ebay changes & boycott Feb 18-25

[bruce johnson]

I had two off forum questions yesterday, and another this morning on my comparison of ebay and real auctions.

First off on consignments. Locally, feed and tack stores generally charge a 10% fee at minimum for items like a used saddle. Some charge a 15% fee on saddles, and "showcased" new items like a tooled purse or whatever - 25%. Realize that they are selling a line of American West or Montana, and these handmade items are competing items with higher margin items for them.

Auction sales commisions may vary a little but not much. Most used tack sells with a commission of 15-20% on saddles, and may be 25-30% on miscellaneous items. It depends on the sale. Some of the miscellaneous household auction/antique auctions are about 25%. Some of the slightly higher end sales might charge a catalog fee also, to have a better item listed, that varies from $10-25. I am not sure what the high end western collectible auction houses like High Noon and the Cody auction have for seller fees. Pretty safe assumption it isn't 10%.

A "buyers Premium" is basically an auction commission charged to the buyer based on final bid. It is a percentage. For instance if I paid $650 for a saddle, and the buyers premium is 10%, I pay $650 plus $65 bp, or $715. Some premiums are a higher percentage. It is basically another way for the auction company to recoup expenses and make a profit. Some of the sales with high production expenses like Cody and High Noon, most all art auctions, some antique and car auctions do this. Pretty standard deal with a lot of auction companies. It allows the auction whose expenses may be more than the listing fee or sales commission charged to be profitable. Some of the fixed costs could potentially be in the range of 35% of sales prices. Not many sellers want to give 1/3 away, but will allow a 20% commission, and with a 15% buyers premium, the auction company comes out. The American way - profit, it is what keeps us all in business.

[unicornwoman]

I had two off forum questions yesterday, and another this morning on my comparison of ebay and real auctions.

THANKS!!! :jump:

[rawhide1]

unicornwoman

I reckon we'll just have to agree to disagree. I just don't think it's right to charge separate for putting a product in a box and taking it to the PO. I also don't think buyers premiums are right. So I don't buy from places that charge more than actual shipping or auctions that charge a buyers premium. Some people do I don't. I reckon each to thier own. Best of luck.

Mike

[Oscar B]

I do not agree with the greed of bloated shipping charges. You are the one wanting to sell and that is part of business.

[Warren]

Bruce, you failed to mention the auctions that charge you a fee just to get in the door to look at whats for sale. Around here I haven't been to an auction in probably 5 years that didn't charge an entrance fee. And I've never been to a craft show, gun show or business expo that didn't. Some of the weekend flea markets and monthly trade days charge some kind of fee to get in the gate. I will not be shocked when they begin to charge you to browse the mall. People are in business to make money and they will do whatever is necessary to effect the least amount of change to their bottom line as possible. In a free enterprise system (which is the American way) they have every right to do so. I as a buyer have the right to buy from whom I choose and by the same token not buy from anyone I don't. Tim brought up that you wouldn't do business with a store who's prices didn't reflect the true price of their merchandise. I believe he is correct. Wolvenstein reinforced what I posted earlier about the total cost of buying something on E-bay. Both of them bring up the issue of service. I can't speak for anyone but myself, but I will pay more to a merchant that provides me good service over one that doesn't for the exact same item. Not similar or close but exact. That is the case where I live. We have a TLF store and another locally owned leather shop that is a Tandy dealer. The locally owned shop provides me with excellent service, advice, help, opinions etc. They are a little higher priced. I don't mind because of the service. The same thing goes on E-bay. If I buy something from a seller and I get good service (well packaged item with timely delivery and good communications) I'm more than likely going to try to buy from that seller again if possible. Yes, earlier I said I was looking for a bargain on E-bay. A bargain can be defined by more than just a cheap price. Wal-mart has by far the cheapest prices on just about everything they sell. I will not buy from Wal-mart if I can buy it somewhere else because from my experience they don't care about me as a customer and they prove that by the level of service they provide. When someone proves to me they appreciate my business I will do business with them again. If I have to pay a little more for that then so be it.

Warren

[unicornwoman]

We have a TLF store and another locally owned leather shop that is a Tandy dealer. The locally owned shop provides me with excellent service, advice, help, opinions etc. They are a little higher priced. I don't mind because of the service. ..

