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.
Ending at $14.83 USD, a non functioning laser pointer was the first ever sale on eBay. When Mr. Omidyar realized the product was not in working order, he contacted the buyer to inform him. "I'm a collector of broken laser pointers," is what the buyer told him, and from there, the company began to grow. Initially, it was alleged that eBay was founded to help his wife trade her PEX candy dispensers. However, when Adam Cohen's The Perfect Store was released in 2002, it became known to the public that the story was simply a spin set forth by a 1997 public relations manager in order to gain notoriety for the website.
One may find just about anything they should need on the internet auction block, including musical gear. The list ranges from oboes to French horns, music stands to notation paper, and far beyond. Quite often, much sought after defective or out of circulation gear will retail for obscene prices, as demand for these few and far between pieces are rather high. Regardless, the fess associated with such gear, brought on by listing costs, eBay percentages, and shipping, may make it not seem worth the transaction.
As it stands, there are 161, 814 pieces of music equipment listed on eBay. Were the average price of the products to work out to $500 USD, the gross amount changing hands would work out to $80,907,000 USD. When the consumer checks out using PayPal, a subsidiary of eBay, the payment service charges the vendor roughly 3%, leaving PayPal with $2,427,210 USD. Depending on where the transaction took place - United States or internationally, the percentage taken by PayPal may be slightly higher or lower.
To host your product on its' website, eBay charges the sellers a $3.00 USD insertion fee on musical products starting at no less than $200 USD, and no more that $500 USD. The end value will be 8.75% of the beginning $25 USD, resulting in a $2.19 USD charge. Additionally, 3.50% is taken by eBay on the closing price when auctions end between $25.01 and $1,000 USD. This pulls in a total of $54, 722,549.48 USD for eBay. I have arrived at this number via the following calculations. 161,814 musical products multiplied by the initial insertion fee of $2.19 USD brings us to $354, 372.66 USD. The $500 USD, less the initial $25 USD, is multiplied by the 3.50% closing value balance, working out to $16.63 USD. That $16.63 USD multiplied by 161,814 listings brings us to $2,690,966.82 USD. When you add the insertion fee total and PayPal's $2,690,966.82 USD, we arrive at eBay's take of $54, 722,549.48 USD.
Should you be a seller, it may not work out in your best interest to auction your music gear off on the website. From the start, eBay will take roughly ten percent of the final value sales price, which is of course, in addition to the fee they charge you to list your product in the first place. If your buyer decides to use PayPal to complete their transaction, you may find yourself out another three percent, which could bring you down 15% of what your piece of gear actually 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.
About the Author:
Do not pay pay to list any of your Music Gear Auctiwiths with Ebay! Go visit Gear-Vault for the latest Music Gear Reviews!
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Title: Why You Shouldn't Buy Or Sell Music Gear On Ebay
Author: Gear Monkey
Keywords: music,music business,musicians,ebay auctions and shopping,ebay,guitar,bass guitar tips,instruments
Word Count: 717
Category: Arts & Entertainment:Music
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