Bidding price vs buy it now

  1. I see this sometimes on eBay and am wondering why sellers do this. There are listings where the bidding price starts at say $68.95 and the buy it now price is 69.95 and its a 5 day listing. Why make it a difference of only $1? Also there was once a listing where the buy it now and starting bid were the same price. Is it just to reel the buyer to buy it now?
  2. I'd love to hear the reason for this too.
  3. ^^ phew I thought I was the only one not in on the secret.
  4. actually, what puzzles me more is why buyers bid on these auctions rather than BIN
  5. Yea thats wierd too. If I am interested in an auction like this I just buy it now rather than wait a few days. I can get it sooner even if I have to pay $1 more.
  6. The seller is trying to get around some listing fees. Like if an eBay does a promo for .10 auctions, but not BIN, but the seller wants the bin option, then they throw the auction in there for the same price to get their listing fee lower.
  7. ok something i dont understand...why do sellers use reserves instead of just starting the price at something they are comfortable with? why make ppl bid to try and reach your reserve or comfortable starting price?? :smile: i just never got it thxx!
  8. Me neither!

    Also, I don't ever bid on auctions with a hidden reserve, seems like a potential waste of time if the seller ends uo having an outrageous reserve - why not simply state openly the lowest price they will accept?

    Am I missing something (about e-bay fees maybe)?
  9. As a seller, I can give you some perspective on the psychology of selling.

    BIN gives people who want an instant fix the ability to pay and get it faster and beat out other bidders. A lower start price is supposed to make buyers think maybe no one else will notice and they'll get a deal.

    I don't get it when sellers separate these by only a few dollars, either. I usually offer a starting auction price and a BIN, but they're usually 30-50+ dollars apart, and still below retail. (I buy at outlets.)

    I do know that as a seller, when you offer a BIN you can make "Second Chance Offers" to non-winning bidders as long as their bid is equal to (or greater than) your BIN price. So someone wanting to sell 4 or 5 of the same bag without having to list them might put up one auction, then make second chance offers to other bidders because the BIN was so close to the starting price.

    Just my theory...

  10. ^^ Nancy is correct.

    Those second chance offers are a gray area in terms of "eBay legality" though, at least the way I understand SCO?
  11. Another thing, if an item goes into auction and there's a Buy it now option, is Good to start at .99 and set a reserve because the Buy it now option will stay up until the reserve is met. For example if I'm selling a bag I want at least $400 and I put a Buy it now for $650. If I start at $400 the first bid will erase the buy it now option but if i put a reserve and start at .99 I will have the BIN until it reaches $400. Do I make sense?
  12. But it now, who cares about a dollar if I'm not risking losing the item to another buyer.

    Oh, this thing is ending soon, yay bid and save a buck.

    Some psychology like that. It does work.
  13. A seller might have a small difference between the buy it now and starting price because the buy it now might have an immediate payment condition on it (due to fraudulent buyers) and they might also offer the starting price option for those who can't or won't pay right away. Just a theory.

    With regard to reserve price auctions with low starting prices, sellers may use these auctions to attract more buyers to look at their stuff.
  14. Wow thanks for all the info, this answered all and then some. I was once bidding on an auction and the BIN disappeared. I thought the buyer took it off because the bidders would continute bidding higher.

  15. oooooooooooooooooooooooo!!!! that makes so much sense! :smile: I always thought about that the BIN going away but i never made the connection that it didnt go away until the reserve was met, i thought it went away with any 1st bid
    how interesting !! THANKS SO MUCH :smile:

    and thanks everyone else too i feel so informed now!