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.
A broken laser pointer, bought for $14.82 USD was the first product purchased on eBay. Upon seeing this transaction, Pierre contacted the buyer, alerting him that this product was currently not functioning. The buyer responded, "I'm a collector of broken laser pointers". And from there, the website began. In the early stages, it was rumored that eBay began as a way for Omidyar to help his fiance enrich her PEZ candy dispenser collection. Yet, in 2002 it was revealed in Adam Cohen's The Perfect Store that this was merely a story concocted by a public relations manager in 1997 in order to gain more media attention to 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.
At the time of this article, there were 161, 814 musical products on the online auction block. If the prices were to average to roughly $500 USD, the cumulative transaction amount would fall at $80,907,000 USD. Should the purchaser choose to check out with PayPal, the seller is charged another three percent each time they list a product on the site, adding up to $2,427,210 USD in PayPal fees. This number may be higher or lower, depending on if the sale takes place in the United States, or internationally.
eBay charges its' vendors an insertion fee of $3.00 USD for listings which start between $200 and $500 USD. The final value will be 8.75% of the initial $25 USD, which works out to $2.19 USD, with an additional 3.50% taken from the closing value balance on auctions ending between $25.01 and $1,000 USD. Ergo, their net take amounts to $54, 722,549.48, and breaks down as follows. 161,814 musical products multiplied by $2.19 USD for the initial insertion fee works out to $354,372.66 USD. The remainder of the $475.00 USD multiplied by 3.50% for the closing value balance equals $16.63 USD, multiplied by 161,814 listings amounts to $2,690,966.82. Add that to the insertion fee total, this figure boils down to $3,045,399.48 USD. On top of this, PayPal's fees amount to $2,427,210, arriving at our net 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.
As a buyer, to purchase your instrument on eBay might be a poor decision. For one, you lose the intimacy and connection one feels when they pick up a piece of equipment that they fall in love with. Many instruments differ in timbre, color, and feel, even from products manufactured in the same day from the same materials. In addition to this, there is the worry that your instrument may be damaged in shipping. And on top of this, shipping cost is set by the vendor, which may be inflated to cover the extra costs incurred on him by eBay.
A broken laser pointer, bought for $14.82 USD was the first product purchased on eBay. Upon seeing this transaction, Pierre contacted the buyer, alerting him that this product was currently not functioning. The buyer responded, "I'm a collector of broken laser pointers". And from there, the website began. In the early stages, it was rumored that eBay began as a way for Omidyar to help his fiance enrich her PEZ candy dispenser collection. Yet, in 2002 it was revealed in Adam Cohen's The Perfect Store that this was merely a story concocted by a public relations manager in 1997 in order to gain more media attention to 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.
At the time of this article, there were 161, 814 musical products on the online auction block. If the prices were to average to roughly $500 USD, the cumulative transaction amount would fall at $80,907,000 USD. Should the purchaser choose to check out with PayPal, the seller is charged another three percent each time they list a product on the site, adding up to $2,427,210 USD in PayPal fees. This number may be higher or lower, depending on if the sale takes place in the United States, or internationally.
eBay charges its' vendors an insertion fee of $3.00 USD for listings which start between $200 and $500 USD. The final value will be 8.75% of the initial $25 USD, which works out to $2.19 USD, with an additional 3.50% taken from the closing value balance on auctions ending between $25.01 and $1,000 USD. Ergo, their net take amounts to $54, 722,549.48, and breaks down as follows. 161,814 musical products multiplied by $2.19 USD for the initial insertion fee works out to $354,372.66 USD. The remainder of the $475.00 USD multiplied by 3.50% for the closing value balance equals $16.63 USD, multiplied by 161,814 listings amounts to $2,690,966.82. Add that to the insertion fee total, this figure boils down to $3,045,399.48 USD. On top of this, PayPal's fees amount to $2,427,210, arriving at our net 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.
As a buyer, to purchase your instrument on eBay might be a poor decision. For one, you lose the intimacy and connection one feels when they pick up a piece of equipment that they fall in love with. Many instruments differ in timbre, color, and feel, even from products manufactured in the same day from the same materials. In addition to this, there is the worry that your instrument may be damaged in shipping. And on top of this, shipping cost is set by the vendor, which may be inflated to cover the extra costs incurred on him by eBay.
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