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Fund Development - Other Fundraisers
Fundraising With a Net: The Internet
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Nonprofit Fund Development Resources: Tips for a Successful eBay Auction
Before Deciding to do an E-bay Auction


Make sure your board of directors is fully on board with the project; you will need their assistance and connections to obtain items suitable to auction on e-bay. Establish an e-bay auction committee consisting of at least one board member, one staff member and any other board members or volunteers willing to help.

Make sure you have someone knowledgeable about E-bay auctions (or at the very least has sold something on e-bay before); if you have no board members of staff with any experience, find someone in the community that will volunteer to participate on your e-bay auction committee.

Collecting Items
Don't waste time on small items that have specific set values. People shopping on e-bay are shopping for bargains. Period. They may be pleased that their purchases will be helping a nonprofit but DO NOT expect them to spend over the value of the item. This means you should not be soliciting donations of gift baskets that sell at $49.95 at a particular store - you are likely to get only $15.00 for it which would not cover what it cost you in staff time to set up the listing on e-bay. An E-bay auction is different than a silent auction held in person amongst your usual donors (even then you don't often get over the value of the items!).

DO aim for items that have NO set value; many nonprofits work hard to get unique high-ticket items that really pay off like a football or jersey signed by a famous football player or box or VIP seats to a really popular game or event where tickets are hard to get. Another option that follows the "no set value" rule would be an online garage sale through e-bay where board members, donors, volunteers and staff go through their garages or attics and donate older items that may potentially be collectibles. This also has the potential to raise larger amounts of money. Or if your nonprofit runs a thrift shop - e-bay can be a great outlet to sell those items that may be collectibles that come through your store.

Keep it Simple
You really want to make the most amount of money with the least amount of effort - so keep you event as simple as possible. If it's your first time - focus on just one large item or if you like the "online garage sale" approach, have the people donating also list the items for you from the comfort of their homes; they do the photos, descriptions, list the items and designate all or a portion of the proceeds to go to your nonprofit. This is a great solution that takes some of the workload off your staff BUT you will need to track everyone to ensure they get their listings done!

Marketing the Event
Because E-bay has such a large number of people accessing their site daily, there really is no need to spend marketing dollars getting people to come to your auction - trust me - there will be people coming. You will need to let your donors and other constituents know but that can be accomplished inexpensively by advertising on your website and sending out email reminders as the event approaches.

E-bay's Giving Works Program
E-bay has a special program just for nonprofits called E-bay Giving Works. You can choose to do Direct Selling (listing and selling the items yourself or Community Selling where others list their items and donate proceeds to your nonprofit (as in the Online Garage Sale example). You register through Mission Fish which takes care of the online payments and then your listings show up on e-bay with a special ribbon indicating that you are a nonprofit and a link to information about your nonprofit (that you provided to Mission Fish).

The Mechanics of E-bay
There is a lot of discussion and debate amongst e-bay sellers as to what is the best time and day to start your auction, how small or big your opening bid and whether or not you should have reserve limits. Here is the general consensus:


Most sellers like Sunday as an ending day around 6 pm. The day and time the auction END are extremely important because that's when most of the bidding goes on - at the last minute, sometimes literally. So you want to make sure the auction ends at a time when people are likely to be home and available. You may also want to take into consideration the time difference for people shopping in other parts of the U.S.


2 schools of thought on setting starting price - most experienced sellers start the prices really low because it is the best way to prompt immediate bidding (which brings the ending price up higher than when bidding starts later) - they call this the "Start it low and let it go" strategy OR if you want that extra security then set the starting price higher (where you've got them now but just know that you will not get as many bids (the price you pay for security)

Never use a reserve - it puts buyers off so much that you may not get any bids at all - they say there is a "strong buyer aversion to reserves" and many won't even look at items that have reserves
 
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E-nomad Enterprises provides online marketing consulting to nonprofit organizations in Southern California. Services include nonprofit website makeovers, nonprofit web design, web site analysis, webmaster services, email marketing campaigns, reciprocal link programs, search engine optimization, and online marketing plan development. Nonprofit organizations can also find a directory of nonprofit resources including fund development resources, nonprofit management resources and nonprofit marketing resources.