DVD sellers losing money on eBay?

Bob63

There are some real bargains to be had in DVDs on eBay now that postage is free. I still see DVDs selling at a start price of 49p or 99p. I have bought several DVDs in the last few days at that price (and I'm talking real discs not the Daily Mail / Times freebies) including one TV box set for 99p. As a purchaser I'm onto a winner but I do feel a slight twinge of guilt that people are losing money selling at these prices.

Given that a DVD is sent as a large letter, the minimum postage cost is going to be 42p Second Class. So taking that 42p postage and adding on the listing fees, final value fees and paypal fees (20p+3.4%), what is the minimum sale price that would ensure a seller gets even one penny of revenue from a sale?

If I'm right, then for a 99p DVD, listing fees are 5p, final value fee 9p, PayPal 24p, postage 42p - a grand total of 80p fees leaving a 19p "profit". And for a 49p DVD, listing fees are 5p, final value fee 4p, Paypal 22p, postage 42p - a total of 73p resulting in a loss of 24p.

goodfella66

Very few DVDs weigh below 100g so the postage is more likely to be 66p Second Class rather than 42p. So, using your figures, a 99p DVD will make a loss of 3p!

soolin

It has always been the case that people will try the 'low price ' start not realising that their items can actually finish at that start price, it is a risk they take. Once they realise what they are doing they will soon stop so don't feel too guilty.

It is the case with books as well, I have bought lots where the postage was actualy more than the total amount I paid. There are lots up there now that will make a loss for the seller so they are either a bit dim or it is a marketing ploy to get people to look at their other goods or to get a good influx of positive feedback.

Bob63

goodfella66 wrote: »

Very few DVDs weigh below 100g so the postage is more likely to be 66p Second Class rather than 42p. So, using your figures, a 99p DVD will make a loss of 3p!

Good point. I know the box set that I have bought will result in a hefty loss for the seller given its weight and the fact that it will need to go as package rather than letter. Like I say, I do feel a little bit guilty although I'll continue to buy while such bargains exists - this is a money saving forum after all!

chja

Nothing to feel guilty about - the seller could always start the listing at a higher price.

zenseeker

chja wrote: »

Nothing to feel guilty about - the seller could always start the listing at a higher price.

Agreed, minimum start price now should be £1.65 based on basic Second Class post, that covers the 'free' P+P. Of course, by the time you factor in other fees you are still making very little on a 99p DVD

StaffsSW

I moved out of the DVD market about a year ago, but given how much the supply network has changed, and how the eBay selling model has changed, I'm waiting a month or so to confirm that many private selelrs will drop out of the eBay selling place due to the "free" postage issue.

This will leave the doors open for larger scale traders to dictate the average market price of discs sold on ebay, and make them profitable and worthwhile to sell again.

Private sellers will always be getting rid of their unwanted personal items, but it will be the business sellers that force the accepted price - much in the same way that the majority DVD buyers were happy to pay £2-£2.50 P&P per disc. I also believe that this same majority will also be happy to pay an extra £2-£3 over previous prices because they now get "free postage"...

It's just a case of making it manageable enough to maintain alongside a full time career...

Bob63

stevew8975 wrote: »

I also believe that this same majority will also be happy to pay an extra £2-£3 over previous prices because they now get "free postage"....

Trouble is that puts you up against the postage-free big boys like Play and HMV who sell brand new discs for as little as £2.99 with free postage - and they don't have to pay final value fees and have a much better deal than 20p+3.4% for their card processing. I reckon the most you will get away with is a £1 bump to cover the true postage cost.

RFW

cheesy.mike wrote: »

Trouble is that puts you up against the postage-free big boys like Play and HMV who sell brand new discs for as little as £2.99 with free postage - and they don't have to pay final value fees and have a much better deal than 20p+3.4% for their card processing. I reckon the most you will get away with is a £1 bump to cover the true postage cost.

Makes you wonder what kind of sellers EBay are trying to attract, people like Play or HMV or Mr Single Item Seller? If it was your business who would you want?
Private sellers will have to find somewhere else to sell, that's what EBay want!

DaisyFlower

I sell the odd dvd when my little one grows out of them but haven't done so since the rules changed.

As a buyer, its far better. I dont mind paying reasonable postage but lots used to be listed at £2+ postage. Hopefully they will make video games the same.

vet8

I sold 1000s of books on Ebay, but have not for a year or so due to shortage of time. I am fairly reluctant to start again despite having sereral thousand still to sell. The more I read about Ebay now the more it puts me off.

I always started listing of basic books, paperbacks and average hardbacks at 99p. I found that attracts customers and you hope it goes higher. Even if it did not I still made a litle bit of cash which made the entire thing worthwhile. If the books went for more - so good.

The trouble with the new restricted postage prices is that you have to factor that in to the sale price and a lot of peope will not look at stuff which starts at a higher price. Ebay does not seem to want little sellers any more, which is a shame.