How much profit do ebay scalpers make off newer toys?

Discussion in 'Transformers Toy Discussion' started by Avengers, Aug 31, 2012.

  1. Avengers

    Avengers Banned

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    Ebay sellers have to pay ebay listing and final value listing fees. Then ebay sellers have to pay paypal Transaction fees. These ebay and paypal fees take over 10% away from the ebay auctions final value bid price.

    Ebay buyers don't pay tax on items they win from the buyer. So depending on your state tax rate. most ebay sellers will lose 6% to 9% in not getting re-Imbursed in store sales tax.

    These ebay sellers who run to stores looking to grab newer toys. then throw them up on ebay. waste over $3.70 per gallon in Gasoline fees. driving miles upon miles to stores.

    Running to stores and buying newer popular items. in desperate attempts to make profits on ebay. can wind up making most ebay sellers lose money not gain money.

    Since Hasbro's MP Thundercracker is the newest Ebay scalper toy on ebay.
    lets do a little excercise. showing how much Ebay scalpers lose selling this toy on ebay.

    1- Ebay scalpers drive to the TRU stores looking for MP Thundercracker. wasting $3.70 in gasoline fees. they easily waste $10 to $20 in gas. since most TRU stores are 15 miles away. in order to make the trip worth it,they need to grab cases not just one item.

    2- TRU stores charge 6% to 9% in sales tax. MP Thundercracker cost $69.99. sales tax will be around $6 on the toy. Ebay buyers don't pay sales tax. ebay buyers lose $7 in sales tax. which eats into their profits.

    3- Ebay charges sellers listing and final value fees. paypal charges buyers money transfer transaction fees. all of this takes away 10% from the sellers final bid profits. Selling MP thundercracker on ebay & making over $100 in final bids. can cost sellers over $15 in final value ebay fees and paypal transaction fees.

    4- In order to get any type of profit from selling Hasbro MP Thundercracker on ebay. you'd have to sell the toy for over $100. to cover gasoline,sales tax,ebay fees and paypal fees.

    Why do ebay sellers scalp newer toys on ebay. if they wind up losing money and comming in the red,not black. Because most Ebay scalpers don't bother to do the math.

    in the long run,ebay scalpers not only hurt buyers,they hurt buyers. everyone suffers,nobody comes out the clear winner in this situation.

    I've noticed these Ebay scalpers. try to make a few extra bucks in over charging on shipping fees. best advice I can give any ebay buyer. look at the shipping fees. Stay away and don't bid on auctions where the shipping fees are high.

    Shipping fees for Hasbro's Mssterpiece Thundercracker. Should cost no more than $9 dollars. because the toy is Ultra sized. The box is small and light. the item weighs under Two pounds.
     
  2. alldarker

    alldarker M.A.S.K. Crusader

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  3. PriNcesfDarXnes

    PriNcesfDarXnes Seeker

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    Because they are idiots. That is literally why.
     
  4. Satomiblood

    Satomiblood Prototype Black

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    I'd think that a good scalper would list a highly sought-after item with a low starting bid ($0.01-0.99) coupled with a free or very modest S&H rate. When you make a horde of people believe that they have a realistic chance at getting said item at a relative steal, a bidding war will most likely commence and they'll ironically spend more than they set out to originally. And this isn't even counting snipers. There's a certain psychology to it and you see it on eBay every day. So, yes, despite all of the fees, it's still possible for a scalper to come up with a nice profit. They just have to play it smart.
     
    Last edited: Aug 31, 2012
  5. Alucard77

    Alucard77 Kaon Gladiator Champion

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    Yeah, that is why when I work with someone in the BST section and they quote me ebay prices, I always say, listen, I am not paying ebay prices. If you want ebay prices sell on ebay.

    I am willing to go as high as ebay price minus 13%. 10% Ebay fees and 3% Paypal fees.

    100% agree. I see that shit and think, what is wrong with people.

    Best part is one time there was a bidding war on TFC Hot Rod. Meanwhile there was another seller I had been watching who put it up at $30 at starting bid with $5 shipping. To my surprise, the bid war went to $80. Meanwhile I walked away with a MISB one for $35.

    I personally always set a high limit, and don't go over it. So what some one else beat me. That is what people don't get, it's not a competition with someone else, it's buying what you want at the price you want. There will be more. There always is.
     
  6. combaticon164

    combaticon164 Warlord of Floriduh

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    Scalpers make and lose money, if you feed them they wont go.
     
  7. Janitor

    Janitor Well-Known Member

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    Yup, that's some psychological ish right there. Often you'll see this among the sea of highly sought after items:
    Auction A: bin for $50
    Auction B: started at $0.99, currently at $46 with 16 bids and 2 days to go (will inevitably finish higher than item A)
     
  8. slugslinger2004

    slugslinger2004 TFW2005 Supporter

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    I agree with this, mostly. When I sell something on the boards I try to shoot for the average of a few sold auctions and subtract the eBay fees, which is what I'd get anyway if I sold it on eBay. I leave the Paypal fees in as a protection for both parties.
     
  9. Rexidus

    Rexidus Autobot TFW2005 Supporter

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    I think people make to big a deal about scalpers. It's practically a witch hunt. Can't find what you're looking for? A scalper must have beaten you to it!
     
