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Here is Why

Ever visied eBay to search for something specific online trying to find a deal and realize those items are selling for more than retail? Why would anyone pay more for an item than it's listed for in a store? Is there something fishy about the auction? Does this really happen?

Yes, it's really true and I've actually done this myself. There could be several explinations as to why some items sell for more than retail price on online auction websites.

First, the item you are looking for may only be sold in stores in specific regions of the U.S. or in certain states. The product you are looking for may not be avaliable in stores in the are where you live. In this case there might be several people in your area or region trying to find that specific product, which in turn increases the bidding prices.

Second issue is the old supply versus demand rule. If the product has a very high demand and a very low supply then you will often see very inflated prices. A great example is the Nintendo Wii. When first introducted into the market millions of customers were ready to buy the product. Standing in line for hours for a chance to purchase one was not uncommon. Many people purchased the items at retail and immediately listed them online making hundreds of dollars in profit from those who didn't want to wait in line or search the neighborhood for one at retail price.

Third issue is lack of knowledge of the product you are buying. Many times people assume that because it's on eBay the are getting a good deal. It doesn't matter how much it's actually selling for it has to be cheaper than you can find it at stores, right? Wrong, many sellers make a good profit for items purchased at retail and then reselling them just over that cost. Do research at many websites and stores before bidding on something online.

Finally, there is those people who get caught up in a bidding war and don't want to admit defeat. You bid on the item when the price is low and then check it each day. When you get outbid you just have to bid again, even if it means going slightly over the retail price. Don't get caught up in bid wars, it can cost you money!

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