my Yahoo auctions grossed $5,232.74," Carol Ann said. "In the previous year where I had used almost only eBay, my total sales were only $3,114.19."

Carol Ann added that she had listed more items on Yahoo in December 1999 than on eBay for the same month in 1998. But, her costs at Yahoo? "Nothing," she said, point-blank. "[During December of] the previous year, I paid eBay $432.02 to sell on their site." She said her January, 2000 results on Yahoo were just as encouraging, if not more.

Others also have jumped the fence -- or simply never went into eBay's backyard -- for similar reasons, including Cyndie <cyndie04>, a one-year veteran on Yahoo.

"I am homebound and needed money for med[ication] that insurance doesn't cover," she said. "I helps a little bit, and sometimes it helps a lot. I haven't sold on other sites due to cost," she added, citing Yahoo's free listings.

But "free" brings with it negative connotations, according to some.

"I tried to buy and questioned several [Yahoo] sellers about their items and never got my questions answered," eBayer Angela said. "It seems that Yahoo buyers and sellers don't take the auctions as seriously as they do on eBay."

RD echoed Angela's comments, saying, "I've just seen thrill-bidders. Rarely anyone serious."

But Cyndie, who takes both buying and selling quite seriously, believes other Yahoo-ers do, too. "Most people are honest with their products and bidding," she said. It's a business, and "in any business, you treat your customers like you want to be treated."

Rich L., a six-month Yahoo seller with more than a year of eBay experience believes that, over all, most bidders intend to pay and eventually do.

"There is that little percent of them that don't pay for one reason or another, but it happens in any business," Rich said. "I would say about 3 percent don't pay but usually I can get that number to drop with a second e-mail reminder. I would say eBay has about the same numbers."

And Steve wouldn't sell any other way. "Why people would use eBay is beyond me! Yahoo is the best!"

E. S. James is a journalist and member of the eBay community. She is an active seller dealing mainly in art, antiques and collectibles under the ID ehs@pb.net. She can be reached by email at the same address.

HAVE AN OPINION? GO TO THE CHAT FORUM AT http://www.auctionbytes.com/bin/messagebbs/view.pl  TO TELL US WHAT YOU THINK OF YAHOO AUCTIONS!!

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4) ARTICLE: SEARCHING ON 6 AUCTION SITES - HOW DID THEY DO?
By Ina Steiner

On 1/30/00, I searched six online auction sites for various items to get a feel for the number of items each site contained. For 9 of the 11 terms I entered, eBay came out on top by a significant margin. Yahoo came in a respectable second place, and even beat eBay in 2 cases (both in the comic category). Please go to http://www.auctionbytes.com/Email_Newsletter/Email_Graphics/auctionc hart.html to see the results.

If you are searching for an item to buy, why not try the other sites, especially if you can't find it on eBay? (Make sure you use the proper precautions - review the seller's feedback, etc.)

BTW, I learned something about searching from doing this exercise. Some words came up with more items than others. For example, when I entered "beanie babies," I came up with more hits than when I entered "beanie baby." And I came up with more hits when I entered "superman comics" compared to "superman comic" (plural versus singular). So don't forget to take this into account when you do your searches. Try everything!

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5) FOLLOW-UP TO BIDPAY.COM ARTICLE
By Ina Steiner

In the last issue, I wrote about BidPay.com, a service that allows you to buy money orders over the Internet to send to online auction sellers. I decided to try it out to see if I experienced any problems.

I purchased an Agatha Christie trivia book on eBay and used BidPay.com to buy a money order to pay for the book. I had to enter my credit card, which made me a little nervous.

BidPay.com charged me $5, which seemed like a lot considering I could have just written a check and mailed it myself, but it was very convenient! Aside from entering the information into the form, there was nothing left to do. BidPay.com notified the seller that the money order was on its way (I sent the seller a note too, just in case). And the $5 charge will appear on my next credit card statement. I received my book quickly, so I'm guessing the seller was satisfied.

Here's what someone had to say in the AuctionBytes.com Message Board about BidPay.com (http://www.auctionbytes.com/bin/generalbbs/config.pl):

Posted By: Mich < gomichelle@adelphia.net>
Date: Monday, 31 January 2000, at 11:44 p.m.
Bidpay is great!! I've done all my transactions with them since I found them and like their services a lot. It's quick and easy to use. Some of my sellers sent the items when Bidpay sent the approval confirmation to them and I got my items a few days faster. Great site!!

