But, what is a bid/ask marketplace, exactly? What can this platform bring to making the Magic hobby even more enjoyable?
What is a Bid/Ask Marketplace?
A bid/ask marketplace is essentially how the world’s real-life stock market works. The bid price is the price at which someone is willing to buy an asset right now. The ask price is the price at which someone is hoping to sell their asset. Basically, the bid price is like a buylist - the cash or credit price at which a vendor or individual is willing to pay right now. The ask price is like the price you set on eBay or TCGPlayer for your card.
In a bid/ask marketplace, when you make an offer to buy, you are putting in a bid. When you put in an offer to sell, you are placing an ask. The beauty of this system is that right in front of you, there’s a floor at which your asset has value. The higher the floor and the closer those bid prices are to the ask prices, the more competitive the market.
Many Magic players are already familiar with the retail & buylist spread thanks to websites such as MTG Price, Quiet Speculation, and MTG Goldfish. A bid/ask spread works exactly the same way. Players of Magic the Gathering Online (MTGO) are familiar with the ticket & bot system in order to acquire cards on the platform, where there is, in fact, a bid/ask spread. This concept is not new to Magic. However, there hasn’t been a TRUE bid/ask platform for paper Magic cards… until now!
Learn about the best advantages of using a bid/ask marketplace for your Magic the Gathering card trading!
Advantage #1: A Centralized Warehouse Protects You From Scams & Fakes, PLUS Reduces Shipping and Handling Costs for YOU!
You’re likely already familiar with fulfilment services such as Amazon Fulfilment and TCGPlayer Direct. While these are great services for vendors looking to offload inventory, the costs associated with using these services can be pretty high. When sales are finally made, the percentage that the fulfilment center takes can be very high! This may work for businesses or individuals with lots of inventory, but not your everyday seller or player of Magic cards.
But, the reason people are willing to pay these high fees? These services save time. Time is the most valuable resource there is. The great news is thePit.com can provide the same service at a fraction of the cost!
The major advantages of using a centralized warehouse include:
- Verification of authenticity (No More Fakes!)
- Professional verification of card/item condition
- Not having to list individual cards yourself
- Not having to package and handle the cards yourself
- Not having to deal w/ bad buyers or sellers yourself
Advantage #2: Pay FEWER Fees and TAKE CONTROL of Your Cards!
Our fee schedule is extremely simple. ThePit has been profitable with the bid/ask business model for years with hot sports cards, and now SpellTraders is helping bring those benefits to Magic!
- $0.20/item check-in fee (this is waived for new users for the 1st year of your account!)
- 10% PayPal cashout fee
- Flat rate shipping + $0.20/item check-out fee
Best of all, you pay NO SALES TAX on items until shipment is requested from our warehouse. You can leave cards in your account as long as you wish with NO STORAGE FEES, EVER!
Plus, you can buy from us just like any retailer and sell to us just like any buylist. But, you never have to settle for the buylist (bid) price. That's because you can list your cards at any price you choose and wait for a buyer to execute the trade.
Our PayPal cashout fees still end up being lower than using any other direct fulfilment service. They’re also still lower than selling on major marketplaces like eBay, TCGPlayer, Amazon, etc. yourself, and the TIME SAVINGS of not having to ship individual orders yourself is INVALUABLE!
The other awesome benefit of thePit.com service is you can drop-ship, too. Because you own the cards, we let you still determine their fate. You can still choose to request shipment of cards to end users. If you decide you want to send cards to a vendor buylist, you can. You are still in control of your items.
Advantage #3: You Can Drop-Ship Items to US, Too!
The drop-shipping works in reverse, as well. Find a great deal on eBay, TCGPlayer, or a trusted Magic vendor? Want to cash in on your store credit at another vendor? Contact us at customer.service at thepit.com so we can help you get your order processed.
The other advantage to our platform is if you live outside of the United States, you can have US domestic vendors ship to our warehouse. That means not having to deal with international shipping costs or customs. Even if you want to take possession of your cards later, you can stockpile cards in our warehouse and save considerable amounts on shipping.
Keep in mind when you drop ship to our warehouse, however, that you will pay California sales tax, which is currently 7.75% for Oxnard where our warehouse is located. However, this is still likely much less than costs you would otherwise incur.
However, the case is different when you drop ship from thePit to an address outside of California. Sales tax isn't charged for shipping to most other US States. For example, if a Pit trader requests shipment to New York or drop shipment to Pennsylvania, there is no sales tax charged.
Advantage #4: Let thePit.com Market Makers Do Most of Your Market Research Work For You!
YOU set the prices on your cards and products when they are placed into your account at thePit.com warehouse. To help you set those prices, ThePit.com software also tracks the most recent sales of an item and charts them on the item detail page. You can also see the volume (how many of that card/product has actually been moved on the platform) and the current holdings (how many copies are held in our warehouse). This information is useful to you in knowing how many people are holding their items. High volume items with high holdings numbers mean it’s a HOT card.
We always promote the best ask price on our front page when items actually trade, so you know what’s actually moving at all times. thePit also provides market insights and posts bid (Offers to Buy) and ask (Offers to Sell) orders as they are placed by our team or our users. That way you may not miss out on a hot buy or hot sell.
