How eBay Selling Prices Can Be Deceiving

by: Modlcitizn

The big question is that we all know that eBay throttles visibility.. so how valid are auction results if the whole free market hasn't had a chance to buy?

by: Marie

Auctions are less than 20% of the listings active on Ebay.  Most sellers don't use auctions at all.  Auctions only work well in a few categories.  In most categories they don't work very well at all.  Buyers much prefer listing they can buy it right away from.

by: Kendo

Sellers would probably be shocked. I just wanted to let you know that WorthPoint only shows what the item was listed for, not the price the offer was sold for. I had a piece of art that sold for $700, and I was trying for 2500 on eBay. WorthPoint showed it sold for $2500, then my local auction had the exact piece show up, and people ran it up to $1200, thinking it was sold for 2500.  

by: Snapped

“ Auctions are less than 20% of the listings active on Ebay.  Most sellers don't use auctions at all. “

Auctions fell ‘out of favor’ because eBay pushed them aside in favor of promoting BIN back when they went “store to core”.  That was part of the JD’s great disruption, where they “let go of their successful past”.

And while that quoted declaration of stats might be ‘just a fact’ unarguable, it would be a mistake to consider it as a reversal of cause and effect, if (if) any might be so inclined.  

“Auctions only work well in a few categories.”  In most categories they don't work very well at all.”  

That has always been true.  Even back when auctions still ‘worked’ in most categories to bring highest market value, putting an ‘off the shelf’ mass produced item up for auction to compete against those better suited with a fixed price, typically would sell for less than a similar BIN, especially if THAT was below what might be achieved without eBay’s manipulations to disfavor auctions.

“Buyers much prefer listing they can buy it right away from.”  

That may be seen as ‘generally true’, for the same reason Domino’s Pizza made a fortune off their ‘30 mins or less’ campaign.  Enticed entitlement.

But if ‘immediate gratification’ were such an all encompassing preference, there wouldn’t be so many buyers taking the time to seek an even better - albeit delayed - deal by making an offer, even if such is not a desire of the seller to entertain.  What buyers prefer over speed, is as much of something for as much as nothing it must cost them.  Even in a B&M, they will whip out their cell to research an item right in front of them and think nothing of taking another drive to save a few bucks.

That’s still true of more traditional (and still well attended) auctions too.  Just not on eBay - anymore.

Between 2007 and 2013, I sold over 20K items for $2M ($100 ASP) in EVERY category - from pearl earrings to an Ultralight aircraft successfully at eBay - ALL via auction, achieving a 95% first listing sell through with a $0.99 start.  These were not ‘currently’ mass produced items of course, because as noted, too much BIN competition.  And as noted BIN worked best for some, but auctions worked better for others.  

It was only when eBay decided to foist, and then double down their get it yesterday business model upon their sellers that suddenly instead of receiving dozens of bids, one might only get one or two.  Meaning higher start prices (or risk giving it away), which amounted to the same as setting a ‘reserve’.  Which lowered sell through to about 10%, and effectively eradicated the ability to profit from auctions on their try to be like Amazon site.  See, they didn’t want to invest in patience either, because the street isn’t patient.

All that aside, the point is that today, ‘auction sales’ prices reflected on eBay are not inaccurately reported the way BO has been seen to.  They just no longer reflect a likely, or even reachable amount (via same method) for research purposes of ‘true’ market value.  Not only because fewer bids serve to reflect ‘current taste market values’, so those that do sell go for less, but because item visibility is so manipulated now.  You can’t bid on what you never know is on the (virtual) block.

by: WaLK-aWAY

@Marie

.....and A G A I N it flies right OVER your head.  laughable.  Then when someone has to explain it 6 times to you, you consider it being "Attacked".  Good Grief.

by: Marie

@Snapped

What I had said earlier is more accurate as to why auctions are not working for most sellers.  It is because most buyers what to shop, find what they need, buy it and move on to the next thing they need to take care of.  Auctions work very well in some categories, especially collectibles and fashions.

It isn't so much what Ebay has done but that the market [buyer's] changed.

Auctions can have a BIN on them.

I take no issue that you disagree with me.  I shared what I know and what I've experienced.  I respect that you see things differently.

by: Marie

@WaLK-aWAY

Explained What to me Six times???  Be specific please.

I've only got a couple of posts on this blog.  You are correct that something went over my head as I'm not at all aware of anyone "attacking me", nor did I say anything about it.  So if you can share with me where I said this, I'd appreciate that too.

by: Snapped

“ I take no issue that you disagree with me.”

Not with ‘you’.  With what was ‘said’.  Big difference.

by: Marie

OK, Thank you.

by: Volvo351

I can personally attest to this. A seller offered me an item listed for $50 and extended an offer to me for $35. That was a good price and I needed it, so I grabbed it. Guess what "selling price" is currently shown for the item? If you said "Thirty-five bucks" put on your San Jose Shill cap.