Ethics of Ebay
18th March 2005
My daughter is currently caught up in the craze of selling through eBay (Note: Selling, not buying; thank God for small mercies!).
Last year, she went on an unchecked spending spree (she calls it her “retail therapy”) when she was able to earn quite a bit of money. Finding herself without many bills and having just discovered the supposed “wonders” of the consumer credit system, she amassed for herself “bargains” from such brand-names as Gucci and Louis Vuitton.
Now that her credit card bills are catching up on her she is beginning to see the errors of her ways and have begun to let her prized-collection go via eBay auctions.
Because all of the items she is auctioning off are genuine brand-name articles that she picked up at so-called “discounts”, she is getting bids that are now equaling or surpassing what she originally paid for the items, even though the retail prices are even much higher.
The past few days, she has been sitting by the computer, with her eyes transfixed on the screen Gordon Gekko-like, watching the bids climb steadily, every now and then letting out an occasional whoop of joy. (Come to think about it, this is not too dissimilar to bloggers watching their sitemeter stats click over oh goodie, here’s another referral! And another page viewed! hooray! - how we wish those numbers are our stock portfolios, eh!? Or, maybe not!)
Her excitement has spread throughout our household as we rejoice with her as she gradually knocks off the balances from her credit cards.
For one of these items, a bidder recently emailed her requesting that she close the auction off right away if she offered her a higher price. The price they are talking about is way above what she paid for, and my daughter is a little perplexed.
She asked me, “Is it right, daddy, for me to sell the item at such an exorbitant price? After all, I only wanted to get my money back for the item…”
After a short discussion, we agreed that as long as both parties are in agreement, any price is acceptable. We decided that in an auction, it is up to the seller to try to get as high a price as possible for the item and the buyer to get it as low as possible. It is a negotiation game, somewhat like playing poker.
I didn’t think much about it at the time.
However, now in my more reflective moments, I am beginning to think, is this the Christian way to conduct ourselves, especially in business transactions?
What is the Christian response to economics, pricing, value and fairness?
My daughter’s internal radar was sensitive to the morality under girding the economics of pricing, value and business. Yet, have I distorted it by unthinkingly endorsing and promoting a free market style of thinking?
Will she learn to properly apply good judgment and ethics in her business dealings later on? Does it even matter in this case? Am I just being a worry-wart?
Popularity: 3% [?]
March 19th, 2005 at 9:30 am
Hmm… though I can’t quote any verses (as usual:p), my instinct tells me that its another question of balance…
Yes its allright to for the seller to try getting the highest price and vice versa for the buyer to try for the lowest, but the thing IMHO is to not let the drive to get the highest/lowest price overtake other priorities. Like wasting time and psychological effort in negotiating for the price, becoming so obsessive as to not give any leeway leading to hostility, or something like that…
March 19th, 2005 at 3:01 pm
The entire portion of commerce is about taking an object and selling it for as much or more than you have in it, either in labor or money. My time now putting around isn’t worth ~$40 per hour, but that’s what it is worth to my employer (after taxes and benefits) for me to work on their computers.
The Bible certainly tells us to not be fraudulant, and not to commit usury on poor people. Your daughter isn’t overpricing a poor man’s only meal, so IMHO that doesn’t count. She is even offering what she considers a fair price on the auction.
It is worth it to these people to pay amounts higher than asking for instant gratification, but I don’t see that as a problem myself. They are paying what they consider is worth the price.
If this is still a serious issue for your daughter’s conscience, have her put a Buy It Now price on the item that matches her “desired maximum” price. If people stay as eager as they are now, they’ll buy it at that price, which will cap her exposure. Also set the auctions to a shorter timeframe. 7 day auctions usually draw less money than 10 day ones.
Tell your daughter to praise God for His mercy, that He helped her buy stuff that she could sell later.
David
March 21st, 2005 at 3:42 am
Sorry, a typo made me sound braggy. My employer spends $40 an hour on me BEFORE taxes. Considering the current tax rates, I clear MUCH less.
March 22nd, 2005 at 11:11 am
I just wanted to give you a hand on a really thought provoking blog. I guess the question really is, “since when were high profits, haggeling, and greed (not accusing you or your daughter of that) mentioned as good things in the gospel. I think sometimes our first instincts (especially your daughters) tell us a lot about what is right and wrong … and then sometimes our first instincts are just way to primal. But kudos to you for raising such a daughter that would think about that situation.
March 22nd, 2005 at 12:22 pm
Thanks all of you for your comments. I do believe that while in business we must be profitable, we must also be fair, and fair to all parties concerned. Good thoughts everyone! I have just added another couple of cents worth along these lines in the form of a new post as well: What Price is Right?”
April 8th, 2005 at 10:37 pm
ebay=supply and demand at it’s best via a long distance cyber connection! I think the selling for what it’s worth to someone else is fine… HOWEVER… I think this would be an opportune time for you to go over, if you haven’t already, giving some of her bounty back to God (tithe) in some way that she can feel stoked about. An acknowledgement of sorts by giving some of the glory back to Him, however nominal that may be.
hugs!