The “Best Offer” tool is a terrific way to buy on eBay. It enables the buyer to make a purchase at lower than the seller’s asking price. For example, if the seller is asking $200 but the “Best Offer” option is displayed on the screen, that means he’s willing to take less money than the asking price and a buyer can offer the seller $150, for example. It’s possible the seller might accept the offer or make a counter-offer to the buyer of, say … $175. Even at that point, the buyer can make another counter-offer of $160. Buyer and seller can go back and forth until they arrive at what both think is a fair price, just like they would at a real antiques market or shop.

One important thing to keep in mind is that the Best Offer is an option that eBay only makes available in fixed price listings. Best Offer is not available in the auction format.

Here are three techniques that are NOT recommended when making Best Offers:

1. Technique #1: NOT recommended. Making a best offer when the item is still in the auction format. This is an unofficial Best Offer. The Buyer emails the seller and asks them to take less money than the opening bid. We do not recommend this because it is difficult, if not impossible for the seller to respond to this type of offer and, even if he did, you might lose the item anyway. If the seller wants to take your offer, assuming he has no bids on the item, the seller would have to revise the auction and do three things: 1) reduce the opening bid, 2) add a Buy It Now option at your Best Offer price and 3) revise the listing to allow Best Offers (this is an option – the seller doesn’t have to enable the Best Offer option when listing an item). After the seller does all that, the buyer would have to make certain he is by his computer the very second that Buy It Now goes up on eBay or the item could be purchased by another eBay buyer who clicked that Buy It Now button sooner! Further, if you do this, you are asking a Buyer to end an auction listing early – this is something that many sellers simply won’t do and is frowned upon by eBay. It’s also possible the seller might agree to take your offer by ending the auction listing entirely and going “offline” to complete the transaction. This is risky to both buyer and seller as you have no eBay protection on the transaction if anything goes wrong. It also violates eBay policy and you are putting the seller’s eBay status in jeopardy.
2. Technique #2: NOT Recommended. Some buyers wait for items to be passed over at auction (i.e., receive no bids at all) … in hopes that the seller will relist the item as a fixed price listing in his eBay store … and with the Best Offer option displayed. If you make a practice of doing that it’s likely you’ll miss something you might really want. Most sellers don’t relist auction items into the fixed price eBay store format until they have been at auction two or three times (listings get better exposure on eBay if they are in the auction format). It’s very possible the item you have your eye on will be purchased in the auction format well before you have a chance to even make a Best Offer.
3. Technique #3: NOT recommended. Offer a significantly lower price than the asking price … which you might think allows lots of room for negotiating. While you may think this is a good negotiating ploy, this can backfire because the seller may be insulted. If the seller is asking $300 and you offer $50, you might think this is clever but we can guarantee you that the seller sees it a different way – the seller is just annoyed. That low offer is no doubt well below the seller’s cost. Sellers aren’t going to lose money just to help you and it’s very possible the seller will ignore your offer entirely. Or, he may make a counter offer of $299. At that point you start out with a negative, prolonged and counter productive negotiation.

HERE IS WHAT WE RECOMMEND if you want to use the Best Offer options:

• If you spot an item that you want when it is still at auction – if the price is acceptable to you, by all means bid on it. Don’t ask the buyer to take less money or end his item early. It sets up a negative transaction that may not be protected by eBay or PayPal. If the item has no bids at all, email the seller … express your interest but state that you cannot pay the opening bid. Ask the seller if the item gets passed over at auction, will he relist it? And if he does, will he relist it with the Best Offer option? Then the seller knows you’re interested and want to pursue this purchase. If the response is positive, wait the auction out and hope it doesn’t sell. At that point the item will hopefully be relisted with a Best Offer option and you can proceed to make your offer.
• If you spot something you want that is already a fixed price listing with a Best Offer option, by all means make your offer. The major question at that point is how much should you offer? It is very important to offer a fair price. Most sellers will think it’s fair to ask for 20% to 25% off.  If the seller is asking $300, offer 25% less, (which is $75 less) … that would mean you make an offer of $225. Even $200 might be considered. The seller might make a counter offer but at least he won’t be insulted and ignore you; it’s likely he will either accept your offer or make a counter-offer. If he makes a counter-offer, you can accept that or continue your negotiations until you find a price that both buyer and seller are comfortable with.

The two most important things to remember with Best Offer negotiating:

1. Most sellers on eBay are small businesses who have low mark-ups on their items. If you offer significantly less than their asking price, you are asking them to lose money. That just won’t happen so why bother to make an offer like that and start a transaction so negatively?
2. If you are respectful of the seller’s quest to earn a living, he will be just as respectful of your quest to save a little money by shopping on eBay and everyone can have a mutually beneficial transaction!

Good luck buying and selling!