Are Stamps On Ebay Really Worth Buying?

I don't do much bidding or buying on ebay but I have noticed a large selection of stamps being offered. After examining the catalogue values of some stamps I'm left scratching my head asking if a stamp is valued at $500.00 and it's being sold for $30.00; is there something wrong here? How can people sell valuable stamps for a fraction of what they are worth?

Any thoughts on this matter?

The $500 price of the stamp in a catalog can be a retail price in very fine condition. The actual stamp may be in faulty condition and worth only 5%-10% of the catalog price or $30. Condition,supply & demand are big factors among many others.

In some catalogs, Stanley Gibbons for instance, they point out that the catalog price is not the "worth" of a stamp. It is the price Stanley Gibbons will sell at and takes into account whatever overheads they deem fit. Plus, as mentioned already,quality will be at the top end for that issue.
If, for instance, a £500 stamp is badly centered...that could possibly half its value, if a couple of short perfs too... half it again, if a poor or heavy cancel... half yet again. Very quickly you get to a £30 stamp and, as stamp collectors get more choosy, the stamp must be priced to sell... if it sells at all.
Quality counts.

I think you can find really good prices on ebay but at the same time I feel like you get what you pay for. On the other hand, I think that ebay can be really good for buying supplies, like mounts. I find a lot of people selling off estates and not really knowing how much supplies can really cost.

The rough rule of thumb is that the street value of most material will be around 10% of Gibbons's price. This rises to around 25-35% for better material. A look at lower/mid-range auction catalogues will bear this out. At the top end, stamps can go for the full CV or more. My understanding from what US collectors have said is that the Scott percentage is more like 20-30% for most material. And, as scotzm says, there are further reductions for faults. The upside is that stamps that appear, on a glance at the catalogue, to be beyond your means can actually be obtained at a reasonable price, particularly if you're prepared to accept some imperfections.

persius - I sell on ebay Canada, USA and UK. I rarely mention catalogue as it is to a large extent irrelevant. I just sold an $800 catalogue value of early Canada Victoria for $20. "Value" is what the market determines value to be - not a book published as a reference work. (IMHO) Now that is not to say I was happy with that sales result. (:

You have to figure out the true value of items based on what they actualy sell for, do research and remember problem stamps can sell for next to nothing, a 100.00 stamp if torn will all the sudden sell for 2.00

The most important point is one that others have posted; catalog values are not, for various reasons, the same as actual values. I would also add that some while some listings use a 'catalog value' in them they often do not state which catalog, or which version, they are using. Other listings will list catalog value for a postally cancelled stamp but the stamp being sold is actually a pen cancel or in other cases, a fiscal cancel. Bottom line, if you see a 'catalog value' in a listing ignore it as marketing puffery, do your homework, and verify value for yourself. You can start by searching 'sold listings' on ebay or doing additional discovery with other reputable auction companies.
Don

I have to agree with GEOFFHA ,there is a real street value and a buyer has to be aware of that.

As an occasional seller on ebay, I use the following premise. For years I have heard most collectors say that they are collecting for fun, not for investment. And I have followed that idea even today.

I know that if I sell to a dealer I will probably be lucky to get 10% of the catalog value or the price that I originally paid. And the enjoyment that I have received over the years of owning my collections has far exceeded the value that I paid for them.

Therefore, I tend to follow this plan of action. On the 1st ebay listing, I will usually price at 50% of the catalog or retail value in hopes that I might get lucky and it will sell. However, if the item doesn't sell, I will price at 25% on the 2nd or 3rd go around. If after 4 tries at selling on ebay, I usually put into a big box that becomes a mixture that I will try to sell at one of my local stamp clubs' auctions. Stamp Club members have discovered that it's usually worth their time to go through my mixtures and see what hidden treasures might be there.

I guess my whole premise is that I had fun with the items and why not make it easier (cheaper) for the next buyer to have fun also.

