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USING THE INTERNET TO YOUR ADVANTAGE

(March/April 2007)

By Amber Twist

When the time comes to buy equipment for your business, on-line purchasing may not be the first thing that comes to mind. It is unconventional and may seem a little risky.  However, for those who are daring to venture unto on-line auction sites the rewards are significant.

The eBay experience is unique and sometimes overwhelming.  It is a place where people all over the world gather to buy and sell goods.  Often experienced eBay buyers describe the experience “a thrill.”  The process of searching for the perfect item is like a hunt and entering into a bidding war against other potential buyers can feel more like sports than shopping.

Currently, eBay is a top choice for business owners who are making purchases on-line. Since the year 2000, US sales of business equipment on eBay has risen more than 88%. More and more business owners are turning to the bargains, convenience and wide selections that eBay has to offer. It is important to remember that the more options you have as a business owner, the better off you are. Exploring the options available to you through eBay can only benefit you and your business.

For many business owners, convenience tops the list of reasons why they buy business merchandise on-line.  Consider Tim Reinagel of Premier Window Cleaners in Thomaston, Georgia.  Tim recently decided to purchase a new vehicle for his business.  He says, “For years I sold and bought items on eBay so it was natural for me to consider looking on-line when the time came to buy a company vehicle.  I had a good idea of what I wanted after researching consumer reports but I had little time to go shopping from car dealer to dealer.  Shopping on eBay, I was able to research a vehicle and bid on the truck of my choice all during off hours.”

Purchasing formats on eBay vary, but the most popular type of purchasing on eBay is the auction-style listing. In an auction-style listing, the seller posts an item for sale and multiple potential buyers make a bid on the item. In most cases, the highest bidder at the close of bidding will “win” the item.   As is the case with any auction, there is a potential to find big bargains.  Often eBay buyers purchase items for their business significantly below market value.

If buying merchandise from the privacy of home and finding great financial deals aren’t enough to persuade a skeptical business man, on-line purchasing has one final distinct advantage: selection. For example, if Tim had decided to buy his vehicle locally he would have had a limited number of dealerships to choose from. On-line, he was able to type in a few key words into the eBay search engine and automatically multiple vehicles from all over the country popped up on his computer. With a wide variety of choices available, all he had to do what look through the listings for the vehicle that most closely met his needs. In addition to variety, on-line purchasing can also be a good way to find hard-to-locate equipment parts, out of stock items, discontinued items and over-stock items.

Although purchasing on-line has it advantages, it is not without risks.  As with any purchase, whether conducting business on-line or not, it is important to be an informed consumer and to fully understand the process.

There are a few key steps to getting started. First, anyone can browse eBay and use its search engines without an account, but if you decided to make a bid on an item you will be asked to register. The process of registration takes only a few minutes in which you will be asked to provide identifying information such as your name and address. Next, you will be prompted to create a password which helps to keep your information protected. Finally, you will be asked to read and accept the eBay user agreement and privacy policy. When registration is complete, you are able to make a bid and/or purchase.

In order to find the item you are looking for, you have two options. First, you can browse the listings. For example, when Tim decided to buy his vehicle on eBay he may have logged on to the eBay home page, clicked on the automobile tab and looked through all of the listings. Browsing is a good option when you are not sure exactly what you are looking for and if you have a lot of time to look over all of the available items.

However, if you already know what you want, conducting a search is a more efficient option. To search for an item you simply type in a few key words that describe what you are looking for in the search box and a list of items that closely match your request is automatically generated.

When you decide to place a bid on an item there are a few things to look for. For instance, when does the bidding close? If you want your item by next week and the bidding is open for five more days, this may not be the right item for you. In some cases sellers offer a “buy-it-now” option which means you can forgo the process of a bidding war if you are willing to buy the item at a predetermined fixed price (which is often market value of the item.) Also, consider the amount of the current bid. If the current bid is already higher than what you would be willing to pay you may want to continue searching the listings. Finally, what are the shipping costs? Depending on the item and its location shipping fees can be significant.

