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 Replies: 15 / Views: 3,882 |
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Pillar of the Community
United States
6130 Posts |
But really... how do these established, successful ebay sellers manage to peddle no reserve, free shipping lots all day long and not go bankrupt? One particular seller I used to buy from sold lots of about 10-15 low value world coins, usually for about $2 with free shipping. A flat rate envelope usually costs a minimum of $2.50 to ship, which is what the coins usually came in. Even with the "star seller" discounts, I don't see how this could be an even remotely sustainable business model?  |
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Pillar of the Community
 Canada
5404 Posts |
Quite simply it is not sustainable.
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Bedrock of the Community
United States
11951 Posts |
Only thing I can think of is ...
Maybe the seller has a lot of buyers, that are winning
multiple auctions ... and seller is combining shipping.
Other than that .. I don't have a guess
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Pillar of the Community
 United States
6130 Posts |
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New Member
United States
26 Posts |
Maybe they see it as an investment, a way of pumping up their feedback score?
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Pillar of the Community
United States
7375 Posts |
They sell a lot of stuff. Probably just a way to get noticed, or get people into their store. Lowes and Home Depot do it all the time. I forgot what it's called, but they'll sell a popular low priced item at a loss to get you in, and then you buy other stuff. Check out all their listings, they're making plenty on the other items.
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Pillar of the Community
United States
4409 Posts |
Quote:
I forgot what it's called, but they'll sell a popular low priced item at a loss to get you in, and then you buy other stuff. It's the loss leader strategy |
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Pillar of the Community
United States
7375 Posts |
Yeah, that's it  |
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Pillar of the Community
United States
6130 Posts |
The loss leader is a great way to get people hooked on the "combined shipping" bug. I've fallen for that many, many times.
But if I win a lot with free shipping, I pay for it right away and rarely check to see what else is in stock.
Granted, one such seller that I was a regular for, did go out of business not too long ago. Not surprising since he sold lots of AU/BU, painstakingly attributed world coins for pennies on the dollar of catalog value.
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Moderator
United States
54283 Posts |
I think the "free shipping" might be unintentional. Most lots have $3 shipping. ebay has been known to autocheck the free shipping option, and some sellers don't notice it until it is too late. Show your financial support of the Coin Community Family (click here)See my topic on Mexican Numismatic Medals (click here) |
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New Member
Canada
3 Posts |
When I purchase a coin the shipping is included into my ceiling price, but I always check other items for sale if combined shipping is offered by the seller as it lowers my overall cost. Especially on lower priced items like Canadian quarters.
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Bedrock of the Community
United Kingdom
18011 Posts |
Is it possible that these ebay sellers also deal in stamps? Certainly, here in the UK, many decimal Elizabeth II postage stamps can be bought for well below face value, especially in quantity. I've bought several coins on ebay from British vendors and have received them in parcels plastered with GB commemorative stamps from the 1970s and 1980s, which the dealers probably acquired as part of a bulk lot and simply used for postage. I've even bought one coin on ebay from Australia that similarly had lots of older commemorative stamps on the packaging. |
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Pillar of the Community
United States
513 Posts |
tax loss write off to offset other income/businesses?
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Pillar of the Community
United States
4085 Posts |
I think it is a loss leader strategy. If you can get your volume and feedback up on ebay, you can save substantially on listing and final sale fees. Sell these lots at near break even and make it back on other sales with lower fees. |
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Pillar of the Community
United States
2589 Posts |
You get a 20% reduction in final value fees when you reach Top Rated Seller status. If you sell a relatively low amount of very high value items in the required timeframe, you wont make top rated seller status and lose out on the discount. These sellers thus sell low value items at a loss so that they can reach the required sales level to satisfy the Top Rated seller status and increase there profits in the long run. Occasionally I have even seen sellers sell $1 bills for under face specifically so they could meet the requirements before the re-evaluation deadline occured.
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Valued Member
Canada
402 Posts |
so for us bottom feeders.....what sets that timeframe
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Replies: 15 / Views: 3,882 |
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Posted 07/12/2016 11:28 am
