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Auctionbytes-Update, Number 32 - February 17, 2001 - ISSN 1528-6703     Previous Story | Contents | Next Story


Online Auction World Going from FREE to FEE
By David Steiner
AuctionBytes.com

February 17, 2001
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You knew it couldn't last forever.

The free ride, I mean. Since the beginning of the year, Postal rates have risen, Yahoo Auctions has begun implementing fees and eBay has raised their fees. Auction management programs such as eBay's Seller Assistant (formerly Blackthorne's Auction Assistant) and GoTo's Channel Fusion have instituted monthly charges. Even Honesty.com has started charging for image hosting.

Auction inflation has hit the Internet, and while a dime here and a quarter there may not seem like much, to some users it represents a fair amount of profit that is leaving their pocket.

New fees shouldn't come as a shock. No self-respecting VC-funded company could be expected to give away their services forever, especially when the point of Venture Capital is to gain a return on the investment that's been made - as quickly as possible. So expect the roster of free programs and services to shrink rather precipitously over the coming year.

Believe it or not, according to folklore, there was a time when there were no image hosting Sites, and no auction management services. Sellers handcrafted their auctions and walked 7 miles uphill (both ways) to the Post Office with their packages. The legend goes that these sellers were happy and prosperous, and while Carpal Tunnel Syndrome was rampant, there was a general sense of contentment in the land of online auctions.

Getting Back To Basics
Yes, it's true that all of these newfangled services streamline the process. It's much easier to use a simple interface to upload images than it is to figure out how to use a File Transfer Program. It's a breeze to bulk-list all of your auctions using auction management software rather than entering information manually into an auction Site's text box. But these are conveniences - not necessities. There are still sellers - and Power Sellers who prefer to do things the "Old-fashioned" way.

Buster44 has been on Ebay since 1997. On any given day you can find between 200-300 of Buster's auctions running. Buster uses no bulk listing software and no third-party image hosting services. All of his images are hosted on his own server and he lists about 35 auctions per day - all individually.

"I have a standard auction template set up that I have saved in a file," explains Buster44. "I change a word or phrase depending on what I am selling. I list all auctions manually, one at a time. I group like items, list one, hit the back button twice, change one or 2 things, and submit another auction."

So just how long does this take?

"I can list 35 auctions in 50 to 60 minutes normally," Buster44 asserts matter-of-factly.

Buster also keeps his inventory, his customer list with addresses, every important piece of information, in one, very inexpensive storage device: A green Steno Pad.

He is, to coin a phrase, an eBayer's eBayer.

Choices
So what choice does the online auction user have when faced with impending fees and price increases? Well there's the obvious one: suck it up and pay. There's also the possibility that some smaller sellers will stop selling all together.

The third choice is to adjust, and become even more computer-savvy than you already are. If you are going to use an auction management software program, expect to pay for the ease of use, the bulk listing and the templates. If you are going to have a third-party Web site host your images, get used to paying a fee for it. Or learn how to do things yourself.

Learn a basic understanding of HTML. It's not that difficult. There are books and Web Sites that are loaded with useful information. Create your own templates. Another method is to use a program like FrontPage. Once you've used the "editing view" to create your template, switch to the "HTML view" and copy it into the description box on the auction Site of your choice. Voila! Instant template. I've also made some basic templates available on the AuctionBytes Web site at http://www.auctionbytes.com/Yellow_Pages/Template/template.html. They're free and will always remain free. Write that on my headstone!

Utilize the server space that comes with your ISP account. Virtually every Internet Service Provider gives you server space when you sign up with them. It could range from 1 to 10 megabytes or more. Take advantage of it by storing your auction images on your own server. You'll need to learn how to use an FTP (File Transfer Protocol) program, such as CuteFTP or WsFtP. Again, this isn't brain surgery, and many times you can have your ISP's tech support help you in setting it up. In the years I've been doing online auctions, I find that my server is eminently more reliable than a third-party image hosting service.

Learn a spreadsheet program like Excel to enter your data. Make entries that will allow you to track how much you paid for an item, how much you sold it for, who you sold it to, etc. This will be very valuable information when tax time rolls around. Or use a green steno pad.

That's not to say that you should avoid auction management services entirely. There are some great free and one-time fee management programs out there. Don't be averse to shopping around.

Your computer is your store. If you owned a brick and mortar, you'd have to learn how to unlock the doors, turn on the lights and run the cash register. The more you can do around the store, the more money you save by not having to hire someone to do it for you, and the more self-reliant you become.

It's really no different with online auctions.

About the author:

David Steiner is President of Steiner Associates LLC, publisher of AuctionBytes.com. David was formerly a television producer.



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