Bidders Premium?

[PwKw13]

Tony, I've always felt they charge a buyers premium so that they are able to attract more consignments. The Attraction there is that the seller gets exactly what the item sold for, and the action house makes their money off of the buyer.

Don't the auction houses normally charge a consignment fee to the seller so that they get less than the item sold for? I believe they actually make money off of both the buyer (buyer's premium) and seller (consignment fee).

[gorilla777]

Don't the auction houses normally charge a consignment fee to the seller so that they get less than the item sold for? I believe they actually make money off of both the buyer (buyer's premium) and seller (consignment fee).

Yes, most of the time there is a commission.
So I consign something with 10% commission, that you then end up winning at hammer price of $1k. I net out $900, you pay a total of $1,200 (usually buyer premium is 20%) and auction house take is $300.

[yankees506]

Yes, most of the time there is a commission.
So I consign something with 10% commission, that you then end up winning at hammer price of $1k. I net out $900, you pay a total of $1,200 (usually buyer premium is 20%) and auction house take is $300.

Wow, learn something new everyday!

[3arod13]

Wow, learn something new everyday!

+1

[yosef777]

It comes down to greed IMO, auction houses, ebay, etc. want to 'double dip' hitting the seller AND the buyer.

[Masimen]

It comes down to greed IMO, auction houses, ebay, etc. want to 'double dip' hitting the seller AND the buyer.

Not that I am defending eBay, but they don't "double dip". Only the seller
Pays. As for other traditional auction houses, charging a buyers premium and charging a commission to the seller is age old practice. Not sure how it amounts to greed. They are running a business.

[xpress34]

Not that I am defending eBay, but they don't "double dip". Only the seller
Pays. As for other traditional auction houses, charging a buyers premium and charging a commission to the seller is age old practice. Not sure how it amounts to greed. They are running a business.

Actually they do 'double dip' the seller - and really it's a 'triple dip'.

They charge the seller a Listing Fee - (1st Dip)

They charge the seller a 'Final Valuation Fee' - (2nd Dip)

They charge the seller a fee on the funds they collect (PayPal is an eBay company which is why they stopped allowing payment by check or M.O.) - (3rd Dip)

So the seller pays to 'try' and sell, pays when it 'does' sell and pays again when they get 'paid'...

Which is part of why Sellers tend to raise prices on eBay - to cover all the fees!

[danesei@yahoo.com]

They charge the seller a fee on the funds they collect (PayPal is an eBay company which is why they stopped allowing payment by check or M.O.) - (3rd Dip)

This is not an accurate statement. Checks/MO aren't banned as payment methods for all categories, just most of the ones that matter.

[emann]

Not that I am defending eBay, but they don't "double dip". Only the seller
Pays.

Their "double dip" is forcing buyers to pay via Paypal (which they own) for all transactions. Add 2.9% to the seller to receive payment... I think this rule (and exclusion of money orders and checks) ended up alienating a number of sellers.

[emann]

Their "double dip" is forcing buyers to pay via Paypal (which they own) for all transactions. Add 2.9% to the seller to receive payment... I think this rule (and exclusion of money orders and checks) ended up alienating a number of sellers.

I answered and then read Smitty's response—what he said!