EBay Sellers Go Back to School: 10 Tips

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" into low-starting-price auctions could stimulate interest better than more straightforward listings, and possibly even raise final sale prices. Researchers at Stanford found that auctions which mention the high retail price in an item description sell for 7% more on average.

7. Hold longer auctions. Researchers from the University of Arizona and the University of Michigan found that longer auctions tend to fetch higher prices. While three-day and five-day auctions yield approximately the same prices, seven-day auctions are about 24% higher, and 10-day auctions 42% higher on average.

8. Don't end auctions during "eBay happy hour." Though it might seem counterintuitive, a University of Pennsylvania researcher found that auctions ending during peak hours on eBay are actually 9.6% less likely to result in a sale. The reason? More competition. About 35% of auctions end between 5 p.m. and 8:59 p.m., when 25% of bids are placed.

9. Charge for shipping—but not too much. Bidders don't pay much attention to shipping costs when placing bids, say professors at UC Berkeley and Hong Kong University of Science and Technology. CDs listed with a starting price of one cent with $3.99 shipping averaged 21% higher final sale prices than CDs set with an opening price of $4 and no shipping charge. But when the professors listed CDs with a $2 starting price and a $6 shipping cost, five of the 20 CDs went unsold.

10. Avoid negative feedback. A Bentley College researcher found that sellers who have even a few positive reports are more likely than sellers who have no history to receive bids and to have their auctions result in a sale. Positively rated sellers also receive higher bids. One study by researchers at UC Santa Cruz and Ryerson University found that highly rated sellers are more likely to provide secure payment options, such as PayPal, as well as detailed product information.

By being aware of the strategies that eBay sellers use, eBay buyers can benefit from academic research as well. For example, be wary of high-traffic auctions: Prices can get artificially inflated. Instead, try searching for items using common misspellings and check out products listed without pictures. These auctions generally receive fewer bids, and therefore usually end up with cheaper sale prices.

And if you're worried a bargain you see on eBay might just be too good to be true, (see BusinessWeek.com, 6/29/04, "10 Ways to Avoid Buying Fakes Online"), then take our quiz "Can You Spot the Fake Online?"

Miller is a reporter with BusinessWeek.com in New York.