eBay Auction vs Buy It Now – Which is your best selling strategy? From my experience on eBay, there is no hard answer to this question.
First, it all comes to the items you list on eBay. If you list a rare item, eBay auctions are your go-to. Otherwise, if you list items that are common and sold by many others, Buy It Now could be your best shot. Yet, you’d better make sure your products have good quality and competitive pricing. Unlike auctions, buyers who shop for items in Buy It Now will be comparing prices. And for auctions, people go after that uniqueness and they have to make the highest bid on time.
And more about eBay Auction or Buy It Now, let’s come to the factors you need to consider between these two:
Ready to dive into the details? Let me take you through them just now!
Remember that Auction and Buy it Now have different listing formats. That’s exactly why it is important to learn How to create a listing on eBay with both selling styles. Check out our article now and find out!
eBay Buy It Now vs Auction: The Basics
When you list your products on this one of the top marketplaces, you have two choices: eBay auction vs Buy It Now. With Buy It Now, the products will be fixed at one price, while the eBay auction allows buyers to bid to win the item. Let’s find out the pros and cons of each listing method.
How does eBay auction work?
eBay auction-style listings are modeled after traditional auctions. It means that eBay sellers can set the starting price for the item on an auction, and interested buyers place bids. The product will be sold to the highest bidder when the auction ends.
Auction listings last 7 days by default, but options for 3, 5, and 10-day auctions are also available. Also, eBay sellers can set a “reserve” price, the minimum amount for which they are willing to sell the item. If an auction fails to result in a sale, an automatic relisting feature is available for utilization.
Pros of eBay Auction
- eBay bidding can sometimes lead to items selling for more money. The excitement of an auction often draws in more buyers, and auctioned items can sell at a substantially higher price due to bidding wars.
- Auctioned items may be sold faster than fixed-pice listings. Due to the restricted time availability, auctions can push buyers to purchase more rapidly than fixed-price listings.
- Auctions are particularly well-suited for single items or rare and uncommon products, such as eBay coin auctions. Auctions provide a platform where enthusiasts and collectors can vie for these particular items, driving up their value and ensuring a fair and competitive selling environment.
Cons of eBay Auction
- Auctions take a bit more effort to list and manage. The auctions involve little automation, and as a seller, you need to oversee the entire auction process. In contrast, Buy It Now listings are either sold or remain unsold. Moreover, managing multiple items up for bidding on eBay can require much work.
- The products might run the risk of remaining unsold. Buyers aren’t required to pay immediately, they can take up to 4 days to pay, and sometimes the winning bidder won’t ever pay for the item. In such cases, the eBay seller can choose to re-list the unsold item and find a new buyer.
- The item could sell for less than hoped. The bidding process decides the final selling price, and there is always a possibility that the bids may not reach the desired level. Consequently, you might end up with a lower selling price than initially hoped.
- Timing matters! The timing factor can potentially affect the final price and overall competitiveness of the bidding process. If a listing ends in the middle of the night, there may be fewer bidders in the last few minutes of the auction.
Remember that for every selling method, there is one thing called selling limits. Such limits refer to the number of items you can list and sell over a period of time. Check out LitCommerce’s latest article and learn more about eBay selling limits.
How Does eBay Buy It Now Work?
eBay Buy It Now, also known as fixed-price listings, offers the simplest pricing method on eBay, operating similarly to popular online marketplaces like Amazon. With Buy It Now, sellers set a precise price for items, and buyers can make purchases instantly without delay, eliminating the need for bidding.
Fixed-price listings on eBay default to the Good ‘Til Canceled duration, automatically relisting your item every month until sold or manually ended. Furthermore, eBay sellers can also choose to include the Buy It Now option in their auction listings.
Pros of Buy It Now
- eBay sellers benefit from quickly listing multiple units of their products with Buy It Now listing format. Whether it’s multiple quantities of the same item or various items within their product line, sellers can efficiently list and offer a larger inventory to potential buyers. The automated nature of these listings streamlines the management process for sellers.
