Goods for a Cause Sell at a Premium

Study says eBay Items Tied to Charity Sell for More

New evidence says that what has long been suspected may be true: buyers are willing to pay a premium for an item affiliated with a charity or non-profit.

Two professors in the Olin School of Business at Washington University in St. Louis collected data from eBay auctions. They looked at regular eBay auctions versus those through its "Giving Works" program, where sellers choose to donate part of their earnings to a non-profit of their choosing. By way of this comparison of prices that similar items command, Brian P. McManus, assistant professor of economics, and Daniel Elfenbein, assistant professor of organization and strategy, found that products connected to a charity command higher prices than unaffiliated products.

On average, charity-linked items sell for a 5% premium, the study found. The results, released in a working paper titled "A Greater Price for a Greater Good? The Charity Premium at eBay Giving Works," and synopsized on the Washington University in St. Louis web site, also indicate that there is value in non-profits selling retail items to raise money.

A number of web sites exist for the purpose of educating the philanthropic in the ways of online auctions. You'll find a wealth of information at the cmarket site. Tell 'em ATR sent you.