The start of a new year is the perfect opportunity to declutter, refresh and reclaim your space. Thanks to online marketplaces, turning unwanted items into extra cash has never been easier — all without leaving your home. However, before you start posting listings, there are a few important risks to keep in mind.
Here are tips from your Better Business Bureau to help you stay safe, avoid common pitfalls and make successful online sales:
Choose an appropriate platform. When planning to sell items online, Nerdwallet recommends you “think about what you’re selling and the type of online marketplace that suits it.” There are dozens of online marketplaces to choose from, but many of them focus on a specific kind of used goods, such as electronics or designer clothing. Before you create an account with a marketplace, check it out with BBB and also verify it’s a good fit for the kind of goods you want to sell.
Check the platform’s refund and dispute policies. Understand how the platform handles refunds, disputes and chargebacks. Be aware of timeframes for reporting issues and gather any required documentation or evidence that may be needed if a buyer files a dispute.
Use secure payment methods. Stick to payment methods offered by the platform, as they often have security measures in place. Avoid accepting checks or wire transfers, as these are common methods scammers use to manipulate sellers.
Understand the fees. Each online marketplace has its own set of fees. Before you sign up, take some time to read the fine print and understand whether you’ll pay a percentage of your sale, a flat rate or both, and how the fees are collected. In addition, find out how many sales each platform allows you to make each month.
Know the worth of your items and price appropriately. To determine the value of an item you want to sell, try searching for similar items on the site where you plan to list. On auction sites, look at completed sales and pay attention to the selling price rather than the minimum bid price. If you’re selling an item that was never used and is still in its original packaging, remember that technically it’s still coming to the buyer second-hand, so you’ll likely need to charge a bit less than the original retail value to make a sale.
Get appraisals for high value items. If you’re selling jewelry that’s made with precious metals or stones, it’s best to get an official appraisal before you list or sell the items. Keep in mind that jewelers may give you a lower price quote as they intend to make profit on a resale. If you’re in possession of other valuable items, like antiques, artwork, etc. that you believe are worth over a thousand dollars, consider getting a written opinion on each item’s worth from a professional appraiser. This will give you a better idea of the price you should set and how much insurance you need to cover the sale.
Make a quality listing. A quality listing can be very helpful towards selling your item. You’ll want to make sure images are clear and accurately show the item’s color, form and other key details. You’ll also want to include specific measurements and detailed written descriptions that inform buyers of any flaws the item may have, no matter how small. If you’ve set a price based on the flaws, share that as well. It can be helpful to use keywords that accurately describe the item, its aesthetic and its use to help match with online searches from buyers who are actively looking for the items you’re selling.
Consider the timing. List seasonal items ahead of relevant holidays or seasons (e.g., winter coats in early fall, exercise equipment in January) to maximize buyer interest.
Prepare items for sale. Before you pack your item for shipping or prepare it for being picked up by the buyer, clean it thoroughly. If you’re planning on selling multiple items online and want to keep buyers coming back, it can be helpful to add some extra touches into your packaging. For example, wrapping the item in tissue paper with an included thank you note can go a long way in creating a returning customer.
Consider swapping or donating used items. If you decide not to sell an item, consider donating it or giving it away to someone who needs it. Several online sites allow you to give things away to someone who needs them for free, lend and borrow items from others in your community, and even trade items instead of selling them for cash.
Watch out for shady buyers. Con artists often pose as buyers in scams. Sometimes they offer to overpay for an item, a sign that they’re paying you with a fake check, but that’s not their only tactic. Also beware of buyers who ask you to make transactions outside the selling platform or those who ask for personal information, such as your banking information.
Avoid shipping items until payment is confirmed. Don’t ship any items until you’ve confirmed that the payment has been processed and received by the platform or directly in your account. Be cautious of buyers who push for expedited shipping or send what looks like a payment confirmation email outside the platform.
Use tracking for shipments. Always use a trackable shipping method and require a signature on delivery for high-value items. Tracking ensures you know the item’s delivery status, and a signature confirms the buyer received it, helping to avoid disputes.
Be extra cautious when making local sales. Some platforms such as Facebook Marketplace allow you to meet up with people in your local area to exchange your item for cash in person. While this can be an effective way to sell big items and avoid marketplace fees, be sure you use caution when meeting up with strangers. Don’t be quick to give them your home address, instead ask buyers to meet you in a safe place, such as a designated spot in your local police department’s parking lot. Never meet up with a buyer you don’t know alone. Always bring your partner or a friend to make the transaction.
If you’re selling big items like furniture or exercise equipment, you will likely need to arrange for pickup from your home. Prepare those items ahead of time so they are ready to go to the buyer. Again, never meet up with a buyer you don’t know alone. Have friends or family be present and also consider moving the item to an area that is easily accessible, like near your front door or in your garage, which doesn’t require the buyer to enter your home. If you don’t have anyone to help you, consider hiring a local, trustworthy moving service to transport those big items to the seller.
Always protect your personal information. As you sell items online, keep your sensitive personal information under lock and key. Avoid communicating with buyers outside the online platform you’re using to make the sale and avoid giving out your home address, phone number or email address as much as possible.
We encourage you to read more tips from BBB via our New Year’s Guide. BBB’s team is also available at 423-266-6144, tngabbb@chattanooga.bbb.org or at our office located at 508 N. Market St. in Chattanooga for additional help.
Michele Mason is president of the Better Business Bureau in Chattanooga.