Someone else asked about another online-payment service called PayPal.com:
Posted By: susan lisk <golfwido98@att.net>
Date: Sunday, 6 February 2000, at 10:25 a.m.
Hi, I read your article on bid pay and wondered what you though of Pay pal which is free. It seems better as long as you use direct deposit. Is in security safe and has anybody had bad feedback. Sue

I will check it out and let you know how it works. Stay tuned.

NOTE: AuctionWatch.com just announced it is teaming up with X.com Corporation in a partnership that "will enable buyers and sellers to efficiently and safely manage their auction payments."

It appears that you have to open a bank account with X.com in order to use the service. This is very different from BidPay.com, in which you are making a one-time transaction only. If you have had any experience with X.com, let us know. Post a message on the Message Board or email ina@auctionbytes.com. As always, use your own judgement in using Internet services.

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6) COLLECTOR'S CORNER

Visit the Collector's Corner section of the Web site for current and past articles along with reference sources, links and message boards! We will have more contributions from our other Collector's Corner Editors in the next issue!

COLLECTOR'S CORNER - BOOKS: CLUES TO NANCY DREW BOOKS
by Michele Alice, Contributing Editor

Since the publication of "The Secret of the Old Clock" in 1930, the Nancy Drew series of books has remained popular with readers and collectors to this day. Though first editions of the various titles can command high prices at auction and at retail, they still do surface at yard, church, and benefit book sales for quite reasonable prices. (Last summer I bought several at a yard sale for just a dollar each!) There is one problem for collectors, however. The series has been so popular, that with each generation, Grosset & Dunlap would not only publish multiple editions of each title, but would also republish the entire series in new formats. Thus, for example, the first six titles (published between 1930 and 1932) have appeared, in multiple editions, in more than a dozen different formats!

So, what does all this mean to the collector? Well, if we look at a few of the prices being asked for "The Clue in the Diary" (Vol. 7) at various auction and book-dealer sites, we see that it certainly pays to be able to not only distinguish between various editions, but also to be able to identify the different formats! "The Clue in the Diary" appeared in the
first format (solid blue cover, no silhouette, white end papers) in its first edition only. Its rarity is substantiated by the fact that a signed copy is currently being offered over the Internet for $350! Then there is a copy in the second format (blue cover, orange silhouette) for $75; a copy in the third format (orange end papers, war-paper edition) for $65; and one in the blue tweed, "digger" end paper format for $40. (Keep in mind that, as always, condition greatly affects price.)

One would need a book to describe, in depth, the different formats and their variations, so for more information, the serious collector should consult the "bible" of the Nancy Drew series of books, Farahs Guide, by David Farah, or check the following Web sites:

http://www.stratemeyer.net (very good; also found under www.larilana.com ), and http://www.bibliofind.com

Happy hunting!

Michele Alice is AuctionBytes.com Contributing Editor. She is a freelance writer in the Berkshire mountains of Massachusetts. Michele collects books of all kinds, science fiction memorabilia, and more!

Visit the AuctionBytes.com Collector's Corner message board for Books at http://www.auctionbytes.com/bin/bookbbs/config.pl

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COLLECTOR'S CORNER - TOYS, DOLLS, GAMES: BEANIE BABIES GET VOTE OF CONFIDENCE
by Ray Tipton, Toys/Dolls/Games Editor

One of the most notorious toys crazes that swept through the nation in the latter part of the '90's is the Beanie Babies craze. The Ty company took some simple bean-filled plush toys and turned them into a national phenomena. Ty releases a few of these lovable toys at a time and then systematically retires them from production, making them irresistible to collectors.

In 1999, Ty announced that they were retiring all of the remaining Beanie Babies by the year's end and would no longer produce the line. This announcement sent collectors in frenzy. Everyone tried to complete their Beanie collections before the end of the line was at hand, and many fans of the line begged Ty to reconsider their decision.

Apparently Ty listened to its customers. Over New Years, Ty offered Beanie Babies collectors the chance to save the line. Ty offered voting over its Web site (www.ty.com) asking the question "Do You Want the Beanie Baby Line to Continue into 2000?" Voters were charged 50 cents per vote which all went to charity. Needless to say, the Ty Beanie Babies line was saved by over 90% of the voters saying Yes.

Ty has announced that it's all new Beanie Babies 2000 line will debut at New York's International Toy Fair later this month. They promise lots of surprises in its all-new Beanie line.

