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What
do buyers like? They like options. In particular, they like buying
options. At least that's the theory behind the implementation of
so-called "buy now" functionality at all the major
online auction venues. Here we provide an overview of this
suddenly ubiquitous feature, as well as look at the pros and
cons of using it.
I
Want It Now!
Buying options, shipping options, payment options--with millions
upon millions of listings available 24/7, online auction sites
are definitely looking to bring in more buyers and offer more
choices and flexibility for people looking to purchase goods
online. One of the newest and most common buyer-centric features
allows sellers to specify a threshold fixed price at which
they're willing to sell an item. Once a buyer places a bid for
the designated amount, the auction ends immediately--no more
bids are accepted. Buyer and seller then go about completing the
transaction.
All the top auction sites offer the
buy now feature, but they have different names for the option.
eBay calls it "Buy It Now"; Yahoo Auctions terms it a
"Buy" price; Amazon.com Auctions designates it a
"Take It" price; and FairMarket-affiliated sites, such
as MSN Auctions and Excite Auctions, call it a "Quick
Win" listing.
For
Buyers and Sellers
Sellers can indicate whether they want to offer the buy now
option when listing an item, at no extra charge. Some sellers
also include "Buy It Now" or "Take It Price"
in their auction titles to lure in
bidders seeking to buy items quickly and bypass the auction
process.
A "Buy It Now" icon appears
in search results on eBay, the only site to provide this helpful
assistance for buyers. Of course, indication of an auction being
a buy now listing is made on a site's auction pages as well. In
the case of eBay, the Buy It Now price appears right underneath
the current bid. On Yahoo Auctions, you'll find it in the
"Auction Info" section, highlighted in yellow. On
Amazon.com Auctions, it's listed under the current and minimum
bids.
Pros
and Cons
So what are the attractions and potential detractions of using
the buy now feature? Most notably on the positive side, since it
ends an auction immediately, the buy now option significantly
reduces the overall transaction time. A buyer can place a buy
now bid, and if he or she pays via credit card, the sale can be
concluded within minutes.
This is attractive for buyers who
don't want to place a bid and wait several days to see if they
win (it's also particularly handy for when timing is of the
utmost importance, such as the holiday
season, and for sellers who, like buyers, would rather not
wait out an auction.
The buy now option also eliminates the
controversial practice of sniping.
On the downside, designating a fixed
price means that a seller might get less than if the
listing ran solely as an online auction. It puts a definite cap
on how much a seller can get for an item, and the possibility of
a last-minute bidding frenzy is eliminated--as is in the chance
for a better profit. Moreover, the online auction
"fun" factor is gone. With buy now, an auction becomes
just another online transaction.
A
Controversy?
Online auction sites' implementation of the buy now feature has
been greeted with a few grumbles. Some users say that adding a
fixed-price component doesn't have a place on online auction
venues. But whether you approve of buy now listings, and
whether you choose to take advantage of them as either a buyer
or seller, it appears as if they're here to stay as sites
continue to expand and seek to reach out to more buyers.
Lastly, although the buy now option on
most sites is primarily the same, there's one major difference
with eBay's Buy It Now feature. Unlike Yahoo Auctions and
Amazon.com Auctions, once a bid is placed on an eBay auction,
the Buy It Now price is no longer available.
Back to Auction tips &
tactics
by Vendio Services
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