- Fixed-price listings provide the advantage of setting prices ahead of time. Sellers have control over determining the price for their products, allowing them to establish a clear and fixed value. This pricing clarity is beneficial for both sellers and buyers in understanding the cost upfront.
- Sellers can rest assured when it comes to timing and payment concerns. Unlike the auction method, fixed-price listings eliminate worries about late payments or being left vulnerable. Sellers receive payment when their item is purchased, ensuring a smooth and timely transaction process.
- Shoppers love sales. Markdown Manager offers a valuable tool for eBay sellers to manage sales and markdowns. With this useful tool, sellers can run sales and implement markdowns as they see fit. This capability enables sellers to attract buyers with discounted prices and tap into the consumer appeal of sales.
Cons of Buy It Now
- When using the Buy It Now listing method, eBay sellers don’t have the opportunity for items bidding wars or items selling for higher than expected prices. With Buy It Now, products are only sold at the fixed price the seller sets.
- Unlike auctions that generate excitement and a sense of urgency for buyers, fixed-price listings do not create the same urgency. The absence of a time-sensitive environment means that buyers do not feel compelled to make immediate purchases. As a result, shoppers may choose to bookmark the product for future consideration instead of making an instant buying decision.
- With Buy It Now, sellers must determine the right product price instead of relying on market forces in an auction format. Without fluctuating bids and market dynamics, sellers must carefully assess their products’ value and set an appropriate price that aligns with market expectations and business goals.
Now that we have understood how eBay Auction and Buy It Now work, let’s delve into the key factors to consider when deciding between these options.
Which Factors to Consider When Comparing eBay Auction vs Buy It Now?
In determining the best selling methods for your products, whether an eBay auction vs Buy It Now, it is crucial to consider various factors. Choosing between two formats should also align with your business goals and objectives. By carefully evaluating the different aspects, you can make an informed decision that best suits your company’s needs.
Let’s explore them in more detail!
1. Item demand and supply
First, when comparing eBay auction vs Buy It Now, it’s vital to determine how many people want to buy your item and the number of sellers offering the same product as you.
An auction is a good choice if your item has high demand and low supply. The competitive nature of auctions can lead to bidding wars, where buyers continually outbid each other until the auction ends. Driving up the price can potentially result in significant profits for you as the seller.
Remember that eBay auctions typically run for a maximum of 10 days. Suppose your product has lower demand, and only a few potential buyers come across your listing within that timeframe. In that case, the auction may not generate a competitive bidding environment, regardless of the item’s rarity. In this low-demand case, it may be more advantageous to set a fixed Buy It Now price and allow the listing to run for a longer duration.
Suppose that you want to take advantage of the rise in popularity of the best-selling items on eBay, but there are already multiple suppliers on the platform; opting for a Buy It Now price can be a more suitable approach. This allows you to establish a set price for your item, attracting buyers who prefer the convenience of an immediate purchase.
2. Time consideration
If your primary goal is to achieve a quick sale rather than maximize profit, opting for an eBay auction can be a suitable strategy. eBay provides flexibility in selecting the duration of your auction, offering options of 1, 3, 5, 7, or 10 days. For time-sensitive items like event tickets, a 1-day auction is particularly beneficial as it facilitates swift transactions.
You must have a feedback score of at least 10 to run an auction for just one day. Otherwise, the minimum duration is three days. While listing your item as Buy It Now may also lead to a fast sale within 24 hours, a soon-to-end auction creates a sense of urgency among potential buyers, compelling them to take immediate action.
However, it’s crucial to note that shorter auction durations may limit potential buyers coming across your listing and the risks of selling your item for a low price in a one-day auction.
3. Selling fees
It’s important to take into account eBay selling fees. While the “final value fees” remain the same in both eBay Auction fees and eBay Buy It Now fees, it’s worth noting that there may be variations in insertion fees, which are the fees associated with listing items.
