"Best Offer" eBay option

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Posted By: john/z28jd

http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&category=57993&item=5163095456&rd=1


Ive never heard that but for a seller it might be a good thing to see what people are willing to pay and if its enough you can accept it.It also prevents shilling since you cant see what other people are offering(which is basically bidding) and it also gives the option to just buy it if you want to. I like the idea as opposed to just set priced auctions.

If theres no set price(meaning you have the option to either buy it now or bid) then its a different story

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Posted By: Judge Dred

That's a neat function. It's the first time I've seen it also. I like it!

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Posted By: Lee Behrens

I had read about it and thoutgh it was interesting. I was not quite able to figure out if you were obligated to sell to the highest offer. If that is the case where you don't have to sell to the highest offer, the feature will probably die because most people will not want to waste there time. I think there is some bugs to be worked out but is an interesting concept.

Interesting you can make only one offer and the seller is not obligated to sell, now I am curious as to how ebay is getting there cut.

Lee

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Posted By: john/z28jd

I just read the rules for the first time and it sounds like they dont have to sell it if no offers dont meet their minimum they want.Its good for the seller i guess because if you get an offer you like right away you can just end the auction.I dont see how it could hurt placing a best offer bid on the card,maybe if no one else does youd get it cheap because the seller figured it didnt have interest.

This isnt like the pre-approved list scam in that with this one you find out if your bid was accepted only by the auction ending

You might see someone list a $500 card with a buy it now price over $1000 just so they see what kind of offers you get.That way if they get a high bid they might decide they want to sell a card theyd normally keep(or be mad they sold for less on ebay)

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Posted By: steve k

From Ebay when clicking on "Submit Best Offer"

<<< I understand that my Best Offer price, including any Additional Terms I have specified is binding. If the seller accepts the offer, I am obligated to purchase the Item. I also understand that the Additional Terms I add as a part of my Best Offer may be reviewed by eBay in an effort to prevent fraudulent activity. >>>

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Posted By: dennis

i saw it in "my ebay" selling and wondered what the heck is this.it's an option that would perhaps help some "old school" dealers unload some of their never disappearing inventory which they list over & over again.

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Posted By: Jay Miller

I think this method of purchase is horrible from a buyer's viewpoint. You always have the option of doing this when you bid--your bid is your best number. However, now your bid is not reduced to one increment over the second highest bid, it is not reduced at all.

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Posted By: barrysloate

Exactly- when you place a bid by definition that is your best offer. What's the point of this option?

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Posted By: mcavoy

In one of my advanced undergrad econ courses, the professor had a section on auction theory. From the seller's view, what is the best auction design to obtain the highest price? Auction design kind of has a time / information content element, as I recall. For instance, a large lot of a perishable, standardized product might be quickly sold to the highest bidder via a "Dutch Auction." A single item, more unique, might best be sold live with increasing incremental bids.

From the buyer's view, all "efficient" strategies, as I recall, were to either bid the buyer's second highest price (the buyer's true value was the best price, while the 2nd best price was the reservation price), or to remain in the bidding until the price reached the buyer's 2nd best price. Buyers do not want to pay their highest offer - what's the fun in that? (There is no consumer surplus if the buyer pays the true value).

With this policy, if a potential buyer wants the item at a lower price, economic theory states the buyers more readily reveals his (or her) 2nd best offer to the seller.

I think eBay must be employing economists to design new features. What I wonder is what does eBay get out of this new procedure? What does the seller get? I think most buyers would think twice before revealing their second best offer. The collecting universe in many items is small, so collectors would reveal lots of pricing information to sellers. I think sellers get alot of information they wouldn't have otherwise, and they may be willing to pay ebay alot for the chance to get it.

Maybe, the policy is intended for higher priced, rarely sold items, by persons who are just testing the market? ebay gets fees from item listings that would never have appeared otherwise?

Mike

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Posted By: john/z28jd

I just thought of that too but i guess with a card like this if the seller doesnt get any good offers he might not think its worth what hes asking when in reality he could just be getting lowballed by everyone

Say if you were willing to pay $1500 for that Ewing but you offered just $1000 on it and no one else made any good offers,you might actually get it despite the fact it would go for alot more.

The other thing is ive been high bidder on something from the 1st hour it was listed and ended up winning for about what i bid to begin with.If that seller felt it was a good offer than i might just get it without waiting 7 days. Its obviously better for the buyer on lower priced items because theres less to lose if no one bids against you.

