The amount of useful analytical research published regarding online auctions is amazing. What is equally amazing is how little of this research has been made available to mainstream eBay users. As part of our inexhaustible efforts to provide truly unique online auction tips and tools, AuctionInsights offers another article that distills the pertinent information from a paper published and peer reviewed by university economics researchers.
In their April 2004 paper, “Seller Strategies on eBay,” professors Steven Anderson, Daniel Friedman, Garrett Milan, and Nirvikar Singh analyzed over a thousand Palm Pilot PDA auctions to discern any correlations between listing strategies and and success. They evaluated options such as auction length, starting price, reserves, Buy it Now, and information provided about the product.
The study concluded that the most successful sellers in their sample consistently employed a combination of:
- Low starting bids ($0.01),
- No reserve price, and
- Buy it Now for impatient buyers
The study also concluded that auctions with a reserve price were the most likely to close unsuccessfully.
The researchers collected data on 1211 Palm Vx auctions listed on the US eBay site from August 6 to September 11, 2001. Professors Anderson, Friedman and Singh were on the staff of the University of California, Santa Cruz. Professor Milam was from Ryerson University, Toronto.
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One Response to “Study Identifies Strategies of Successful eBay Sellers”
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I don’t understand why ebay doesn’t post feedback for both the buyer and seller AFTER both of them have completed feedback.
This would make honest and objective feedback and get rid of the retaliation issues we currently have with the ebay feedback system.
In my opinion the feedback system is broken until they make such a change.