posted on May 4, 2002 10:39:48 PM new
I'm currently posting mostly Indian War and Civil War militaria, not a lot of posts, but the collectors for these categories are like pirhanas. They know what they are looking for and know the items' worth. I have had better than 90% sales on first posting since beginning in this category several months ago. My auctions are real auctions, with good quick starts and lots of action thru all 7 days. Today for example I posted 6 items, which carry reserves ranging from 55.00 to 400.00. I had opening bids on 5 within an hour of posting, and have fielded so many inquiries on the sixth item than I expect bids on it soon. This has been typical of this category. With so many categories and so many items for sale at any time, I think it's impossible to say "ebay is dying" based on one's own experience with one or a few categories...Maybe it's just time to switch categories to one that's not gutted with the same items. I also think that the scumballs who are scamming people have made many buyers skittish..The other relatively easy venue for marketing the items I have is gun and antique shows, which require travel, dealing with the public for days on end, and paying exhorbitant booth charges with the possibility fairly high that nothing will sell because I have to mark the items up so high to cover costs....so far, ebay's fees don't bother me a bit........
posted on May 5, 2002 03:29:08 AM new
For the antique items I look for and sell, ebay is certainly not dead. But as others have pointed out, the days of "list it on ebay and watch everyone go crazy" are definitely over.
I have been setting aside things for ebay, and keep checking to make sure the market is there before I spend the time listing. It's there.
One example is an item I took to a good antique show - marked $750 (would sell fo 650). Had interest, but no sale. Identical one on ebay this week over $1000 with heavy bidding. But common items in same line are closing with no bids, unless very cheap. These would probably do better selling off the shelf to people who want a nice old plate for their dining room.
posted on May 5, 2002 05:21:20 AM new
this is a question for outofblue-yu said you sold clothings with price tag of 400 for 24 dollars??
are these clothings really worth 400 or really worth between 25-100 retail??
give us a break!!!!!
if they are really worth 400,why are you letting them go at 24??
posted on May 5, 2002 07:10:15 AM new
eBay may raise fees but it appears one stragegy is to open markets elsewhere (Europe). eBay is also promoting its eBay Motors site heavily now.
If the listing fees are too high, the junk dealers will leave and that might have an unpredictable effect on eBay. Right now eBay is hugely successful. It would be foolish for management to take risks when things are going so well.
I sell auction management tools so I have a good view of seller trends over time. IMO sellers are coming back after eBay's fee increases and poor site stability a year or so ago. Many sellers left or gave up but there is a new wave starting up. There will always be movement on the fringe but sellers who hunker down and trim the fat from their listing fees are still doing well.
It's interesting that eBay has really created its own micro-economy. You might get $500 for that leather dress elsewhere, but on eBay the fair market value is only $50. I found this out after I bought a batch of Day Runner organizers and found that the best I could get for them was about 20% of retail price. You need to look at your profit margin and push the items that bring in the most money. Other items I sell are a great value but it's not worth my time to give them away on eBay.
It did have a retail price of $399 on the manufacturers tag. I never said what I paid for it and I made money at the price I sold it at. In my experience, resale items on Ebay usually go for between 5-20% of original retail.
posted on May 5, 2002 12:53:25 PM new
outoftheblue,
why should i bother someone else when i can bother you?
you did not say you sold resale items ?a world of difference??
posted on May 5, 2002 05:09:57 PM new
outoftheblue i agree i buy some banana republic items off ebay and they still have the tags on and get them for minimum 50% off...i dont care where they come from I am happy with the price and quality
PS i sell mainly computer parts and i notice the prices have been increasing lately perhaps one of the few thriving sections?
PS google rocks it is the best home page no junk just awesome searches
Indeed, today eBay is far more than a fad, far more than what it started as — a trading post for Beanie Babies and other collectibles. Now two-thirds of the site's sales are for practical goods. This year, eBay expects to sell $2 billion worth of used cars and $1 billion worth of computers. Coming next are event tickets, food, industrial equipment and real estate. Last week you could buy a five-acre parcel in Hualapai Highlands, Ariz., for $3,000 and a classic 1966 Caterpillar D9 bulldozer to clear it for $12,000.
Even as growth has slowed for the handful of dot-coms that survived the explosion of the Internet bubble, Ms. Whitman remains committed to the goal she set in the froth of 2000: Revenue in 2005 of $3 billion and profits of $600 million. That implies that eBay will have to see total sales of $30 billion to $40 billion, more than those of J. C. Penney.
