The evolution of Ebay to a fixed price platform explained

[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.

[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?