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How they sell on eBay with credit card

GazesGazes Posts: 2,315 ✭✭✭✭✭
in Precious Metals
There are usually some special by the big sellers on eBay offering a decent price on bullion. I don't see how they can do it with eBay fees, credit card fees and free shipping ?

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  • derrybderryb Posts: 36,823 ✭✭✭✭✭
    If they're loosing money it's because they believe they will lose more money later, they need the cash flow, or they're trying to build a customer base.

    In many cases they bought bulk when prices were lower.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • OPAOPA Posts: 17,121 ✭✭✭✭✭
    Originally posted by: Gazes
    There are usually some special by the big sellers on eBay offering a decent price on bullion. I don't see how they can do it with eBay fees, credit card fees and free shipping ?


    What makes you think that they are loosing money? Net eBay fees around 4.5% cc fees approx 2 - 2.5%. PM's have been at least 10-15% lower earlier this & last year.
    "Bongo drive 1984 Lincoln that looks like old coin dug from ground."
  • piecesofmepiecesofme Posts: 6,669 ✭✭✭
    Originally posted by: Gazes

    There are usually some special by the big sellers on eBay offering a decent price on bullion. I don't see how they can do it with eBay fees, credit card fees and free shipping ?




    Where are these sellers you speak of? I want to buy them out, money talks, right?!
    To forgive is to free a prisoner, and to discover that prisoner was you.
  • PokermandudePokermandude Posts: 2,713 ✭✭✭
    The biggest sellers don't pay nearly as high of fees as the smaller sellers.
    http://stores.ebay.ca/Mattscoin - Canadian coins, World Coins, Silver, Gold, Coin lots, Modern Mint Products & Collections
  • GazesGazes Posts: 2,315 ✭✭✭✭✭
    Originally posted by: piecesofme

    Originally posted by: Gazes

    There are usually some special by the big sellers on eBay offering a decent price on bullion. I don't see how they can do it with eBay fees, credit card fees and free shipping ?




    Where are these sellers you speak of? I want to buy them out, money talks, right?!




    Don't get me wrong --they aren't giving it away. But 1 oz American eagle for $30 over spot. So I'm thinking with the eBay fee, the shipping and the credit card fee that seems like a small margin (unless they got in at a super low price)



  • ebaytraderebaytrader Posts: 3,312 ✭✭✭
    Originally posted by: Pokermandude
    The biggest sellers don't pay nearly as high of fees as the smaller sellers.



    I'd hazard a guess and say that they pay no fees, and may even get a kickback from feepay to run "specials" to paper over feepay's numbers - especially towards the end of reporting periods.

    There's not enough margin in PMs to sell on feepay. Since these big sellers are not big buyers on the dealer wire it leads me to believe they have reliable wholesalers that could open their own retail operations if they weren't getting close to the wholesale margin. That only leaves room for feepay to make special deals...imho.
  • OPAOPA Posts: 17,121 ✭✭✭✭✭
    Originally posted by: ebaytrader
    Originally posted by: Pokermandude
    The biggest sellers don't pay nearly as high of fees as the smaller sellers.



    I'd hazard a guess and say that they pay no fees, and may even get a kickback from feepay to run "specials" to paper over feepay's numbers - especially towards the end of reporting periods.

    There's not enough margin in PMs to sell on feepay. Since these big sellers are not big buyers on the dealer wire it leads me to believe they have reliable wholesalers that could open their own retail operations if they weren't getting close to the wholesale margin. That only leaves room for feepay to make special deals...imho.


    Nonsense....The big bullion sellers on eBay do not need the "dealer wire," and we are talking bullion coins. Some are authorized buyers of PM products from the US Mint but also major world Mints like Canadian & Australian. We all know that most major world Mints will only sell the bullion coins to a select few bullion dealers and not directly to the public.
    "Bongo drive 1984 Lincoln that looks like old coin dug from ground."
  • BAJJERFANBAJJERFAN Posts: 31,082 ✭✭✭✭✭
    They [smoeone like APMEX] may well have loaded up during the recent pullback to around $1200. Today they'd be paying $38 over right from the Mint. If they're making money after eBay, PP and shipping; common sense would dictate that they got them cheaper from somewhere.
    theknowitalltroll;
  • bigjpstbigjpst Posts: 3,101 ✭✭✭✭✭
    The big sellers don't try and time the market. They buy constantly, hedge with paper, and make money when metals are rising and falling. The margin may be a bit less because of fees on ebay, but I doubt they are really losing money.
    JRobinsonRareCoins.com

    My Ebay Store

  • BAJJERFANBAJJERFAN Posts: 31,082 ✭✭✭✭✭
    Originally posted by: Gazes

    There are usually some special by the big sellers on eBay offering a decent price on bullion. I don't see how they can do it with eBay fees, credit card fees and free shipping ?




    like this?
    theknowitalltroll;
  • coinspackscoinspacks Posts: 1,010 ✭✭✭✭
    i think they are just buying a mailing list of future people...but then again, i have bought many ebay deals and never got a spam email afterwards
  • BBNBBN Posts: 3,761 ✭✭✭
    Originally posted by: Gazes


    Don't get me wrong --they aren't giving it away. But 1 oz American eagle for $30 over spot.




