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Posted By: davidcycleback

I think it's fairly simple. Sellers will use BINs if it makes them more money (items sell more than at auction). Buyers will use BINs if it means the items sell at less than normal auction prices (makes the seller less money). In other words, sellers will use BINs if it raises the sell prices, and buyers will use BINs if it lowers the sales prices. It's known as irreconsilable differences, resulting in sellers not using them. If BINs were free for the seller, I'm sure every seller would have a bin on every auction lot. But they aren't free.

There were three mentioned scenarios for a BIN auction: 1) BIN too high so BIN not taken by bidders (seller out BIN fee); 2) BIN too low so lot sells for less than normal auction price; 3) BIN is taken at the exact same price as would be realized in normal auction (seller out BIN fee) ... Isn't each of these scenarios reason to not have a BIN, but run a normal auction? In each scenario the seller loses money.

Of course there's the unmentioned fourth scenario: 4) BINs regularly taken at price higher than would have realized at regular auction, making eBay sellers lots of extra money. And when this starts happening, about every eBay auction will have a BIN.