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Allowing International Bidders - Should You Or Shouldn’t You

Posted on 14 January 2007 by Gary H

selling internationally on ebay

Before eBay existed I sold antique and collectible toys through ads placed in specialized toy collector publications. These publications had world-wide distribution and several of my customers were from countries outside the United States. I never gave any thought to excluding buyers from other countries. If I priced a toy at $775 and someone from Japan, Australia, England, or some other country was willing to part with $775 for the toy I was happy to sell it to them. I was in business to make money.

It wasn’t until I’d been selling on eBay for a while that I started reading what other sellers were doing and realized some sellers were excluding bidders from outside the US from bidding in their auctions. While some of their reasons for not accepting bids from international buyers had some validity, most didn’t make much sense to me, and, in most cases, they still don’t today.

The rational they used for not accepting bids from international buyers back then was pretty much the same as you hear today.

1. There is more paperwork involved. While this is true, I don’t see it as a problem. In most cases the additional paperwork involves either a PS-2976 or a PS-2976-A customs form. Neither takes more than two minutes to fill out.

2. International shipping requires additional packing. I don’t buy this argument. An item going across town should be packed just as safely as one going half-way around the world.

3. Problems can arise because of language differences. While this has some validity, you can be certain a bidder from another country is just as conscious of it as you are. My experience has been that as long as you don’t try to impress an international buyer with the diversity of your vocabulary there shouldn’t be any problems. And, if they aren’t sure they understand something they will ask.

Shipping times can cause problems. It can take a lot of time for international packages to reach their destination. Particularly, if you use economy (surface) shipping. But you will find that most buyers in other countries are completely aware of this. If you are dealing with a buyer with little or know feedback, just be sure you point out that something shipped by economy rate may take as long as two or three months to reach them.

5. Exchange rates can cause problems. Another argument I don’t buy. As long as you require payment by either an international money order made out in US funds or through Pay Pal you shouldn’t have any problems. Some will talk about the counterfeiting of international money orders, but in this day when many US banks will not accept US Post Office money orders, you are much more likely to receive a counterfeit US money order than you are an international one.

6. PayPal doesn’t confirm addresses of non-US customers. True, but a large number of US PayPal customers never bother to confirm their addresses either. If you accept payment through PayPal from non-confirmed US customers, and you should, there’s not reason to do otherwise with international buyers.

Are there instances when you shouldn’t allow international buyers to bid in your auctions? There probably are. Some eBay categories are already rife with problems with fraud by both buyers and sellers. If your business is based upon items in these categories, it’s possible the problem will only be exasperated by allowing international buyers to bid in your auctions. In this case, you should determine what your additional risk factor is by allowing international buyers. If that risk factor is one you can live with, include them. If it isn’t one you can live with, you should exclude them.

Ultimately, most sellers, allowing international bidders to take part in your auctions can open up a whole new market for what you sell and and in some cases increase your profits tremendously.

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4 Comments For This Post

  1. JimKaiser Says:

    Okay Gary, here’s one you haven’t heard….

    My eBay business is as fine tuned as they get. Systems, solutions, and procedures in place to break everything down to the absolute bare minimum time involved.

    The post office, as you know, fits nowhere in my system - I print my labels from home and hand my packages to the mailman.

    If you divide the hours I spend on my eBay business by the money I make with it, it comes out to somewhere around $200 an hour. (and no, I don’t do 8 hour days - closer to 8 hour months now)

    If I had to do the extra paperwork and run to the post office a couple of times a week, that hourly rate would go down to the point where I don’t feel it’s worth my time.

    Does that make any sense?

    Jim

  2. JimKaiser Says:

    I should clarify - I can’t print international postage from home so that’s why international bidders = a trip to the PO.

    Jim

  3. Gary H Says:

    Jim,

    Makes perfect sense to me.

    Based upon how your eBay business model, any additional income accepting international bidders might bring in would be outweighed by the additional time involved with making trips to the post office. Your hourly income would go down.

    Some sellers who calculates how much they make an hour from eBay, may well find their hourly income goes down depending on what they sell and how they operate their business. For others who sold things such as vintage battery operated toys, glassware by certain manufacturers, vintage jeans and other denim clothing, etc., adding international bidders to the mix would result in a dramatic increase in their hourly income even if it was more time intensive.

    By the way, our high here today was 8 below. You wouldn’t want to bring your son up and go ice fishing would you?

    Gary

  4. JimKaiser Says:

    I can see where if I was doing a higher volume and could expect to take a few international packages to the PO at the same time, it would make a lot more sense.

    I’ve scaled my eBay business way back over the last year and now only sell between 5 - 10 items a week.

    International sales would come in one at a time and I can’t bring myself to stand in line at the post office for just the one.

    Today, I only sell stuff that is delivered to me so there is no more product sourcing.

    I sell everything at fixed prices at around a $50 average profit.

    It’s always the same items that relist automatically so no more writing up listings.

    I’m lazy and like it this way - LOL

    You know, I’ve never been a big fan of fishing. One thing that would make it even less desireable would be doing it in below 0 tempatures! 8 below - yikes! Call me in August - LOL

    On those rare occasions that we do fish, it’s shirts-off time….

    It’s been “cold” here in AZ for the last week - down in the low 50’s. That’s about as extreme as I can take.

    Jim

1 Trackbacks For This Post

  1. The Carnival Of eBay Sellers - Volume #9 - The Auction Rebel Says:

    […] Gary Hendrickson presents Allowing International Bidders - Should You Or Shouldn?t You posted at The Auction Rebel. […]

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