Internet Tips: How to Make Cash on EBay--Your Auction ABCs

You've undoubtedly browsed the myriad, disparate merchandise for sale on EBay. You may even have purchased something from the Internet's mother lode of materialism. But what about making some cold, hard cash on EBay by selling your obsolete PC equipment or that digital camera that's been collecting dust since you got a new, spiffier one? It may at first seem daunting to sell your old, tired tchotchkes on the site called America's Attic, but a few pointers will have you raking in the dough in no time.

Calling all accounts: After you register at EBay, you will need to set up a seller's account: This requires your credit card and checking account numbers for identity verification. (Go to EBay's Help Center for details.) If you want to receive payment via PayPal (highly recommended), go to PayPal.com and click SIGN UP.

Know what you're selling: Before you start an EBay auction, you need an idea of your item's worth. To find completed sales of items similar to yours, click Search at the top of EBay's home page, and then Advanced Search. Type a description of your item ( metric spanner, for example), check Completed items only, and click Search. If no items show up, use a less-specific search term; if dozens appear, make your term more precise. Note the condition of the item sold and whether it includes all the original packaging and manuals. Check the starting price, the reserve price, and the final sale price.

Pick a price: After this research, choose a starting price high enough to satisfy you if only one person bids and low enough to ensure that at least one person will bid. Optionally, you may also set a reserve price (a lowest acceptable sale price that is hidden from bidders). EBay charges an insertion fee of between 30 cents and $3.30, based on your starting or reserve price, whether the item sells or not. A low reserve, or none, reduces your fees, but could allow someone to buy your item for next to nothing. Go to EBay's Help Center for a complete explanation of EBay fees.

A picture is worth 1000 words: To sell your item, let people see it. If necessary, borrow a digital camera or Webcam. Try for well-lit, close-up photos with a plain, contrasting backdrop, and keep the final file size below 50KB for fast loading. EBay gives you one picture for free on each auction page; extra images cost 15 cents each.

Sell, baby: To list your item for auction, click Sell at the top of most EBay pages; then click Continue. In the next screens, select a category and subcategory, and choose Continue again. Enter a clear title for your item (EBay provides tips in a nearby link), compose a glowing but accurate description, and click Continue. Provide auction details (duration, and starting and reserve prices) and photos on the next page, followed by payment and shipping details--the default settings are secure and private. Review and edit your listing in the last screen (EBay will also show you what your charges will be), and then click Submit Listing. You're in business.

Watch the auction action: Don't just post your auction and head off to the beach. Wary buyers may need to know more about you or your item before they bid and will contact you by e-mail. EBay will e-mail you a daily report and you can also get up-to-the-minute status reports by clicking MyEBay (see FIGURE 1).

After the sale, service: Congratulations! Your item sold. Now send an e-mail to the buyer with the final price, including shipping. Once payment arrives and personal checks clear, ship that package and start looking for more stuff to sell.