BUYING COINS ON E-BAY

E-bay has provided the collector of numismatic items, an almost limitless supply of items from which to choose to buy.  If they made it, you can probably find it here. If not today, look again tomorrow.  That rare 1955 Doubled Die Lincoln Wheat Penny you've always wanted?  Yup, it's here. 

Nothing beats information, experience and knowledge when it comes to buying coins, or anything for that matter.  Being an informed buyer, when it comes to coins, is crucial.  First thing I would recommend, is buying a copy of the most recent Red Book Guide of United States Coins.  Chances are, if you are a collector, you already have it.  If not, this is a must have.  Not so much for the pricing in it, as it is printed but once a year, and prices can change day to day during the year, especially Gold and Silver items, but more so for the facts about each coin, the mintage figures, the major varieties of each coin type, and the vast information of all US Coins it contains.  For $14.95, you can't beat it.  For more accurate and up-to-date coin pricing, I would recommend going to PCGS's website, and check their price guide.  Another book I would recommend is the American Numismatic Association Grading Standards for US Coins.  Being able to determine the grade of a coin, is the most critically important single aspect of buying any coin.  Along with the ability to determine whether a coin is completely original, or whether a coin has been cleaned, whizzed, dipped, or unnaturally altered, is equally important, as this may severely impact the value of the item.  If you do not even know what those terms are, it is of the utmost importance before buying any coin, to find out and familiarize yourself with being able to determine if a coin has been altered unnaturally in anyway.  Some sellers may not disclose this information.  For more information on coin terminology just type: "coin terminology" in any web search page and locate one of the many sites hosting that information, almost all are free.

• If you are buying or looking around at coins, and thinking about making a purchase, the most important advice I can give you is to shop around.  It is more than likely there are more than a few of the items around that you are looking to purchase.  Compare prices.  And when you are comparing prices, include checking the shipping and handling fees the seller is charging.  Do they include shipping insurance, or is that extra as well?  Most sellers charge anywhere from $2-$5 per item, and usually offer a discount for multiple purchases.  Read their shipping/handling & return policy, if they have one.  Keep in mind though, that you are not only paying for the actual shipping of the item, but the seller has expenses that go along with shipping your item, like packaging costs, advertising and E-bay/PayPal fees, trips to the Post Office, etc., and the only way to offset some of these expenses is to charge a reasonable shipping and handling fee.  So up to $4 or $5 dollars per item is not at all unreasonable.  I would also recommend searching the internet for coin dealers online.  Check out what they are selling coins for.  There is one major dealer online, one of the largest in the country, selling coins at highly inflated prices, and you need only to check their prices and compare them to what is available on E-bay.  I have found the best deals to be on E-bay, generally.

• Check photographs carefully.  Are both the obverse and reverse clear, close-up, fully detailed?  Or are they fuzzy, blurry, and far away from the camera?  Chances are more than likely, if the pictures are not clear, there is a reason the seller does not want you to see the full details of the coin.  I have found that almost every single ad with a poor quality picture, that the seller is grossly overstating the condition of their item.  Usually their feedback comments reflect this dishonesty.  With today's digital cameras, there is no reason for poor images.  If the seller is reputable, they would have invested in decent photography equipment and taken the time to ensure you can clearly see the item.  If you cannot see the item clearly enough to determine the condition and grade of the coin from the photograph, or whether the item has been unnaturally altered in anyway, do not buy it.  

• Does the seller offer a return policy?  Every reputable and honest seller will offer a no hassle return policy.  If they do not offer one, I would not buy from them.  Every honest and reputable seller will stand behind his products, if not there is a reason for it!  Some sellers may charge a small restocking fee, and that is reasonable if an item is returned for any reason other than the item was misrepresented, either on purpose or by accident.  A seller may have made an error in the listing, or not fully disclosed the condition of an item, and in that case, the seller should also reimburse the shipping and handling fees, including return postage for the item.  Again, if the seller is honest, they would do that anyway.

