eBay's Effect on Card Pricing

I recently came across this great article I wanted to share. The aticle is called"eBay prices vs. book prices: the market for baseball cards" witten by Jannett Highfill and Kevin O'Brien.

The market for individual baseball cards is unique, being completely a secondary
market. Although there are several companies selling baseball cards, they are
sold in packs. Cards of particular value are inserted randomly into these packs.
The value of individual baseball cards was difficult to determine until the
1980s, when a guide, Becketts, began to be published. Traditionally, individual
baseball cards were sold in hobby shops or at conventions. On eBay, there is
also a lively trade. This research aims to see how closely eBay prices track
with the prices in Beckett Baseball Card Plus.

Data were collected from eBay auctions during the last part of 2003. All the cards in the auction were in mint condition. The sample size was 472, only auctions with a completed sale being included. Several variables were collected from eBay, particularly the final selling price of a card. The mean for the final price was just over $21; the range was .50 to $750.

For each auction, data were gathered from the most recent (printed, not internet) issue of Beckett Baseball Card Plus about the book price of the card sold. Becketts, however, publishes a Hi or "the full retail selling price," and Lo, "the lowest price found after extensive shopping." Although the correlation between Hi and Lo prices is virtually 1, there is quite a difference between them. The mean of the Lo price was $17.474, that of the Hi was $37.372. Although not in Becketts per se, the average of these prices, Avg. HiLo, was also computed because buyers or sellers could readily do so. The mean Avg. HiLo was $27.423. The question is which of these prices, if any, provides the best guide for potential buyers and sellers on eBay.

To answer this question, mean differences for matched pairs between the final price and these book prices were calculated. The mean of Lo was $3.529 less than the mean of the final price. Both the means for the Hi price and Avg. HiLo price were greater than that for the final eBay price. Hi was $16.369 greater and the Avg. HiLo prices was $6.420 greater than the mean of the final price. Though the mean for Lo was closest to the mean for the final price, the means for all three book prices were statistically different from the final price at the 1 percent level. Hence, while the Lo book price most closely approximates the final sale price, it is still significantly different from the final price.

These results suggest avenues for further study. If the eBay prices are close to but still significantly different from the guide prices, is it because of factors affecting price unique to eBay, the use of Paypal, for example. The current study only considers auctions where the card sold, and so the first bids of unsold cards might be compared to book prices as well. (JEL L86)

From my experience I feel eBay is the best source to find an accurate value of a card. Like I said before "The card is only worth as much as someone will pay for it". eBay has been great for card buyers but has hurt card dealers. eBay has made it very easy to find the cards you need. Cards that were once rare are now just a search away. Also, when looking for a card on eBay you can find mulitple dealers selling the same card, which helps the buyer control the price and get the best deal.

eBay is a buyer's dream.

What kind of card trader are you?

People collect baseball cards for all reasons. Some look at cards as an investment, others are fans of the players and teams, while some traders just like to collect things.

I am a little of all three, but I look at it as an investment. That is my number one rule when it comes to purchasing and trading cards. Staying strong to this rule has helped me make better trades over the years.

When I was younger I knew to look at my cards as an investment but didn't hold that above all else. I was a collector. I loved to collect sets, especially parallel sets. Parallel sets are hard to collect, you need to buy a lot of packs. I spent a lot of money when I was young chasing a complete parallel set. Looking back, I could have saved all that money and bought one really nice card. I could have gotten a Michael Jordan rookie.

Basic rules if you want to treat cards as an investment

• Do not chase sets. If you really want the set buy it as a whole. It will be a lot cheaper than buying packs.
• Understand that the card is only as valulable as someone is willing to pay for it.
• Know which cards and series to invest in.
• If you buy an expensive card make sure it is graded.
• Only purchase BGS graded cards.
• Rookies are where its at. Every player has one rookie card that is the best. Research and know which one to get.
• More cards doesn't mean better cards.
• You cards are not worth as much as Beckett says they are. The best way to research your cards worth is on eBay.
• Do not only collect your favorite player or team.

Welcome to Better Trades Cards

Card collecting is a hobby that never died when I got older. Growing up I traded cards all the time with my friends. I always made better trades than them. I was a huge sports fan so I knew which players to get. I never went after my favorite players but the players who were the best. Trading cards have became more difficult over the years. There are a lot of new card companies and sometimes it is confusing to know which ones to invest your money in. It seems like each card company now has a number sub series out. Which cards are the best?

Better Trades Cards blog will help collectors determine which series are the best, which ones to invest in and the ones to avoid. We'll review Upper Deck, Topps and more. Trading cards is a skill. We will post other card traders points and tips as well.

Stay tuned all and get ready to make better trades.