Will there still be money to be made on eBay five years from now?

braddick

I was reading an interesting Thread across of the street and came upon the opinion that eBay will not provide the income to vest pocket Dealers in the future like it does now.
What do you think? Will eBay simply always be there as it is now with the opportunity to buy and sell coins and possibly make a little something for yourself on the side?

braddick

Sure- will the day come that eBay raises their selling fees to such a point that you and I will find it prohibitive to sell there? The only ones left may be the big outfits- the SuperSellers that run hundreds of auctions weekly.
Or, the trust factor will be so tainted that buyers don't use eBay like they do now.

Or, even a scenerio I haven't come up with, yet you can.
What do you think?

goose3

I already don't like selling there and will sell outright to friends and board members for less money than I could realize on there.

I've gotten to the point where I can't stand the hassle with idiot bidders (Flakes) that cannot follow directions, etc....I honestly don't know how much more clear I can make descriptions about payments and contact, etc. I swear some of the people on there canNOT read. They just look at pictures and bid.

Their fees are also getting a bit ridiculous. What ebay doesn't take from you in fees, paypal makes up for. Heck their are 2 or 3 hands into your dough before you even see it anymore.

TheNumish

Ebay will always be a way to sell coins. Lots of people are making their living off it but I think it will get harder and harder. As a collector these are good things because you'll get your coins for less. As a dealer it will just be harder to make money off of ebay. I admit I live in my own little world and this is just my point of view. These are the reasons why:

1)Competition-A large percentage of dealers are listing coins for sale. This includes the biggest like Heritage or the smallest vest pocket dealer. If you price your coins a little bit more than the other guy you won't make the sale. Smaller profit margens.

2)The buyers are getting smarter-When I first started selling on ebay the buyers weren't that concerned about the price of the coins. This internet auction thing was new and cool. They were just hungry for coins and wanted to buy them. Now that they have learned how coins should be priced and more importantly if they miss this coin there will be another for sale real soon. They are buying smarter.

3)Bad economy-Less face it people money is tighter than it was a few years ago. It used to be that the pie was so big everyone could have some. Now the pie is smaller and it's harder to get a bite. Some people are just going to have to go without pie.

4)The modern game is getting played out-I make a large percentage of my living grading modern coins. The super high grade coins with super low pops will always be good but will get harder and harder to find as more coins get graded. The average stuff has already started a spiral down in value. Take proof gold eagles. A year ago I could buy a 4 piece proof gold eagle set, get it graded prf-69 and make a $100-$200 on it. Today it's not unusual to see graded sets sell for the same as raw sets. Look at MS-66 Kennedy Half Dollars. It's not unusual to see them selling for $15 when they used to go for $40. This is happening accross the board and will continue as more coins get graded. Personally I don't thing it's such a bad thing and just a natural cycle that comes with increased competition.

5)Loss of confidence in sellers of raw coins- If I was a collector buying on ebay I'd never buy a raw coin. It's pathetic how such a large percentage of sellers blatently overgrade their coins. You can't fool me-these people know better. I'm sorry to say I cut my teeth in the coin business selling mail order and I know how the game is played. This is just a different version of the same thing. Makes it harder for people who want to just sell a accurately graded coin at a fair price.

6)Ebay stores-Sellers can leave their items for sale for long periods of time. This creates more items for sale, making more competition bringing prices down.

If I thought about I could come up with some more reasons. I love selling on ebay and will always be out there peddling my goods. It's a wonderful way to buy and sell and I must say I hear about all the nuts out there but I've never had one bad experience selling to people. There have been a few no pays but not enough to even worry about. I just think that over time making money on ebay will be harder.

CLASSICS

goose3 you hit the nail right on the head. i swear, some of these people have animal waste by products for brains.

Bear

Money will still be made the old fashion way.....
holding up liquer stores.

Tonelover

<< <i>Sure- will the day come that eBay raises their selling fees to such a point that you and I will find it prohibitive to sell there? The only ones left may be the big outfits- the SuperSellers that run hundreds of auctions weekly. >>


Pretty much there already. Add Paypal fees and you might as well forget about it.


<< <i>Or, the trust factor will be so tainted that buyers don't use eBay like they do now. >>


Ditto.

With some exceptions of course, all I see when I look around are sellers offering deathtrap coins. As long as there are uninformed buyers it will be fine but for the collector who demands better it is not the place to be. The latter is in the great minority so ebay will have it's place for a while.

goyankeez

In response to the original question- I think so.

I hope ebay cleans up a little more, and cracks down on all the fraudulent buyers and sellers. Hopefully to get rid of the sellers who dupe the public (we know who they are). The feedback system needs to be improved somewhat; and I think with the feedback system, buyers would never lose faith in some sellers. The fees are high, but the service and advertising ebay provides cannot be found elsewhere. For less than $1, I can reach thousands of interested people.

The trend I'm seeing on ebay is towards cheaper items; maybe bargain hunters? A lot of people think they can find a $100 item for $50, and the sellers are playing on this by listing CU Price quotes and pop numbers. But aside from the bargain hunters, buyers will more likely buy in a certain dollar range. There are some great material that are priced accordingly, that nobody buys. A lot with great eye appeal that goes unnoticed on ebay. It gets relisted week after week. This is in the hundred, sometimes thousands of dollars range. But, if you put a $20 slabbed modern, people will buy it. State Quarters?

In the future ebay may not be the place for the big money coins. It may only be profitable to list these coins on Heritage or at convention auctions. I think these coins are still being "tested" on ebay. I'm not sure what the highest price for a coin on ebay, but it's still a long way from some of the B&M auction results.

Just my opinion/observations

BigD5

I agree with a lot of the comments above, and I'll throw my two cents in also. Like any business, or market, things are going to change. There are certain coins that just aren't going to do well on Ebay on a consistent basis. One example would be expensive coins, plain and simple. Most buyers for pricey material want to view the coin BEFORE they purchase it, and aren't going to "gamble" with a scan. Most of these buyers are also in touch with a larger dealer with want lists etc. to find quality pieces, not just pieces. That's not saying expensive material can't be sold on Ebay by a legitimate seller, but I believe the market may be smaller there for that type of material.
The fees play a large part in what is sold on Ebay. If I head to a show and purchase some coins at Greysheet bid, which should be a good price, how much room is left to sell on Ebay with the fees, and paypal too? Not much. That isn't going to work on a consistent basis. I believe that's why there is ample "problem" material listed. There's more room there, for the seller, and you get more stuff listed that a seller is just trying to make "stick". Borderline type material. Not necessarily "bad" coins, but most likely unslabbable.
I too have given up on purchasing raw material on Ebay. It all seems like junk. If it's notated as such, that's fine, but the problems arise when the coin is improperly described.
If trends continue with legitimate sellers bypassing the "hassle" of an Ebay sale, and leaning more towards either a wholesale sale to another dealer, or a retail sale at a show, with the leftover material headed to Ebay, the quality of the listings will continue to go down. Eventually becoming more like a flea market than an actual coin show. I'm not saying there won't be decent stuff available, just a trend going in the other direction.
Got to head to work, I'll check back on this topic later.