posted on August 14, 1999 09:46:00 PM new
Anthony: Thanks. The answer, at least in my book, is BidSafe. Admitted, we've got a one-time fee of $19.95 but that fee lasts an entire year and actually covers shipping insurance on all items ultimately sold through AU -- even items valued under $500 and sent through the mail. The fact is that the fees for using BidSafe -- the basic commission and the BidSafe premium -- total under 6 percent (we don't charge the 2.5 percent sale commission on shipping fees) which compares favorably with any credit card acceptance program or escrow program around. As I understand it, for instance, the lowest price credit card only services charge you is 5.5 percent of the entire transaction -- just for just taking the credit card. That, BTW, doesn't include insurance or any escrow services. The escrow folks charge a $2.95 minimum or 6 percent for all items over $49.00 up to something like $600. To their credit, use of their service does include shipping insurance, but they do require special shipping charges because all items sent have the "signed for." (Registered mail.) Their 6 percent, BTW, is on the total amount of the purchase including shipping and the item... and don't forget that registered mail, return receipt or sign-for UPS services cost more than priority or first class mail. Ease of use is also an issue. With any of the other services, you have to fill out a form that is different from a basic auction form. These other folks may also require faxed signatures and other extra steps. At AU, the process is just like listing and buying an auction. In fact you are. (For a buyer, the only difference is when it is a bidsafe auction, they have to use a credit card.) Lets assume you made a transaction at another auction. The deal is a $45.00 item with $5.00 shipping. You and the buyer have exchanged emails and they'd really like to pay with a credit card because of its convenience. You get with them and say you'll relist the item on AU at a specific "mutually agreeable time." You've determined the final value price at the other auction but you need to add shipping costs and the service fee for the special service. Let's say its noon and they say they'll be available and online later that night. You tell them great. You'll relist the item on AU and, with the service fee and shipping, the price will be $53.00 As a BidSafe member, you'd select the "First Bid Wins" auction format, paste the full auction description in the description box and set the time for the auction to start as 10 p.m. To make it super easy to find (and also tell everyone else not to bid on the item) you add the text to the auction description that this auction is an arranged sale and the buyer is "[email protected]" Further, you set it to start at 10 p.m. (ET) and to run one day and end at 12:01 (midnight that coming morning.) The auction is only live for 2 hours and one minute ... which is plenty of time. You then instruct the buyer to register on AU (that's free) first and then, right at 10 p.m., do a "quick search" on his or her own email ([email protected]). Your auction listing for the item they bought appears. They make the "first bid" on the BidSafe First Bid only auction and it closes immediately. AU hits their credit card for the final value fee of the auction which, BTW, is now $53.00 including $8.00 shipping, handling and service. AU charges you 2.5 percent of the $45 sale price ($1.12) plus 3.5% of the entire charged amount ($45 + $5 shipping + $3 for special service or $53.00) or $1.85. The actual total cost of the service is $2.97 or 5.6 percent of the actual $53.00 charged. You'll end up reporting the progress of the transaction to AU, just as you would to the escrow folks but at the end, you get to list positive feedback for the buyer. And, you might also tell the buyer that if he posts feedback for you, he'll get a 53 cent rebate to his "bidbuck" account. (While he'd have to amass $5.00 in bidbucks to get a $5 credit on his credit card, he will have the credit ready and waiting.) And, if you figure that 53 cent credit into the buyers cost, he's paying less than 5 percent extra for escrow and credit card acceptance. Of course, the greatest savings to both of you would come when you just list on AU from the get go. Then you'd save the other auction listing fee plus all end of auction fees. BTW: If your $5 shipping fee included the 95 cents extra for postal shipping insurance, you could credit them that figure. That would drop the premium the buyer pays for the service even more. Personally, I expect most buyers to just pocket that money. Pat
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Neomax
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