Is the "Buy it Now" Price on Ebay the true market rate of what an item is really worth?

Guide on how to navigate and negotiate the best prices on Ebay:

Is the "Buy it Now" Price on Ebay the true market rate of what an item is worth?

The answer is: With some merchants, the buy it now price is pretty close to the real price. However, with other merchants, often times their asking prices are intentionally over inflated.

Have you ever wandered through a mall and have seen 50% off signs abounding everywhere, but then come to realize that the retail prices are hiked up to make it look like a good deal and that even with the sale discount, you are paying really what the item's true market value is worth. This is a pretty well known come on tactic to try and generate additional sales by luring in buyers who think they've hit the jack pot. Over time, however, as you become a more savvy shopper you will get to know which stores are constantly engaging in this practice of too good to be true sales all the time. You also realize that stores like like Wal-Mart, Target and major grocery stores seldom use gimmicks like this and just offer you the best price they can right off the bat.

The same gimmicks and use of over inflated prices are widely used by some merchants on Ebay as well. The merchant will mark up an item by double its real market value. Then upon occasion the merchant will conduct sales that discount their items by 40-50% off making it seem like they are giving the item away in order to induce a pull the trigger mentality out of under educated buyers who think they are getting a deal, when in reality are just paying fair market rate. These same merchants also like this inflated mark up so that when someone makes a super low ball offer of 40-50% off, that they can actually accept it since it is still double what they paid for the item at their cost.

Other merchants, on the other hand, on Ebay are strict on their pricing and will negotiate very little off on their asking prices. These merchants are not into games and just priced their items fairly in the first place and are not in a market position to take a half price offer since that would be their cost.

As a buyer, you will start to learn your merchants as you deal with them regularly over time. It won't take too long for you to sort out who is a true fair market seller and distinguish between sellers who intentionally jack up their prices way above fair market value so that they have plenty of wiggle room for negotiating or for offering deep sale discount offers.

Is one practice better or worse than the other? Ultimately, if you are a seller of very unique and rare items, especially with one of a kind pieces, you can get away with the hiked up prices and then entertain negotiating with buyers for a much lower price. However, if the items you are selling are a more commonly known commodity and the benchmark price is pretty well established, it might be a lot harder to try to lure potential customers with over inflated prices.

Ultimately, as a buyer, it is largely on you to do the research and find several comparable items of equal value and decide on who is offering a true deal and who is asking for a pie in the sky price. Research, research, research and patience, patience, patience is the name of the negotiating game. Take your time and do the work and usually only then will you will eventually find a seller with the price that you are looking for, that is, if you are looking for a reasonable price yourself and not just hoping to find a steal of a deal each and every time you look to make a purchase.

We hope this article helps you better understand the pricing model on Ebay. Once you become good at navigating through it, you will become a buyer who consistently buys things at good deals and values.