If someone had a card for $25 and i offered $20 because thats what i thought it was worth i might get it right then.

Higher priced items are much different,you might bid twice what anyone else was willing to pay and end up paying that amount
Its definitely better for the seller.If this guy got 3 $2000 bids(for example) then he might just decide to list the card so those 3 people bid against each other

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Posted By: Chris

I have to side with Jay on this one -- it seems that in many cases it would be a waste of time for the bidder. Your high bid IS your best offer. What if your "best offer" is only $50 less than what the seller will take... does he or she have the option of giving you feedback and saying for only $50 more it's yours? At least in the standard format you know instantly if you've met any reserve or outbid others. In this format you may "bid" and never hear anything again.

I feel I should do some more reading to be sure I understand completely how it works. Perhaps I'm misunderstanding the function completely.

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Posted By: dennis

because if it doesn't sell at the b.i.n. price the seller could accept a lower offer or reject it within the ebay structure. makes a lot of sense to me. i think this option is only available for fixed price.i see a lot of cards i'd like that i feel the minimum or b.i.n is too high and i will not make an offer.if this feature was there i would.

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Posted By: warshawlaw

This format is not unique--Naxcom does this--the seller lists the item at an offer price and the buyer makes an offer. If the seller accepts it, the item sells.

You also see this function in the stock market, where shares can be bought/sold at market or at specified prices.

I also suspect that ebay is trying to cut into some of the offline auction-ending offers by providing a legitimate mechanism in ebay for you to offer on a card. I'd like to see this available for auctions too.

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Posted By: Lee Behrens

I still can't figure out what ebay is getting out of it.

I also think it should be used for auction style as long as the minimum amount is not bid, if so it gets shutoff.

Lee

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Posted By: Glenn

That's exactly what I thought when I saw it. Ebay gets seller fees out of this whereas previously they only profited from the (generally much smaller) listing fees if someone made a deal on the side and ended the auction early becasue "this item is no longer available for sale".

Incidentally, I made an offer on a card through the ebay system a few days ago. Buyer promptly rejected it but told me what his reserve price was (about 70% of BIN).

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Posted By: Brian H (misunderestimated)

Ebay always gets listing fee money perhaps they will get some (otherwise) off-line sales this way as well. Also, while I don't know, maybe the seller's cost for this service is greater ... as it should be if Ebay has to expend resources checking terms a buyer may add. Also, the adding terms might enable a buyer to bid (offer is really the correct word) more if s/he can build in greater time to complete the purchase (e.g. by paying over 2 or 3 months)

Also, now that I think of it, this option seems to make sniping a rather poor idea. If you really want something you would be a fool to wait with your offer because someone might buy it first (for less, theoretically, than you would initially offer) ... Also, what prevents one from making more than one offer if the first is rejected.

Anyway, it seems sufficently interesting that I will probably list one or two items (in the $100s not $1000s) this way in the next few days just to see how it goes -- prseuming its not a prohibitively expensive proposition.... After its over I'll report back.

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Posted By: Brian H (misunderestimated)

I can't seem to avial my self of this option (at least through Vendio) so I guess I can't experiemtn for the time being.....Sorry.

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Posted By: Brian H (misunderestimated)

After some bouncing around I determined how to use this option:

1. You go to Ebay fixed price sale. I used the Relist option for an item I that had not met my overly optimistic reserve because I could not access this option through Vendio, which I normally use to launch my auctions);

2. You select the "Best Offer" option along with a "Buy It Now" price; and

3. The item is then listed with a BIN as well as an option to submit a "Best Offer".

So far:
I received an offer which I reviewed (and which was time limited -- I had 2 days to respond) and politely objected.... There was space in the "accept/reject" email where I could have presumably counter-offered. The offer also provided information about the offeree (rating on Ebay etc.).

After I declined the offer the offer (along with my response) was then available through the "History" link as a bid would be at auction.


If you are interested this is the item's link:

http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&category=57993&item=5164116093&rd

Bill- If I am overstepping the spirit of thread to promot my item please feel free to delete... I will understand.

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Posted By: Bill Cornell

Thanks for that explantion, Brian. Now, when someone asks what "Best Offer" is, we can use this as an example.

Does this mean your ambitious BIN prices are a thing of the past? I find myself rubbing my eyes when I see them .

Bill

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Posted By: Brian H (misunderestimated)

My BIN prices are often based on what I paid -- or at least what I paid for an upgrade ...

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Posted By: Scott Elkins

Though, I have not used it as a seller yet. I did buy a card via this route this week!