Recently, we bid on an item listed on eBay in an auction format, with the bidding starting at only $1. The auction was for an old book from the late 19th century, in relatively good condition. Since there were no other bidders, we won the auction at $1, plus applicable taxes.

We paid the full amount within 30 minutes after the auction ended, and eBay declared us the winner. Immediately after we paid for the item, the seller canceled the order, providing the following reason. Below is the email we received from eBay:

“Unfortunately, the seller had to cancel your order due to the following reason: I’m out of stock or the item is damaged.”

Of course, it hasn’t been damaged or gone out of stock – first, the item was an old book, not a mass-produced item. Secondly, it was canceled immediately after the auction ended and payment was made. It became evident to us that the cancellation was intentional to prevent selling a more valuable item for just $1 when they realized that only one person had placed a bid.

This approach is a definite no-no when it comes to eBay auctions, and any auctions for that matter. It’s important to remember that if you are not correct and fair in your actions, not only can eBay penalize you, but buyers can also leave negative feedback in your reviews. Auctions are legally binding agreements, so sellers must honor their commitments. eBay is a community-driven marketplace, and a seller’s reviews and reputation are everything. It would be worthwhile to mention at this time that based on the number of items this seller had available for sale and the time since he or she became an eBay member, it indicated that we were working with a new dealer. So we had a few choices:

• Firstly, leave a negative review for this order, which we were entirely entitled to – we were actually looking forward to picking up the book.
• Secondly, report this seller to eBay, which we were also very much entitled to do. If we cannot rely on sellers to fulfill their promises, the trust that auctions should fundamentally embody is lost.
• Lastly, avoid the above options and instead try to educate the seller about the situation they found themselves in, hoping to be of help with their future listings.

After some consideration, we decided to go with option #3. eBay is a complex environment, and the details of running an auction can be somewhat daunting for many new sellers. While we do not know if this seller was truly knowledgeable about the auction rules and intricacies of the system (rather than maliciously trying to deceive), we decided to give them the benefit of the doubt.

In place of the negative review, we sent an email directly to the seller, letting them know how they should never cancel an order at this stage of the auction. We also explained that they can protect their listing by using a reserve price to set a minimum amount they are comfortable with, even in cases where only one person bids on it.

We also emphasized to the seller the importance of not taking others’ advice to set the auction starting price at $1, particularly for items of greater value without a reserve. While this strategy might seem attractive for several reasons, including:

1. Attracting more bidders with a low starting price, drawing in interest and increasing the chances of competitive bidding as more people get involved.
2. Allowing the market to determine the item’s true value and (hopefully) achieve a higher final sale price through competitive bidding.
3. A low starting point can encourage a quicker sale, especially for items that might not sell as easily at a higher starting price.
4. Increasing visibility on auction platforms – Listings with low starting prices often gain more attention on auction platforms, potentially leading to higher view counts and increased bids.
5. Psychological factors – bidders may feel more inclined to participate when they perceive a “good deal,” leading them to bid more aggressively as they compete with others.
6. Sellers looking to move inventory quickly, such as dealers with excess stock, might use this strategy to ensure that items are sold rather than sitting unsold.

… it’s crucial to recognize the risks involved. If you are not an established seller with a loyal audience, this approach could lead to significant losses, as there may not be enough bidders interested in your item at that time. Therefore, it’s vital to carefully evaluate the type of item you are selling and the auction strategy you wish to employ.

To conclude our frustrated remarks: do not cancel the order after an auction has ended, and especially not after the item has been paid for. If you do have a valid reason to cancel, make sure to do so before the auction ends.