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The danger of the eBay auction-style format

for sellers that is. Even though I don’t sell much on eBay (I mainly buy), I’ve always thought that selling on eBay via the no-reserve auction format can be filled with danger for the seller.

It is sometimes said that when you hold a no-reserve eBay auction, you are letting the market determine what your item what your item will sell for. But I absolutely do not think that is always the case. In fact, selling via a NR auction on eBay can leave a seller feeling like he or she just gave their item away because it may sell WAY BELOW true market value. In fact, NR auctions are probably the best method for buyers and re-sellers on eBay to get some items for bargain-basement prices.

In fact, I found a pretty good example of this with the results of an auction that ended on early Sunday evening. It was for a Madonna-signed Playbill program from the late 80s for a play that Madonna performed in called Speed the Plow. Madonna signed the program writ-large on the front cover. It was a beautiful Madonna autograph typical of the period and one I’m very confident is real. The only major problem was that the autograph was not professionally authenticated. But I believe it is real nonetheless. The seller started the auction at $100. When it was over, only two bidders had participated, and the program sold WAY BELOW market at $128.52. The auction’s winner got a crazy-good deal. And the seller is asking, “Why me?”

Now keep in mind, as a general rule, Madonna autographs don’t come cheaply. Madonna is not an avid signer. So demand far exceeds supply. Even though about 20% of the autograph was obscured by the program’s title, it was signed boldly and beautifully. It’s truer market value should be a solid $500, maybe more. A Madonna signed book recently sold for $1000.

So in my mind, I believe a seller is usually better off using the Buy-It-Now or Best-Offer format . It may take more time, but you’re more likely to get what an item is worth.

Below is a pic of the program, and a link to the auction.

https://www.ebay.com/itm/MADONNA-AUTOGRAPHED-SPEED-THE-PLOW-PLAYBIL...

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Permalink Reply by a pug called eva on May 1, 2018 at 1:16am

I agree with you James that the no reserve (NR) eBay auctions can provide great buys. For the last 10 years I have only bought on eBay and I have got some really great bargains during that time, though not so much in the autograph field.

One really great bargain stands out in my memory, even though I was not the buyer and it was not autograph-related. It was a stamp booklet advertising the Titanic and Olympic and still had a few stamps left in it. I was amazed to see it reach nearly $3,000 on eBay but I was even more amazed to see it selling at a traditional auction house (Henry Aldridge) for around £35,000. That was six months later at most.

Having said that about NR auctions, I have also had a few great Buy-It-Now (B_I_N) bargains. The only thing is that you just have to be very lucky to spot those before someone else does. I know which of my favoured sellers uses the B_I_N format regularly so I check them out on a daily or even half-daily basis. Other B_I_N bargains have just been down to luck (right place, right time).

I'm not sure that it would benefit sellers overall to do away with the NR format. I for one find it mighty boring searching through pages and pages of unchanging, over-priced B_I_N items and I think I might well get tired of eBay if the NR format became a thing of the past. It is also not always easy to price unusual items. I have recently paid a far higher price for two postcards (one autographed) than any dealer would have ever dreamt of asking as a fixed price.

On the Madonna eBay item in question, unless the seller made an error in the listing particulars I assume "the market" was sceptical about authenticity. It is also interesting to note that the seller has a far more sloppy signed CD listed at a B_I_N price of $599.99. Maybe he or she also had doubts about the Playbill.

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Permalink Reply by James on May 1, 2018 at 2:43am

That’s an amazing story, Pug, about the stamp booklet...and an amazing return on investment for the fortunate one. As for the sloppy signed CD, I saw that as well...and I also believe it to be authentic. I'd have to check to see the time when the seller started the CD sale, but i believe it was after he/she took the loss on the program (programme) sale. He may have decided he couldn’t afford to chance the CD with the auction format and adjusted accordingly.

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Permalink Reply by Jim McFiver on May 1, 2018 at 2:54am

As a veteran eBay seller, I traditionally used the no-reserve auction format because I felt everyone should have a chance at owning the item I was listing, which was in direct opposition to many premium sellers, who put onerous prices or reserves on their items. And, as anyone who has worked in retail will tell you, an item is worth whatever someone will pay - NOT what a seller thinks it's worth.

But things at eBay are very different now as their market share dwindles amidst competition and their failure to champion their traditional strengths. To name just a few things, they've destroyed their organic search, penalized & abandoned their best rated sellers and jettisoned all goodwill in their mad dash towards duplicating an Amazon-like selling platform. Great job, Wall Street.

And this benefits the buyer, anyone with patience and the eye-of-the-tiger, who'll continue to find incredible deals from mostly small vintage top-rated sellers, who will tinker with their tactics in hopes of surviving eBay's current regime modifications.

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Permalink Reply by Joe W. on May 1, 2018 at 4:58am

I buy and sell on eBay.

As a buyer knowledge is the key in cherry picking autographs. Plus, the financial ability to pounce in a moment's notice when the right opportunity presents itself. I would say that 80% of my purchases there have been buy it now items.

As a seller patience is the key. Set a price and ride the wave out. If it's a good autograph it will eventually find the right buyer. The times I have tried the auction format, most have ended disappointingly.

Kind of like the Kenny Rogers song. "You've got to know when to hold em, know when to fold em, know when to walk away, and know when to run....."

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Permalink Reply by James on May 1, 2018 at 4:42pm

Great summation, Joe, on how to approach eBay as both a buyer and a seller. And perfect analogy for life on eBay and life in general...great song too!

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Permalink Reply by Joe W. on May 1, 2018 at 6:33am

Speaking directly about your Madonna example. Here is another one that ended last week at a slightly higher amount.

https://www.ebay.com/itm/madonna-autograph/173275560242?ssPageName=...

Now, this Madonna has been folded although it is an outstanding late 1980's example. One which, I believe, could be matted out and look great. I happen to be the second highest bidder on this one. Would have spent more but just had purchased a David Gilmour and a little short to get this one.

I believe this second Madonna has more potential upside than the signed playbill. Congratulations to the person who beat me out. Early Madonna signatures are not an easy find.