After you have decided to place a bid on an item, then next step is to enter the highest amount you are willing to pay for the item. This does not necessarily mean that you will pay this price, it only means that your bid will not go beyond this price as eBay regulates the bidding process.

For example, lets say you found a set of UNGER window cleaning supplies that includes a 14” T-bar, 14” microstrip washer sleeve, a squeegee handle with 10”, 14” and 18” s-channels, 36” soft replacement rubber, 4” scraper, 1.5” safety scraper, 16” square micro wipes, an 8’ extension pole, glass cleaner packets and a nylon carrying case. The listing closes in 6 hours. There are three bidders and the current high bid is $95. There is a buy-it-now option of $146. You decide that you do not want the buy-it-now option because you think you might win the listing at a lower price. You decide you are willing to pay $130 for these items.

This is how the bidding works: when you place your bid, you place it for the maximum amount you are willing to pay. In this case $130. Initially, your bid will show up as the highest bid just above the previous bidder at $96. As the bidding continues, eBay automatically tops any opposing bid on your behalf until it reaches your maximum bid amount of $130. It is not necessary for you to watch the listing for six hours until it closes. EBay tracks the bidding war for you and if you are the high bidder at the close of the auction an email is sent to notify you that you have won the bid. If, however, another bidder places a bid of more than your maximum bid of $130 you lose the item unless you resubmit a higher maximum bid.

If you are the highest bidder and win the item, the final step is payment. There are a few options available to you for making payments.  You do not make any payments directly to eBay but instead you submit your payment directly to the seller of the item.  For this reason, paypal is a preferred payment method for many eBay buyers.   Paypal is a third party payment processing center which enables the buyer to make a payment with a credit card to a secure third party.  A paypal payment is immediate, convenient, traceable and it helps consumers to avoid giving their credit card numbers to unknown sellers.  The payment options available to you are determined by the seller.  Most sellers accept paypal because paypal payments are sent to them immediately.  However, most sellers offer a variety of payment options including credit cards, personal checks, cashier’s checks and money orders.

After purchasing an item, winning the bid and paying the purchase price the only detail left is acquiring possession of your merchandise.  When asked if purchasing a vehicle on-line was inconvenient, Tim said that in his experience it was not.  He says, “We arrived at an agreeable price and I made arrangements to fly from Atlanta to Dallas.  I drove to Atlanta at 2 pm and arrived at Dallas at 6 in the evening.  As soon as I got to the DFW airport I walked in the baggage area and saw my truck out the window.  I called the seller from there and within an hour I was on the road home.  I loved the truck and was excited as I drove by myself all through the night.  It has been extremely reliable and within 26 hours of having it lettered up for business I received my first call for pressure washing and awning cleaning service.” 

In many cases items are mailed directly to the purchaser.  In the case of vehicle pick-up and items that cannot be sent through the post office, transfer of goods arrangements are agreed upon between the seller and the purchaser after the sale goes through.  If you have any questions regarding postage fees and/or acquiring possession of purchased merchandise, contact the seller before placing your bid to avoid any unwelcome surprises.

As a word of caution, Tim advises potential consumers to be aware of the legalities involved in making an on-line bid.  He explains, “A window cleaner should be aware that bids on eBay are legally binding.” In other words, make sure if you place a bid you are willing to pay that price.  Once the bidding is closed, if you are the highest bidder, you have a legal obligation to pay the price you bid on that item.  Tim also suggests that you know the items you are bidding on and read the reviews eBay lists for each of its sellers.  He advises, “Be sure to read all of the item listing and ask your questions before you bid. With EBay, each seller has a peer rating. Be sure the person selling to you has an excellent track record.”
The use of eBay opens the doors to a new set of options for business owners.  It is convenient, financially beneficial and provides a broad range of access to a variety of products.  According to Tim, on-line purchasing through eBay has been beneficial to his business.  It allowed him to purchase a vehicle from the comfort of his own home and on his own time.  He says, “I have no problem recommending on-line purchases.  I have saved a lot of time by being able to research and purchase items without the pressure of having a salesperson feel like they need to sell me something I do not need.  Tim goes on to say, “My Tacoma continues to net me more residential business and I am very pleased with it.”

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