Do Ebay stores make money selling overpriced cards?

JP · #1 04-24-2010, 10:21 PM

I wonder which one "sells" first. You can also find 4,000 such examples looking at Levi's buy it nows. It must be worth the time to list them, though, as this fad has yet to die down.

calvindog · #2 04-24-2010, 10:33 PM

Peter, that's a tough call. I think I'd go with the PSA 2. After all, think of what a thrill it would be to buy one from him. There is some added value to that, don't you think?

Peter_Spaeth · #3 04-24-2010, 10:45 PM

Jeff, I am at a loss to understand the business model; I mean I could understand it if a seller genuinely was open to reasonable offers and just preferred to avoid ebay and possibly paypal fees; but that does not seem to be the case based on what has been reported.

ScottFandango · #4 04-25-2010, 07:27 AM

Quote:

Originally Posted by JP

I wonder which one "sells" first. You can also find 4,000 such examples looking at Levi's buy it nows. It must be worth the time to list them, though, as this fad has yet to die down.

this FAD started when Microsoft CASH back and programs like BING Discounts were enacted...

i remember getting 30% off of any BIN, an this turned into some great deals..

then the sellers caught on (caught up) and RAISED the BINS to accomodate the discount the buyers were getting....

now that these promotions are down (or maybe 8%), the sellers havent reduced their prices, they have kept them at the 30% markup level....

and EBay low listing fee is PROMOTING this behavior....

used to cost more to list it high, NOT ANY MORE

Edwolf1963 · #5 04-25-2010, 09:31 AM

This was a great question/blog - I've often wondered the same thing about these eBay "stores" and who would buy anything from them when they are easily 2x or more over reasonable fair market value. I hadn't seen yepbg's stuff until recently - the ones that always stood out to me (aside from the obvious in Levi/707) is Higbee's and the examples shown earlier from bighitsportscards2008 (as in you take the "big hit" if you buy anything from them)

What gets to me more about the eBay model is that whenever I do make an offer to someone in Stores, I'm usually countered with an "off eBay" response - yet eBay gives many these sellers their "Top Seller" certificate/stamp of approval!

glchen · #6 04-26-2010, 05:18 PM

I just wanted to defend Higbee's since I have purchased a few items from them, namely basketball card sets. The thing is that there is a premium on eBay when you buy from a seller that has Top Seller or similarly high # of sales as opposed to a seller who has less than 100 rating. The same card may be available from each, but the one from the established seller will have a better price because the buy trusts them more. For example from Higbee's, I purchased a 77-78 basketball set from them, and when I received the set, a few of the cards (including the Alcindor) had dented corners. That was an extreme annoyance since the set is advertised as NM-MT. Of course, I realize when you buy sets like this, you're not going to get GEM 10's, but I'm expecting at least 6-7. So I wrote Higbee's and told them I was going to give them a neutral rating b/c it wasn't worth the cost to ship the set back to them since it didn't cost them much. However, Mike Higbee wrote me back and said that he wanted to make it up, and asked that I still send the dented cards back to him, and he would replace them with nicer cards. I did that, and he sent the nicer cards back immediately. I actually told him to wait on sending the cards since I could order something else, and he could send everything back at the same time. However, he didn't wait on me, but sent them back the same day the got the new cards. I actually did order another set from him (a recent baseball set for ~18 BIN), and unfortunately, he couldn't locate that one in stock. So, he refunded me the money, and still sent me a bonus set (something like a small basketball card set) for free. Granted that bonus was probably something he was having trouble moving anyway, but still it cost him money to ship it, and he didn't have to do it, so I'm still a grateful customer and would buy more items from him. I realize that some of his stuff is expensive, but some of it isn't, so any buyer just needs to compare the prices of what some of these guys have in stock. I know that not every high volume seller is like this, and that is terrible behavior from that guy selling that Demmit card.

