The evolution of Ebay to a fixed price platform explained

[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.

[Exhibitman]

A big load of noise designed to put an academic gloss on the only fact that really matters: "Auction listings are also more likely to sell than matched posted price listings, but at lower prices.." And "Frequent buyers tend to focus more on auctions, and they get better bargains when they are bidding." So let me get this straight: sellers gravitate towards selling mechanisms that make them more money? Whodathunkit?

Mic drop...

The days of throwing up cards at $0.99 and letting it rip are over, unless you like to lose money or you consign to an eBay consignment seller and hand over control of the minimum bid to him (which is why I won't use one of them ever again). After the beating that I took in auctions a few years ago when I needed to liquidate some items and allowed them to start at $9.99 via a consignment seller, I would never, ever risk a low starting bid auction again. If I use an auction I start the card at the minimum price I want for it. If I get one bid I am just fine with that but if there are multiple bidders I get the upside. I know a lot of weekend warriors who are in the same boat and who do what I do or use BINs w/ or w/o Best Offer.

[Touch'EmAll]

I think the significant economic downturn that started in 2008 impacted true auction style ending prices. I am sure that left bad taste in many mouths. Sellers were then (and still are) gun shy of getting crushed.

Now, with a much recovered economy, we are seeing better auction prices. If anything, auction prices are very good. I can't speak for others, but I have not won a significant card in a long time - have always been over bid by 1-4 bidders. PWCC and Probstein are not the only true auctions now getting respectable prices - even some little guys auctions I have bid on ended up over what I bid.

But granted, it does take a certain amount of guts to list at $0.99

[pbspelly]

Originally Posted by Exhibitman

The days of throwing up cards at $0.99 and letting it rip are over

But why do you think that is? Do you think because it never really worked and people figured that out, or because it used to work but something has changed?

[botn]

Prior to 2010 I used use auction listings almost exclusively on eBay. Mostly starting items at 1 cent but I also would use a "retail" opening bid on items I was worried might not get the price I wanted in hopes of catching the one bidder. I liked the fast conversion from cardboard to cash.

Due to the changes in the search function categories, the sheer volume of listings buyers have to sift through and the continual flow of material in catalog type auctions outside of eBay, auction final prices were very unimpressive.

I now use the store listings, almost exclusively, and use auctions to move much less valuable items. I am very happy with this model now that I have conformed to it. Inventory does not turn over as quickly because there are not as many page views but when they sell I get what I want and I am willing and able to wait it out.

[mark evans]

I discovered eBay in 1998 and reinstituted collecting sports cards which I had done as a kid in the 60s. The shift from the auction format to BINs makes eBay less enticing to me as a collector.

I figure I have purchased roughly 500 items since I joined in 1998. The vast majority were won in auctions prior to the shift to the BIN format. Speaking strictly as a collector and without criticism of sellers/consignors, the auction prices to me represent fair market value, as opposed to typically higher priced BINs. And, just as important to me, the auctions were a lot more fun than the current system.

I wonder if it would benefit any seller to list (some of) his items with either opening bid or reserve set 5 or 10% below VCP values. If eBay rules permit, could add a BIN as well effective until first bid. If a dopey idea, so be it. Little effect on me regardless, as tough to feed the collecting habit on a gov't pension.