Friday, August 12, 2011

Case Study in Selling and Buying Using PriceAdvice

Invicta Men's 6620 Chronograph

Not everyone can afford a luxury watch, but they still want the look at a reasonable price.  eBay and Amazon have proven to be great resources for purchasing a luxury watch at a great price, but what about those non-luxury watches?  Where could the better deal be had? To find out, we listed a new Invicta Men’s 6620 Chronograph watch on eBay to compare prices.  Keep in mind that this watch has an MSRP of $495!  Not high enough to be considered a luxury watch, but still a pretty penny.

At the time of our experiment, the watch had an average selling price of $65 on the secondary market according to our pricing algorithm.  Amazon was selling it for $69 with free shipping.  We listed our watch on eBay with no reserve and included free shipping.  It took less than two hours for our first bid to come in and a bidding war ensued as the auction came closer to closing.  With over 20 bids, we finally ended with a sale price of $60.  While under the average selling price, we felt we could call the sale a success—for the buyer even more than us!

So what does all of this mean?  We take it to mean that while Amazon often has great prices, they are not always the best deal on the web.  Using PriceAdvice as a guide for how much you should pay will help you get a great deal like our buyer above.  That average price can even help you determine how aggressive you’ll want to be in a bidding war or, if you even want to get into a bidding war.  $69 is not that much more than the average, so the extra work of following an auction might not be worth it to you.

Even more, if you want to sell something on eBay, you can use the average selling price as a guide to set a reserve price.  We certainly could have sold the Invicta watch for the average selling price or higher if we had set our reserve at the average price.

And, the price of the Invicta Men’s 6620 Chronograph is now even more expensive on Amazon since we conducted our transaction.  It’s now selling for just over $74.99. That's why it really pays off to do some research--PriceAdvice aims to make that research easier.

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