The evolution of Ebay to a fixed price platform explained

[pbspelly]

It's too bad, in my opinion, because eBay used to be great for setting a market price. I used to sell restored 1940s telephones (called Lucy phones, because one was used prominently in "I Love Lucy") on eBay. I'd always list them at .99 cents and see where the market took them. Some weeks they'd sell for $120, sometimes for $150, sometimes for $100. But I was always confident that the market would determine a relatively fair price. I actually wrote eBay a long letter urging them to encourage more of what I termed "eBay market pricing" by giving extra discounts for anyone listing an item at auction for .99 cents or less. Instead, they went the other direction, and encouraged people to list lots of items for set prices. I would now be hesitant to just list an item for .99 cents.

[Cozumeleno]

Originally Posted by pbspelly

I would now be hesitant to just list an item for .99 cents.

It's weird - it's been very much a mixed bag for me. I am not a major eBay seller by any means but will use it to move duplicates or other items I pick up as parts of collections if I don't sell them here.

I've listed items that have sat and sat with what I felt was a very fair selling price. If it sits too long, I will generally start it at $.99 just to get something for it. Sometimes I don't get what I wanted for it, but often it will encourage more bidders and either reach/exceed my initial asking price or it will come very close to it at a point where I would have gladly sold it to begin with.

[ullmandds]

I'm glad I could help keep you busy in retirement!!!!

[savedfrommyspokes]

Originally Posted by pbspelly

I actually wrote eBay a long letter urging them to encourage more of what I termed "eBay market pricing" by giving extra discounts for anyone listing an item at auction for .99 cents or less. Instead, they went the other direction, and encouraged people to list lots of items for set prices. I would now be hesitant to just list an item for .99 cents.

Ebay does encourage user's to use the auction format.....they now go as far as offering to credit back a seller's listing fees on any auction listing that sells. You only pay for the listing if it does NOT sell.

[frankbmd]

Don't the higher final value fees of today more than offset the benevolent credit of a listing fee?

[savedfrommyspokes]

I do not recall the previous FVF rates for sports cards sold on ebay, however, the 9% (or 7.2% FVF for TRS) in FVF currently being charged has been in place for 4+/- years (?).

With ebay now offering the listing fee credit for sold auctions listings and improved discounts on listing fees for store owners, this would be the first time that I can recall an instance where ebay offered a reduction in listing fees without an offsetting increase in fees elsewhere.

If I recall correctly, several years back the FVF rate was higher, but was reduced by approximately 2% when ebay began charging FVF on the s/h collected. For most this sellers, this change did not increase costs, however, the "free s/h" sellers obviously did benefit from this.

[Peter_Spaeth]

I would like to hear the authors' take on Dean's Cards.

[pbspelly]

Interesting article. It reaches the conclusion that much of the decline in auctions is due to consumer demand (consumers prefer not to wait for auctions to end), rather than particular actions by eBay or changes in the type of people who are selling on eBay. Which is not what I had thought. It also says that most of the people who buy things at auctions on eBay now are the professionals, and that they tend to get a discount by doing so, whereas ordinary consumers prefer buy-it-now, and pay higher prices for the convenience.

[frankbmd]

Originally Posted by pbspelly

Interesting article. It reaches the conclusion that much of the decline in auctions is due to consumer demand (consumers prefer not to wait for auctions to end), rather than particular actions by eBay or changes in the type of people who are selling on eBay. Which is not what I had thought. It also says that most of the people who buy things at auctions on eBay now are the professionals, and that they tend to get a discount by doing so, whereas ordinary consumers prefer buy-it-now, and pay higher prices for the convenience.

Interesting yes, but I would not accept their conclusions as gospel. I would venture to say that many of the items that sit in eBay stores for months at museum prices wound command more interest from consumers if they were in 99 cent auctions. In the good old days the mean sales price would define the market value, with an equal number above and below the mean. Sellers have less risk with fixed price sales to be sure, but buyer "convenience" is a stretch to explain the decline in auction volume in my opinion.

Originally Posted by Peter_Spaeth

I would like to hear the authors' take on Dean's Cards.

The business model of Dean's Cards would not seem to be consistent with the conclusions of the article.