When selling gold there are different options that are available. You can sell your gold to a brick-and-mortar dealer, a pawnshop or you can sell gold online on a website such as Ebay. The option of being able to sell gold from the comfort of your own home is an enticing one. Hundreds if not thousands of people choose to sell their gold on eBay. Online auction sites like eBay may be convenient but before you go there here are a few things you should know:
The commission rates that eBay charges are low compared to those charges by conventional auctioneers. Commission typically start at 5.25%. When comparing commission rates you should be aware that auction sites charge a seller’s commission and a buyer’s premium. These can go up to 30%. Besides commission fees, there are other hidden costs that you need to be aware of. One of these hidden costs is the Reserve fee and Paypalfee’s.
When you sell on eBay, you need to present your items in the best possible light. You may have a good camera but you need to have a way with words. Write a compelling description to attract potential buyers. Some people try to cheat the system by using images they find elsewhere on the web. This is copyright infringement and it can get you in big trouble.
You also need to make sure that you don’t misrepresent the item you want to sell. Use flowery language to sell gold if must but do not build the item up to be more than what it is. You don’t want to have to deal with the cost of refunding people who find the item to be less than you described it to be. Going directly to a gold dealer can save you all that hassle.
What is the reserve fee?
To explain in simple terms what the reserve fee is: let’s say you have a gold coins you want to sell for about $1,000; you can list them at $1,000 which means bidders cannot bid lower than that. This will attract a listing fee of $2. You can also start the bidding price at $1 and hope to get bids that go up to $1,000; you will still be expected to pay a $2 because of the reserve price of $1,000 you have set. Listing at a low price may draw a lot of attention but you will attract $20 in reserve fees. The total cost of listing your item on eBay will be $22 and you will be required to pay it whether the item sells or not.
Selling your gold via a conventional auction house might sound enticing but it is considerably more expensive. Auction houses charge a buyer’s premium and a seller’s fee. The seller is usually charged 25 – 30%, the buyer’s premium gets added to the final auction price. To add to that, auction houses also attract VAT. It would cost you more to sell your gold at auction than if you went directly to a gold dealer who does not charge any additional fees or commissions. You would get the most for your gold.