Quote:
Originally Posted by Huysmans
Fair enough. But what I questioned was the argument that the seller would get less with an auction house than Ebay as the original poster stated - which is wrong. 0% commission means the consignor gets 100% of the winning bid total. He tried to state that with a $5,000.00 winning bid, the consignor would only get $4,000.00 despite a 0% commission.
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The 0% commission referred to is saying that the seller is not paying any commission to the auction house so they keep whatever the high bid is. However, the argument that was made is that when an auction house has a 23% BP, if the high bid is $4000 then the final selling price is really $4920, but the seller only gets $4000 and the auction house keeps $920.
On eBay, if a consignment company charges 5% of the high bid, if the high bid is $4920 (same as the selling price with the auction house including the BP), then the seller gets $4674 (95% of $4920) and the consignment company gets $246 (5% of $4920).
In the 2 cases above, the card is selling for $4920. One is a high bid plus BP (auction house) while the other is just a high bid (consignment house on eBay). When comparing the above outcomes, the seller is getting $4674 from the consignment company selling the card on eBay versus $4000 from the auction house.