• Check the seller's feedback.  Read the comments.  Most buyer comments will accurately reflect their experience with the seller.  Repeat comments like, "Fast Shipping", "Accurately Described" are what you want to see.  Comments like these show the seller's commitment to being consistent, honest, and accurate.  Check the 4 categories that buyers have rated them on, Item As Described, Communication, Shipping Time, and Shipping & Handling Charges.  These are based on a 1-5 Star Rating, 5 being best.  I look for 4.5 rating and above, anything less I would reconsider purchasing from the seller.  If a seller has an item you are interested in, and their feedback rating is less than 100%, search for the negative feedback comments and read them.  Why did someone leave a negative comment?  Did the seller really deserve it?  If a seller responds and leaves a follow up comment, read that as well.  Did they try to resolve the issue with the buyer?   Or did they not respond at all?  Typically I refrain from purchasing anything from a seller if their feedback rating is less that 99.8% or 99.7%.  While a 99.7% positive feedback rating may seem great,  if they are a large volume seller, that .3% could mean a lot of unhappy customers over the course of a month.  A seller who may appear to have a decent rating, if investigated further, they may have numerous negative feedbacks each  and every month.  I would be concerned about a seller who consistently gets negative feedbacks every month, regardless of their volume.  Most people will only leave negative feedback if a seller refuses to resolve an issue with a customer, or they have felt purposely deceived.  Again check the seller's return policy.  Most sellers will try to resolve any issue that may arrise.  The key to resolving an issue, is to contact the seller.  Give them an opportunity to resolve the issue.  Never leave negative feedback under any cicumstance until you have contacted the seller.  It is a seller's responsibility to fix the problem, and the only way for him to know there is a problem is to notify them.  Leaving a negative feedback first, or threatening to leave a negative feedback, is a good way for the seller to get defensive and be less willing to help resolve the issue.

• When bidding on an item, if you do not plan to be around at the end of the auction, you may place a bid up to your maximum allowable amount.  And I recommend doing that when you first see an item you wish to purchase.  Determine what amount you are willing to pay for the item, and enter a bid for that amount.  Do not go back and raise your bid, unless it is absolutely neccessary.  I find most newer E-Bayers go back and keep raising their maximum bid, fearing they may not secure the purchase of that item.  Not realizing there are many similar items available for less elsewhere.  The psychology of the auction process often gets people caught up in it, and they end up over-paying for an item.  So entering your maximum bid initially, and holding to that amount, may alleviate getting caught up in the auction and over-paying.  Plus you do not have to be around for the end of the auction to bid then.  Most E-Bay buyers wait until the final moments of an auction to bid on an item.  The favorite search tool for buyers seem to be searching fore auctions by items ending soonest, in order to purchase items right away.  Some people think if they wait until the last minute they will get a better deal.  This is not really the case, as most people are searching auctions by items ending soonest, and bidding on those items at that time, so prices of items may jump very quicky.  So search for what it is you are looking for and place a bid right away for that item, and stick to it!  If you win it for the amount you bid, or less, than you did ok.  If you keep raising your bid, you may not feel so good about your purchase afterwards. 

So be an informed buyer, educate yourself about coins, grading, and values. The more information you gain will help you purchase items at fair prices.  Shop around.  Never buy an item without first checking to see what similar items are going for, on and off E-Bay.  Check the seller's reputation.  Ask the seller questions, if you have any, BEFORE you bid.  Make sure the seller has a return policy.  I recommend purchasing shipping insurance for any item with a value of $50 or more.  And bid as soon as you have determined which item you would like to purchase, and enter your maximum bid amount right away, and do not go back and raise it, unless absolutely neccessary.  And remember if you have any issue with an item after purchase, ALWAYS give the seller an opportunity to resolve the issue.  NEVER leave negative feedback without contacting the seller and allowing him ample time to help you resolve your concerns.  There is absolutely no excuse for leaving a seller negative feedback if they have a return policy.  If you are not satisfied, just let the seller know you will be returning the item.

SELLING COINS ON E-BAY

On the other side of the coin-pardon the pun, selling coins on E-Bay presents sellers with an almost bottomless customer base.  No other format reaches so many potential buyers.  That's the benefit.  The downside of selling on E-Bay is that there are an overwhelming amount of sellers, with so many identical items, it presents a challenge for a seller and his items to stand out among them.  And also because there are so many similar items, why would anyone pay a premium for your items?  They don't have to.  Simple supply and demand.  Obviously the more rare and unique your item, the better your chances of getting a better price for it.  But I have found that almost never will anyone pay close to retail prices for anything on E-Bay, especially coins.  There are just too many available.  So if you are a seller and you need to get close to retail prices for your items, you may be wasting a lot of time and money advertising items that just won't sell.  The exception would be extremely unique and rare items.  In fact, most common items will sell for even LESS than dealer to dealer wholesale pricing.  So unless you have gotten your items for significantly less than dealer wholesale prices, making money selling coins here on E-Bay does present a challenge.

First thing to be done when selling an item, is to take clear, close-up photographs of the item.  Both the Obverse and Reverse.  When describing your item, be completely honest.  If the coin is scratched, or has been cleaned, whizzed, polished, or altered in anyway, say so.  When determining what to start the bidding off at, I usually start every auction at one penny.  Why?  Well it gets people involved with the auction, and usually the first bid will be placed quickly.  This gets more people interested.  Lots of bids and activity on your auctions seem to attract attention.  Plus, I have found for some reason, even if you start at auction off at a price YOU think is more than reasonable, I have found that there is less bidding activity, and in many cases no one will even bother bidding.