Understanding the APMEX business model.....or not.....

thebeav

I was just looking for a deal on 10's.....
So I look on the APMEX site. Their 10 ounce silvers are 194.69, if paid by Paypal or credit.....
I look on fleabay, those same bars are 190.00 (ostensibly with a Paypal payment), with free shipping......
So, is ebay paying them to be a player ?

VanHalen

It is unusual but their cost basis on the Ag is likely ~$16/oz giving them some leeway. They certainly get discounts on ebay/pp fees.

APMEX 10ozers on ebay at $190: ebay.com/itm/10-oz-Silver-Bar-APMEX

APMEX 10ozers w/cc $194.69: https://apmex.com/product/27087/10-oz-silver-bar-apmex

derryb

sure would like to know what their FVF percentage is.

Timbuk3

!!!

MilesWaits

Why pay that much over spot for stacking silver?

OPA

@MilesWaits said:
Why pay that much over spot for stacking silver?

It's more profitable then buying overpriced Mint gold or silver medals

bigjpst

@thebeav said:

>

So, is ebay paying them to be a player ?

Yes

BAJJERFAN

@bigjpst said:

@thebeav said:

>

So, is ebay paying them to be a player ?

Yes

Paying them or charging them reduced or no fees? People on other message boards say that eBay doesn't charge them anything. I wonder if PP eats the CC fees and the CC companies eat the reward points. I just don't see how APMEX can sell current issue [2017] one ounce AGEs below what one would calculate to be their [spot + 3%] cost from the mint.

derryb

APMEX gets a lot of future direct website sales from those who buy from APMEX on ebay.

bigjpst

@BAJJERFAN said:

@bigjpst said:

@thebeav said:

>

So, is ebay paying them to be a player ?

Yes

Paying them or charging them reduced or no fees? People on other message boards say that eBay doesn't charge them anything. I wonder if PP eats the CC fees and the CC companies eat the reward points. I just don't see how APMEX can sell current issue [2017] one ounce AGEs below what one would calculate to be their [spot + 3%] cost from the mint.

Hearsay only, but from credible sources that ebay subsidizes sales. Future business or not there is no reason to order from thier website when you can buy it cheaper from the same company on eBay, pay with PayPal at no extra cost and get the items shipped within a couple days.
If it were only them not having to pay the fees I would expect prices to be the same, but if you look most of the time you can order items cheaper from eBay than you can from thier wholesale website.

derryb

Subsidizing the big sellers hurts the smaller sellers who have to compete with prices.

Kkathyl

Don’t believe any of these speculations are correct. I would buy what’s cheapest for you. Most large companies hedge both gold and silver. If it is not in my pocket I don’t worry about it. When I hedged currency I would cover 50% of my exposure then spot buy when market came down. It’s usually budgeted by the year or quarter.
Cheers.

BAJJERFAN

@bigjpst said:

@BAJJERFAN said:

@bigjpst said:

@thebeav said:

>

So, is ebay paying them to be a player ?

Yes

Paying them or charging them reduced or no fees? People on other message boards say that eBay doesn't charge them anything. I wonder if PP eats the CC fees and the CC companies eat the reward points. I just don't see how APMEX can sell current issue [2017] one ounce AGEs below what one would calculate to be their [spot + 3%] cost from the mint.

Hearsay only, but from credible sources that ebay subsidizes sales. Future business or not there is no reason to order from thier website when you can buy it cheaper from the same company on eBay, pay with PayPal at no extra cost and get the items shipped within a couple days.
If it were only them not having to pay the fees I would expect prices to be the same, but if you look most of the time you can order items cheaper from eBay than you can from thier wholesale website.

Agree on the cheaper from their eBay page than from their website most of the time.

VanHalen

@bigjpst said:

@BAJJERFAN said:

@bigjpst said:

@thebeav said:

>

So, is ebay paying them to be a player ?

Yes

Paying them or charging them reduced or no fees? People on other message boards say that eBay doesn't charge them anything. I wonder if PP eats the CC fees and the CC companies eat the reward points. I just don't see how APMEX can sell current issue [2017] one ounce AGEs below what one would calculate to be their [spot + 3%] cost from the mint.

Hearsay only, but from credible sources that ebay subsidizes sales. Future business or not there is no reason to order from thier website when you can buy it cheaper from the same company on eBay, pay with PayPal at no extra cost and get the items shipped within a couple days.
If it were only them not having to pay the fees I would expect prices to be the same, but if you look most of the time you can order items cheaper from eBay than you can from thier wholesale website.

Like most retail venues some sales are at a loss. ebay/Paypal can afford to take a loss on some APMEX sales and make it up, and then some, on other APMEX sales. You can be sure ebay/Paypal would not subsidize all APMEX sales in the long run. A flat rate across the board fee arrangement is also a possibility for covering a portion of their expenses.

I have never heard APMEX's website referred to as a wholesale website. It is not.

BAJJERFAN

@VanHalen said:

@bigjpst said:

@BAJJERFAN said:

@bigjpst said:

@thebeav said:

>

So, is ebay paying them to be a player ?

