Why do people overpay on Ebay?
I have noticed that deals are getting harder to find on Ebay. The site seems to becoming more retailer driven.
A couple of weeks before Christmas I listed some used video games that my family no longer plays. I put no reserve on the items; however, I put a "buy it now" price of $10 on each game (this was the amount I paid for the games from Game Stop).
All of the games exceeded the "buy it now" price, and sold for an average of $15 each+ $4 shipping.
Why would people pay more than the price they could have bought the item for by simply clicking a button?
by
atd15
asked 5 months ago
People are dumb.
Probably because someone thought they could get it for less than $10, but were willing to pay more if needed. There have been occasions where I've bid for less than the BIN, and gotten it for less than the BIN. I certainly wouldn't call that dumb :-)
It has been a while since I looked at eBay. Let me see if I understand.
You put the games up for sale at, lets say $.99, or buy it now for $10.
I think once you bid on that item without reserve the buy it now option goes away.
Then the real question is why people over bid on eBay?
Because it was before Christmas! When used to sell some stuff on eBay if it is a few months of Christmas I wait until the auction started after Thanksgiving.
(Before Christmas is the best time to sell on ebay)
I think many people assume it must be a good deal if its on ebay, and fail to shop around at all. They also seem to get caught up in the adrenaline of bidding. It's great psychology...once you bid, you want to win and might overpay just to do it.
Recently, I was bidding on a very nice [used] leather tablet case that retails for $104 new. Two people caught up in last second bidding resulted in one of them paying $94 + $10 shipping for the used case. D'oh.
I was also recently looking for a deal on a used Linksys router, and found that most used and new ones were going for $30-$40 above retail. I'd tend to agree, eBay has become more of a stomping ground for dumb people looking to make 500% on what they sell, massive accessory dealers, and scammers. I don't use it much anymore.
My guess would be because they don't take the time to do a proper search, both on eBay and the internet.
I spent too much on eBay because I didn't shop around. After I hit the buy it now button, I received an email from a catalog company that had the same widget for half the price I paid for it.
When my widget arrived, it had been drop shipped from the catalog company.
Lesson learned.
@caffeine_dude is correct; the BuyItNow option goes away after bidding starts.
eBay: Because there's a sucker born every minute.
I did do a facepalm over this one ... because paying $15 direct from Woot wasn't enough, I guess?
That's not to say that deals can't to be had ... they do exist. But like any other shopping site, do your homework!
I love dumb buyers!
It means I get more for my stuff when I sell it!! :lol:
When I buy stuff on eBay I've already spent time looking at prices on other sites, and have decided on how much I'll pay.
If I find what I'm looking for as a buy-it-now at a lower price I'll buy it.
If I find an auction I'll make a bid at my maximum amount, and wait out the auction to see if I win. Although if the auction still has a long time to run I may just add it to my list and check back when it's closer to ending.
And I always look at the reputation of the seller, and read through their feedback to see what complaints they've received.
JM2C
I wanted to fInd some cheap amazon gift cards and checked eBay. Every single one was selling above face value. Don't these people know you can buy them for face value on amazon? I agree that it is a lot harder now to find good deals on eBay. I used to buy on eBay regularly but now I check regularly and rarely buy.
There's competitive spirit as well. For some, they just want to 'win' the auction. Even if winning means overpaying. That's what auctions are all about, after all. Driving up the price through competition.
@hbsurfer17: Unless they don't have credit cards. If paypal and a checking account are their only options, if may force their hand slighly and drive a need to pay a 'premium'.
@acraigl: ... or the accounts aren't theirs. If the buyer is using a hijacked (stolen) account, they get the gift card and essentially converted the stolen funds to something less traceable.
I don't know really. I recently sold my Uncharted 3 (w/ box and codegame for $36 & $4 shipping (auction). I had BIN option on for $40 w/ free shipping.
It got bought at the last minute while others were going for $45 and up with out codes with 2-3 days left to bid.
Winning.
Not the Charlie Sheen type...but honestly, who doesn't like to win an auction? That's the only reason I can think of for paying more.
Edit: oops, pretty much what @acraigl said
@acraigl: The thrill of the hunt. I NEVER sell on a Buy It Now format, just because people are people.
Long gone are the days where a good deal could be found on eBay.
I have a hobby collecting antique phonographs... so obviously that aspect of eBay is still nice... for finding the rare, antique, no-longer-made, out-of-print, etc etc, item. Not that it will necessarily be a deal.
