"Can you tell all your small time online dealer to watch their price? Don't sell at a very low price then current market price. Some of them even flood the market with to many same item at the same time. The price of the item will drop you know. For example the RM50 commonwealth games commemorative banknote, Malaysia Central Bank (BNM) issued price is RM80 but some of the dealer sell them at RM90. What do they think? They're killing the market and killing this hobbies. They just want to take RM10 profit? They don't need to pay for petrol and stuff? Please make them understand, selling is not about getting profit. You also need to sell at market price so other dealer don't mad at you. Other people work a full time job selling coin and banknote, you know!"
This is not the first time a dealer complaint to me about small time online dealer way of doing business, I think this year its already over half a dozen time. That is a huge amount considering I am not always meeting them. I know I cannot do anything about it since it is other people business. I can advice them but I don't think it will stop. They're many small time online dealer out there and not everyone of them read my blog. I remember when I start selling online in 2003, I am also doing the same thing but at that day, they're not many sellers who are doing online business for numismatic. At that day, I can find a RM10 item and sell them for RM20 on the same day. I can easily find a cheap stock since they're not many competition around. Except for my Penang sifu who are keep on advising me don't sell my item at a very low price, they're no other people who are making any noise about it. That is almost 10 years ago, today the scenario has change. We have over thousands of people who are selling numismatic related item online. Some of them just want to sell their item fast, even if it mean they don't get any profit from their sell.
Why small time online dealers are killing this hobby?
1. Selling items below market price.
This will make the price for certain item dropping or not moving up especially if they're many people selling the same item at the same price at the same time. When people knew the price of the item is more cheaper online, they will not be buying them offline. Its good for buyer since they can buy item cheaper online but many other sellers are not happy with below the market price sellers.
2. Flooding the market.
Imagine if all the online sellers selling RM1 AAH CR Prefix at the same time, what will happen? Buyer will have many choice and price war will started. Some seller will also sell their item cheaper because they cannot stand to hold their money to long on that item. Buyer will also have the power to bargain since many RM1 CR around. For the past few months, we can see many RM1 CR Ali Abul Hassan start coming into market. One day this will happen if sellers don't control themself.
3. Grading issue.
I had seen and experience many of this small time dealer doing a very poor grading. Counterfeit items are selling as original. Banknote at a fine condition sold as a Uncirculated notes and many more issues that are related to grading. In numismatic, grading is a very important aspect that buyer need to consider for their collection. You will be disappointed when you received the item below your expectation, right?
4. Fraud seller.
Lets don't forget about torn among the roses. I have received many complaint from my buyer about sellers who don't send their item. It make them afraid to do online business. For me, this is fraud and fraud is a crime. Just report them to police and inform me, I will share their information online. Hopefully, their potential victim can find that information online and the fraud will stop.
5. Using someone Identity to do online sell.
I think it is a trend nowadays that we can find a "girl seller" for numismatic product. Most of the buyer for numismatic are guy and they can easily trust a girl because of the sense of fun buying from a girl and almost all of them think girl will never cheat. Its a good marketing strategy but a non ethical practice. Yes.., they're real girl sellers out there but many fake "girl sellers" too.
6. They think selling online don't need to follow Malaysia law.
Many of these small time dealer think they're invisible and they can make their own rules in online sell. They don't care about grading, sell etiquette or even refund their buyer when they do mistake. Online selling also mean buyer and seller are protected by Malaysia law. If they're any dispute regarding any sell, you can also forward your case to Tribunal for Consumer Claims Malaysia under Ministry of Domestic Trade And Consumer Affairs.
