Ebay Basics
September 29th 2006 03:07
Ebay is a hugely successful Internet venture founded in the 1990s. It began as simply an online auction site, but has grown into much more. Real Estate is even sold on Ebay, that’s how huge it has gotten.
I mentioned how traditional auctions rarely provide bargains. At any time, one seller has 300 buyers to compete for his item. Ebay creates more of a free market equilibrium.
What I mean by this is that it really depends on the demand for the item. Let’s say Gary Carter baseball cards are in huge demand and selling at a very high price. If you’re going to get a Gary Carter baseball card, you’re going to have to compete against a lot of people wanting the same card. So, it’s going to be a seller’s market for that particular card.
On the other hand, if you’re looking for a Coleman Camp stove and few people actually want a Coleman Camp Stove at that moment, you’ll have fewer bidders and you’ll get the item at a lower price. Thus, it’s a buyer’s market.
Ebay also beats traditional auctions in the way the bidding works. Bidding on a traditional auction, you find adrenaline pushing you to bid higher than you planned. At Ebay, when you bid, you’re setting what your maximum will be. So, thus if I see an item being bid on for a $1 that I’d be willing to pay $5 for, I bid $5. If no one else bids, I still get the item for $1. Of course, you can still get into a bidding war if you check your e-mail.
Many wonder, what can you get on Ebay? The question really is, “What can’t you get? What’s for sale on Ebay isn’t just old junk from someone’s attic. You can get Alligator Jerky, Sam Nunn for President campaign buttons, and more. I know one person at work who wears extremely nice suits to work. His source: E-bay. There is so much there, and over the course of the next week, we’re going to unwrap this bargain hunter’s paradise.
I mentioned how traditional auctions rarely provide bargains. At any time, one seller has 300 buyers to compete for his item. Ebay creates more of a free market equilibrium.
What I mean by this is that it really depends on the demand for the item. Let’s say Gary Carter baseball cards are in huge demand and selling at a very high price. If you’re going to get a Gary Carter baseball card, you’re going to have to compete against a lot of people wanting the same card. So, it’s going to be a seller’s market for that particular card.
On the other hand, if you’re looking for a Coleman Camp stove and few people actually want a Coleman Camp Stove at that moment, you’ll have fewer bidders and you’ll get the item at a lower price. Thus, it’s a buyer’s market.
Ebay also beats traditional auctions in the way the bidding works. Bidding on a traditional auction, you find adrenaline pushing you to bid higher than you planned. At Ebay, when you bid, you’re setting what your maximum will be. So, thus if I see an item being bid on for a $1 that I’d be willing to pay $5 for, I bid $5. If no one else bids, I still get the item for $1. Of course, you can still get into a bidding war if you check your e-mail.
Many wonder, what can you get on Ebay? The question really is, “What can’t you get? What’s for sale on Ebay isn’t just old junk from someone’s attic. You can get Alligator Jerky, Sam Nunn for President campaign buttons, and more. I know one person at work who wears extremely nice suits to work. His source: E-bay. There is so much there, and over the course of the next week, we’re going to unwrap this bargain hunter’s paradise.
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