Why You Shouldn't Buy Or Sell Music Gear On Ebay

The internet auction mogul known as eBay quietly launched in San Jose, California on September 3rd, 1995. Computer programmer Pierre Omidyar first launched the site under the guise of his personal web page - AuctionWeb. In its' early stages, AuctionWeb played host to myriad other topics of interest, one such being his tongue in cheek salute to the ebola virus. Hiring both its' first employee, as well as first president in 1996, the company ditched the AuctionWeb name for eBay shortly after its' inception. Originating as Echo Bay Technologies, Omidyar's consulting firm, the programmer realized the domain name was unavailable, later cropping it to eBay.com, the website we know today.

The first transaction on eBay was a broken laser pointed, which closed at $14.83 USD. Mr. Omidyar spoke with the auction winner to confirm that he was aware that the laser pointer was not functioning. "I'm a collector of broken laser pointers," was the response he was met with. From there, the company flourished. Originally, it was believed that Pierre created the website in order to bolster his fiancee's PEZ dispenser collection. However, it was revealed in Adam Cohen's 2002 The Perfect Store that this rumor was in fact a fabrication set forth by an eBay public relations manager in 1997.

Hosting a seemingly insurmountable amount of products on its site, eBay plays host to quite a bit of music gear. From penny whistles to Gibson SG's, double bass cases to sheet music, there is a never ending amount of music products that can be purchased from the company. Inconstant rotation is vintage gear, which sellers list at sometimes obscene prices for gear which is hard to find. Yet, eBay might not be the smartest venue to purchase your next piece of gear at, as their fees and percentages may make it not worth your while.

At the time of this article, there were 161, 814 musical products on the online auction block. If the prices were to average to roughly $500 USD, the cumulative transaction amount would fall at $80,907,000 USD. Should the purchaser choose to check out with PayPal, the seller is charged another three percent each time they list a product on the site, adding up to $2,427,210 USD in PayPal fees. This number may be higher or lower, depending on if the sale takes place in the United States, or internationally.

eBay charges its' vendors an insertion fee of $3.00 USD for listings which start between $200 and $500 USD. The final value will be 8.75% of the initial $25 USD, which works out to $2.19 USD, with an additional 3.50% taken from the closing value balance on auctions ending between $25.01 and $1,000 USD. Ergo, their net take amounts to $54, 722,549.48, and breaks down as follows. 161,814 musical products multiplied by $2.19 USD for the initial insertion fee works out to $354,372.66 USD. The remainder of the $475.00 USD multiplied by 3.50% for the closing value balance equals $16.63 USD, multiplied by 161,814 listings amounts to $2,690,966.82. Add that to the insertion fee total, this figure boils down to $3,045,399.48 USD. On top of this, PayPal's fees amount to $2,427,210, arriving at our net of $54,722,549.48 USD.

To list your instrument or music product on the site as a seller could work out to your disadvantage. eBay, from the start, will rake in upwards of ten percent of your closing price. This is in addition to the flat fee of three dollars which they charge you in order to host the product on their auction block. And if your buyer chooses to check out with PayPal, you are now out another three to four percent. Add all these hidden costs up, sellers are out roughly fifteen percent on what their product sold for.

For consumers, to purchase your musical gear on eBay may be a nightmare. Buyers lose out on the experience of trying an instrument or product first hand, and falling in love with it. Many musical products have a different timbre and feel, even though they are manufactured the same. Also, there is the trust issue between a buyer and an unknown vendor, as well as the fear that your new product may be damaged in shipment. Along with the associated shipping costs, which vendors may escalate in order to extract more funds, there are few advantages to your purchasing experience should you order your product from the online auction tycoon.

Article Source: http://www.myaddirectory.com

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