SpellTraders and thePit are also very active on social media. That means your cards will often be exposed to a wide audience, especially if you have the best bid and/or ask prices for that item on our marketplace, or you are buying or selling a substantial quantity at once.
Advantage #5: Enjoy Competitive Prices on the Magic Cards You Want Most!
Because thePit platform allows you to list cards without having to factor in transaction fees or shipping costs, you can enjoy prices on cards and sealed product that will often beat retail and even major marketplaces like eBay and TCGPlayer. You can also hold cards and build up your collection in order to save on shipping costs.
Say you are building a new deck for Standard, Modern, or Commander. You can take advantage of a great price on a card and buy it so you can add it to your account. You may then decide that you have purchased cards that you know longer need. Then, you can simply sell that card with just a few clicks. Or, a certain card may have received lots of hype and has gone up in price. You can decide to sell into that higher price in order to spend the realized profit on other cards you need.
thePit platform allows a new degree of MTG collection management that’s only ever really been experienced on Magic the Gathering Online. Even then, it’s been in a very clunky ticket-based fashion. Even if you plan on taking possession of your cards, why not save time and money and enjoy a one-stop shop for all your Magic card needs.
Advantage #6: Have Fun Trading Magic the Gathering Cards Like Stocks in Real Time 24/7!
One of the most fun aspects of thePit platform, and the part that SpellTraders is most excited to bring the Magic community, is the ability to build a Magic the Gathering portfolio. Much of the community is already aware of websites like MTG Stocks that track the market movements of all Magic cards. Our software tracks the price movements within our own system, too, so you can see what’s hot at any given time, and track your collection’s value on ThePit in real time.
But, Magic cards already treated like stocks by some. Whenever major events occur in Magic, such as highly publicized tournaments, new card spoilers, or card bannings/unbannings occur, the crowd tends to react wildly. Speculation runs rampant and major marketplaces like TCGPlayer become bought out of cards that see camera time or MIGHT be good because of an announcement.
So, whenever there is a Star City Games Open, Grand Prix, Mythic Championship, or other big events, you can day trade with ThePit! Also, whenever there is a banning or unbanning, you’ll be able to buy or sell those cards with just a few clicks!
Advantage #7: Enjoy Reduced Chaos Around Buyouts
When Magic cards get bought out due to true player demand or speculation, there tends to be total chaos. Some vendors may refuse to ship certain cards at the “old” price or buy at the “new” spiked price. Then, when people take possession of the cards they ordered, there’s then a race to the bottom to try and unload those positions.
ThePit bid/ask platform helps keep the market stable because you can see at all times if ask prices are too out of line with the bid prices. You can also see what prices cards actually sell for on each item’s respective price chart, too. No more having to hunt for actual sale prices.
With thePit platform, you can you can choose to invest in certain cards, then sell when there’s a flurry of activity on the market. Savvy traders will be able to realize a profit on hot cards and only take possession if they actually want to have the cards. thePit Market Makers will work to stabilize the market with reasonable bid/ask prices based on actual sales.
When it’s necessary, we will also suspend trading on certain markets that are seeing massive market fluctuations - especially on places like TCGPlayer. Because our market is not tied into any outside API, market manipulation won’t happen based on outside data. We discourage our users from posting non-competitive bid and ask prices to keep the market fair for all.
Best of all, there’s no more having to worry if you will actually receive your cards or get the price you’re looking for on your cards. You’re in control.
Advantage #8: Trade Magic the Gathering Cards and Other Collectibles for FREE on thePit Platform!
With the growing trend with investing in collectibles, Magic the Gathering isn’t the only thing you can trade on ThePit. You can also invest in our existing index of sports cards and memorabilia. But, we also plan on adding other trading card games with investment value - such as old school Yu-Gi-Oh and graded Pokemon - as well as other collectibles.
As ThePit grows and adds other collectibles to our index, you’ll be able to trade your cards, sealed product, and other items as liquid assets. No longer do you have to check eBay all day for the best deals or track price movements super closely. Let thePit be your main source for buying and selling MTG cards and more!
Want to learn more and get the most value out of your Magic cards?
All you have to do is create an account at ThePit.com. While the SpellTraders landing page and ticker are still in development, you can start trading today and seamlessly transition as thePit.com evolves to include Magic the Gathering and other Trading Cards in the future!
We are still in the process of building our index, but we will be adding cards to our index as they arrive! Let me know what cards you are most interested in buying, selling, and trading so that we can set up their listings in the system. While we are only actively adding cards with a TCGPlayer Market Price of $2.50 or higher, we will consider exceptions!
If you have any questions, concerns, or ideas, just shoot me an email. We can also set up a call on Skype or Google Hangouts. I'm also available by text. Just ask for the number if you're interested. I'm the manager of the Magic the Gathering side of the business, so you can direct any thoughts you may have to me!
Have a great day! I hope to speak with you soon and get you trading Magic cards more easily and profitably than ever before!
You can email me at RichardARowell87 at gmail.com! Also, follow me and thePit on Twitter and Instagram.
Twitter: @spelltraders & @thepitcards
Instagram: @spelltraders & @thepitcards