Ebay Versus Auction Houses

In the last four years, I have spent (wasted?) a good deal of time and money in an effort to find larger lots of unchecked stamps, both on ebay and from stamp auction houses. I thought it was time to share the conclusions I've formed on the subject.

The bulk lots sold by stamp auction houses - and I think that by now I've bought bulk lots from all of the major ones in Australia plus a couple overseas - have been thoroughly checked. Auction houses are used as dumping grounds by professional dealers for lots they know contain nothing worthwhile whatsoever. While the lots are cunningly described in a manner so as to excite the idea that they may yield some good stuff (e.g., "Very good postmark potential"), they invariably consist of out and out junk.

NB: In the real world, the phrase 'postmark potential' - which is widely used in descriptions of bulk lots - means 'Not ALL the stamps have machine cancels.'

Exception that proves the rule: the best postmark I ever found was in a large lot of KGV reds I bought from Hallmark Auctions in Adelaide. The lot had been thoroughly checked for shades, varieties and postmarks, but one good cancel slipped through the cracks because it was only partial and not even that legible. It turned out to be very rare and did quite well when I auctioned it on ebay.

It is true that bulk lots sold on ebay often suffer from the same problem, but my experience is that there is a much better chance of finding unsearched lots on ebay than anywhere else because you're more likely to be getting stamps from private individuals than professional dealers, who don't leave a stone unturned. Apart from the postmark referred to above, every better stamp, postmark, or variety, including inverted watermark, that I've ever found I got off ebay. (The same goes for coins, although my experience in this respect is not as extensive.)

I used to be highly critical of ebay, but the truth is that I've tried my hardest to find an alternative source of bulk stamps and I haven't succeeded.

I'm going to conclude with the observation that on ebay you can at least leave feedback, so that if a lot has been misrepresented you can say so. You can usually even get your money back. Not too long ago I bought a vintage album from an ebay seller who made out that the album contained an outstanding collection of classic European stamps. But the scans of a few pages that had been included in the listing left a more ambiguous impression. Since the seller stated that returns were accepted, I decided to take the seller at his word and buy the album. I soon discovered that while there were many good stamps in the album, they were all damaged. Every single one of them (and many badly damaged at that). However, in that case, I was able to return the album and get my money back. But you can't do that with stuff purchased at auction, even though auction houses usually provide even fewer images for you to base your purchasing decisions upon that you get on ebay. And you can't leave negative feedback to warn others if you've had a bad experience!

I've never bought anything from a major auction house so I'm not qualified to compare. However, I've gotten some incredible deals at times on ebay. While I know there are potential pitfalls in buying certain kinds material on ebay (which I choose not to buy there, or at all), I've had nothing but good experiences overall. In the few circumstances where I've gotten misidentified stamps, I was able to get a quick refund in every case.

I find the best deals to be had are auctions run by sellers with low feedback. They haven't built a following of buyers who regularly checks their listings and many buyers will be reluctant to bid the price up from a "newbie" seller. Obviously caution must be exercised in those circumstances, but when I see a seller with a 2-digit feedback selling an item I want, I pay closer attention as I find I'll often get the item for a shockingly low % of catalog. If it turns out to be something other than what I thought, I know I can get my money back one way or another.

TheArtifulHinger, do the auction houses over there deal in bulk stamps? I've never even looked at US auction houses except the ones selling high prestige items I'll never be able to afford.

Good info, thanks for sharing.

ebay has good and bad sellers and experienced and inexperienced people, with stamps and ebay, so the chance of finds and nice stuff is there amongst all the chaff, which is getting noticeably less and less by the way, probably due to my own skills at sifting through items and offerings.

And that's where the enjoyment is, Puzzler. You have to have at least the possibility of making a find. There's nothing more depressing than going through a large lot of stamps and realising after only a short while that there's not going to be any finds, which has been my lot of late.

I gave up buying from US auction houses long ago for the same reason 'the bulk lots are just big dealer dumped rejects' & items that are not worth money. They have been picked through and carefully sorted into low value stamps. Anything you find in a big lot you think maybe worth something usually has a fault. What I hate seeing in US auction houses is suggested bids with large suggestion like $250+ for stuff that is worth more like $20. I see stampless letters that I sell for $20 on ebay in US auction houses with suggested bids of $150 or so. Got one recently opened it and it was full of fold splits. The big auction houses often don't disclose damage like that. They put up poor pictures on line to so you cannot see everything. I think ebay is the best place to shop, you at least have 180 paypal protection should you not be happy with your stamps. If your not happy with lots you buy from US auction houses you will find it very hard to get your $$ back. They don't take paypal in US auction houses for that reason. Buy from ebay you can still find stamps on ebay worth some money at lower prices.