Fortunately, when you register your eBay store, you will receive 250 zero-insertion fee listings per month. However, if you exceed this limit and list more than 250 items a month, you may be required to pay insertion fees for additional listings.
eBay's pricing | ||
Subscription | From $7.95 to $349.95/ month | |
Listing fee | $0.35/ listing (after 250 free listings) | |
Final value fee | $0.30/ order | |
Category referral commission | 8 - 15% of total sale price | |
If you are selling a large quantity of the same items, utilizing Buy It Now listings becomes another advantage. You can list hundreds or even thousands of identical items with a single listing and a single insertion fee. In contrast, using Auction listings could result in higher listing fees.
By considering the potential impact of eBay selling fees and optimizing your listing strategy accordingly, you can effectively manage your costs and enhance your overall profitability on the platform.
4. Quantity of items
If you have a large number of the same item to sell, it’s a good idea to use a Buy It Now instead of an auction. The great thing about this method is that you can take advantage of eBay’s bulk selling features and only have to manage one listing. This makes changing the product details or adjusting the price quick and simple without dealing with multiple listings.
On the other hand, if you have a limited quantity of items, analyzing their demand and supply factors is crucial to decide between an eBay auction vs Buy It Now listing method.
When deciding whether to list an item on eBay as an Auction or Buy It Now, it’s crucial to consider your overall selling strategy. To learn more about effective selling techniques on eBay, including tips for creating compelling listings, attracting buyers, and handling transactions smoothly, check out our comprehensive guide on how to Sell on eBay.
eBay Auction vs Buy It Now: Which Listing Style is the Best?
So, is it better to use eBay auction vs Buy It Now? Is your product a perfect fit for online bidding? Here comes the highlights:
If your item is in high demand, but limited sellers offer it, then an eBay auction would be a good choice. Timing is key, and if things work out in your favor, you might even witness a bidding war, leading to higher profits.
On the other hand, if you have no urgency to sell, prefer listing in bulk, or want to increase your chances of receiving eBay’s best offer, then a fixed-price Buy It Now listing would be more suitable. Buy It Now is also more appropriate if you sell a large quantity of the same products.
Regardless of your chosen method, taking high-quality photos of your item, optimizing your product’s name, providing clear and accurate descriptions, and correctly calculating shipping costs are essential to boost your sales on eBay.
More about eBay Auction vs Buy It Now, you should know that Buy It Now listings are becoming more popular on eBay. The main reason behind this is that auction-styled listings don’t work well in many cases, which often leads to a profit level falling short of your expectations. Nonetheless, rare items still work excellently for auctions. So if you list a unique item that not many sellers have, go straight for Auctions!
Read more about 7 ways to boost your eBay sales and 28 profitable eBay business ideas you can start in 2024!
eBay Auction or Buy It Now – FAQs
- Does eBay charge more for an auction or buy it now?
No, when it comes to eBay buy it now vs auction fees, the “final value fees” are the same on both Auction and Buy It Now listings. However, insertion fees (the fees to list items) can differ due to the number of listings.
- Do people still do auctions on eBay?
Yes, sellers still do auctions on eBay to list rare or highly collectible items or offer something limited in number, like event tickets.
- Can the Auction price be higher than Buy It Now?
Yes, it certainly can. Unlike the fixed price of the Buy It Now listing method, the auction allows buyers to bid and compete with each other, which can drive the price up beyond the initial listing price and can be higher than the fixed price.
eBay Auctions or Buy It Now – Choose Wisely!
The proper listing method will drive your business toward prosperity and expansion. Opting for an eBay auction vs Buy It Now listing depends on the nature of the item you’re selling and the buying experience you aim for.
To combine the advantages of both listing styles, sellers can use an Auction with a reserve price or a Buy It Now option. This allows for more flexibility and customization in your selling approach.
If you want to learn more about selling on multi-eCommerce marketplaces, feel free to message us for more insights and updates. Enjoy reading the LitCommerce Retailer Blog!