To reach her target, Ms. Whitman will need to continue to expand the range of merchandise eBay sells and build its network of sites in 14 foreign countries. More difficult, she wants a third of eBay's business to be fixed-price sales, offering the convenience and instant gratification offered by Amazon.com, rather than the excitement of auctions. So far results are mixed. Some 20 percent of eBay's sales use its new instant-purchase "buy it now" feature. But Half.Com, a site it bought that sells used books and such at fixed prices, is being trounced by a copycat offering by Amazon.
Then again, eBay has enviable profit margins and no debt, compared with the heavily indebted Amazon. It may be nothing more than a coincidence, but eBay's managers are largely in their 40's. At Amazon, a majority of the top executives are in their 30's, reflecting the generation of its 37-year-old founder, Jeff Bezos.
posted on May 6, 2002 04:46:58 AM new
Is eBay dying? eyYup!...for the little guy...gurgle gurgle...glub...glub..
Aw shucks... the good ole days...gone but not forgotten..Supply, demand, diversity and bidder education killed the goose that once laid the golden egg...EVERY DAY! Auction fever has become auction hangover. We need a new mousetrap....or a new mouse..
kiddo2
posted on May 6, 2002 01:52:30 PM new
The auction style of selling online to the general public is dying, even Ebay knows this, that is why they are pushing fixed priced format of selling.
Items that sell for 10% or less of retail is just not an acceptable way to sell to the retail buying public. We're seeing entire markets being ruined by all of the lowball pricing. Too many sellers that don't understand the concept of business, too many sellers that don't pay normal business expenses (taxes, etc.), too many sellers desperate for a quick buck, too many crooks that chase away the good buyers...
Playing the "how low can you go" pricing game is not a way to build a long-term business.
posted on May 6, 2002 03:02:45 PM new
"The auction style of selling online to the general public is dying, even Ebay knows this, that is why they are pushing fixed priced format of selling."
Dying is a strong word. The auction market will never die, it may shrink though. It could shrink in relation to the bigger pie, but overall, auction market growth will continue. Are buyers ever going to stay away from possibly getting a great bargain? If I put a new computer at auction for $1, how long will buyers stay away form bidding on that auction? Will they let someone else get it a $1000 computer for $5? It's a ridicuous assumption to think that.
Auctions exist because there's a huge need by sellers who need to liquidate overstock, used, and misc items that need to find a market of buyers. It fills a void. As long as sellers have that need, buyers will be around to buy. It's as simple as that.
What are sellers selling for 10% of retail? Items that are no longer new! Target has clearance of items that are a few months old. They mark it down 70% if they have to until it's all gone. Seems you don't understand that simple concept of business, that's the way it has been for a long time.
Walmart plays the how low you can go pricing game and they're the biggest company in the world. It can be a great strategy if you know how to do it right.
posted on May 6, 2002 03:25:03 PM new
I can only speak for myself, but my sales have stayed consistent over my 2 years of ebaY selling. I sell antiques and collectibles that I get from auctions and estate sales and anywhere else I can find them. I think there will always be a market for peolpe to want to find the doll, watch, quilt...that they had when they were a kid. Or the perfume bottle the reminds them of thier grandma. Or that perfect unique gift you can't get in a store. I have very few auctions end without a bid. And if they do they usually go a second time around.
As a buyer for new items, I want a bargain. I live in a big city, so it is no big deal to find a certain item. Some people however live in small towns, or miles from a large store. For them ebaY in more than fun or a convenience. It has become a way of life, and they will pay for an item, if the right item is offered.
I have been going to auctions since I was a kid and 20+ years later, I am still hooked. Auction aren't dying here until I do!
posted on May 6, 2002 10:39:35 PM new
quickdraw29: Note I said "to the general public". Of course auctions will never totally die, but how many consumers do you see at local live auctions? Around here the majority that attend live auctions are dealers, not consumers. The consumer auction fad is nearly over, people want it now, without having to wait and hope they "win" it after the 7 day wait for the auction to end.
Items that are new old stock were previously sold only to dealers and wholesalers at auction, not to the end consumer. That is the problem with an open online market, the lower pricing is now going to the consumer. So what happens when the retailers who use to buy at the wholesale only auctions now go out of business because of these online sellers? Less legitimate retail business equals less local tax revenue, less money for schools, roads, etc.
