Collectables sellers, I need your opinion about a situation here

[purse_of_the_legionary]

Hi, first, I have to say that I thought about that situation for weeks before to decide to ask other sellers, as I am doing today. I just can't understand what is going on, and why, maybe you guys can help me understand, and possibly give ideas or suggestions to help me find a solution for my business.

I am a seller of collectibles, more precisely very old coins, and it's my main incoming since 2006. I'm doing very well so far, with a perfect reputation and 99,9% score, DSR 4,9 to 5,0 in average. I'm providing a very personalized service, as I am in the collectables field, but since the beginning profit has compensate for the extra effort. I have an eBay store since the beginning, offering auction style listing and also items at fixed price. About the auctions, the market price for my category of items (ancient roman and greek coins) has been almost the same since 2006. The high exchange rate (I am selling in USD$) has been very exciting these last years when withdrawing in CAD$, but of course we all know that this is over now. Profit gets thinner for most of us. But that's not my real problem, exchange rate is just not helping another situation. Strangely, since last Christmas, prices are dropping when sold auction style. What usually sold approximately $150 now sells $80 or $90, what sold $30 now sells $15 or $20, and so on. Now all the time, but I see a huge difference in my incoming, that's what I know.

I have many repeat buyers, I have as many watchers on my items as before last Christmas. In appearance, nothing changed, excepted for the profit. End prices for my auctions have always been the same since 2006, I felt all these years that no bidder was missing an item ending below the market price, but some evenings of ending auctions, I feel that my items are sometimes selling very low, like if no bidder was present at that moment. It never, ever happened before January 2010... It was almost the opposite as it was before, my items were selling very often OVER the market price.

Now I work the same amount, provide the same great service, but I'm struggling. What happened ? A different eBay search tool ? Economic crisis in the USA (majority of my buyers are Americans) ? Any idea of what may have caused that very strange new situation ?

Thanks !

[pierrelebel]

I also sell collectibles (postage stamps)

A year ago at this time, you had about 32,000,000 listings available in Search results (my guess would be 10,000,000 auctions, 22,000,000 fixed price)

Today, you have over 127,000,000 (about 90% are fixed price listings) following the move from store inventory listings to "core" (fixed price listings).

So, auction listings are more difficult to find and buyers take advantage.

Until the end of March this year, many store owners ran auction listings to attract potential buyers to their store. This is no longer profitable as ALL listings are available in search. Running auctions under these circumstances is a mistake unless the starting price is the lowest price you are willing to accept.

Auction listings cost more to list than fixed price listings and run for a shorter period. I do not see the value anymore.

[purse_of_the_legionary]

Hi Pierre, thank you for your explanations, it makes sense... But thing is, my fixed price items are not selling very fast too. I have to keep the Buy It Now prices as low as possible, but profit is also very thin on these items, because of the lowest end prices... I heard that listing fixed price items for more than 10 days is a waste of time, not sure about the 30 days... Because the last months have not been very profitable, I can't keep a very large inventory of fixed price items, unfortunately. What would be the best strategy ? To flood the eBay ancient coinscategories of fixed price items only, as many as I can, and cut the auctions to create some kind of rarity ? Thanks again...

[purse_of_the_legionary]

What is the most surprising is that I have approximately the same amount of watchers than when it was more profitable...

[purse_of_the_legionary]

Hi Pierre, I just checked your completed listings. Buy It Now listings are selling very well for you, I am wondering how you can achieve such a high ratio of SOLD vs. UNSOLD fixed price items. How is business for you since the change, if not indiscreet, better or worse since the changes (and offering less auction style listings) ?

Thanks for your help

[pierrelebel]

" What would be the best strategy ? To flood the eBay ancient coinscategories of fixed price items only, as many as I can, and cut the auctions to create some kind of rarity ?'

That is more or less what I did with stamps, years ago - as did many other dealers.

It will take several months for buyers to adjust to finding so many items in search results. I do not see any point in having fixed price listings for less than 30 days (or preferably Good Till Cancelled).

The small added visibility gained by seven day listings does not offset four times the listing fees.

[pierrelebel]

"Buy It Now listings are selling very well for you,"

They always have. The trick is to offer an attractive price and conditions where the potential buyer feels confident he is getting a "good deal" immediately instead of taking his chances at auction with someone else - to maybe save a few cents/dollars but take the risks of not getting the item.

[purse_of_the_legionary]

Thanks Pierre,

"The trick is to offer an attractive price and conditions where the potential buyer feels confident he is getting a "good deal" immediately instead of taking his chances at auction with someone else"

Which means you probably have to find the lowest price you are comfortable with, but still make a good profit - I am sure you are also affected by the exchange rate, isn'it ?

I am also wondering is making 10% on a $100 item is better than 30% on a $20 item... I noticed that you are mostly selling low price items, with many $1-$5 items. How can you make an interesting profit selling when making a few cents on an item. Volume I suppose, but it still take time to package and ship, for a few cents plus one dollars on shipping cost...

[purse_of_the_legionary]

" Today, you have over 127,000,000 (about 90% are fixed price listings) following the move from store inventory listings to "core" (fixed price listings). (...) So, auction listings are more difficult to find and buyers take advantage. "

But there is a link in eBay to only see the auctions, no ? Buyers looking for auctions only have to click that link to only see the auctions and hide all the fixed price items... That's why I never thought that change in eBay (no more store inventory items) would affect my auctions.

