Selling Magic on eBay
Selling Magic on eBay
You Don’t Know … What You Don’t Know …
I’ve been selling magic on eBay since 2008 and it’s unfortunate that many people still don’t understand how eBay and auctions, buy-it-now, or any listing type works. Let me clarify, there seems to be a false perception whether you’re a regular buyer or even a new Seller, that whatever the final sold listing price is achieved, that’s what the seller gets. Unfortunately, that’s not the case.
Now you may be thinking, “really” that can’t be true.
Selling Magic on eBay – Establishing a Foundation for the Premise I’ve Outlined:
1.) EBAY FEES: eBay charges the Seller listing fees (sometimes they have free listing promos), additionally eBay charges the Seller final purchase fees (ranges on average from 13% -15% of the final sold price).
2.) SHIPPING COSTS: eBay shipping costs is one additional aspect that no one talks about. It’s my experience that Buyers are not aware that when they checkout and pay for their item and shipping, that shipping insurance is NOT covered in what they paid. If you’re a Seller and you have to decide if you want to protect yourself and the buyer from possible damages during shipping beyond the default $100 insurance UPS provides or $50 USPS provides. It’s up to the Seller to pay out of pocket for additional shipping insurance for any item over $100 that a Seller would prefer to avoid the dispute from hopefully a well meaning buyer who’s first instinct is to place the responsibility for the damage on the Seller.
3.) SHIPPING SUPPLIES: A regular seller has business costs related to boxes, tape, packing supplies, etc. that I’m sure most Buyers just assume this is the cost of doing business for a Seller, or like some Sellers who may try to save money will package with a previously used box. Even in the used box scenario there’s still packing tape and packing supplies to cushion the item being shipped.
4.) EBAY ADVERTISING FEES: Did this one catch you by surprise? Yes, if you’re a regular Seller, especially if you’re paying for an eBay Store to sell your items to keep any type of sales momentum going, eBay provides marketing advertising at a final sold cost fee of 4%-14% to cross-promote your items when a person opens the eBay home page. What, did you think the items you first see when opening up the eBay home or offered as additional recommendations on a listing you’re considering are there for free? Nope!
5.) SELLER INVESTMENT: Finally, let’s not forget that a Seller purchased the item they have up for sale. Whether it’s new and the Seller paid a wholesale price, or a used item an they paid a fair resalable market value, all Sellers would like to make some level of profit from their initial investment after all the above mentioned costs are applied.
With this foundational information, now lets review real-world scenarios when a Buyer submits an offer or your “best offer” listing and thinks your $200 item should be sold for $100. Upon communication with the Buyer they think they’re being fair and negotiating by countering the offer with “how about $110?” clearly not understanding any of the concepts mentioned above, most especially that even if the Buyer accepted the $110, that’s not what the Seller would net from the sale.
Another scenario, especially when you’re selling something that may also being sold or, use to be sold in other regular retail outlets. In order to take into account one or all the five (5) foundational items mentioned you may need to increase the price above what it may have normally sold for just to break even. Sometimes a potential Buyer or just someone policing listings reaches out with “what the hell, you want $$$$”. As a Seller, what’s the best way to respond to that? Do you try to educate them, apologize to them, or just ignore them?
Specific to selling magic on eBay, if you’ve been in the magic arena or community for any length of time you know that the rare and vintage magic items rarely sell with any consistency. I’ve see both sides. an item that should have gone for a higher price and the extreme opposite where an item sells for well above and beyond all expectations. Sadly, in many cases some Buyers questioning your pricing on a rare magic item seem to only remember the scenario where that item sold for a fraction of it’s actual value and have no issue letting you know that.
My selling magic on eBay strategy comes from over 40-years in the corporate world and in an industry that had to provide enough margin within their products to ensure room for flexibility. My listings follow this model and while I do the research on every item I sell to get the wide range it’s sold for (beyond the first page of a search engine). Once I land on a reasonable price point, keeping all the five (5) foundational items mentioned in mind, I elevate that established price by a small percentage to allow for sales campaigns, best offers, and competitive measures to ensure once a final price is realized, usually never the full price I had intended, it’s a net amount that keeps my profit and expenses balanced.
Hope this outline has been informative and I will now step off my soap box…
Steven Warburton
Previously practicing magician and escape artist, transitioned to Magic Collector for the last 40+ years. In applying an extended hobby of web design and online marketing, Steven Warburton has developed many business related sites and eCommerce sites. Core profession for the last 40 years has been in the Telecommunications / Broadband arena actively working as an executive for a well known Internet/Broadband provider for the United States.
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