|
by
Dennis Prince
Sellers
who have been doing business in the auction space long enough
know the value of careful inventory management. In fact, the
less they have invested in inventory that might (or might not)
sell, the more effectively they can control their operating
overhead. But, without inventory on hand, there's nothing that
can be auctioned--or is there?
Whether selling items
yet to be released or managing sales through a partnership with
a third-party supplier, some sellers have learned that preselling
items at auction can be a smart move. It's not easy, though, and
it requires special attention to ensuring that the item the high
bidder wins actually will be available to successfully
complete the sale. Here are some things to consider if you're
interested in managing your auction inventory in this more
dynamic way.
Getting
Ahead or Getting a Headache?
The dynamic management of goods for sale (often referred to as
"just-in-time" inventory--you receive just the
inventory you need just as you've sold it) can put you ahead of
the curve in the marketplace. By establishing strong
relationships with reputable suppliers (wholesalers, importers,
drop-shippers, and manufacturers), it's possible to leave
inventory management to your source. This enables the seller to
order and presell hot, unreleased items, maintain a source of
goods without having to purchase what they haven't yet sold, and
even drop ship sold items directly to buyers without the need to
ever control the merchandise. It's a method of supply-chain
management that big business executes every day. If
you would like to see resources please visit our dropshippers
and wholesalers category
The key, of course, is
to be certain that, when selling items you don't physically own,
you can be sure your suppliers can and will deliver the goods
quickly and consistently whenever a sale is made. This requires
that you keep in constant communication with your suppliers to
ensure their inventory is on hand, is as described, and
is always ready to ship. If the supplier is subject to
constantly changing inventory (such as liquidators) or prone to
frequent out-of-stock situations (back orders), then you'll be
faced with informing your buyers that the goods they just won
aren't readily available, if at all. Therefore, if not managed
and monitored closely, your source of presell supply might also
become a supply management nightmare that will frustrate both
you and your customers.
Site
Rules
Understanding the potential (and possible pitfalls) of managing
auction sales and inventory in this manner, most auction sites
have addressed preselling in their policies. While Yahoo
Auctions explicitly prohibits such sales, eBay has a more
accommodating policy
that allows presales provided the seller can deliver the goods
within 30 days of an auction's close. The seller needs to be
absolutely clear whether a site allows presales and what
restrictions, if any, apply. Without proper compliance, it's
possible that presale listings will be unceremoniously canceled.
Full
Disclosure Required
eBay's main requirement when listing presale merchandise is full
disclosure. eBay's policy, in fact, requires that sellers denote
this disclosure in an item's description using an HTML font size
of at least 3.
Explicitly stated or
not, it's in your best interest to be absolutely certain your
bidders and buyers are fully aware that your presale goods are
not presently in your possession and there may be a
longer-than-usual delivery time due to the fact that the goods
are on-order or will be delivered by a third party. To disregard
such disclosure (or worse, to misrepresent what you're
auctioning) can lead to buyer dissatisfaction, refund demands,
negative feedback, and complaints to the auction site or a
consumer protection agency.
(For more information
about presell business rules from the Federal Trade
Commission’s perspective, visit the FTC Web
site.)
Satisfaction
Guaranteed
Here's the heart of your business: Do you stand behind
everything you sell? If so, then you'll need to go to extra
lengths to ensure that your customers are happy with their
presale and/or drop-ship purchase. Though it's within your right
to state that all sales are final, such a policy isn't well
suited to sales of goods you don't own at the time of listing.
Whether an item arrives differently from what your supplier (and
ultimately, you) described or it arrives damaged, late,
or not at all, you must absorb the fallout to avoid alienating
your customers. With that in mind, it's wise to offer some sort
of return or exchange privilege for presale items.
Be ready to accept
returns and deliver refunds. If shipping inventory back to a
supplier, you might encounter special return policies, including
a return or re-stocking fee. If you intend to pass along any
fees to your customers, you should do so only in cases in which
customers have changed their minds about the purchase, but not
in cases of item misrepresentation (that's your
liability).
Though some sellers
have tried to blame problems of item delivery, quality, or
content upon their suppliers, it becomes the seller's ultimate
responsibility to guarantee that whatever they sell is "as
advertised" in all aspects of the phrase. If not, buyers
have the right and responsibility to take protective
counter-action.
Back to Auction tips &
tactics
|