  10. Alucard77

    Alucard77 Kaon Gladiator Champion

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    We should work together. Many people don't understand that simple concept. Also, you gotta do like the olympics and throw out the high and low bids. Just cause 1 dumb ass spent $500 on a $200 figure doesn't mean it is $500. You don't even know if he ended up paying that for the figure. Also, just cause someone lucked out and paid $10 for a no reserve figure who no one saw, doesn't mean the figure is $10.

    This reminds me of the Teletran iGear set on eBay. For months it was selling around $200. Then 1 fucking auction went to $400. And now that is the new going rate, and even eBay buyers are using that new auction as the new rate.

    I really don't understand the madness.
     
  11. knightmare6

    knightmare6 Reflector In Disguise

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    The other thing is, who says the scalper went to Toys R' Us or whatever, if they're professionals, they probably have a hook up with the supplier and are able to buy the cases they need, sort out the hot demands, and the low demands can be donated or written off for tax purposes or whatever method they use to get the most bang for their buck.
     
  12. Ash from Carolina

    Ash from Carolina Junior Smeghead

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    Sorry to point out a flaw in your logic, but most scalpers aren't going to buy just one toy so it's not all that gas burned over just one sell. The people looking to make a big profit on scalping will have a list of hot toys and end up making multiple purchases meaning the amount of gas used to acquire each figure is relatively low.

    Always a chance the store will not have the Vehicon they want to sell on e-Bay but the store might have a hard to find Marvel figure, a DC figure everyone is looking for, the must have Star Wars toy, or any one of the countless in demand toys collectors want. If you pick up 10 or 20 toys at a retailer well that much gas divided among each figure isn't much.

    While MP Thundercracker at $69.99 might be a good bit for a scalper to invest many of the toys they are going to scalp will be much cheaper. Something like the Avengers Hawkeye might set a scalper back about $10 but then they could sell it for $20 or $30 and make a nice little profit.
     
  13. Avengers

    Avengers Banned

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    The more ruthless experienced Ebay scalpers. Will do something called shill bid. Where they set low start fees. then these sellers bid on their own auction to raise the final value ending bid. Other sellers have friends or family members who bid on their auctions to raise the final ending bid.
     
  14. Avengers

    Avengers Banned

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    Because most ebay scalpers do run to the stores and buy items off the shelves.

    The buyers who order from the companies have web sites like BBTS.com. Having their own web sites means they don't have to pay ebay listing and final value fees. no worries about paying paypal money transaction fees. thay can charge their buyers sales tax.
     
  15. stepsongrapes

    stepsongrapes Well-Known Member

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    I think you've made a lot of extreme assumptions.

    1) I suspect a scalper does not burn a gallon of gas to go fetch one item. More likely, a) they live in a high density area where they can hit multiple stores on one gallon and b) they pick up multiple items to list per trip. Gas costs, even at todays prices, should be no more than pennies per item. The issue of economy-of-scale is a big one.

    2) who says all scalpers are paying any sales tax? Many, many states don't have sales tax.

    Your whole premise assumes that scalpers are idiots and can't manage a bank account and can't tell that they're losing money week in and week out. I suspect that's not the case.

    Frankly, I think the question isn't can they make a profit (they surely can), it's how efficient they are: what is the return on time invested? What is their average profit, per hour of time, scalping?
     
  16. opt1musaber

    opt1musaber Victory Saber's Recruit

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    Who's crazier, the people selling them, or the people buying them....WHO CARES. Avoid them and move on.
     
  17. Roufuss

    Roufuss Shots

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    Not to mention most scalpers know exactly when the trucks come in, when the store restocks and most likely have made friends with / are paying the employees to hold stuff or grab them stuff out of the back. They aren't just randomly driving to stores every single day hoping to strike it big so gas is not an issue at all.

    Hell, I even knew someone who got a small part-time job at TRU during the holiday season just so he could easily access the figures to resell them.
     
  18. Matty

    Matty @StayingInTheBox Moderator News Staff

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    I'm trying to follow your logic, but it really doesn't add up at all.
     
  19. megatroptimus

    megatroptimus Translatorminator

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    AFAIK, sellers don't have to absorb taxes for toys sold outside of their state. For example, Automaton is based in Quebec, Canada. Only buyers from Quebec pay both taxes (GST + PST). Buyers from elsewhere in Canada only pay the GST and buyers outside Canada don't pay taxes at all.
     
  20. Boy Blunder

    Boy Blunder Hasbrown'd

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    As a regular eBayer, this isn't really a scalper tactic, as much as it's a smart eBay tactic. I never set my items that low, just at the lowest I would be comfortable letting them go for. Factor in what I offer for shipping (whatever's the most inexpensive option for the buyer, given the size of the item), and it makes any item appealing enough to get multiple bidders. It doesn't always work out, but considering the random crap I end up putting on eBay, it's worth trying.

    Don't get me wrong, I'm not justifying scalping practices. I'm just saying this is a general smart eBay tactic in order to get the most guaranteed money for your item(s).

    Also, OP, please learn how to use commas. I keep reading your posts in William Shatner's voice.
     

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