When it comes to online selling, two options make up the bulk of online sales: online auctions and online classified ads. Both markets are quite effective for used goods, and most auction sites allow the seller to start an Internet store on the site as well.

Auction or Classified - Which option yields the biggest profit?

This varies depending on the demand of the item itself. Items with a small niche market and only a small demand typically fetch higher profits if they are listed in a classified ad. On the other hand, the highest profits come from high demand items, such as exotic sports cars, listed in an online auction. For those high-demand items, it's important to start the auctions with a low minimum bid, and allow the items to work its way up the ladder. Giving the item time to be seen allows for a larger pool of interested buyers, and hopefully, will lead to a profitable bidding war towards the end of the auction.

Auction or Classified - Which is faster?

Online classifieds are often much faster than auctions. On many popular sites if the price is set low and the demand is high, an item will typically exchange hands within one or two days. If the demand is high enough, a classified listing can sell an item in the same hour it's listed! The most common length of time that an item is listed on an auction site is 7 days. Most auction sites also allow for shorter and longer time frames. Typically, auctions can be as short as 24 hours and as long as 30 days (usually reserved for homes).

Auction or Classified - Which costs less?

This depends on where the item is listed. Craigslist(dot)org offers free classified ads to sellers, while most auction sites charge some kind of fee. If you have set a high price for your item and would like to sell it in an auction, then you may need to list it two or three times before it nets the ideal profit. Most auction sites are aware that it takes more than one attempt for an item to sell, and in turn, they will not charge an additional fee for re-listing and trying again. Classified ads, on the other hand, typically incur cost each time that the item is listed.

What's the best way to sell specialized items?

One of the greatest facets of the Internet is its ability to connect buyers with specific needs to the proper sellers. This is particularly true when it comes to specialized items and the rising popularity of eBay alternatives.

For your specialized item, search the Internet and seek out your buyers. If they are already using a specialized marketplace, then that's the perfect place to list your item. Also consider creating multiple listings to achieve the largest amount of online exposure and test the success of both auctions and classifieds to see which selling avenue will work best for you.