Paul S Umstead

When Buying On Ebay, Remember the Seller's Hidden Costs and Constraints



Posted: Sunday, July 08, 2007

by
Char's eBay Gift Emporium

Over the years we have encountered numerous anecdotal illustrations of both good and bad seller and buyer experiences. One of our most consistent observations has been that new eBay shoppers think that the buying experience should be tantamount to browsing through garage sales. ie. the seller is desperate to sell their items and will accept any offer no matter how unreasonable just to get rid of their inventory. While this may be true of some fly by night sellers, for the most part, the old adages of "you get what you pay for" or "it's worth every cent it costs" typically apply.

I wrote an article on sellers costs for SearchWarp on October 18, 2005 which basically outlines the costs that sellers face. (These have increased significantly, but at lease it gives you a perspective on what sellers have to contend with.) See Understanding Buying and Selling on eBay . In a recent article by Kovels Komments from the publishers of Kovels on Antiques and Collectibles other problems sellers face on eBay was discussed. The article is for collectors, but the thrust of the content is appropriate information for all buyers to know what sellers face. Reprint of the article:

Is eBay less dealer friendly? - July 5, 2007

The 500-pound gorilla called eBay is a problem that is having problems. Auction volume is down by 3.8% this year. We have heard prices are down by about 30%. EBay has antagonized dealers by changing rules about feedback so they seem to favor buyer complaints. Higher fees have cut into profits. It is almost as if eBay has decided the collectibles market is no longer important. Profit is in electronics and cars. They want collectors to stop by, but primarily because they might buy a car or a phone. We have been told it doesn’t pay to sell anything on eBay for less than $100. Too many fees and hidden costs. The big news this week is that Sotheby’s decided the same thing in a much bigger way. It costs the same to sell a $1,000 painting or a $100,000 painting. So to bolster profits, they will no longer take consignments worth less than $5,000. That means there should be more merchandise for smaller auction houses and online sites and sales. But eBay has angered the sellers and some are looking for other online auction sites. And the other online sites are working to attract more business.

EBay has another problem not in the collectibles area. The Supreme Court just ruled to overturn the antitrust law that prohibits retail price fixing. (The law came from a 1911 case about Dr. Miles and his patent medicine, a name well known to today’s bottle collectors.) The selling price of watches, computers, phones and more will be controlled by the manufacturers. There are already companies that will not furnish product to online sellers who cut prices. And it will be much harder, even illegal, to offer a name brand car or TV or even furniture polish or Hummel figurines at less than the manufacturer’s suggested price used by all other sellers. We suspect the eBay merchants will find a way, just as the antiques dealers did. When it became illegal to sell a zebra rug because of the endangered species laws, we saw offers of an inexpensive table priced $1,000 sold with a free zebra rug. Of course, it is perhaps unethical, but it rarely ended in a court case. Will the gift idea get into this ruling?

As eBay sellers we have seen costs rise, stricter rules on listing, the federal government continue to move toward regulation and a much higher focus on buyer discontent than understanding the constraints of the seller. The recent postal rate hikes haven't helped either. In any event we persevere with the hopes that our existing and new clientele realize and appreciate that as with any successful brick and mortar retailer, customer satisfaction is our main objective. It doesn't cost anything to ask a question, so we suggest before you buy anything from anyone on eBay you find out the answers to any questions you may have to your satisfaction.

Have a great day!

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Top-level comments on this article: (2 total)
» left by Sandra E. Graham
from Paragould, Ar USA 3 years 210 days ago.
247 fans.
Good article, Paul. I have never really checked into on-line selling; although, I have bought several items from E-Bay with good experiences. Selling, though, I agree, would probably be a nightmare.

Thanks for sharing.

Sandra
» left by Connor Davidson
 2 years 276 days ago.
89 fans. Follow Connor Davidson on twitter!
Great article. Well done
 
Conversely, I saw someone trying to sell a pack of pens for 1 pound with 100 pound postage.
» left by Paul from Clermont, FL 2 years 271 days ago.
Good point, that is why it is so important to read through the sellers feedback. Have a great day!
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