    Many of these people can buy in bulk from the mint and probably paid $1100 or less back in December or January for the bulk of that they're selling that close to spot.

    Positive BST Transactions (buyers and sellers): wondercoin, blu62vette, BAJJERFAN, privatecoin, blu62vette, AlanLastufka, privatecoin

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  • BAJJERFANBAJJERFAN Posts: 31,082 ✭✭✭✭✭
    Originally posted by: BBN

    Originally posted by: Gazes





    Don't get me wrong --they aren't giving it away. But 1 oz American eagle for $30 over spot.









    Many of these people can buy in bulk from the mint and probably paid $1100 or less back in December or January for the bulk of that they're selling that close to spot.




    IIRC there are 12 outfits/APs that can buy from the Mint at $2 over spot. Most of them likely don't sell on eBay. If I was APMEX it would not be worth the effort to sell ASEs on eBay at $4 over spot. The profit after expenses isn't worth it. An AP can't afford to sit on bullion for months at a time.
    theknowitalltroll;
  • BBNBBN Posts: 3,761 ✭✭✭
    I've always wondered why people just can't buy bulk bullion from the mint. Anyone know why?

    Positive BST Transactions (buyers and sellers): wondercoin, blu62vette, BAJJERFAN, privatecoin, blu62vette, AlanLastufka, privatecoin

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    #2 1980 Topps Los Angeles Rams Team Set
    #8 (and climbing) 1972 Topps Los Angeles Rams Team Set
  • Jinx86Jinx86 Posts: 3,710 ✭✭✭✭✭
    To buy directly from the mint requires $1Million a month in purchases and a number of other requirements.

    The big ebay players do get paid to sell on ebay to some extent.

  • BAJJERFANBAJJERFAN Posts: 31,082 ✭✭✭✭✭
    Originally posted by: BBN

    I've always wondered why people just can't buy bulk bullion from the mint. Anyone know why?




    Probably for the same reason that you can't buy a car from the Ford factory or a case of cans of pork and beans direct from Campbell. Too much expense and hassle to process so many tiny orders.



    Also one of the other requirements is that you be a market maker in the ASEs, AGEs, etc. So you'd be expected to buy from your customers/others if they wanted to sell back to you.



    If you wanted to buy 5 MBs of ASEs you can get them for $2.19 over delivered from an AP so it's really a wash since you would be required to pay shipping from the mint.
    theknowitalltroll;
  • BBNBBN Posts: 3,761 ✭✭✭
    Makes sense, but the Mint takes small orders for oddball things as half dollar rolls or mint sets. I guess adding basic bullion would just slam them with orders and be overwheling

    Positive BST Transactions (buyers and sellers): wondercoin, blu62vette, BAJJERFAN, privatecoin, blu62vette, AlanLastufka, privatecoin

    #1 1951 Bowman Los Angeles Rams Team Set
    #2 1980 Topps Los Angeles Rams Team Set
    #8 (and climbing) 1972 Topps Los Angeles Rams Team Set
  • BAJJERFANBAJJERFAN Posts: 31,082 ✭✭✭✭✭
    Originally posted by: BBN

    Makes sense, but the Mint takes small orders for oddball things as half dollar rolls or mint sets. I guess adding basic bullion would just slam them with orders and be overwheling




    The mint was selling to individuals long before the bullion program started in 1986. Perhaps the distribution of the bullion coins was mandated by Congress. I expect the mint's website has more info.

    theknowitalltroll;
  • OverdateOverdate Posts: 7,008 ✭✭✭✭✭
    Originally posted by: BAJJERFAN
    Originally posted by: Gazes
    There are usually some special by the big sellers on eBay offering a decent price on bullion. I don't see how they can do it with eBay fees, credit card fees and free shipping ?


    like this?

    More like this.
    Between 2% eBay bucks and 2% cash back on my credit card, I would pay $1412 and change, or about a 3.4% premium.

    If I waited for a 6% eBay bucks promotion, I would pay $1353 and change, or about a 0.8% discount.

    My Adolph A. Weinman signature :)

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