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08-22-2013, 07:00 AM
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Originally Posted by GordonGecko View Post
Nope they aren't running it for free, and they provide insurance on both sides of the transaction. But when you're talking a 25% markup (it's actually 79% on the cheapest MLB tickets), it takes away pretty much all of a seller's margin for all events except the highest demand ones. They should be collecting a fee, but 25% is insane and it's going to cost them a lot of business since it's so much in your face now with everything packed into the listed price.
Their 25% fee isn't new, however ... only change is how it's shown.

Previously, seller would give "sellng" price of (say) $100. It would be listed at $100 and then buyer would pay $100 + 10% + shipping. Seller would then get $85/ticket. Ignoring shipping (which is very expensive on a per-ticket basis if sent UPS/FedEx for one ticket, but not nearly as much if sent electronically), their total fee is $25.

Now, the ticket will be listed at $110 (plus the cost of whatever the seller chooses as the shipping method) and the seller will still get the $85.

The seller is only hurt under this new policy (versus the previous policy) to the extent that the higher price that is shown (in the listing) scares away some customers. I agree it's a strange system, in that (almost) everyone else prefers to show as low a price as possible on the screen, and then add in fees and shipping after the buyer has selected the tickets (figuring very few buyers will change their mind when they are one more click away from the purchase).

Having said all of that, the fact that the seller gets $85 for a ticket that someone buys for $110 (ignoring shipping) is an enormous spread that (should) leave a pretty wide opening for an alternative selling platform. However, a lot of buyers are willing to pay for the quick and certain payment (and access to the universe of buyers who use StubHub), while the sellers are willing to pay for the security of StubHub guaranteeing the tickets.

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