Use The Dutch Auction To Increase Feedback
- By Jane Dawson
- Published 11/23/2010
- Online Auctions
- Unrated
If you are just getting started on EBay, you simply could not have a lot of feedback which means that it may be harder to develop trust among purchasers. One way to quickly develop a lot of feedback is to use the Dutch Auction option. The Dutch auction is a rather peculiar auction form that may not last much longer on EBay but, for now, is still an option. The Dutch auction is designed for the seller who has many of the same item to sell and wants to do so expeditiously. If you are trying to build up feedback, it is a fast way to do so.
Building Feedback Quickly
The goal here is to find something to sell that you can buy in bulk, sell at a reasonably low price and ship inexpensively. For example, you might look into pens, trading cards and so on. Make sure you have all of the packing material you need and place your auction online. When it ends, get to work immediately sending notes of congratulations to all purchasers then get those items in the mail as quickly as you can (once you are paid.) Provide notification that you have sent the item and follow up in a week to be sure it has arrived. As long as you advertised the item fairly, you should immediately receive lots of positive feedback. Go through that process a few times and you will have built up good feedback to offer as evidence of your integrity as an EBay seller.
However, be sure you understand how the Dutch auction works.
Mechanics of a Dutch Auction
Say you have one hundred fifty canvas bags, all the same style and color. Instead of listing each bag separately or trying to force people to buy them in lots of twenty-five, you set up a Dutch auction. You list your 150 bags and suggest that any quantity can be purchased and your starting price is dollar 4. (
You bought them for dollar 2). There are two possible scenarios and they are both rather counter intuitive.
If you receive bids for all 150 bags or less than 150 bags, you will need to sell the bags for the LOWEST bid price, which will probably be the starting price, dollar 4. The bidding might look like this:
User ID Bid Amount Quantity Wanted Quantity Winning Time
Bidder D $4.50 20 20 Aug 2 6:21:21
Bidder C $4.25 10 10 Aug 1 05:45:23
Bidder B $4.00 25 25 Aug 1, 2009 04:22:22
Bidder A $4.00 25 25 July 30, 2009, 10:11:27
In this case, because you did not sell the total amount of bags on offer, all bags sold will be sold at the LOWEST price, $4.00.
User ID Bid Amount Quantity Wanted Quantity Winning Time
Bidder F $4.50 50 30 Aug 2 6:42:10
Bidder E $4.50 100 100 Aug 2 6:34:45
Bidder D $4.50 20 20 Aug 2 6:21:21
Bidder C $4.25 10 Removed Aug 1 05:45:23
Bidder B $4.00 25 Removed Aug 1, 2009 04:22:22
Bidder A $4.00 25 Removed July 30, 2009, 10:11:27
In this case, you have had bids for 210 bags. This means that the lowest bids will be removed until you have gotten to the price where you can sell your 150 bags. Your bags have now sold at dollar 4.50 each, although the final bidder can decide not to buy because they will not receive their full order. If, on the other hand, bidder F had gone to dollar 4.75, that bidder would have gotten a full order and Bidder D would have lost out.
The listing fee is based on your opening bid price (just like in a traditional auction), but it is multiplied by the number of items in your auction to a maximum listing fee of dollar 4.80. The final auction value fees are on the same scale as in a traditional auction, but they are based on the total dollar amount of your completed auctions.
Building Feedback Quickly
The goal here is to find something to sell that you can buy in bulk, sell at a reasonably low price and ship inexpensively. For example, you might look into pens, trading cards and so on. Make sure you have all of the packing material you need and place your auction online. When it ends, get to work immediately sending notes of congratulations to all purchasers then get those items in the mail as quickly as you can (once you are paid.) Provide notification that you have sent the item and follow up in a week to be sure it has arrived. As long as you advertised the item fairly, you should immediately receive lots of positive feedback. Go through that process a few times and you will have built up good feedback to offer as evidence of your integrity as an EBay seller.
However, be sure you understand how the Dutch auction works.
Mechanics of a Dutch Auction
Say you have one hundred fifty canvas bags, all the same style and color. Instead of listing each bag separately or trying to force people to buy them in lots of twenty-five, you set up a Dutch auction. You list your 150 bags and suggest that any quantity can be purchased and your starting price is dollar 4. (
If you receive bids for all 150 bags or less than 150 bags, you will need to sell the bags for the LOWEST bid price, which will probably be the starting price, dollar 4. The bidding might look like this:
User ID Bid Amount Quantity Wanted Quantity Winning Time
Bidder D $4.50 20 20 Aug 2 6:21:21
Bidder C $4.25 10 10 Aug 1 05:45:23
Bidder B $4.00 25 25 Aug 1, 2009 04:22:22
Bidder A $4.00 25 25 July 30, 2009, 10:11:27
In this case, because you did not sell the total amount of bags on offer, all bags sold will be sold at the LOWEST price, $4.00.
User ID Bid Amount Quantity Wanted Quantity Winning Time
Bidder F $4.50 50 30 Aug 2 6:42:10
Bidder E $4.50 100 100 Aug 2 6:34:45
Bidder D $4.50 20 20 Aug 2 6:21:21
Bidder C $4.25 10 Removed Aug 1 05:45:23
Bidder B $4.00 25 Removed Aug 1, 2009 04:22:22
Bidder A $4.00 25 Removed July 30, 2009, 10:11:27
In this case, you have had bids for 210 bags. This means that the lowest bids will be removed until you have gotten to the price where you can sell your 150 bags. Your bags have now sold at dollar 4.50 each, although the final bidder can decide not to buy because they will not receive their full order. If, on the other hand, bidder F had gone to dollar 4.75, that bidder would have gotten a full order and Bidder D would have lost out.
The listing fee is based on your opening bid price (just like in a traditional auction), but it is multiplied by the number of items in your auction to a maximum listing fee of dollar 4.80. The final auction value fees are on the same scale as in a traditional auction, but they are based on the total dollar amount of your completed auctions.
Jane Dawson
Wholesale forum is the first online discussion platform for wholesalers. Join wholesale forum today to know about wholesalers list , UK importers , UK wholesalers, designer clothes wholesaler and much more.
View all articles by Jane Dawson