Yes

Paying them or charging them reduced or no fees? People on other message boards say that eBay doesn't charge them anything. I wonder if PP eats the CC fees and the CC companies eat the reward points. I just don't see how APMEX can sell current issue [2017] one ounce AGEs below what one would calculate to be their [spot + 3%] cost from the mint.

Hearsay only, but from credible sources that ebay subsidizes sales. Future business or not there is no reason to order from thier website when you can buy it cheaper from the same company on eBay, pay with PayPal at no extra cost and get the items shipped within a couple days.
If it were only them not having to pay the fees I would expect prices to be the same, but if you look most of the time you can order items cheaper from eBay than you can from thier wholesale website.

Like most retail venues some sales are at a loss. ebay/Paypal can afford to take a loss on some APMEX sales and make it up, and then some, on other APMEX sales. You can be sure ebay/Paypal would not subsidize all APMEX sales in the long run. A flat rate across the board fee arrangement is also a possibility for covering a portion of their expenses.

I have never heard APMEX's website referred to as a wholesale website. It is not.

I was told more than a few years ago that they had a separate tier for dealer pricing, but that they were getting and have pretty much gotten away from that practice. I have never considered them as an across the board wholesaler altho they have decent deals at times.

bronco2078

Don't forget they also have stuff listed for ridiculous markups all the time. So maybe they lose $10 on a bullion gold eagle but make $10 each on every VF morgan they sell. I think they turn a profit in that scenario

bigjpst

@VanHalen said:

@bigjpst said:

@BAJJERFAN said:

@bigjpst said:

@thebeav said:

>

So, is ebay paying them to be a player ?

Like most retail venues some sales are at a loss. ebay/Paypal can afford to take a loss on some APMEX sales and make it up, and then some, on other APMEX sales. You can be sure ebay/Paypal would not subsidize all APMEX sales in the long run. A flat rate across the board fee arrangement is also a possibility for covering a portion of their expenses.

I have never heard APMEX's website referred to as a wholesale website. It is not.

Apmex has both a retail and a wholesale website.

I would also guess that eBay doesn’t subsidize all of the items that Apmex lists or sells on the site but I believe the person who told me that they do in fact subsidize certain bullion items.

I just looked and currently Apmex has 2018 Silver Eagles for $19.74 pre order up to 299 or $19.54 if you order more than 300.

Apmex on ebay they are $19.985 if you buy a roll of 20.

Apmex retail has them for $19.99 if you buy 500+ and pay with check or wire. Otherwise if you buy a roll on the retail site they start at 20.99.

I have personally seen them cheaper on ebay than on the wholesale site although that doesn't seem to be the case right now.

BAJJERFAN

@bigjpst said:

@VanHalen said:

@bigjpst said:

@BAJJERFAN said:

@bigjpst said:

@thebeav said:

>

So, is ebay paying them to be a player ?

Like most retail venues some sales are at a loss. ebay/Paypal can afford to take a loss on some APMEX sales and make it up, and then some, on other APMEX sales. You can be sure ebay/Paypal would not subsidize all APMEX sales in the long run. A flat rate across the board fee arrangement is also a possibility for covering a portion of their expenses.

I have never heard APMEX's website referred to as a wholesale website. It is not.

Apmex has both a retail and a wholesale website.

I would also guess that eBay doesn’t subsidize all of the items that Apmex lists or sells on the site but I believe the person who told me that they do in fact subsidize certain bullion items.

I just looked and currently Apmex has 2018 Silver Eagles for $19.74 pre order up to 299 or $19.54 if you order more than 300.

Apmex on ebay they are $19.985 if you buy a roll of 20.

Apmex retail has them for $19.99 if you buy 500+ and pay with check or wire. Otherwise if you buy a roll on the retail site they start at 20.99.

I have personally seen them cheaper on ebay than on the wholesale site although that doesn't seem to be the case right now.

How does one access the wholesale site? I assume that you have to register as a dealer for that.

bigjpst

@BAJJERFAN said:

@bigjpst said:

@VanHalen said:

@bigjpst said:

@BAJJERFAN said:

@bigjpst said:

@thebeav said:

>

So, is ebay paying them to be a player ?

Like most retail venues some sales are at a loss. ebay/Paypal can afford to take a loss on some APMEX sales and make it up, and then some, on other APMEX sales. You can be sure ebay/Paypal would not subsidize all APMEX sales in the long run. A flat rate across the board fee arrangement is also a possibility for covering a portion of their expenses.

I have never heard APMEX's website referred to as a wholesale website. It is not.

Apmex has both a retail and a wholesale website.

I would also guess that eBay doesn’t subsidize all of the items that Apmex lists or sells on the site but I believe the person who told me that they do in fact subsidize certain bullion items.

I just looked and currently Apmex has 2018 Silver Eagles for $19.74 pre order up to 299 or $19.54 if you order more than 300.

Apmex on ebay they are $19.985 if you buy a roll of 20.

Apmex retail has them for $19.99 if you buy 500+ and pay with check or wire. Otherwise if you buy a roll on the retail site they start at 20.99.

I have personally seen them cheaper on ebay than on the wholesale site although that doesn't seem to be the case right now.

How does one access the wholesale site? I assume that you have to register as a dealer for that.

Yes. You have to set up a dealer account. Resale/business license.