What Should You Sell?

In order to earn money through online auctions, you must first have products to sell.

Used Products

Most online auction sellers begin by selling items they have sitting around the house, the things you might otherwise sell at a yard sale. Once they've gotten a taste of auction selling, they move on to other sources. Some sellers rely on thrift shops, second-hand stores and rummage sales. With a good eye, they find 25-cent books they can sell for five dollars and dollar pottery potentially worth 20 dollars in an auction. When searching for second-hand merchandise, it helps to be knowledgeable of the market for these goods, so specializing can be to your advantage. At the same time, even the most specialized seller will have a hard time passing up a promising find.

New Products

Sellers who provide new items in their auctions also have several sources. Some buy their products wholesale, just like a store, although in many cases, the initial cash outlay is prohibitive to small auction sellers. Many sellers are simply frugal shoppers and find the best deals and clearance specials, holding on to seasonal merchandise until the time is right for profit. Others may even buy hot items at full price hoping to cash in on a potential shortage. If you remember the crazed hunt for Cabbage Patch Kids in the 80s or Tickle Me Elmo in the 90s, you can understand the potential value of a much-desired toy during the holiday season.

Drop Shipping

There is also a practice known as drop-shipping. where you contract with a company to ship items to your buyers without ever having the products in your hands. While you can find information online purporting to tell you how to make thousands of dollars through drop-shipping, the process is rarely that smooth. Since the products were never in your hands, you have no control over quality and shipping. Since good feedback scores from customers are vital to your success as an auction seller, it's dangerous to put your money-earning potential in the hands of an unknown shipping company. If you do find a promising drop-shipping firm, research them carefully, and ask for references.