posted on February 7, 2001 03:16:25 PM new
I don't understand why the Buy It Now option works the way it does. Why does the option go away if the first bidder bids less than the BIN amount? Wouldn't it be much more effective for the seller if it stayed in effect? Suppose I start an item at $20 with a BIN of $40 (because I believe the value to be in the $50 range, but I am willing to take $40 to get it over with). Why should someone who isn't willing to pay the BIN amount deprive someone who is, simply because they happened to see the auction first? This doesn't make sense to me.
posted on February 8, 2001 12:24:10 AM new
First of all, I do not use BIN because they want a credit card from me, just to verify my address (but that's a whole nuther thread).
Suppose I see your item. I don't think it is worth $40.00 and doubt it will go that high, but I am willing to pay $30.00 for it. That's reason #1.
Another reason is snipers. So many auctions just sit there until the very last day (or the last second!) BIN gets some action going by encouraging bidders to either place a bid NOW, before someone else buys it, or to go ahead and buy it right away.
posted on February 8, 2001 06:15:03 AM new
Pasted from Ebay:
"If you already have a credit card on file with us or have previously been ID verified, the auction will end automatically after we have verified your User ID and password.
If you do not have a credit card on file with us or are not already ID verified, you will be asked to complete a verification step by choosing either credit card verification (free) or ID Verify Service ($5 fee). NOTE: If you choose to place your credit card on file with us, your credit card will not be charged and will only be used for verification purposes"
True, you do not need to register a credit card. You can pay $5 to have Ebay run your credit report instead. Of course this defeats the purpose of Buy It Now, since you can't Buy It until the credit check is completed. (which can take a few days)
posted on February 10, 2001 07:39:33 PM new
That's all well and good, but does anyone have an answer to my original question? What is the rationale for having the BIN option expire as soon as a non-BIN bid is received?
Why not let it remain in effect?
posted on February 10, 2001 08:02:09 PM new
It is Ebay's policy that the BIN is only in effect until the first bidder. That is the way they designed it, it could have been the way you described, but this way if someone bids, that option is gone and it reverts to a regular auction. In some cases the auction ends at a higher price that the BIN. In other instances it ends with the original bid. That is the chance the bidder takes when they place a lower bid than the BIN. Some sellers place their opening bid and the BIN the same. Meredith
posted on February 10, 2001 08:49:26 PM new
"Why would a seller do that? It takes the auction out of the auction and makes it a direct sale to anyone who is lucky enough to see the item first."
That is why they do it, they have a lot of inventory and want to turn it over quickly. Many do 3 day auctions and price their items to sell. They also list the same items every day.They are basically retailing their items which is fine depending on what you sell. Meredith
posted on February 10, 2001 09:01:39 PM new
I had a customer wanting me to end an auction, but I let it run it course. The bidder promptly paid and I sent the item.
So I tried the BIN thinking it would help my valued customers to purchase the items in case they wanted to "buy it now" however, the experiment showed me it is not worth it if eBay starts charging fees for it.
As long as it is free I will use it at my discretion with some of my items not all. When/If it is charged I probably won't use it probably once in a blue moon.
As a buyer I have been tempted to use BIN "what if someone outbids me" so the impulse buying has been tugging at my emotions but I have backed down due to the "high" BIN prices I have encountered. However, someday I might have an impulse bid not wanting to wait a week or whatever (or to be outbid) and pay with paypal to get the auction within a few days.
posted on February 10, 2001 10:56:22 PM new
I agree with you, saxmaniac, it makes more sense to me to leave BIN in place if someone bids less than the BIN price. Why shouldn't other bidders have a chance to buy at the BIN price if the first bidder bids less than the BIN? I too have wondered why ebay designed it this way.
posted on February 11, 2001 01:02:59 AM newLibbyparsons and MrJim
I had read the same information that MrJim posted regarding verification. But tonight, for the first time, I saw an item listed with BIN that I wanted to purchase. So for the heck of it I tried to buy it with BIN, and they let me!
I have never given ebay my credit card number for any reason so I don't know what the story is. I have been registered with ebay since Nov of 1997 with 70+ pos, 0 neutrals, and 0 negs so maybe the answer is in there somewhere. Perhaps they let you slide if you've been registered a certain amount of time, or if you have the right feedback.
Go figure.
posted on February 11, 2001 04:26:33 AM new
blondesense:
That is because your verification has been grandfathered in under the old policy. I have an old account as well that has no credit card info, and is considered a "verified" account by the old policies.
Any "new" users that have joined since sometime in 1999 when the new policy took affect have to be verified by credit card number or equifax credit report. The purpose of the restriction on BIN is to keep someone from signing up for a bogus account and ending thousands of auctions instantly with the BIN. Ebay figures that if you have been on Ebay buying and selling for over 2 years, chances are, you wouldn't do that.
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saxmaniac:
As for your original question...
If the BIN price did not disappear after the first bid it would defeat the whole purpose of the program. The idea is to motivate someone to Buy it Now, rather than risk being outbid on the item, paying more than the BIN price, or getting sniped in the last few seconds. If the BIN price stayed, it would be a MAXIMUM bid price and discourage sales. (and sellers would not use it)
The way to use BIN effectively is to set the BIN price a little under what you think the item will go for. (offering a discount in exchange for a fast sale)
For instance:
You have an item you bought for $20. It generally sells for about $75 to $80. The least you are willing to sell it for it $35. Set the BIN price at about $65 to $70. If the BIN is used, you make a nice profit and you only gave up about 10% in exchange for a fast sale. If it gets a bid instead, chances are it will reach the target price (and perhaps more) but you will have to wait a week for it to end. If you sell the same type of item on a regular basis, set the BIN at your average seller price.
Wouldn't it be much more effective for the seller if it stayed in effect?
No. Suppose there is a buyer willing to pay $100 for the item. The auction would automatically end at $40 and you would lose $60.
posted on February 11, 2001 08:41:08 AM new
Suppose I want to sell an item TODAY, I set the BIN price at $50.00, this is all I want and I'm sure someone will buy it at this price. Why should someone come along, bid $40.00 and now I have to wait three days to sell it? Yes, I may get more money, but I used BIN in the hope that I would sell the item today and set the price accordingly.
IMO the first person to bid the BIN price gets the item. Sellers who want to sell the item immediately would set their BIN price to accomplish this.