Having a highly visible online marketplace that is open to all, you can't just keep giving everything away and hope to stay in business. The individual seller has to learn that you just don't sell to consumers at less than wholesale price without ruining entire markets. The manufacturers will eventually put a stop to all of the lowball pricing when they realize it is affecting their sales of new merchandise. There are already manufacturers who make you sign a contract stating that you won't sell below a certain price or even online at all.
The $400 clothing that was mentioned previously selling for $24 or whatever may be older merchandise, but I am seeing current stock being sold for 1/4 or less of the price that it currently sells for at other retail sites. Either the stuff is hot, fake, or not in the condition as described.
I quit selling on ebay full-time last year when I was no longer able to make it worthwhile. And I use to do $15-20K per month on ebay alone. I knew prices had fallen, but was amazed to find items that I currently sell for $30 going for only $7 on ebay. These poor sellers must be working on a slim $1 per item profit. It's just crazy.
It's true that Walmart has chased away a lot of the competition, but they definitely aren't selling things at giveaway prices. When was the last time you saw Walmart selling something for a penny? Look at all of the penny booksellers on half, they have ruined that market, and are in the process of ruining the book market on Amazon too. Read the Amazon seller's board, many book sellers are livid over the newbies practices.
The convenience of online buying needs to be promoted more than just the pricing.
posted on May 6, 2002 11:28:20 PM new
"The consumer auction fad is nearly over, people want it now, without having to wait and hope they "win" it after the 7 day wait for the auction to end."
Ebay has a new feature for auctions, it's called "going going gone" and you can look at auctions about to end within four hours.
Live auctions are very different from ebay auctions. The variety, selection and covenvience of ebay has brung auctions to the masses.
Your see your point on pricing, but the amazing thing is, it has yet to make any difference to retailers pricing. Online buying is a paltry like 2% of the overall consumer buying, we're just picking up crumbs here. Even in several years online buying will still only be about 5% of overall consumer spending. We'll feel the effect, but it won't even cause a ripple to retail stores. Let's keep things in perspective here. It's like worrying the overflow of my pool will flood the whole entire city.
posted on May 7, 2002 07:47:00 AM new
Ebay's strategy is clear. The have a virtual monopoly and will use it to raise fees as much as they can get away with. They obsess about maximizing revenue for their shareholders. Taking care of shareholders fine, but the best companies (unlike ebay) realize they have other constituencies to pay attention to as well.
posted on May 7, 2002 11:18:14 AM new
I think it is safe to say that not all sellers will have long term success on eBay.
It is also safe to say that eBay will maximize their revenue and profits.
The question is what will be the point of equilibrium ?
Sooner or later there will be thousands of sellers leaving eBay because their sales are so poor they can not support eBay listing fees.
The overall economy is also having an effect on buyers.
The internet "economy" has never been through a full fledged recession. How it will effect eBay will be a new experience.
However, there is some evidence that the internet economy is very vulnerable. AOL presents a good example. AOL's growth appears to have ceased and the AOL/TW stock was below $18 a share. AOL has also refused to release to the press the number of customers it is losing each month, or how much it is spending to bring in each new customer,i.e., the "churn rate" and expenses.
When eBay's growth stalls, its stock can not remain at 132 X earnings, and that lack of growth will also mean a lack of new buyers comming in.
Unless the economy makes a huge directional change, the internet economy may face extreme losses.
Will internet expenses be the first thing to go in the consumer's household budget or the last ?
I think for those that just buy and entertain through the internet, it will be the first thing to go.
Novelty growth on the internet is all but gone.
You shouldn't plan on the internet economy being any different than the B&M economy. If it's bad for the B&M's, it will be bad for the net.
posted on May 7, 2002 01:38:52 PM new
Sellers will leave ebay due to their own fault, not because ebay raises fees. When I do research what is selling, I'll see 25 identical items from different sellers end without a bids. They're throwing money away. Then there are those who don't charge handling because God told them not to.
Another example, when I research and see the item sells but only gets one bid, and the sellers have $1, or $2 start bid. I put it at $5 and it sells.
But that's the way it always has been, businesses that don't have good management close their doors. 90% of new businesses close their doors within five years. It has nothing to do with just ebay.
I haven't experienced a full recession, but since this last recession started, my collectibles don't sell, so I just branched out, and have done well. The weak will fade away, and the strong will take over. If my competitors stop selling on ebay, just more sales for me.