Warren

Oh, definitely. I went to a real camera store when I bought my 35 mm camera. They treated me well, gave great advice, and offered classes. When I got my digital, I went back to them knowing that I was paying more, but again I was treated well and got the advice I needed to make the decision. They were worth every penny.

[K-Man]

Why charge so much for shipping? If you're shipping through the USPS, you can basically get a lot of the material needed for a minimal cost.

$0 = boxes (all sizes)

$0 = boxes delivered to your doorstep

$2-$4 = packaging tape (usually will tape up approx 40 boxes, so .10/box)

$4.60 = shipping cost 1lb box priority mail

$0 = confirmation delivery of package (if utilizing online USPS shipping)

$.05 = piece of paper/printer ink to print off shipping label (utilizing online USPS for shipping labels)

$0 = schedule pickup of package by USPS, picked up off your doorstep (or other designated spot)

$4.75 = total for a 1lb box

If you're charging people to cover the cost of the IRS mileage deduction, isn't that double-dipping? In other words, your customer is paying you for the deduction that you also get from the IRS. Something's not right with that picture.

Now, I don't know how much material it takes to get to that 1lb mark, but it shouldn't be hard to figure out with a scale. Material, such as the lace, is a non-breakable item, so there really should not be any special packaging required, i.e., styrofoam peanuts, etc. I haven't purchased such packaging materials for years - I save what I get from other businesses shipping items to me, and use that when necessary for items I'm shipping out.

Labor costs to perform the packaging should be incorporated into the price of the item if you're a sole proprietor type of business.

Edited February 11, 2008 by K-Man

[tonyc1]

Why charge so much for shipping? If you're shipping through the USPS, you can basically get a lot of the material needed for a minimal cost.

$0 = boxes (all sizes)

$0 = boxes delivered to your doorstep

$2-$4 = packaging tape (usually will tape up approx 40 boxes, so .10/box)

$4.60 = shipping cost 1lb box priority mail

$0 = confirmation delivery of package (if utilizing online USPS shipping)

$.05 = piece of paper/printer ink to print off shipping label (utilizing online USPS for shipping labels)

$0 = schedule pickup of package by USPS, picked up off your doorstep (or other designated spot)

$4.75 = total for a 1lb box

If you're charging people to cover the cost of the IRS mileage deduction, isn't that double-dipping? In other words, your customer is paying you for the deduction that you also get from the IRS. Something's not right with that picture.

Now, I don't know how much material it takes to get to that 1lb mark, but it shouldn't be hard to figure out with a scale. Material, such as the lace, is a non-breakable item, so there really should not be any special packaging required, i.e., styrofoam peanuts, etc. I haven't purchased such packaging materials for years - I save what I get from other businesses shipping items to me, and use that when necessary for items I'm shipping out.

Labor costs to perform the packaging should be incorporated into the price of the item if you're a sole proprietor type of business.

You are spot on! I agree 100% with what you have just said!

[Peter Ellis]

Hi Bill,

I do everything on auto, I put in what I will pay max and let the eBay computers bid for me;

Art

Or why Ebay is really nothing like a live auction. Wait until that last minute, throw in your bid to "steal" the item at a good price, get outbid by the computer, bump your bid, get outbid by the computer, bump, outbid, etc.

And there you are at the last minute typing like crazy trying to beat a bit that was set the day the auction opened by someone who is anywhere but at their computer while you are bidding.

The things that I find bother me most about Ebay are that there doesn't seem to be any real mechanism for handling people making totally false claims for the things they are selling, and the idea that people are free to leave retaliatory feedback. You buy something, it turns out to have been severely misrepresented, you feedback to that effect and the flamewar begins ... just a lousy system

[unicornwoman]

If you're charging people to cover the cost of the IRS mileage deduction, isn't that double-dipping? In other words, your customer is paying you for the deduction that you also get from the IRS. Something's not right with that picture.

ABSOLUTELY NOT! IRS lets you deduct the cost of goods, but you still charge for that. IRS lets you deduct postage costs, yet you charge for that. Same thing.