Is snipe bidding killing the hobby?

[rats60]

Originally Posted by perezfan

I agree that high-quality vintage sports memorabilia on eBay has indeed dried up. No doubt about it... But I believe sniping has little (if anything) to do with it.

I believe the two biggest reasons are as follows...

1. eBay has reached A LOT of incremental people over the past decade. And with regard to the rare/high quality pieces, collectors tend to stash these items away and keep them in their collections. Therefore, there is just less of the good stuff out there and less available for sale than before.

2. Ebay's fees and other recent policies have all tended to assist the Buyer (rather than the seller). They've contunually jacked up their fees, made PayPal an expensive requirement, and have made the feedback system a joke (in which only Sellers can be rated). In disputes, they almost always side with the Buyer over the Seller.

For those reasons, I never sell on eBay anymore. It has zero to do with sniping... I can simply get a better deal with the Auction Houses. Most Catalog Auctions can offer me a lower commission, and equal/better representation. IMO, the only advantage eBay still has is the speed of payment.

Ebay + Paypal is 11%. What auction house charges less than that? The ones I've seen are charging 18-20%. The only advantage that I see with them is that your item sells for more. No sniping plus bidders that don't use ebay.

[drcy]

"The only advantage that I see with them is that your item sells for more."

That's known a big advantage.

One problem with the scarcity of auctions on eBay, and the scarcity of quality items auction on eBay, is fewer collectors look for eBay auctions. A seller may not put up a nice item sd auction on eBay out of fear collectors won't look for or see it amongst the sea of BINs. In the old days when BINs were few to none, eBay was the place for auctions and people came to bid.

[David Atkatz]

I snipe for one reason only: To prevent other bidders from deciding, after seeing my bid, to bid again. By sniping I can't beat anyone who has already decided to bid more than I did, but I can prevent someone from deciding then to pay more than he thought he would.
As far as I'm concerned, it makes no sense whatever not to snipe.

[travrosty]

others snipe knowing they cant enter another bid, like you, so they are like you and entering their max snipe. if you enter the max bid right at the end or the beginning , you will win it or not depending on whether someone wanted it more than you or not.

[Scott Garner]

Originally Posted by David Atkatz

I snipe for one reason only: To prevent other bidders from deciding, after seeing my bid, to bid again. By sniping I can't beat anyone who has already decided to bid more than I did, but I can prevent someone from deciding then to pay more than he thought he would.
As far as I'm concerned, it makes no sense whatever not to snipe.

+1

[cfhofer]

You are spot on Drcy!

Let's be honest...we don't snipe bid to just avoid "shill" bids. We snipe bid to avoid "ANY" competing bid, even legitimate ones. It is exploitation of a flaw in eBay's auction system. Correct me if I'm wrong but it is the only auction house in history to function this way.

The purpose of an auction is to sell an item at fair market value. How does a flurry of snipe bids in the final 10 seconds determine fair market value? Now there are some items, say a 1968 Topps Nolan Ryan PSA 7, that the market value is pretty well established. But how much should someone pay for an 1894 Varsity Yale Football Pach Bros photo? Our hobby needs the back-and-forth of bids to determine that. That is healthy for our hobby.

[Leon]

Originally Posted by cfhofer

You are spot on Drcy!

Let's be honest...we don't snipe bid to just avoid "shill" bids. We snipe bid to avoid "ANY" competing bid, even legitimate ones. It is exploitation of a flaw in eBay's auction system. Correct me if I'm wrong but it is the only auction house in history to function this way.

The purpose of an auction is to sell an item at fair market value. How does a flurry of snipe bids in the final 10 seconds determine fair market value? Now there are some items, say a 1968 Topps Nolan Ryan PSA 7, that the market value is pretty well established. But how much should someone pay for an 1894 Varsity Yale Football Pach Bros photo? Our hobby needs the back-and-forth of bids to determine that. That is healthy for our hobby.

Heritage Auctions owns Gavelsnipe.com and you can bid/snipe (maybe) in Heritage from their sniping service.

And, to me, the flurry of snipe bids is true market. (unless they are shills). I only put in snipes ( I snipe 98% of the time, the other 2% I want the adrenaline rush) when I want something, and absent fraud, others do the same thing. How can that not be true market? In reality no auction in the world has 100% of interested buyers in their auction. I bid in a ton of auctions, ebay and otherwise....and help run a small auction company, so have my own views..... Fun debate.....

[cfhofer]

Leon,

It is a fun debate. Obviously there is no definitive answer. Heritage has a 5-minute rule on Internet auctions.

But let me ask you this, since you run a small auction company. If eBay gave you (as the seller) the option for a "10-minute rule" at an extra 1% would you take advantage of it?

[doug.goodman]

Originally Posted by David Atkatz

I snipe for one reason only: To prevent other bidders from deciding, after seeing my bid, to bid again. By sniping I can't beat anyone who has already decided to bid more than I did, but I can prevent someone from deciding then to pay more than he thought he would.
As far as I'm concerned, it makes no sense whatever not to snipe.

There it is, in a nutshell.

If you don't want to be "sniped" then bid a higher amount. Easy.

[drcy]

As noted, many bidders who lose an auction by a last second bid would have placed a higher bid if given a second chance. If bids were placed earlier, they would have had the second chance, but with snipe bids they have no second chance. This explains why snipe bids can and do lower prices.

If someone places a snipe bid of $200 and it's won by someone else at $205, he may say "Aw shoot, I wanted that. I would have paid $210 for that. I may have even paid $220. I wish I could go back and raise my max bid." If there were no snipe bids, but the $205 (or higher) bid by his opponent placed a day before the auction's or even 10 minutes before the end, he has the chance to say "Aw shoot, I want this so I'm going to raise my bid to $220." That's exactly how snipe bids can and do result in lower prices. And that's exactly why auction houses have 10 or fifteen minute rules. No major auction house has a fixed ending time with snipe bidding-- because they know many bidders will raise their previous max bids if given 10 or fifteen minutes to reconsider, and they know their 10 or 15 minute chance to reconsider system results in higher final prices.

In a 7 day auction, a bidder may have a set-in-stone, unwavering mind, "that's what's in my budget" $1,000 max bid for 6 days 23 hours and 55 minutes, but when he sees the bid go to $1,010 with five minutes left he may say "Aw what the hell, I'll go to $1,100." If the $1,100 bid isn't high enough and there's two minutes left he may say "Okay, I'll bid $1,250, but no higher." If the two bidders had place snipe bids, the auction would have ended at $1,010.

[murphusa]

well it can't be killing the hobby, look at how many collectors are using it.

[perezfan]

If anything, it's helping the hobby.

I don't see anything remotely detrimental

Now if eBay finds some way to prohibit sniping (which I wouldn't put past them), that WOULD be a blow to the hobby!