eBay Competitor, OnlineAuction.com Continues to Grow

See below for a special offer for my readers

In my newsletter last month I told you about eBay’s newest competitor, OnlineAuction.com (www.ola.com).  I had a chance to speak with executives at the company today and learned some new and interesting information, plus managed to get a special deal for my readers.

Competing with eBay is pretty tough for anyone, but Online Auction (OLA) is starting to get better traffic. I tried some auctions and so far had a 50% sell through rate.  My average sell through rate on eBay is quite a bit higher than that, but remember I didn’t pay any listing fees, so the bottom line is that is was just as profitable.

OnlineAuction.com, recently achieved their ten millionth listing –a milestone that no other auction company has achieved since eBay. I was speaking with one of their executives today and he said that they are on track to reach their goal of 100 Million items listed.

Instead of listing fees and final value fees, at Onlineauction.com, you pay a fixed monthly fee that allows you to list an unlimited number of items and pay no listing fees and no selling (final value) fees.

The listing tool is somewhat basic –you have to use html commands if you want to spruce up your listings.  But, when I spoke with them today, they said that developing an HTML editor is a top priority and they hope to have this very soon. 

In the meantime, you can download a free HTML editor at PageBreeze (http://www.pagebreeze.com/).  This is a completely free download and unlike a lot of free software, PageBreeze has no advertising or nag screens.  Its just a cool and completely free little tool.  Even if you use eBay, you may want to take a look at it, because it is much more flexible and allows more creativity than eBay’s Sell Your Item Form.

When I was tallking with OnlineAuction’s management, I told them that I like to get special deals for my readers.  You can get a Basic Membership for $8 month, or become a Charter member by paying for a year in advance at $96.  The best deal, however is the Founding Membership. This is $196 for the first year, and then $96 a year afterwards.  But you get $200 worth of auction enhancements (Front page features, end item early, and other neat things).  Now here is the special deal: I have made an agreement that my readers will get $300 worth of listing enhancements. In addition to the enhancements, Founding Members get a lot more benefits including training material and a really nice welcome package.  Be sure to use this coupon code to get your bonuses and my special deal: 28792AAA.  Just type that into the promo code box when you register.

So what are the economics of listing on Online Auction for $8/month and paying no listing or final value fees.  Let’s look at an example. If you were to list an item on eBay for 99-cents starting bid, the listing fee would be 20-cents. If the item sold for $25, the final value fees would be $1.96. That is a total of $2.16 to sell your item.  Of course if it doesn’t sell, you still pay the 20-cents. So if you listed and sold 10 items a month on eBay using this example, and all of them sold, you would pay $21.60 in fees versus $8.00 in fees on OnlineAuction.com.  (I didn’t take image hosting or special fees into account in this example, but OLA enhancement fees are somewhat lower than eBay’s as well)

Now, to be fair, you will probably realize higher values on eBay because there is more traffic, and therefore more potential bidders. So you do have to take that into account. But as OLA continues to grow this will change.

I am not suggesting my readers cancel their eBay accounts and move to Online Auctions, but you may want to give it a try and use it as an additional selling venue. For $8/month you can literally list hundreds of itmes.  Even if you set a higher starting bid and not many items sell, the few that do should be pretty profitable because of the fee structure.

If you want to try OnlineAuction.com, here is a promotional code to get you started that will get you some free bonuses AND an extra $100 in Listing Enhancements if you become a founding member: 28792AAA.

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