As for the now retired Beanie Babies, sales are currently slower on the secondary market. Prices on many online auction sites however have remained steady for many of the more popular Beanie toys especially the Bears. Expect somewhat of a surge in sales on some of the older Beanies as Ty plans on releasing the new line of Beanie Babies this spring. A new release such as this usually causes the secondary market to pick up as well. Check those online auctions now to find some deals while you can.

Visit the AuctionBytes.com Collector's Corner message board for Toys, Games & Dolls at http://www.auctionbytes.com/bin/toysbbs/config.pl

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7) FOUND IN THE ATTIC
by David Steiner

Well, the 2000 New Hampshire Presidential Primary is history. How did the candidates fare -- on eBay?

All results were taken on February 1st (same night as the New Hampshire primary). This may not tell you who's going to end up in the White House, but if you want to know who the most "collectible" candidate is, then you'll see who won in a landslide election! Of course, it does help to have been an NBA star prior to entering politics.

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Bill Bradley (NBA Hero)
Number of items: 267
High: $750.01
Low: $0.01
Average: $24.22
Sell through rate: 70%
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John McCain (War Hero)
Number of Items: 43
High: $86.00
Low: $3.25
Average: $18.70
Sell through rate: 65%
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Al Gore (Internet Hero?)
131 Items
High: $46.00
Low: $0.99
Average: $10.45
Sell through rate: 50%
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George Bush, Jr. (George Sr.'s Hero)
10 Items
High: $250.00
Low: $9.99
Average: $111.95
Sell through rate: 80%
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Steve Forbes (Fortune 500 Hero)
13 Items
High: $11.50
Low: $1.00
Average: $5.26
Sell through rate: 69%
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8) LETTER TO THE EDITOR

Dear Ina,

I was reading the old back issues of AuctionBytes and it occurred to me that although I am not qualified to write for you, I know someone who is and who might be interested in becoming a correspondent.

My friend Florida, parker@olsusa.com has written a free advice guide called Easy eBay @ http://www92.pair.com/soufla/easyebayhome.htm

He lists it on the eBay Book Board, he's my guru and the nicest man in the world. If I ever get to be a power seller it will be thanks to him. He's taught me everything I know about schmoozing the customers, packing correctly, getting supplies for free or cheap, and he's interpreted the eBay rules for me so that I understand them and I don't offend my customers with harsh reactions or fast FB. . . . I hope he'll look at your magazine and maybe act as a consultant to you and/or write for you. I'm sending him a copy of this letter too.

Also, I just learned a very hard lesson that perhaps you could pass on to your readers. When we got our computer last year, we had an AOL account and we used a 312 area code access number without a problem, although our home
area code is 773. This past October, we got a second computer and arbitrarily chose another 312 area code access number, assuming that it was a LOCAL call.

Imagine our shock when our first phone bill exceeded $300! We thought perhaps it was because we now had two computers and we thought we needed to be more vigilant about our use of them but our January bill was $492. We have since learned that Ameritech is allowed to charge a premium for calls within any given area code, if it is over 8 miles from the point of origin to the junction site. We incurred over $200 in charges each month for TOLL calls, plus additional "by the minute" charges for our computer use. Of course, being with AOL and its continuously knocking us offline doesn't help. Have you heard about this business from anyone else?

Regards,
Betty

REPLY:
First, I'm glad to say that Betty's friend and mentor, Rick Parker, has agreed to write for us.

Betty raises an important point - be careful which phone number you choose when using a dial-up ISP. Make sure it is a local call! Call your local phone company if you are not sure.

And what about Betty's problem of being knocked off AOL? I would not assume it is AOL's fault. David thought there might be a problem with the v.90 compatibility of Betty's modem. Some ISP's offer dial-up numbers that are EITHER v.90 or 56kFlex compatible. A v.90 compliant modem dialing into a 56kFlex modem (and visa-versa) can make for an unstable connection. If you have suggestions, email ina@auctionbytes.com, and I'll forward your advice to Betty.

Thanks,
Ina

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9) AUCTIONBYTES.COM READER QUESTION

What is the most common method that you use when looking for an online auction item to purchase? (Keyword search, By Category, Look in Gallery, or Other)

VOTE NOW!! http://www.auctionbytes.com

Visit the General Message Board at http://www.auctionbytes.com/bin/generalbbs/config.pl to see what people
have to say about this question.

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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@bibliodata.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
Elise James, Writer
AuctionBytes.com
c/o Steiner Associates
PO Box 668
Natick, MA 01760
508-655-5697
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