What is the Difference Between An Auction And A Fixed Price Listing
You finally find the anything you want on eBay! The trouble is, one seller has it listed at an auction price and the other has it listed as a "Fixed Price Listing". Which is best for you?
There is no right or wrong answer to this question. You can find really great deals either way. Before you decide you need to understand the difference between the two.
The sale is an auction if you're able to bid for the item. A seller will usually start this at a low price in hopes that it goes up substantially at the end of the auction. If there are few bidders you can often get a great deal since the seller is required to sell it to you no matter what.
The only catch is if the seller has put a reserve price on the item. A reserve is when they state that they will not sell the item if the final bid is below a certain price. eBay makes it clear when there is a reserve put on the auction.
Auctions are neat for the buyer and the seller because there is often a frenzy of bidding at the end. People get caught up in the moment and might pay more than they had intended. On the other hand, if you're the buyer this can be dangerous for your wallet!
There are also pros and cons to buying and selling with a fixed price listing. As a buyer you might catch a good deal if the seller has listed the item at a lower price than is normal. You might also end up paying more than you would have with an auction listing. Just do your homework as browse through all the listings you're interested in.
Buying at fixed price can ultimately save you money, however. There are none of the bidding price wars that can cause you to make an emotional purchase in the heat of the moment. If you're the seller, this can be a negative because you're only ever going to get the listed price.
There are some sellers who make things even more confusing by combining the two different kinds of sales on eBay. As you're browsing through the listings you might see an auction running with a "Buy it Now" icon. When a seller does that you're guaranteed to win the item if you Buy it Now. If people start to bid on the auction this fixed price option goes away.
For sellers who aren't so sure they want to take a chance with an auction it is possible to include a "Best Offer" feature. This means that you can set a fixed price, but give yourself some wiggle room to make a sale if you find someone who is really interested but wants to pay a bit less. Buyers can take advantage of a "Best Offer" feature as well by bargaining down sellers who want to sell their item fast.
Part of what makes eBay so special is the many different options available to buyers and sellers. Here is another recap of the difference between these two options:
- When a seller lists their item at auction the bidding will start at a low price. Buyers then bid against each other to try and win the item. The seller hopes this price goes high, and the bidder often wants to try and get the best deal while beating other bidders. Any price goes at an auction unless there is a reserve, or limit, that the seller has put in place.
- When a seller lists their item with a fixed price the buyer can buy the item at the stated price (just like at a retail store).
- There are sometimes "Best Offer" features, or a combination of auction and fixed price.
Happy Hunting!
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