[pierrelebel]

"making 10%..."

I would never, ever, dream of working on such low margins, even for high priced items.

All high priced items in my store carry gross margins of 40%+++ Low priced items are often sold at 65% - 75% margins (three to four times cost)

"I am sure you are also affected by the exchange rate, isn'it ? "

All sellers are affected by currency fluctuations, even Americans as it affects competitiveness. At the end of the day, buyers will pay whatever the market dictates, regardless of currency fluctuations.

If you buy your inventory in US$ and resell it in US$, then currency fluctuations have little net effect.

"for a few cents plus one dollars on shipping cost..."

I currently ship 75% of my overall sales dollar value with "free shipping". It costs me about $3,000 to $4,000 a year to subsidize shipping. That is one of the reasons I need large margins to work with.

[pierrelebel]

"Buyers looking for auctions "

Do buyers come here to "look for auction" or do they come here to "buy stuff"?

From my perspective, potential buyers come here to "buy stuff". The selling method (auction or fixed price) is a secondary factor.

What is the price?
How much for shipping?
Return policy?
Guarantee?
Sellers reputation?

[purse_of_the_legionary]

Thanks again Pierre,

I used to purchase "Gallery View" to show buyers that my coins are attractive and have great details (showing both sides) even if the are very old and worn. What do you think about that feature, which costs $0.35 for 10 days or $1.00 for 30 days ?

[pierrelebel]

Honestly? Waste of money.

Spend your money promoting your store with AdCommerce. You will have much better results for the same money.

[recped]

Auction listings cost more to list than fixed price listings and run for a shorter period. I do not see the value anymore.

The "value" to me is that Auctions have a FVF of 9% while FP has a FVF of 15%*. 6% of gross sales definitely has "value" to me.

* Media category

[femmefan1946]

Which means you probably have to find the lowest price you are comfortable with, but still make a good profit -

There are many buyers that avoid very low priced goods on the basis that it cannot be as good quality as the higher priced but similar product.

If WalMart has the lowest prices, why is Holt Renfrew still in business?

And intelligent buyers also look at feedback, DSRs, TRS and PowerSeller ratings as a way of determining the reliability of a seller.

And intelligent buyers are soooo much easier to deal with.

Philately and numismatics are two fields where repeat customers are common. And sometimes they will graduate to buying directly from your own website.;-)

[purse_of_the_legionary]

Oh my... I just lost $290 with my auctions tonight... :_| Until recently I used to make that profit in one evening of auctions !!! Now, I am loosing it and will be out of business in no time after four years building my perfect reputation

It will be harder for me to build an inventory with enough fixed price items to make a living of it, as I would need to invest more money - auctions allowed me to only keep a small inventory and receive just enough fresh items from my provider each week to start new auctions for the following week - but money is exactly what I am loosing now... I feel so stupid to have not seen it coming when I read the news about the end of the store inventory items and the flood of Buy It Now items among the auctions.

Ebay did something bad in my opinion, I used to send them $1000 of fees each month since 2006, I am a Top Rated Seller, perfect reputation, and now they will loose me very shortly... It is very frustrating, as my fixed price items are not selling well either, simply because similar items are ending so low in auctions in those categories these days. I can't believe eBay is actually making more money with these recent changes.

I survived everything, eBay major changes, dollar parity, bad buyers, etc., but sorry this time I can't survive "invisibility" on that marketplace when I'm paying fees that are always increasing...

I am now listing more and more fixed price items instead of auctions, will try AdCommerce, but I am realistic, which mean not very confident this time (I always have been, no matter what happened).

[purse_of_the_legionary]

I am wondering why eBay doesn't have serious competitors who are big enough to catch the wave of sellers in my situation. Why eBay is (was) the only interesting one ? Does anyone know if eBay is making more money since these changes ?

I just notice that since March 25, the value of eBay shares on the market is getting lower and lower, does it have something to do with that messed up marketplace ?

Is there someone somewhere who is actually very happy with these changes ? Sellers ? Buyers ? Shareholders ?

[purse_of_the_legionary]

I started selling on eBay because I had been seduced by that store owning thing, using the core to attract buyers in your store and make more profit with fixed price items in addition to profit with auctions. It worked so well, it was perfect, eBay was more friendly, very attracting for home based businesses, before to turn into that monster. Compared to this new situation, the feedback changes were like a mosquito bite, I remember most sellers were upset, including me, but it was nothing compared to what they have done recently.

[pierrelebel]

" since March 25, the value of eBay shares on the market is getting lower and lower,"

The drop in eBay shares more or less mirrors the market in general as represented by the S&P500:



"someone somewhere who is actually very happy with these changes ?"

I am happy with the changes although I realize it will take some time for the dust to settle on the marketplace. My sales have not dropped but my fees have! I must admit I do not use the auction format. I may feel differently if I did. I moved away from auctions years ago when I saw the writing on the wall.

[pierrelebel]

" prices are dropping when sold auction style. "

Take a look at this http://forums.ebay.ca/topic/New-To-Ebay/Price-Rocketting/600036106

That is the other side of the coin: a buyer complaining prices have gone up too much!