Launching new Auction Site??

PASCALI

Then again, if OP is serious he should recall the saying, if you cant beat them join them, Ebay will be No 1 for years to come, with 10K a month you could easily double or triple your investment each month, we are selling goods people want and are clearing a net profit of 60% after deducting paypal and ebay fees, the secret is in the buying and sourcing.

Tojo_Ralph

PASCALI wrote:

Make it free for sellers, all buy it nows, charge buyers a premium, prices would therefore be approx 20% lower than Ebays and buyers would pay a 5% or so fee to buy at that price.

OK.... Lets test this one.

EBay
Item Sells for £50
My fees assuming I have accepted Paypal = max of 9% or £4.50
£50 Less £4-50 = £45-50

Terrymats Emporium
Item Sells for £40 (20% less than EBay as suggested)
My fees 0% or £0.00 (Buyer pays all fees)
£40 Less £0-00 = £40-00

So I stick with EBay? Right?

PASCALI

The 20% was an approximate, it is not an exact figure, but
For £50 basic listing fee is £1.50, at that price you would probably want gallery and bold, therefore listing fee approx £2, final fee is £2.22, paypal fee say£1.50, therefore assuming you sell cost is £5.72. Any seller should factor in that not all will sell, if you assume 1 out of 3 sells then listing fee per sold item becomes an average of £4 bringing cost per sold item to £7.72.
Now as a seller if it wasnt costing me anything whatsoever to list I would happily trade off a bit of profit, as it is risk free, therefore I stand by my 20%

Tojo_Ralph

PASCALI wrote:

The 20% was an approximate, it is not an exact figure, but
For £50 basic listing fee is £1.50, at that price you would probably want gallery and bold, therefore listing fee approx £2, final fee is £2.22, paypal fee say£1.50, therefore assuming you sell cost is £5.72. Any seller should factor in that not all will sell, if you assume 1 out of 3 sells then listing fee per sold item becomes an average of £4 bringing cost per sold item to £7.72.
Now as a seller if it wasnt costing me anything whatsoever to list I would happily trade off a bit of profit, as it is risk free, therefore I stand by my 20%

I honestly didnt realise people actually paid for all those adders !! :eek:

As for paying for all them adders ..... and only 1 in 3 sells. :eek:

If all the above is true, surely you must be considering a different line of business?

PASCALI

No I am doing just fine, we keep it simple, sell for less than £10, hike up the p&p (not excessive though) average profit (after Ebay fees etc) 60%, I am happy with that.

soolin

PASCALI wrote:

The 20% was an approximate, it is not an exact figure, but
For £50 basic listing fee is £1.50, at that price you would probably want gallery and bold, therefore listing fee approx £2, final fee is £2.22, paypal fee say£1.50, therefore assuming you sell cost is £5.72. Any seller should factor in that not all will sell, if you assume 1 out of 3 sells then listing fee per sold item becomes an average of £4 bringing cost per sold item to £7.72.
Now as a seller if it wasnt costing me anything whatsoever to list I would happily trade off a bit of profit, as it is risk free, therefore I stand by my 20%

I think the figures really depend on what you are selling. A £50 item with a nice gallery pic would cost only £1.65 I wouln't bother with bold or anything at that sort of price.

As for only 1 in 3 items selling, if I had those sort of stats I would give up now! I reckon on at least 80% of my items closing with a bid, if i get less than 60% I stop that particular line and move on to something different.

So, my buyers can either buy from me on ebay at a price I am happy to take, or buy from me on another site where they have to pay a buyers premium to do so..um, why wouldn't they then buy from me on ebay? I can't lower my price for a new site to meet any 20% less rules, my items are low end items and I list the majority at £4.99 which costs me 20p. I'm not that eager to sacrifice my buyers to save 20p.

As for alternative payment methods, I use paypal as that is the only method that I can use with ease for my foreign buyers, I would either have to use paypal on another site and pay the fees or stop selling overseas and lose my buyers.

Soo

justpaper

i think every one should just wait for terrymats to do his resreach then when he comes back with a final price plan every one should comment then,.

PASCALI

The £4.99 costs 20p + 26p final value, and assuming that 2 out of 3 sell for you then add another 7p giving costs of 53p, therefore you are effectively selling it for £4.43.
If you could list the same item on a site for no fee (obviously you would carry on selling through Ebay at the same time), what would you sell it for ?.
My £4.99 items cost me $2 delivered max (£1.20) therefore I would have no problem listing at £4 on the basis that it cost nothing to me.
I take your point re paypal.
This is fairly academic as I would reiterate my point above that the opening poster - Terry - would get a much better return by getting stuck into ebay rather than fighting it.

PASCALI

An 80% success rate is very good, the figures below are a year out of date and are based in usa, but they show the average is 40%,

All Categories - 41%
**************************
Antiques - 35%
Art - 20%
Books - 37%
Business & Industrial - 37%
Clothing, Shoes & Accessories - 42%
Coins - 59%
Collectibles - 39%
Computers - 32%
Consumer Electronics - 29%
Dolls & Bears - 44%
Entertainment - 38%
Everything Else - 41%
Home - 38%
Jewelry & Watches - 47%
Musical Instruments - 41%
Pottery & Glass - 44%
Real Estate - 45%
Specialty Services - 17%
Sports - 43%
Stamps - 49%
Tickets - 50%
Toys & Hobbies - 47%
Travel - 39%

PASCALI

And therein lies the problem with any proposed new site, if Ebay with all its might and power has a sell through rate of 40% then I would guess that competitors would be lucky to get 0.25%, therefore anyone selling on Ebay is well advised to devote their time and effort and to selling on Ebay.