EBay Arbitrage Idea

NewUser2006 · #1 07-29-2006, 01:55 PM

Just in the idea phase right now, but I could easily implement it.

Set up a web bot to look at commonly sold items on EBay and collect the average selling price of those items. Then after a few weeks of data have been collected, the bot then goes and looks for those items that have auctions that are about to end and are below a certain threshold (25%?) of the average price. The bot then alerts the user that the item exists, and she can buy it and resell it later.

This idea could be used in two ways, selling the software itself, or using it for your own profit. It is likely that if I generate enough sales, the arbitrage opportunities will dissapear as the market becomes more efficient.

Thoughts?

ItalianFX · #2 07-29-2006, 02:11 PM

This sounds like a really good idea. I wish I knew how to program something like that.

If you are the only one doing this, the market will not disappear as rapidly as you might think. Also, Ebay is not priced by computers; therefore, someone is always going to list something that is undervalued, or items will just pass through without being noticed. There really is no system that keeps ebay prices in an equilibrium of supply/demand.

Thremp · #3 07-29-2006, 05:01 PM

Umm... I think costs would outweigh it. Also Ebay is a fairly efficient market.

talentdeficit · #4 07-29-2006, 06:22 PM

ebay is too efficient, you'd get killed by transaction fees.

CardMinger · #5 07-29-2006, 07:25 PM

I have to agree with Thremp on this one.

Remember you have to pay ebay/paypal fees. Plus you have to pay the shipping for you to get the item in the first place...

good thinking but I just don't think this would be practical.

CM

bestnameever · #6 07-29-2006, 07:41 PM

Ummm, maybe I'm a retard here, but your idea sounds interesting. The part that bothers me is you posting your killer idea on the Internet?

*link removed*

NewUser2006 · #7 07-29-2006, 08:20 PM

[ QUOTE ]
Ummm, maybe I'm a retard here, but your idea sounds interesting. The part that bothers me is you posting your killer idea on the Internet?

*link removed*

[/ QUOTE ]

I doubt it's killer, but I do think there are some inefficiencies that could be exploited.

However, I don't really want to spend all of my time buying and selling on ebay... so I guess this really is an invitation for anyone else who wants to do this.

If I ever get some free time, I might code it up.

bestnameever · #8 07-29-2006, 08:55 PM

Re: code it up.

God I've a lot of good ideas, what I wouldn't give for the ability to just code something up in my free time, wish I had those skills.

Good luck with your ideas!

*link removed*

Thythe · #9 07-30-2006, 03:19 AM

Stop spamming links in your messages.

blendedsuit · #10 07-30-2006, 04:21 AM

people have been doing a similar thing for a long time. lots of inefficiencies are in poorly described and miscatagorized items, you do a search with misspelled words for instance, this is a bad example since some people call them labtop
but you get the idea.
i bought a jacket on ebay for $15 and turned around and resold it for $50. not much gross profit, but good ROI.