One big question that seems to popup a lot is how much does someone need to have to start making money with auctions. The amount will depend on the auction. Some auctions are free to join and post your auction, while others require a membership fee to join and are charged a final value fee when the product sells. Before you start thinking about running an auction for your product, you need to know the cost of the product, and what your budget is. Besides a membership fee (if required), you may be responsible for an insertion fee, final value fee, and listing fee. You may also be responsible for shipping your product.
In order to know the amount of money you will need, you have to look at the auction site. For instance, eBid.net provides a place where there are zero listing fees. You choose your location and list your auction. Then you can list your auction. With eBid.net, there are three different levels you may be placed under when you register. To start with registering with eBid.net is free. The first level is as a buyer. You pay nothing to register for this account. To be a casual seller (one that auctions every so often and not steady), there is no registration or listing fee, but you do pay a three percent auction final value fee. However, if you were to be a steady seller, you could go for the Seller+ package where you pay a small fee, which means you have no fees of any kind to pay for.
With Ubid.com, you have no listing fee, but you do have to pay a monthly fee of $29.95 to start with. When sales reach over $10k per month, this fee is canceled. The payment processing fee is 2.95%. The final value fee is dependent on the category. For example, consumer electronics has a final value fee of 4.25%, while cell phone accessories have a final value fee of 11%. You would have to find out what category your product belongs to so you’ll have an idea what amount of money you will need to pay to list your product.
WeBidz.com also has fees. They have many fees you will need to deal with including a listing fee, end of auction fee, and many other fees. They also require a one-time fee of $57.70. The listing fee will depend on the amount of the product you are selling. The fee can range anywhere from one cent to $10,000,000.00. The end of the auction fee works the same way. It depends on the price of the product, or the final bid amount (if the product sells). You may also be required to pay a seller verification fee of $5. It is best that if you decide to place your auction on Webidz.com, you better check their site fees page so you’ll know what you have to pay.
OnlineAuction.com doesn’t have any listing fees, final value fees, or end of auction fees. The only fee you have to pay is the $8 per month recurring fee. That fee covers everything on the site. Webstore is another popular auction site. They also don’t charge any fees. They make money from advertisers and corporate sponsors who display banners on their site.
Lastly, with eBay.com, you have to be aware of their fees, as they do charge them, and the fees are higher than most other auction sites. They do have four types of fees. These include an insertion fee, listing upgrades, final value fee, and PayPal fees. According to them, the insertion fee is based on the reserve price if the reserve price is stated. If there is no reserve price established, the stating price dictates the insertion fee. The final value fee is based on a percentage of the total amount of the sale. If the auction is an auction-style listing, the final value fee is 9% of the item plus shipping. They do have a fee calculator you can use.
The bottom line is that if you want to sell your product at an auction online, and you know the price of your item, assume you will pay about $10 – $300 in fees. Again, this will vary with each auction. Before you post your auction, do some research on the auction site.