Why do so many sellers list items so above market clearing prices?

[zirkni]

I see so many absurdly overpriced items, especially in the used computer (systems or components) categories on eBay. It is mind boggling. Why do sellers list items at prices that they are exteremely unlikely to sell at? If completed listings says that the last Compaq Intel 486 system sold a week ago for $25 + shipping why would a new seller list their identitical item for $125? As a buyer I find it annoying since there is an overload of non-purchase-worthy listing spam in search results. "Best match" returns a bunch of different prices for the same item. Since everyone can see what everyone else's price is why doesn't the market just converge toward a common selling price? Do people want to sell their listings or just keep relisting them forever?

In Economic terms eBay appears to be a highly inefficient market. I know when I list an item I target the lowest price. That is because I want to sell my item. I am bewildered by those who choose a price an order of magnitude above the floor market price. What gives?

I have heard the theory that high prices might be used as a paceholders for multiple item listings that are currently out of stock. The seller uses the high price to keep his listing active without actually selling any items. I believe this may be true in some cases but it does not make sense in all or even most cases. So what explains it? Are sellers just stupid about economics?

[green-night]

Do people want to sell their listings or just keep relisting them forever?

I list some items well above the price of other identical items.  I'm patient.  Not all sellers are in it for the quick nickel. 

[southern*sweet*tea]

Some sellers don't care about going rates and price at what THEY want.

Some sellers price high as a placeholder.

Some sellers overvalue their stuff because they're clueless.

Some sellers would rather have one $125 sale than five $25 sales.

Some sellers don't want to play race to the bottom.

[rolenboy01]

Some items just don't have enough sold data and some sellers just aren't going to price it the same as the 1 person who sold the said item for that price, others feel they CAN GET MORE sometimes they do.

[dadsfloridatreasure]

Some sellers can afford to list their items at high prices and let them sit for a while hoping they will get a bite.

On the other hand, some sellers also might list the same, duplicate item on another account in the hopes you see the same high priced item, and buy it from a "competitor", when in reality, it's the same seller.

I'll never forget the slogan of a defunct discount clothing store named Syms.  Their commercials used to say, "An educated consumer is our best customer."  It totally still holds true.  We all have access to the internet, so do your research, and find the best price.

[ebbyisme]

It can also depend on what consumer you are targeting....

I have sold one type of item that I would have trouble getting $10 - $15 for from U.S. buyers but I've sold everyone I have got my hands on to buyers in China for over $100 plus shipping. Every one I can find locally have cost less than $5, usually $1. Maybe you aren't the target for his wares.....

I always look at successful sellers and try to learn how they do things, there is one seller who puts 49.99, 59.99... 99.99 on his items when IF anyone else lists those items they may put $5 - 12 on.... and he sells over 100 a month, he uses BO and about 90-95% sell for best offer but those other 5-10% sell for full price.... now he has a lot of listings but he is often getting 5 -10 times the price (and sometimes a lot more than that) other people get... if it works, it is a LOT smarter getting 100 sales for $25-50 than those selling the same items getting getting barely enough to cover costs.... no matter how much they sell, with a lot less work.

[variety_nook]

So buy the cheaper item then. What's the problem?

Have you never shopped before?

You sound more like a Seller/Buyer/Communist/Socialist who doesn't like competition. Boo

Your words: "Since everyone can see what everyone else's price is why doesn't the market just converge toward a common selling price?" 

That's anti-free market, aka: Communism

Best Wishes in your ventures. You'll need it!

[m60driver]

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@variety_nookwrote:

That's anti-free market, aka: Communism

Best Wishes in your vent

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There is no such thing as a free market, that is a myth.  Nor is being an opponent of US style cowboy capitalism tantamount to being a communist.   That is all just drinking-the-kool-aid talk.  But people are free to list items on Ebay at whatever price they want for whatever reason.  And methinks it was a strange rant.

[ed8108]

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@zirkniwrote:

I see so many absurdly overpriced items,...... Why do sellers list items at prices that they are exteremely unlikely to sell at? Do people want to sell their listings or just keep relisting them forever?

I recently purchased an item which was first offered at $199, the price was then dropped to $149, then to $99, finally to $45.

An item sells for the price that a buyer is willing to pay.

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[annadryl]

Just FYI palceholder prices are absurdly high (like a 500x mark-up) as insurance that an OOS item will NOT sell. At a hundred extra bucks an item could still conceivably sell if the seller is patient enough. It's a pipe dream, but you never know...

[coolections]

Don't worry. Just search in the range in which you are willing to purchase. Those sellers you speak of some come here blaming Ebay for their problems. They pretend it is because of Ebay's search, because Ebay hides their items, they have no views or impressions. Just don't click on their items or just hit the back button as you see them. Not much else you can do about it.

[papermoneyforme]

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@zirkniwrote:

I see so many absurdly overpriced items, especially in the used computer (systems or components) categories on eBay. It is mind boggling. Why do sellers list items at prices that they are exteremely unlikely to sell at? If completed listings says that the last Compaq Intel 486 system sold a week ago for $25 + shipping why would a new seller list their identitical item for $125? As a buyer I find it annoying since there is an overload of non-purchase-worthy listing spam in search results. "Best match" returns a bunch of different prices for the same item. Since everyone can see what everyone else's price is why doesn't the market just converge toward a common selling price? Do people want to sell their listings or just keep relisting them forever?

In Economic terms eBay appears to be a highly inefficient market. I know when I list an item I target the lowest price. That is because I want to sell my item. I am bewildered by those who choose a price an order of magnitude above the floor market price. What gives?

I have heard the theory that high prices might be used as a paceholders for multiple item listings that are currently out of stock. The seller uses the high price to keep his listing active without actually selling any items. I believe this may be true in some cases but it does not make sense in all or even most cases. So what explains it? Are sellers just stupid about economics?

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Maybe some sellers are tired of the bottom feeders Ebay caters to and the race to the bottom Ebay wants to increase the Ebay sales numbers!

[lintbrush*]

It depends on the sellers' motivations.

Some are into the super quick flip and will price it below current market value.  You have no idea how much money they have in it or it might be a major cleanout of older merchandise.

Some are more patient and know their item is priced properly and wait for the right buyer to come along.

I can be guilty of underpricing an item compared to my competitors (not by too much), but I want it to move out fast and I may have nothing in it.  Other times, I know I can be more patient or I may have more invested in it so I don't want to lose money.  As soon as the severe undercutters have sold their wares, it will sell.

[lewisburggold]

Im sure there is a lot of reasons why they mark it up.  The reasons we do it so the buyer can make a offer and there is plenty of room to bounce back and fourth.   Also if its the only one we have we will mark up just because its probably the only one will ever see.  Best regards

[daneiac]

And overpricing items tends to clutter up the website with stale merchandise..hence eBay is not making money on commissions..