The Ebay Discount vs. The Amazon Premium

I recently sold something on Ebay for $100 that could be purchased for $106.99 on
Amazon. I was surprised by how much it went for. The product I sold was new in
the box, so there was nothing wrong with it, but I expected it to close for
considerably less than $7 less than what someone could buy it for on Amazon. In
fact, if they qualified for free shipping on Amazon, the cost differential would
have been only $2.00.

This made me wonder: how much cheaper would something have to be on Ebay to
justify buying it from a private seller vs. buying directly from a well known
reputable online retailer like Amazon? This isn’t to say that Ebay sellers
aren’t reputable. The site wouldn’t be as successful as it is if they weren’t.
But there is certainly more risk tied into buying something from a relatively
unknown retailer than buying from the biggest retailer on the web.

Put another way, what’s the premium you’d be willing to pay to buy directly from
Amazon over the discount you may be able to find on Amazon.

Another example: The Canon SD800 IS digital camera current costs
directly from Amazon
. The same camera in new in box condition has been
selling in the
range on Ebay over the past few days. Does the $66 difference justify buying
from a private seller?

In my case, I would have gone with Amazon over myself for a $7 difference on a
$100 purchase, and would have gone with the Ebay seller to save $66.

What is your break point, and how do you justify it?

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