Highway robbery

[vor]

Heritage Auction has raised its buyer's premium to 17.5%. And if you end up with under $1000 in successful bids in an auction they tack on sales tax of 8.25%.

Ends up being a premium of over 27%. Think I will be going elsewhere.

 

[namster]

In the world of eBay, craigslist, web boards, the internet in general, its a wonder these "auction houses" remain in business at all. Anyone would have to be crazy to pay a middle man 17.5% just to sell something for them. A savy seller will always do better selling the stuff on their own. Like watching the guys on "pawnstars" and "american pickers" rip off countless people. Makes me sick.

 

[maipenrai]

Isnt the sales tax just on the premium? Still expensive though.

 

[vor]

And I forgot to mention the "service and handling" charge.

Isnt the sales tax just on the premium? Still expensive though.

No. The sales tax is on the coin, the buyer's premium and the "service and handling".

And to top it off, they have a minimum $14 buyer's premium. If you get an old 1 oz. silver coin for $28 it will end up costing you $49.

It is actually to the detriment of the seller as all buyers know the minimum buyers premium. What is out of the bidder's control is if the total invoice is under $1000 due to the last minute proxy bids. If so, the sales tax kicks in.

 

[Trokair]

I just started getting into buying some coins off of ebay. I was thinking about turning them around on that site until I saw the fees. Now I'm just going to accumulate some stock to take to a show. I have no idea how anyone selling coins on there makes any money. I'd love the 9% cut they are getting.

 

[diggummup]

That's crazy. I don't see why anyone would want to pay that much of a premium. They are biting the hand that feeds them, they've gotten too big for their britches and greed has reared it's ugly head. They will lose business.

 

[vor]

I've never sold through them and have no idea what they get from the seller in addition to the buyer's premium and shipping/handling charge. It probably is only worth selling there if you have a really high dollar item and need their market.

 

[Charles Spurgeon]

eBay and paypal take around 12% (even more if you go over $1,000 I believe).... they not only charge you on the item, but also take a percentage from your shipping cost as well...

I sold a iPad recently for $255 + $9.99 for shipping.... paypal was around $8 for its fees, and ebay was around $23.

 

[socref1209]

I agree with you that the 12% is outrageous, but the reason why ebay charges its 9% on the shipping charges as well; is because many people abused it. A few years ago eBay only took its % on the final value of the item; but too many people started selling $300 items for $1 and charging $299 for shipping to get around the fees. So eBay had to start charging its % on the overall sale.

 

[vor]

And yet another change for them to make a little more $$

Now I can't put my purchases on my credit card. Echeck, wire or cashier check only. Guess they don't want to pay the credit card fee on top of their increased premium.

What a racket...but then again they are not forcing me to bid.

Thought that I could at least spread the word.