Going, going, gone: Online auctions fading away
Wed Jun 4, 2008 11:55AM EDT
See Comments (9)
Thirteen years after eBay was formed, the novelty of online auctions may finally be wearing off, according to BusinessWeek. It's not just a move away from eBay in general: Even inside eBay's walls, the move away from variable pricing and towards fixed prices is well underway. Today, auctions makeup just 58 percent of the site's revenues, and that portion is shrinking.
The reason seems to be largely one of convenience. People looking for an item online have come to view eBay as just another outlet for purchase rather than the mystical shop that sells everything that it used to be. You might find the same computer part for sale for a third-party seller on Amazon.com as well as eBay. But the Amazon part might ship immediately, while the eBay part may require sitting through a week as you wait for the auction to end. Today's shoppers don't have the patience for that: They want an item immediately, and if it can't be obtained today from eBay, chances are the sale will be lost to a competitor.
Sellers are figuring this out quickly, and many are moving to fixed-price sales exclusively or opening their own storefronts altogether. It's just less of a hassle to sell at a fixed price, and even eBay's own commission structure favors "Buy It Now" sales over standard auction listings.
As I was thinking about this post, I realized I've been part of this trend for years. I regularly buy used or hard-to-find computer components on eBay, but haven't bought anything in a standard auction in ages, only through Buy It Now. Think about it: Usually I need the part to fix a computer (and sometimes there's only one for sale), so I'm not going to let it slip away to another buyer at almost any price (within reason). Nor am I willing to sit around for days for the auction to come to a close, only to hope I'm the eventual winner. Even though a part may have an opening auction price of $20 vs. a Buy It Now price of $40, it's worth it to just pay the BIN price and end the headache while also getting the stuff sooner. Similarly, stuff I sell on eBay has fared far better with fixed prices than in a traditional auction. I relisted a computer I was selling on behalf of my daughter's school three times in a standard auction before I got a bid... just a single buyer who paid the minimum bid amount.
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2 Posted by middlenamefrank on Thu Sep 3, 2009 7:19PM EDT Report Abuse
I'm with you Chris. I used to get all excited by the prospect of finding a jewel of an item at a ridiculously low price, and there was actually a time when you could do that once in a while. But even then you always had to worry about snipers (which I preferred to call poachers) stealing your item out from under you at the last second. Then I perfected the art of the poach myself, and wound up winning stuff I wanted pretty much every time...but even that excitement waned. Now I just look for whatever I need, usually a motorcycle or computer part, and if it doesn't have a BIN price I skip on by and find one that does. I need/want it now, don't want to wait until the auction ends and don't want to deal with the poachers. I guess, for me, the thrill is just plain gone.
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3 Posted by nerd160 on Thu Sep 3, 2009 7:36PM EDT Report Abuse
I'm with mlperfect.
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4 Posted by jkreyno2003 on Thu Sep 3, 2009 4:36PM EDT Report Abuse
I agree with all of you. I think the people who are looking for that BIN are just buying a product. They are not the typical auction buyer...looking for a find and loving the thrill of acquiring it. The people who love auctions will continue to do so and the people who are just looking for product should just go back to amazon and to the store front websites. You're looking for two different things.
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5 Posted by sciencetroll@verizon.net on Thu Sep 3, 2009 9:08PM EDT Report Abuse
i see what middlenamefrank and chris mean. were not trying to have fun and play a game, were trying to get what we need so bin is the thing to do
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1 Posted by mlperfect on Thu Sep 3, 2009 7:23PM EDT Report Abuse
What is the fun in Buy It Now? There will always be shoppers looking for that auction rush. People love competition. Ebay sellers are unhappy with the move to set pricing and Ebay will definitely have more competition out there if the auction is gone. I think they are cutting their own throats! I, for one love that anticipation of waiting to see if I can be the winner! I totally disagree with you!