Ebay To Move Away From "Auction" Model

Feb 11, 2006
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1,274
An interesting article posted in Yahoo Finance

Ebay moves away from auction model
Online auction pioneer eBay is changing its selling-fee structure to emphasize fixed-price sales over bidding, in an acknowledgment that many online buyers are losing interest in auctions. The change is aimed at making eBay more competitive with online retailers such as Amazon. (The New York Times) The new cost for placing "Buy It Now" listings, effective Sept. 16, will be 35 cents for a 30-day run, from between 35 cents and $4 for a seven-day listing. (The San Jose Mercury-News) The move to fixed pricing is "very opportunistic, but also in line with what their customers are telling them they want," said Patti Freeman Evans at Jupiter Research. (Reuters)
 

Lovely4

Member
Apr 28, 2008
1,387
1
Thanks for the update. I always prefer the buy it now/make me an offer auctions as a buyer and a seller. Probably because I have no patience.
 

Darwin's Mom

Member
Jun 13, 2008
27
0
Motor City
I still like getting a deal on somethings and waiting out auctions. As much as I like buying it now and not spending extra time on other purchases.
 

stylefly

Shopportunist
O.G.
Apr 22, 2006
4,470
1
Canada Eh
www.constylement.com
This is really interesting. So will they keep the auction format? Bidding does drive the price up a lot of the time...and there's that little excitement when you win an auction so as a buyer I'd be sad if they erased it completely. As a seller, I do notice that Fixed Price listings don't seem to get as much action, but maybe that's just my items for sale (people want to get a deal on designer stuff)? Either way- the price break will be very welcome! I wonder if they'll be increasing the FVF like for store inventory though...
 

onegirlcreative

Daddy's Little Girl
Feb 11, 2008
8,391
3
Dovunque voglia andare
This is really interesting. So will they keep the auction format? Bidding does drive the price up a lot of the time...and there's that little excitement when you win an auction so as a buyer I'd be sad if they erased it completely. As a seller, I do notice that Fixed Price listings don't seem to get as much action, but maybe that's just my items for sale (people want to get a deal on designer stuff)? Either way- the price break will be very welcome! I wonder if they'll be increasing the FVF like for store inventory though...
You know, I think it's sad because you're right, everything I have read from eBay experts (i.e. Power Sellers) that have used both fixed price listings and auction styled listings say that they always, inevitably, do better with an auction type listing. Mainly because people like the hunt. They get caught up in the action of bidding. It's like going to a garage sale or shop in China Town in NYC—they love to bid and make an offer. It's the same thing on eBay.

I have noticed this to be true in my case, as well. Not every buyer wants an Amazon-type site. I don't know what they're thinking. :nogood:
 

Trocadero

Member
Jun 27, 2007
1,014
1
If I want brand new, I'll shop sales in the stores - I have less risk and can try things on, see how colors look on me, etc.

How in the world do you determine a price for a vintage item? It could be a purse, a scarf, a piece of antique silver or a vase that reminds you of one your Grandmother had. This is where I love the auction aspect - it's the only way to determine the value of unusual/rare things. This new format that Ebay proposes is only for brand new things, the way I see it.

I'll miss the auction excitement and predict (and fervently hope!) some other source will carry on with it.
 
Feb 11, 2006
10,578
1,274
As a seller, I prefer to sell using a Fixed price rather than auction format. Primarily because I can require immediate payment and eliminate NPBers.
And substantially lower fees are a good thing as well :yes:

I really don't buy much on ebay so I don't think I'll be impacted. (but honestly, I prefer the BIN...I'm too impatient!)
 

TXGirlie

O.G.
Jul 21, 2008
19,495
16
North Texas
It seems that these days you have to set your starting auction price rather high for some items because everyone waits till the last minute to bid. No one wants to bid early because then the price goes up. So the BIN/OBO really is starting to be the way to sell your stuff, plus you can do some negotiating on price. It is kind of like ioffer in this way!
 

Lvbabydoll

O.G.
Mar 2, 2006
44,836
48
California
Dumb Dumb Dumb.
With the items I sell, I never know how much they're going to go for, then when I price them too high, I feel greedy if they're not selling. Imagine how many times people are going to have to keep relisting because buyers are just watching to see if you lower the price!
I have a BIN or best offer up right now (2nd time at it, lowered the price) and people are just watching, I haven't even gotten an offer!
 

onegirlcreative

Daddy's Little Girl
Feb 11, 2008
8,391
3
Dovunque voglia andare
Dumb Dumb Dumb.
With the items I sell, I never know how much they're going to go for, then when I price them too high, I feel greedy if they're not selling. Imagine how many times people are going to have to keep relisting because buyers are just watching to see if you lower the price!
I have a BIN or best offer up right now (2nd time at it, lowered the price) and people are just watching, I haven't even gotten an offer!

Perhaps that is eBay's intentions. They know that with an auction format, once there is a bid—whether there is one bidder or several—the item will sell, regardless. But with a BIN auction, if nobody purchases it, the seller will inevitably relist over and over until it DOES sell. In essence, making more fees for eBay.

I think you hit the nail on the head, LVBabyDoll with that one. :yes: