27 October 2007

Forum or Auction Site? (Part 1)

Continuing from my previous post, I would to discuss about the difference between selling on a forum site or a paid auction site in Malaysia. I have personally sold on all 3 sites. Each site has its own pros and cons.

Who sells on these Sites?Before we discuss about the difference between a forum or an Auction site, I would like to discuss about the different types people who sells here and why they choose those sites.
  • Businesses or individual selling new items for income
  • Individual disposing or trading their used items
  • Individuals who bulk items in hope to purchase certain items at better than market prices

Selling for income
In this category, both business owners or individual sell things for income. They either purchase items from locally supplier or import directly from overseas. Business owner generally sell their items to promote their retail shop whether it is an online shop or a physical shop. Individuals normally sell items for a fraction of the market value, as they have little or no overhead working from home. Their aim is once again for income, normally as extra to supplement their full time job.
Selling/Trading used itemsThis is very common on why people start to sell or trade things online. Being a techie and gadgets person, we are constantly upgrading our "big boys toys" whether it is our computer, the mobile phone, consoles, cars or any other expensive hobbies that us guys may have. In purchasing a new item, we wish to dispose of our older items while it still have some value. A great example is the mobile phone. Nokia just released a new phone.... if I could sell my old phone, I could get the new one!!! :)
Bulk Selling
Generally asians are very kiasu and would always try to purchase things at a bargain or heavily discounted. Come on, who wouldn't want to buy an item at 70% discount? But not always we are able to purchase things that we need or want at a bargain. At times like these, we would need to create the opportunity to buy at a good price.
Let's say you wish to buy the new Sony 42" LCD TV. First you locate for the local supplier/importer. He tells you that you would need to buy 10 units to get it at a special price. You would offer 9 other people the opportunity to purchase it at this special price. When you do manage to locate 9 other people who are interested at the same item, you would then purchase the items at the wholesale price. This is what we call a bulk service. We would be buying at the best possible price (wholesale pricing) assuming that the seller is NOT making a profit. Sometimes a bulk services may take weeks or months before they are able to locate enough interested parties. Everybody saves from this method, but at times the minimum quantity for the bulk services could be quite hard to achieve.

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