Bidders Premium?

[3arod13]

Wow, learn something new everyday!

+1

[danesei@yahoo.com]

Don't the auction houses normally charge a consignment fee to the seller so that they get less than the item sold for? I believe they actually make money off of both the buyer (buyer's premium) and seller (consignment fee).

That depends on the auction house. Some charge no consignment fees. Others, if your items are worth enough, will charge negative consignment fees. That is, they'll give you bonus percentage over the floor price.

[yosef777]

It comes down to greed IMO, auction houses, ebay, etc. want to 'double dip' hitting the seller AND the buyer.

[Masimen]

It comes down to greed IMO, auction houses, ebay, etc. want to 'double dip' hitting the seller AND the buyer.

Not that I am defending eBay, but they don't "double dip". Only the seller
Pays. As for other traditional auction houses, charging a buyers premium and charging a commission to the seller is age old practice. Not sure how it amounts to greed. They are running a business.

[xpress34]

Not that I am defending eBay, but they don't "double dip". Only the seller
Pays. As for other traditional auction houses, charging a buyers premium and charging a commission to the seller is age old practice. Not sure how it amounts to greed. They are running a business.

Actually they do 'double dip' the seller - and really it's a 'triple dip'.

They charge the seller a Listing Fee - (1st Dip)

They charge the seller a 'Final Valuation Fee' - (2nd Dip)

They charge the seller a fee on the funds they collect (PayPal is an eBay company which is why they stopped allowing payment by check or M.O.) - (3rd Dip)

So the seller pays to 'try' and sell, pays when it 'does' sell and pays again when they get 'paid'...

Which is part of why Sellers tend to raise prices on eBay - to cover all the fees!

[emann]

Not that I am defending eBay, but they don't "double dip". Only the seller
Pays.

Their "double dip" is forcing buyers to pay via Paypal (which they own) for all transactions. Add 2.9% to the seller to receive payment... I think this rule (and exclusion of money orders and checks) ended up alienating a number of sellers.

[emann]

Their "double dip" is forcing buyers to pay via Paypal (which they own) for all transactions. Add 2.9% to the seller to receive payment... I think this rule (and exclusion of money orders and checks) ended up alienating a number of sellers.

I answered and then read Smitty's response—what he said!

[danesei@yahoo.com]

They charge the seller a fee on the funds they collect (PayPal is an eBay company which is why they stopped allowing payment by check or M.O.) - (3rd Dip)

This is not an accurate statement. Checks/MO aren't banned as payment methods for all categories, just most of the ones that matter.

[Masimen]

Now I am by no means a fan of ebay/paypal fees. However, at the end of the day I think it averages out to about 13-15% of the closing price. If I have that wrong please let me know. When you consign to an auction house unless you are consigning in volume or have a very special item you are likely paying 10-15% consignment fee and you have the added cost of getting the item the auction house which for the vast majority means shipping costs. When it is all said and done the fees on the sellers side are going to be very similar. I just guess it all comes down to where are you going to be able to get top dollar for your payment.

[loanapprover]

Not only do they charge fees on the final auction price but on the shipping amount as well. I understand the fees on the auction but the shipping irks me. I get a 20% discount on fees for being a top seller but it still ends up being about 10-11% for me when you add in paypal fees.