I have noticed that people get caught up in the moment. If I want something, I search for the lowest prices, and watch several items at a time. I know my threshold, and usually "snipe" at the end. If it goes above my final offer, I move on to the next one. Sometimes I see people bidding on things that are cheaper online. I wish I could contact them and tell them! I've witnessed bidding wars for an item IDENTICAL to one I was selling for less, and no one bought MINE! I also sold a couple of things that I was able to buy for around $15 bucks. They were hard to find. I listed them at $34 plus shipping, figuring double was a good profit. I sold SIX- all for over $100 each! $145, $140, $130, $120, $107 & $100! I felt a twinge of guilt and offered to refund the shipping to a couple of the suckers, I mean "customers!" Caveat Emptor!
Plus- I'll search a price on a "collectible" that's been in my family for years, and there'll be 6 just like it, all selling for 12 bucks! D'oh!
Typically eBay is a wholesale environment but when it comes to curtain items you will pay more (or get more as a seller) for items. For example I just sold House season 1-3 for $20 bucks, got more than expected but its still cheap. I usually sell 2-6 iPhones a year and get great money for them because they are jailbroken and unlocked.
Bottom line is if you are looking for a deal or the price of an item use ebay and craigslist. eBay will give you the national whole sale value and craiglist will give you the local value in most cases.
None of my ebay customers overpay. In fact they've paid significantly less than retail, every time.
This is a recent-ish thread that might offer some answers. It addresses people overspending on gift cards on ebay but I think many of the reasons are the same.
I was buying some knives on eBay and the seller had a Buy It Now price of $170 and an option to make a best offer. If you read the description he clearly put he can't put his lowest price due to the manufacturer's advertising policy. I looked at his item history and he had sold a couple at the listed price.
Another thing I noticed was people in bidding wars that end up paying much higher than the MSRP for the item. Funny thing is when the manufacturer has an eBay storefront too. People on eBay are dumb, most of them just think if it's on eBay it must be less than MSRP.
buyers know they can get a freebie under ebay buyer protection....pay a lot, complain, get free item!
@rabidmonkeyoncrack:
That's interesting, I looked at this thread w/ knives in mind. I'm glad someone else spoke up so I'm not the only freak.
I see lot's of knives w/ the Buy It Now price at far over prices that a quick search through Google Shopping will yield (and google shopping is by no means the absolute authority). I guess you're right, the MSRP may be at play. I haven't followed one to see what happened.
I haven't bought a knife on ebay for... well over a decade. Since they banned certain knives, although now they're popping up again.
I guess in my head, when I see the Buy It Now price, that kind of registers as a de-facto reserve in my psyche. I should start paying more attention, I may be missing deals by blowing off auctions with absurd Buy It Now's. Although like already mentioned, Ebay has changed significantly, and Craigslist has the deals nowadays (although they usually involve driving).
@acraigl: As an Economist and trained Game Theorist, I have to clarify that auctions are not about bidding up prices through competition, Auctions are a mechanism for allocating a good or service to the individual who values it the most and therefore who society would agree should have said good or service. It's an efficiency thing.
@cjl1983: That may be the theory, but I guantee that's not the reason Ebay set up shop. They want competition to drive up prices. I agree whoever values it the most will likely 'win', but that's not a society decision.
Oh, and ebay wins every time :)
@cjl1983: lol @ "trained game theorist". Shenanigans from a bored teen.
ebay bucks means you can buy a gift card for more than face value and still come out ahead. there are also various cashback programs that allow you to earn enough to offset the overage you pay for an item.
A lot of times it's because the bidder is bidding with MOMMY AND DADDY'S money :)
(Plus stupidity, that too.) Which is one reason you see this phenomenon occur in the videgame realm more than other sections. (My theory)
Awhile back I was checking out some DLC codes for LA Noire.. it was a little while after release date, but not super far, so I figured it'd be the PERFECT time to get 'em at their cheapest... The codes were selling for $50-70 And that's AMERICAN dollars.
These were codes that you could still get from some places at THAT time, WITH the game for $50~..
That kind of stuff still amazes me..
I thought that kid posted at the same time I did lol, didn't realize that it'd already been humored lol
Surprised he still hasn't responded lol
difference of being the high-overbidder vs the high-successful payer. Some things get bid up but those dumb buyers never pay -
Some people, due to medical problems ie, paralyzed, on oxygen, afraid of people and or crows or have some other affliction that leaves them home bound. And even some people have no driver's license. Some don't live near a city with big retail stores. The only way some of these people can buy is to use the internet. Ebay is a good choice because it's safe and they have recourse it they get ripped off.
@dcpotts: The knives I was looking at on eBay had prices equal to or lower than the prices on Google Shopping. Another thing was Google Shopping didn't have authorized retailers and eBay did. Not sure what brand or what type of knife you're looking at but if you aren't seeing comparable to MSRP just don't bother. If you are really interested it doesn't hurt to contact the seller or just make an offer.
Here is a great tool if you want to make sure you're not overpaying or underselling. I'm a very happy beta tester, and would highly recommend to sign up!
http://www.statricks.com/craigslist-used-pricing-tool.html?lrRef=FYHr0
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