Selling on eBay: much has been written about it in articles, websites, and even books. Other websites have come along, but it seems that the number 1 online marketplace remains eBay. It can be daunting; many are afraid of high costs or don’t think it’s feasible to sell this way. As someone who has bought quite a bit on eBay–and increased sales for my company though the auction Web site–I have experience with this format. In this article, I will attempt to elucidate the ins-and-outs of what I consider to be something of a “necessary evil”: selling coin and currency on eBay, especially when it comes to the auction format.
It seems that every collector, dealer, or investor has an opinion about the Web site. I hear a lot of negative comments from both buyers and sellers. Some examples are:
“It’s expensive to sell on eBay.”
“I have sold on eBay before but didn’t get what I wanted for (insert item).”
“eBay always sides with the buyer when problems arise.”
And so on. Let’s take a closer look at these three statements and I’ll give you some tips that might help you overcome these reservations. As a disclaimer, please note that I’m not out to promote eBay. If I could abandon eBay, I would do it in a heartbeat. But as I hope will become clear, the site can be useful and even advantageous when handled correctly.
1. “It’s expensive to sell on eBay”
One of the most common arguments is that it is super expensive to sell on eBay. Fees of 10%-15% are claimed on average, according to many quotes. Add to that the fact that most buyers will want to pay with Paypal–which of course also takes it cut–and the costs just seem to be stacking up. But what is the true cost?
eBay’s fee system is reasonably simple: sales cost 10% of the asking price, while sellers with a store subscription pay 6% (these figures are based on the “coin & paper money” category; other categories may incur different fees). The cheapest store subscription costs $15 per month, and the 4% in savings easily adds up if you sell more than a few items. Furthermore, if you sell more than 20 or so items a month, it is relatively easy to become a “powerseller,” which results in a further 20% discount.
Certain requirements need to be met, but if you care about your customers, and follow a few simple rules, the discount is quite easy to get. As such, a seller with regular sales would expect to pay 4.8% in fees. Paypal fees and miscellaneous listing fees add another 3% or so, and a seller on eBay would pay about 8% on each item sold. Now, the coin and currency business is one that generally works on very slim margins, and if you do not factor in this 8% expense it’s hard to make money.
Let’s take a look at options other than eBay when it comes to selling online. Anyone attempting to sell on the internet needs to accept some sort of electronic payment. Credit card fees are generally in the 2.5% to 3% range. Then you would have to have a Web site or other online venue from which to sell. A domain name is easily and cheaply purchased, but Web site design and acquisition are anything but cheap. Any new business can reasonably expect to pay thousands of dollars in startup costs and advertising before selling even a single item. My own site has been active for over a year and while I do get some traffic, the items I have sold can be counted on the fingers of one hand. Despite this, I have put quite a bit of money into design, advertising, and other necessities; when you factor this in, the 4.8% eBay charge doesn’t seem that bad, especially since you don’t pay until you have sold something.
Some numismatic offerings on eBay.
2. “I have sold on eBay before but didn’t get what I wanted for (insert item)”
Now here’s where eBay’s algorithm for displaying search results comes in. Simply stated, eBay favors sellers that have a proven track record of selling items, as that results in money for eBay. If you’re new, with few past sales, it is harder for users to find your items. Also, if you only list a few items, they tend to get lost in the maze, and your results might not be as good as you were expecting. This is particularly true for the auction-style format: I have noticed that my auctions tend to do better when I list at least 20-25 items ending in a relatively short period of one other. Of course, this also depends on other factors (time of day or week; other sellers offering similar items at the same time; your track record on eBay), but as a new seller it’s always good to keep the following in mind:
-When new, it’s best to list cheap, recognizable items (such as <$25 certified coins) first.
-When using the auction-style format, try to list a decent quantity of items with auctions ending around the same time.
There are always weeks when it seems like there is no bidding going on and nobody wants your items. It happens, unfortunately, but my advice is not to give up too easily, and to factor such weeks in with your expectations.
3. “eBay always sides with the buyer in case of problems”
Unfortunately, it is quite difficult to refute this. eBay’s money-back-guarantee program favors buyers and their experience, which often results in sellers complaining that eBay just took their money after someone claimed they didn’t receive an item, received it damaged, or found it to be other than described. Often a simple email with explanations will do, but sometimes you get someone who tries to scam you. This is another thing to factor in when you start selling on eBay: just like in real life, you are going to run into people that you would rather avoid. My only advice for this is to not get too hung up on it. Try to look past it and move on.
Conclusion
These are just a few things I have run into dealing in eBay sales. Every start is difficult, but when it comes to selling coins and currency eBay must be considered, if only as an alternative for moving things you might not want anymore, or as a means of raising cash for other purchases.
There’s one more thing that I’d like to mention. Some of my best customers and friends were people who bought a single item from me on eBay, then paid attention to the business card I put in the package and contacted me directly. This, for me, is one of the true values of eBay — being able to redirect customers to other contact methods, so I can begin to deal with them directly, avoiding many of the costs I have outlined above.
Please don’t hesitate to ask any questions in the comments section and I will answer them to the best of my ability.
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You forgot to mention coin photos and presentation(including spelling). I bought a nice ‘commeritive’ coin for below wholesale because the seller misspelled the coin name and there was no bidding. For coins, clear in focus photos of both sides of the coin are key to higher prices.
