Why do people pay more on eBay?  

Maybe the stores are sold out in their area. In my area, a lot of the Wii items are constantly sold out.

I've noticed mostly people shopping on eBay want to save money. When I buy things, I either buy them because it is cheaper than buying it at the store or because the item I want is not offered in any store. For example, a lot of the harmonicas I've ordered have been really pricey, but the only online stores that have them are in Europe and often will not even ship to the US. And music stores hardly have any harmonicas offered out here.

I have however, had someone buy one of my brand new and still wrapped college textbooks for about $10 more than a new one at the college bookstore (well, at the college bookstore where I go at least, maybe their place does cost more, but I doubt it). I'm not sure why anyone would do that, but I was happy to get all my money back and then some.

i've never paid more for something on ebay. i have noticed it though. my daughter wanted those moon shoes for christmas. i looked on ebay and they were going for like $50. all the ebay ads said you couldn't find them in stores. i almost bought them, but then i went to walmart. our walmart had a whole shelf of them and they were only $29.99. so i am very careful when i buy something on ebay to make sure that it isn't cheaper somewhere else.

That's the beauty of eBay! People bidding $40 for something that they could go and buy for $20 in a store. That's why there are many sellers making decent money on the site.
I think there's 2 reasons for this. The first is the rule of supply and demand. People will spend more than retail for a "hot" item that is often sold out quickly in stores.
The Wii game unit is a perfect example. People still spend up to $50 over retail for this game on eBay. Stores don't receive very many when they do have them and they are sold out quickly. Which leads to the 2nd reason...

Instant gratification. For those who have walked out of the Targets, WalMarts, Best Buys without a Wii unit, eBay provides the opportunity to give them what they desire...often at a premium. They can bid on and win a Wii auction and pay more money than the stores charge, plus shipping, and they have their "need" filled. Then they see the credit card bill the following month and realize they could have saved a hundred bucks if they showed some restraint and patience.

I just sold a new action figure release on eBay for almost a 50% mark-up from the retail cost. The items are flying off the shelves and I just happened to be there when the shelf was full (and I went back 5 hours later to get more and they were gone!) eBay is a great venue to make money as a seller if you can buy items low and sell them high. The market that will gladly overpay for the "hot, new items" continues to shop there, so why not take advantage and provide for their demands.

I don't consider myself a seller on eBay and I bargain shop on the site much more than I sell (because I get a cash back incentive when I purchase on eBay)but when I hear about a hot item and I can locate them to sell on eBay, I certainly take advantage of the opportunity.

To answer your question... No, I have never paid more than retail for an item on eBay.
Great thread!

I think they often forget about the shipping fees, I have seen people charge crazy amounts for these. I also think it is the addictiveness and the must win and all costs nature that some people have that gets them into trouble. They get outbid and keep bidding until they are the high bidder because they hate to lose. I know there are plenty of sellers that use others or another account to drive up bids because of this. That happens more than anyone will admit. Just check some of the sellers histories and see who is bidding, then see how quickly the item is relisted. They would rather lose a few cents on fees because they no they can drive up the price and make it up on other items. Ebay can be a nice place but it has many, many problems and they never really address them because they are making plenty of money just hosting the site.

A lot of items on Walmart, particularly on "sale" are cheaper than ebay :) Last I got there was a Nextar Mp4 that cost me only 20 bucks. Had I bought that on ebay it could have been about 30-34:) Still, ebay is okie depending on what who is the seller. A lot of lap taps there start with a 2 cent auction price.. I just love it!

Yeah, i've noticed that too. I wonder sometimes if it's people that doesnt like to or is unable to get out of the house. Maybe for health or transportation reasons. however, i would never pay more for something on ebay than i would pay in a store.

People do it for supply and demand. In some areas, this stuff is constantly sold out, and they really want it. It's offered together on somewhere like ebay, they want it a lot, and the price goes up. Or maybe the people are too lazy to go to the store, or they don't know the retail price of the items. Who knows.

I've never paid more for something on ebay than in a retail store. I go to ebay to look for a deal, not for the high in demand items that get so expensive due to frenzied buyers.

Maybe the person really needs it and none of the stores in the area have it because they are sold out, some people are willing to do a lot of things even to pay a little more for something that they want. I for example wanted to buy a WII but the Future Shops, Best Buy, and Wal-Mart in my area were sold out, so I had to go on the internet and I had to pay almost $500 for the Wii itself. Some people may call that a rip off but It really wasn't because the WII is keeping me active and keeping me occupied. I really love it. A friend of mine wanted a PSP but it was all sold out in about the first week, so he decided to go to a warehouse that sells only SONY items and got his PSP for much cheaper than what they were selling in the stores. He got a combo with his PSP and it came with a game and a whole bunch of other stuff. All in all if you want something bad enough you don't understand how much you are willing to do to get it.

Hi Rowan' I have heard of this before and don't know the reason for it..but at the moment won't buy anything online as there are too many hackers etc that get into your comp'-but it is interesting to see the differences of prices on ebay to the shops-your friend littleowl

I've notice the same thing rowantree, people paying more for items than they would in a store. I gave it some thought and the reasons that I came up with are: (a) perhaps some of the buyers do not drive and must shop from home; (b) items are hard to find in some remote areas; (c) some people live so far from the right stores that to drive hours to the store with current gas prices makes it cheaper to buy on ebay despite the markup; (d) some people get caught up in the auction mentality and are happy to 'win' the bid, not realizing that they are paying more! Who really knows, we can only speculate!