There won't be a lack of buyers coming in. Online consumer spending is now at 2%, expected to more than double in a few years. It's a new technlogy, so half the population is still figuring it out, they won't abandon their habits overnight. This is a huge growth potential.
Things that go off and die have served their useful purpose. I use the internet to make money, get directions; do research; plan travel; get the weather, chat; have fun, shop, and email. Those are useful purposes that won't end because the novelty has worn off. I still need to do those things through good times and bad.
posted on May 7, 2002 02:24:01 PM new
I have a feeling that when family budgets get tight, the internet, like cable TV, will be the first thing to go. Families will go to the library to use internet access for things such as email and/or research.
I read yesterday that late payments on credit cards are at an all time high, and set a record for personal bankruptcies in 2001.
Lay-offs are still occuring.
I don't think eBay's offerings are necessities in a bad economy. People can not take chances with their money on internet sellers.
No matter how "untapped" the internet public may be, you still can't suspend the laws of economics.
posted on May 7, 2002 02:50:16 PM new
Buyers have left ebay. My last batches of auctions ended with low bids or minimum bids and the page hits indicate to me that there just aren't the lookers as in days gone by. I sell in antiques and collectibles categories. My show sales are still strong for these items, and it indicates to me that buyers want to touch and see for themselves before plunking down their hard earned cash in this slow economy. Exorbitant shipping fees, damaged and misdescribed goods, lousy packing, and poor return policies have caught up with online auction sellers out to make a quick buck, but not knowing a thing about running a retail business or ethical and professional conduct. Luckily for me, I still set up at my shows and do well enough, but pity the sellers who have closed their b & m's and dropped off the show circuit for the "easy" (NOT!) money on ebay.
posted on May 7, 2002 03:11:43 PM new
What is everyone complaining about???
My total FEES for Ebay, Paypal & Auctionwatch come to about 10% of sales. That's the price I pay for having a potential audience of
MILLIONS every week browse my merchandise.
I don't have to sit in some lame shop, paying exorbitent rent and utilities, all the while, praying for a paying customer to walk in and getting shop lifted from evey time I turn my back. 10% of your sales!!! DO THE MATH!!!
Stop complaining and do something constructive, like count your blessings!
posted on May 7, 2002 09:55:40 PM new
eBay evolution (not revolution) reminds me of my younger days. I got hooked into becoming an Amway Distributor. It was one of the original multilevel ponzi schemes. Within 1 year, all our neighbors, friends and realtives were selling to each other and the scam collapsed.
My 4+ years on eBay proved the same, though not a ponzi scheme. Everyone is selling to everyone else. When there were a few competitors, now there are hundereds in the same category.
Too many sellers are lowering their prices just to make the sale. Too many buyers have a wide choice of sellers for the same items.
Ebay receives a much lower FVF and seller makes pennies compared to just a few years ago.
I'd give eBay another 2-3 years before it implodes upon itself.
By the way, raising fees will drive out more sellers, and buyers having less choices will find alternative methods of buying off other sites.
posted on May 7, 2002 10:22:35 PM new
In the categories I sell in you can only count on a 25% sell through -- where it used to be 90% (only 2 years ago).
Why do I still sell there? Because it is items I have collected all my life and did not have the time to sell back when. I also believed things would settle down and there wouldn't be so much competition so I held off for a while. Now I just need to get rid of it before I retire. I sell in lots, but still only make about $9.95 an item. With a low sell through my ebay fees run 30% of my sales -- that's what we are complaining about!
I used to sell virtually everything I listed, and they were the same type items I list today -- I really wish I had taken advantage of it back when!!!!!
posted on May 8, 2002 09:33:27 AM new
I posted this on another forum this morning but it is very relevant to this topic so I thought I would repeat it here on AW.
When I first started selling on eBay several years ago sales were brisk, in fact I couldn’t get over the money I was making and shortly left corporate America and started selling on-line full time. I sold both on exclusively eBay at first and about three years later added Half.com and Amazon.com so I wouldn’t have all my eggs in one basket selling on eBay. My first year was beyond my expectations however it wasn’t to soon before I notice a declining trend in the items I was selling. This was mostly due to a vast array of sellers that started offering the same merchandise I was listing and the worst part was they were starting the bidding off at what I was paying for these items. In some cases sellers were offering many of the items I was selling for even less than my cost by starting bids at .01 cent. To my dismay eventually these HOT selling items I had were going for less than cost and most sellers were making their profit off excessive shipping and handling charges which I refused to do.
