It all boils down to math. Here is the deal: When you sell at a live auction or eBay, the "house" gets a percentage. That percentage can be in one or more forms, such as a hammer price, buyer's premium, final value fee, or other. Now, before you yell at the screen "but the buyer pays the buyer's premium or hammer price," think for a minute. Is that true? Buyers are well aware of the fee that gets paid, and you can be darn sure that they will reduce their bid in consideration of that amount … wouldn't you? So, really, who pays it? You do! You pay it in that the bids that are that much lower than they would be if the buyer did not have to pay the fee. It is only logical. In the case of an eBay final value fee you, the seller, pay. You also pay PayPal fees and shipping costs, because to attract more bidders you would likely offer free shipping. So you need to be honest about who actually pays what when considering those outlets. There are additional things to consider, such as:
- Selling via live auctions can mean waiting months to get the money for your sale, and you do not get cash. They send you a check. I pay you cash, today!
- When you sell on eBay you risk deceitful buyers alleging all manner of claims and demanding credit (money back). You risk the buyer doing a chargeback and taking the money from you while keeping your item. You risk shenanigans such as the buyer returning a duplicate but lesser-value item to you and demanding money back. For the joy of these risks you pay up to 15% in final value fees/PayPal fees. I pay you cash and no fees exist, so there is no reason for either of us to pressure the price downward.
- Most buyers are speculators/investors who need a specific and visible margin, and they offer a price accordingly. I am a private collector, meaning that the items I purchase have greater meaning and greater value to me, so you can achieve a better sale price with me.