Glenn Estus - you reminded me of what I heard once from an old philatelist: "I always buy retail and sell wholesale."

I agree that there is a market value that is different from a catalog value.

I use catalogs for their numbering system and to get a feel for the relative scarcity of a stamp. For example, a $100 CV stamp is scarcer or in more demand than a $1.00 CV stamp.

When I actually buy stamps, My limit is usually 10% to 50% of CV depending how badly I want it and its condition. For high-end stamps, I always check sales (auctions, ebay sold items etc.) to get a feel for what I will have to pay. In that case catalog values are irrelevant to me.

Dan

Persius, many very good comments have been made here.
But I'd like to share my own ebay experience since you have questioned the value of buying on ebay and are concerned that the relative quality of stamps offered for sale on ebay might be suspect or inferior.

IMHO, nothing could be further from the the truth.

ebay appears to be a fairly accurate of the broader stamp market. By that I mean that you will find offered on ebay at any given time...everything from a fantastic high-end investment quality collection offered at US$57,000 to rubish material not worth buying for $1.00.

Most ebay materials however are made up of many older stamp albums and or lots collected by average stamp collectors of the past now being offered by the collector, by a dealer, or by a family member who has inherited the stamps.

Fact is, if you do a reasonable amount of homework you can get extremely good buys on ebay that deliver great value. Over the last 5 years I have built my US Classics collection primarily through ebay albums, lots and singles. Many purchases were at 15% catalog value (CV), or less. Rarely have I paid over 30% CV. But to be fair, I am happy to purchase more expensive stamps that may have a minor flaw or are NOT ideally centered. But these are the decisions that every collector makes. I'd rather add to my collection the Scott US #292 ($1 black bull) and #293 ($2 Miss. bridge) which I tracked down recently on ebay -- but WITHOUT paying more than 40% CV.

Simply put, without ebay's competitive marketplace, my invested stamp budget would have purchased maybe 25% of the collection I now have if I had bought all stamps from dealers. While dealers provide terrific and knowledgeable service, that service comes at a higher price point than much of the online sales.

Also agree with Dan. When I started collecting and saw so many stamps with CVs at dozens to hundreds of dollars, my heart kind of sank a little because I figured I'd never own those stamps, or at least not many of them. Thanks to ebay, I have a *lot* of those types of stamps in my collection today and will get many more. After being around the block a time or two and understanding more how the market works, I now only look at the truly scarce and rare stamps (those valued well into 4 and 5 figures) as being truly unobtainable for me, at least at my present level of income.

I'll also add that there are many variables contributing to the final selling price. The same, exact stamp could sell from anywhere between 5-100% of catalog depending who happens to see the auction that week and how badly they want it. I typically pay in the 10-40% range, but once in awhile I'll get lucky and score something at 2-3% and likewise once in awhile I'll need to stretch a little higher and pay closer to full catalog.

This postings is for new collectors------You have read here the low level percentage wise many collectors are willing to pay for stamps . Remember the lower percentage they are paying, THESE ARE COMMON STAMPS ,yes let me say that again they are buying expensive that are common and you can find them any Saturday and twice as much on any Sunday .
Please understand just because it is expensive or has a high catalog value it doesn't mean it is rare or unusal.
I paid 125% of catalog for some of my early EGYPT stamps five years ago and beat out others bidders from the Near East , guess what these same stamps have not been up for sale since ,yes five years ! I would be happy to buy a lot of the cheap stamps listed under Spanish Colonies that the catalog list under $10.00 for full catalog price ,but guess what NO HAS THEM FOR SALE .
Right now I am bidding on BLACK FLAG REPUBLIC stamps and my bid is close to full catalog but afraid my price is too low .
Let me give a bit of advice -----BUY WHAT NOBODY ELSE HAS ..........I am working to build a worldwide collection ,it has what other collections don't have .....that doesn't mean very expensive stamps it means highly difficult stamps to find .