In my experience, it depends on what you're buying. I agree that job lots from auction houses tend to be pretty disappointing, although I have found exceptions. On the other hand, I've generally been very pleased with the more specifc country or area lots that I've bought. Very often good quality stamps in good quality albums. For the other things that I buy - cigarette cards and postcards - auction houses beat ebay most of the time, unless you can spot the missed treasure, which I don't usually have the time to do.

Well, you're probably right there, GeoffHa. I have bought several specific area lots along the way and they weren't too bad. I was only referring to the bulk lots.

duncanvr, it seems US auction houses don't differ from Australian, and I suppose there's no reason why they should.

I am starting to see the value of paying, if possible, with Paypal.

Paying with paypal gives you the protection you need. There was another thread on here recently where someone paid over $1000 for a stamp in an Oz auction house and did not like the back of it and could not get his money back from the auction house. I only pay with paypal for stamps and pre-stamp. Sellers don't like the 180 days paypal protection but its great for buyers. Paypal plus ebay is best way to get your stamps & postal history items

Maybe it's different when it comes to covers, but I've had pretty good luck when buying bulk cover lots from U.S. auction houses. There's too much detail for any one dealer/auction house to real sort through and pull all the value out of a box lot.

Sidenote - two of the auction houses I deal with through the Stamp Auction Network take PayPal.

My only comments, from long attendance at live auctions and ebay: on ebay don't pay attention to the marketing verbiage - only bid on what you can see [this also means don't assume stamp(s) are NH even if described as NH]. For auction houses - if you cannot view the bulk lots beforehand, don't bid. Bargains can be found - but if you cannot visit and view, you are better off passing.

I have been using both options for a while. One good use I have found for auction houses is albums and album pages. My collection had grown large enough that I could not find a commercial new album to fit, and I didn't want to pay thousands for Scott albums, or years printing my own. By looking carefully at auction house descriptions, I have been able to create a nice 30 volume album set at a very cheap price...granted it is a mix of brands. I have Minkus Supreme and Minkus global pages through 60s, some early 70s, then Harris pages for now from 80s onward to 2001. As a bonus, I got plenty of new stamps with these pages to add to my collection. I guess it all depends on what you are looking for and what your expectations are. I've only had one auction house lot that I considered to be really bad and deceptively described. ebay prices for older albums have been way too high for me.

I too have had the best luck buying albums/pages from auction houses. Many times the value is in the supplies, the stamps are a bonus. Right now I'm keeping my eye out for Scott US Possessions. I'll also try to bid on lots with US face in the mix. I can always use postage, the used is a bonus. I love the treasure hunt on ebay for those one-reason-or-another sleepers. I keep my bids less than 10% scott so I'm covered if something with minor faults come in. I haven't returned too many items. Hope for the best, but be prepared for the worst. I can tell you I've been pleasantly surprised more times than I've been dissappointed.

Quite an important topic this one, and thank-you to Jimjamtwo for making this tread (although I remember seeing a very similar thread regarding this topic but cannot find it at present),

Although I have not bought expensive bulk lots at auction houses (due to the fact that they are not close to my location and I have no transport), I know a stamp seller within a 20 mile proximity who makes new ebay accounts roughly every 2 or 3 months just to get some bid's on his listings due to the other ebay bidder's hoping he is a novice when it comes to stamps, then he leaves the accounts dormant and makes another (the process continues), he sources his stamps in bulk from other ebay members and also at auction houses.

For high amounts of money I am inclined to believe that if I cannot see the stamp or bulk lot in question (first hand) then I will not bid/buy it, I am a firm believer in that "a man dare not to stare directly at the victim in the eye", and that is way to easy to do over the internet (as the seller only has to switch the computer off and the problem "goes away".

If it was me personally I would always choose the auction house hands down.

one thing I will mention though which Battlestamps mention's within his post is this, if you are wary/unsettled by the thought of buying from an auction house before seeing the stamps in question then only look at the auction houses which accept paypal, as you can get a refund.
Turbo

Quote by TurboJay: I know a stamp seller within a 20 mile proximity who makes new ebay accounts roughly every 2 or 3 months just to get some bid's on his listings due to the other ebay bidder's hoping he is a novice when it comes to stamps, then he leaves the accounts dormant and makes another

You should report that ebay seller as that kind of bidding practice is illegal according to ebays rules. Its not fair on real ebay bidders to be bidding against the actual seller.

Here's an example of a transatlantic stampless from an auction house. Suggested bid was $150. See the auction house label at the top of the cover. I list it on ebay tomorrow in auction start at $20. If your lucky and are the only bidder for it you sure would save a lot by buying from ebay and not from auction house. Its the same with stamps there are deals to be found on the bay, auction house you likely pay top $$