This is opposed to a new seller, from whom I purchased a Magic Johnson/Larry Bird RC from. I bought the card over two weeks ago, and still have not received anything. I emailed him about this and he sent me a tracking number. That tracking number is still saying USPS shipping invoice received electronically, but this does not mean that the item has been received by the post office. I got the tracking number a week ago and the card was supposed to be shipped via Priority Mail. I messaged the guy again over the weekend and nothing. Now I probably have to open a case with eBay, and the seller will probably say he has a tracking number, and I have to prove to ebay that he hasn't actually shipped the item. What a huge, freaking pain. The seller actually has a 100% positive rating with about 100 reviews, but only around 10 sales are in the last 6 months. I should have looked closer, and already am regretting this purchase tremendously.

One other thing to add is that I am probably going to open an eBay store myself. (as mentioned in another thread, this is a way to convince my wife that my hobby can have financial dividends.) I still working on building inventory, but I'm planning on doing BIN's myself (probably), and then selling the cards for ~25% over what I purchased it for. And since I purchased these cards recently, these will probably be higher than the average price for the cards, but I'm hoping that convenience of finding of these cards on ebay and that there won't be question of authenticity (since I'll only be selling graded cards) will help me get some sales. Of course, I might also be one of the fastest eBay stores to go out of business.

tinkereversandme · #7 04-26-2010, 05:47 PM

I think by adding 25% to your bottom line, I'm hoping that's on top of the fees as you will go out of business soon.

I do enjoy this thread topic as well as it is sad to see, what appears to be, the end of the eBay auctions. Take into consideration the following:

I did a search on 1959 Topps Frank Robinson. There were 6 up for auction and 101 in Buy It Now/Stores.

I did a seach on Warren Spahn Autographs. There were 28 up for auction and 435 in Buy It Now/Stores. For a signed 8x10, they vary from $18 to $199, with most selling in the high $50 price range.

Let's take a look at the future. This time next year, there may be 650 in Buy It Now/Stores and 10 in auctions. So if you want a Warren Spahn autograph, you will have 650 to choose from, all varying in prices with of course, the 10 auctioned items selling for considerably less.

I don't know how eBay stores do it either. They are annoying to sort through (thankfully they have the tab) and I have never found anything at the correct price to make it worth my while.

Larry

glchen · #8 04-26-2010, 05:56 PM

Yea, that 25% would be on top of my costs (purchase of the card + any fees to grade the card if I purchased it raw). It wouldn't include any ebay or paypal fees, which seems from what I read will be ~10% of the item. Therefore, I would theoretically make 15% profit on a card. However, this would only be on cards that I would be able to sell. If I purchased a card at too high a price or if the raws I purchased were fake or of lesser grade that I thought I purchased for, then I would lose money on those cards. So overall, I'd probably wouldn't be making much, and there'd be a pretty good chance for substantial losses since I'm probably already listing the cards at a higher than average price. As you can see, my business skills seem pretty lacking. However, I want to get a feel for what sells first and may adjust things later. Or just go out of business.

ksabet · #9 04-26-2010, 05:57 PM

But at 25% premium you may end up another museum on Ebay.

I don't think you need to pay a premium for good service. Chris Rock used to make fun of dad's that said "I take care of my kids". He said "you dumb $&@^$*#&$ you're supposed to take care of your kids"

Being a good business should be the norm and the precedent, we shouldn't have to pay a premium for something you already should be doing.

The problem is for some reason in cards people either 1) are willing to overpay or 2) don't understand fair market value. VCP is a great tool as you can visualize what cards are selling for based on the market and not sellers out to gauge you.

Once again good luck!

danc · #10 04-27-2010, 02:37 PM

glchen, very funny. I purchased a signed check from an NHL HOF'er last year, that I valued at around $20-25. I was the only bidder at $9.99. I sold it six months later, auction-style on eBay for $23. Not bad. I checked eBay stores and there were five of them at $129, $149, $169, $179 and $199. They have been there ever since, with the $129 selling his with a best offer price of $60. Is that a victory? I think everyone at some point realizes that eBay wants us all to go this route and eventually eBay will get it's way and more people (including myself) with find themselves opening up stores.

DanC

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