It was emanate that I had to start selling something else or it would be back to the “real world” of corporate America again for me. This was something I really didn’t want to do so I adapted and changed the line of merchandise I was offering and started to specialize in a certain area. Once again sales were brisk and I was happy until more and more sellers started offering the same item. Again to my dismay there seemed to be a competition starting amongst these new sellers as to who can sell their item for least amount of money. The prices started to plummet and profits if any became slim to none. Again I picked my self up, dusted myself off and started offering different merchandise on top of the new (now old items) I had been selling.
To make a long story short I noticed as many of you have that it took more and more listings to bring in the same dollars that I became accustomed to. Bidding just wasn’t the same anymore. I had to list much more to make the same amount of money. Way to many auctions were closing with no bids at all and it seemed the once exciting bidding wars diminished to the point where I have seen most bidders now wait until the last minute to bid or use sniping programs. The tide has most definitely changed on eBay at least in the categories I sell or sold in.
Since I could clearly see these many more changes ahead I thought I should either get out of the auction biz, adapt and make more changes or develop an income free of eBay, Half.com and Amazon. So I did some research on a product I had once sold on eBay that I made very good money from selling there and developed a web site offering these products direct to the consumer at retail. I’m sure anyone who has a web site knows you can’t just put up a site anymore and expect people to find you so I sunk a lot of money into advertising my site and within a few short months it really started to take off. I have been doing the happy dance ever since and enjoy the fact that I am no longer dependent on eBay, Half.com and Amazon.com especially with all the changes (some good some bad) that eBay institutes. I haven’t all together abandoned selling on eBay, Half.com and Amazon but most certainly I no longer rely on them for my income. I am in control of my business no, my future and my income.
I guess what I am trying to relay here is simply this. If your sales are pathetic then you need to make changes or die NOT trying so to speak. You need to find new items to offer and hopefully find something that not everyone and their dog is offering for sales so you can make a few bucks doing it. You need to be observant to the changes in both policies, procedures not to mention buying and selling trends on eBay or any other auction site you might sell on. Think out side the box and don’t just sit and complain and do nothing about it. Don’t just sit back and watch everything you built dwindle before your eyes including your dreams of independence and being self-employed. Do something about it, be proactive, even if it is tiny steps at first make the necessary changes to make things happen for you. Most important in making these changes happen make these changes in your favor. Take it a step at a time, a thought at a time if you will. Develop an new idea a new way of selling or advertising or making your items stand out amongst the millions of sellers on-line these days. Do it one thought, one idea at a time you don’t have to make dramatic changes all at once. That one thought, that one idea, that one step at a time will soon become two and three and four and without even realizing it before long you will have made the changes necessary to continue too compete and survive in this ever changing medium we have chosen to sell in.
Excellent post! That is exactly what you have to do in business, you need to adapt to changes. They do happen more frequently online than in traditional business, but they do happen. Besides selling on ebay, I have an online business that I began in 1995. I've had to change my business model several times to stay relevant. If I continued to do the same things that I was doing when I first started, it would be a very small hobby instead of my full time job. You've got to be looking ahead and watching trends to stay afloat. If things aren't working or are declining, you need to make changes. There are lots of professions that are now obsolete that at one time were thriving.
posted on May 8, 2002 10:36:28 AM new
Precisely so! I have had a website since 1997. Before that I sold mail order through trade journals. I also set up at various shows throughout the year. Diversity is the answer. Never put your eggs in one basket nor rely on one venue for a business model!
posted on May 8, 2002 12:53:52 PM new
"Exorbitant shipping fees, damaged and misdescribed goods, lousy packing, and poor return policies have caught up with online auction sellers out to make a quick buck."
I'm sure these same buyers are just rushing out to drive around town to search every antique mall, or resorting to paying admission to a show to find what they're looking for. Then, paying jacked up retail prices, and not get a return guarantee.
With my hundred or so buys on ebay, I have yet to encounter any of those problems you mentioned. Ok, it could happen once in a while, heck, I pay inflated s/h to major companies and the items are poorly packaked.
People aren't rushing away from ebay, they are simply not spending their money period. The FED has lowered interest rates to rock bottom to spur spending. That tells you how bad it is in the whole economy.
