Online selling

Recently, I done a few good deals online. I'm not referring to online stock/forex trading. I'm referring to buying and selling physical things on the internet through online classified ads. During my few years of varsity days, I spent some free time buying and selling things online and I earn a steady income of about $500/mth in doing so. Before I forget about the techniques, I decide to document it down.

My recent sales include one in Nov 2008, I sold 11 mth old Nokia 6500 for $230. This is a good price because trade-in price was only $150. Handphone shops also selling 2nd hand sets around $250 or lower, not to mention that my phone has quite a bit of scratches and wear-offs.

In Dec 2008, I sold a brand new iPhone for $1150 when handphone shops are selling only $1160 or lower. Dealers taking in at $1000 or slightly higher only.

Here, I would like to pen down my own techniques of dealing online so far:

1) Knowing the market price.
Prior to selling, check out market prices through online classified sites like eBay or hardwarezone, etc. Get the price in mind.

2) Setting the selling price
Put up for sale at desired price +$50. For eg if your reserve price is $1000, sell at $1050. This is to let people feel happy because if you sell at $1050 and they offer $1000 and you accept it, they feel they got a bargain. All people likes bargains and getting unique advantages. Just like retail shops jerking up prices and then organising a sale to attract people.

3) Gain geographical advantage
I had always set dealing place or meet-up location to be somewhere near my house. For eg if you live in Bedok, set the meeting place at Bedok MRT. Do not ever accept dealing at faraway places to meet any potential buyer despite any high price. This is to prevent people from playing you out after you had travelled a far distance. To insist on dealing at your turf, you also make the seller more obligated to buy your item because he/she had spent some time and effort to specially travel to come and meet you.

4) Appearances
I always like to keep the boxes of the gadgets I bought just in case I need to sell it one day. If you had thrown away the box, try to pack it nicely, tie up wires nicely, or put in any box for better presentation. If you pack nicely, people are more ready to believe that the item was well-maintained and hence more willing to accept the item. Lastly, finish off with a decent paper bag. Let them feel proud of their purchase. Don't give NTUC plastic bags or other supermarket kind of plastic bags. Also, as a seller, dress neatly in presentable mode when you are meeting the potential buyer. There's a reason why most salesmen dress in suit and tie. You do not want to leave your hair uncombed and wear shabbily to meet the prospect buyer who offered a high price for your item. If you look neat, you gain more trust, hence easier to sell. PS I'm not saying that we should wear suit+tie, just dont wear crumpled clothes or home type of clothes.

5) Patience
Do not ever be too impatient to sell off your good. If no buyer contacts u, relist and update your online ad regularly to ensure sufficient viewership. Check your price again, make sure that you do not sell way off the market price. Add a tag "neg" behind the price if you need to (neg = negotiable). If you are selling an unpopular item, lower your reserve price, better than keeping it without using it and letting it depreciate. If you insist on selling your price, extend your viewership by posting at more websites and forums, just google "online classifieds" and many would appear. The bigger your net, the better your catch.

6) Handling bargaining/negotiation
Buyers always like to bargain for a lower price whenever possible. For eg if your reserve price is $1000 and you set selling price at $1050, you may get many offers at 900, 950, 980 etc. When you get a low offer like these, reply by saying you have an offer of $1000 already. If they do not reply with a higher offer, move on and never sms them again. Remember as a seller, you are unique and you must appear proud. Do not ever succumb to low offers. If someone else can sell $1000, there's always people buying at $1000 again. If someone offers $1000, sound proud by asking if he can deal at your set location. If he say ok, then arrange to meet. If he say can't meet at your location, just say sorry you only free to deal at your location. If he finally agrees, meet him, else just forget it and wait for the next offer. Sounding proud is also good because potential genuine buyer would sense that your item is really valuable hence u are proud. If you sound too happy and warm and readily accept their offer, they may either suspect their offer is too high, or your sale is a hoax, because where got so easy and smooth right? Look at some famous tasty char kuay kiao uncles, they have service attitude but people still queue to buy because they know good things are like that.

7) Miscellaneous
In sales you meet all kinds of people. Some will tell you they are willing to give you extra if you can meet them at their location. Do not be greedy. If things sound too good to be true, most likely it's not true. Once you set your price (point 2), stick to it. Make sure you have the geographical advantage (point 3), so that in case anyone plays you out, you do not lose much time and energy.

Avoid dealing with women, children and old men. Most failed cases belonged to these categories. No discrimination, but for the sake of explaining, women mostly don't know what they want and they see things based on feelings (especially young ladies below 25 yrs old). They are also more prone to last minute mood changes and stand you up. Children play a fool, last minute back out, asking stupid questions, etc. Old men are too fussy, observing too carefully and finding faults from their long-sighted glasses while trying to cut your price. The best crowd to deal with are men, from young adults to middle aged, especially engineers and people who deal with hardware. They are most candid and straightforward.

Last but not least, a few good sites that I use would include hardwarezone.com forums, phing.com, ebay.com.sg, etc.