Dennis,
Thank you for your in-site with selling on Ebay. I am an Ebay buyer and have over a 1300 rating at 100%.
I have pondered on trying to sell some duplicates off on Ebay. So I found this of great interest. Will my purchasing rating of over 1300 be of any help when I should decide to sell items on Ebay?
Having a feedback rating of 1300 is definitely not going to hurt. However, when it comes to eBay, I do not believe that such a rating helps much if anything when it comes to placements of your items in eBay’s algorithm. Of course, it does confirm that your are an established member, and to some buyers this may carry some weight.
Old Big Bird – I can definitely state that your 1300 rating only shows you to be a worthy buyer or seller on ebay. It really won’t get you anything else.
tag
Using “fixed price” listings is the only way to sell on Ebay. Listing is free and your item never sells for less than you want. You can modify the listing as necessary.
I quit selling coins on the bay for these very reasons; coinauction d0t c0m has been really good; especially with much lower fees.
I have had good success both buying and selling coins on eBay. I agree with the comment left by Matt Anderson, real bargains can be found when sellers list items incorrect spelling.
I have had great luck on ebay buying and selling junk silver. Any problems that arose were small, and dealt with in a few emails back and forth from buyer to seller. The majority of the Ebay community, sellers and buyers, tend to go out of their way to help. Yes, most times I pay a little more than going to a coin dealer, but I also sell for more. I prefer Ebay because its safe, effective, and I have never had a problem to the point of involving Ebay. My score is almost 400, all 100%, just as I have always gave 100% because it was deserved.
I have been selling and buying mostly selling, since 1999 on eBay. I have over 1000 feedback 100% positive, in all these years I have had 2 neutral, no negative. I have had a few problems with buyers but not anything serious, most of my problems have been with eBay for that reason I plan to quit selling at the end of the year. The worst problem was that I was selling a gold First Spouse MS 70 and was charging for priority shipping and insurance and eBay took it upon themselves to change my shipping charge saying it was excessive, needless to say I had to eat about $15 on that one item. Most of my coins come from one of the mints, (U.S., Australia, or New Zealand) so with me having to pay 12.9% + $.30 (eBay + PayPal), not enough left for me, so good luck to all that can hang in there.
I do not understand were the author is getting his fee expenses from? Ebay charges 10% of the Selling price not the asking price, plus 10% of the shipping charges! I have heard you can save a little bit on selling fees having an Ebay store but they get that back in there monthly fee for just having the store! Several sellers have told me The only way it is cost effective to have a store is if you are selling in excess of 100 items a month. Paypal is also charging about 3-4% of the selling price plus 3-4% of the shipping. And make sure you give accurate shipping expenses. if you quote the shipping too low, then you are stuck paying more for shipping then you are receiving from the buyer! But this all being said Ebay is still a great place to sell items, just expect to pay more in fees than the author said! I have been selling on Ebay since 2004 and I will continue to sell there!
My wife and I are powersellers on Ebay (used clothing and other items). Average expenses are about 15% including Paypal costs (average over 3 years). One of the big positives of Ebay is the lack of theft vs. having a brick and mortar store. No shoplifters! We have very few people who try to rip us off since we use tracking on all sales and can prove the item was delivered. Also, Ebay has been very fair in it’s treatment of any problems we’ve have as sellers.
When we first started buying on Ebay, I was purchasing pennies, dimes and silver state quarters. It was a very pleasant experience and an easy way to pick up a positive rating. And I did find some nice deals on auctions! Due to the fees, and shipping charges, it is hard for the seller of (less expensive) coins to make money, in my opinion.
I hope this helps with any buyers/sellers considering Ebay!
To K Hollenbeck:
The fees I mentioned are real-live examples. As I mentioned in the article it is relatively easy to get the rate down to 4.8%, which is approximately the effective rate. Paypal is 2.9% for domestic transactions, not the 3-4% as you mention.
The bottom line is simple: if you only sell a few items per month it is not worth getting a store subscription and get the lower fees (as you say). However, the $15 is easily offset by, for example, ten $50 coins or 5 $100 coins, which is within the scope of many collectors when they decide to sell some duplicates, and it should definitely not be a problem for dealers.
You are right about the fact that eBay and paypal also charge their fees on shipping charges; I forgot to mention this in the article, and it is definitely something to keep in mind.
Well my real live examples are I just sold 4 items this past week on Ebay and my fees were the amounts I stated earlier! would love to know how to to pay only 4.8% I have been selling on there since 2004 and have 700 plus positive feedbacks. I agree with Bruce says average total fees are about 15%
Great article Dennis, thanks for sharing!
Would welcome hearing your thoughts regarding the best day of week and time to end an auction, & what times of year, if any, items move quicker – Thanks
First of all, if you want decent amount of money for a coin or banknote AND it is not either a) unique or b) in extremely hot demand (think a new U.S. Mint product) I would avoid selling in June, July or August. The summer months are very slow on eBay when it comes to numismatics; don’t forget that this is an indoor hobby!
As for the best time and day, there’s many different opinions on this. Personally I don’t think it matters all that much. I settle for Sunday evenings and they do fine, while others only do Friday nights or Saturday mornings. I think it is personal preference and what works for you. Only thing I might add is that if you sell U.S. related coins or currency is to avoid U.S. holiday weekends.
what does it realy cost all in all just say you sold a coin for£25 post £2.50 what would you end up with