Sellers of collectibles are making 3% less on eBay than they were a year ago, and are completing 18% fewer successful auctions, according to AuctionBytes' 3rd Annual Collectibles Price Index. The index shows prices have come down every year since 2000, the first year that data was collected by Auctionbytes. Last year's study showed that collectibles prices on eBay were down 11% from 2001.

The decline in prices on eBay is not surprising given its popularity, according to David Steiner, President of AuctionBytes, which released the study. eBay is ruled by Supply & Demand, and the number of items on eBay continues to grow. "For better or worse, eBay has redefined the value of collectibles," said Steiner. "Many dealers feel they can essentially throw away the price guides. What people want to know is, how much will it bring on eBay?"

Although the drop in prices is less dramatic than last year, it marks the third straight year that prices of collectibles included in the index has fallen. Prices are down 35% since 2000.

The most dramatic finding, according to the study, is the drop in sell-through rate, down nearly 18% over the past year, and down 38% since 2000. The sell-through rate is determined by calculating how many items listed on eBay actually receive winning bids. In 2003, 45% of the items studied sold, compared to 55% in 2002 and 72% in 2000 (sell-through data are not available for 2001). The other auctions either received no bids or, in the case of "reserve price" auctions, failed to meet the minimum required price.

The bottom line, according to Steiner: "Sellers face a myriad of challenges on eBay, including image theft, fraud and deadbeat bidders. While eBay continues to be a vibrant marketplace, collectibles dealers are working harder for less money again this year."