Where and how you sell your watch matters, and this is why
Zach BlassAs many disciplined collectors already know, buying a watch sometimes entails selling one to offset the burden of a new purchase – a phenomenon known as the “one in, one out” rule. As someone who has been known to trade faces on occasion, I wanted to take a moment to walk through the main avenues where you can sell your watch, and the pros and cons of each. Ultimately, your watch may not be worth what you think it is, and its value can be heavily dictated by how you choose to sell it.
Your watch is not always worth what you think
For better or worse, a growing preoccupation in watch collecting is second-hand value. Thinking of watches as a potential asset is nothing new – speculation has always been part of building a watch collection. But with brands like Rolex, Patek Phillippe, and Audemars Piguet, to name a few, more out of reach than ever at retail, people now look to flip these pieces knowing that they stand to make good money in the process. Profiting off of a watch, however, is not as straightforward as you might think. Sure, selling a Rolex Daytona Le Mans acquired at retail will inevitably make a profit, given the watch sells for three times (or more) its retail price – good luck getting an allocation though. Jokes aside, depending on the reference and how you choose to sell it, you might be surprised at what you’ll realistically receive and what your watch is actually worth.
How you sell your watch will dictate the actual price
There are many ways to sell a watch, but to put it simply, there is a trade-off to each route. Some methods result in a quicker transaction with less risk, but also in a lower sale price. Others will require more effort, time, and patience, but with the potential of a higher payout.
Sell (or trade) your watch to a pre-owned vendor
Selling to a known pre-owned vendor is the safest means to offload a watch from your collection. Typically, these dealers promote this component of their business by acknowledging it as a “cash now” opportunity. There is very little waiting or effort involved. All you usually have to do is send pictures of your watch for a free quote, and if the offer is of interest to the seller, a mailing label is arranged by the vendor to receive and inspect the watch in the metal. Once the watch is in the vendor’s hands and is cleared as described, the vendor will typically mail a check, wire money, or even pay cash within days of receiving the watch – a process that can move from start to finish in mere days.
The trade-off in this simple process is that the vendor ultimately has to make a margin on the watch once listed, and one that typically ranges between 15% to 25% of the value. Therefore, if you own a watch from a desirable brand that’s not the most desirable reference, it would need to have a secondary market value greater than 25% of its retail price for you to make a profit.
As an example, I once reached out to a well-known pre-owned vendor to see what the value of my Rolex Submariner ref. 114060 would be, before it was discontinued. I wasn’t really planning on selling it, it was more curiosity than anything else. The offered sale value took me by surprise, though. After all, the Rolex Submariner is an in-demand watch sold over retail on the second-hand market. I got mine by trading two watches, “paying” approximately $8,300 with the original box, papers, and warranty card.
At the time, the 114060 was being listed on sites like Chrono24 for over $10,000, so I was sure at the very least the vendor would offer me a little bit more than what I paid. The offer was in the $7,500-$7,800 range, which would have been a loss on a watch that trades above retail.
If you do the math, 20% off $10,000 is $8,000 – therefore buying it from me at the offered price and selling perhaps a little over $10k would have resulted in the 25% that vendors look to achieve when selling their inventory. This may seem a bit steep, but in fairness, by selling the watch to a vendor, they’re effectively taking the workload off your shoulders. They have to take the time to list, advertise, and photograph the watch – all of which is an expense on their end.
Sell your watch through a platform
Your next thought might be “to hell with the margins, I’ll do it myself”. At this point, you would likely do as many others: list the watch on a platform like eBay or Chrono24. Through this avenue, the benefit is that you get to dictate the price. You get to decide what you think your watch should sell for, and the more realistic you are, the more likely you are to make a sale. You’ll see desirable watches listed at astronomical prices, but more often than not, those listings remain dormant with little inquiry other than those trying to haggle. It should also be noted that listings like this can warp the calculated value on platforms, and give the impression a piece trades for more than it actually does.
While determining what your asking price will be, remember to take into account that all platforms will charge fees for selling a watch through their service. Sellers can incur potentially multiple fees through listing fees, seller’s fees and transactional fees from payment processors such as PayPal. Also, to make a listing more alluring, most sellers will advertise free shipping, but many will factor in a fixed amount into the asking price to cover the potential cost. Getting too greedy will make your listing less attractive. Be too benevolent, and you stand to lose some money.
As an example, a few years ago I listed and sold a watch for $4,500. The watch originally cost a little over $4,000, so my price was an attempt to neither profit or lose money in the sale. But the seller’s fee was over $500, and the transaction fee about another $100 or so, so in the end I took a small loss on a watch many would have tried to flip. The difference is that, by not trying to make a large premium on a watch whose brand does not condone flipping for profit, my watch actually sold, whereas the others listed far above its price remain unsold.
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To get a more exact sense of the seller’s fees for watches on eBay, fees for the “Watches, Parts and Accessories” category are now listed at, according to eBay, “15% on the total amount of the sale up to US$1,000 calculated per item, 6.5% on the portion of the sale over US$1,000 up to US$7,500 calculated per item, and 3% on the portion of the sale over US$7,500.”
For a watch sold in the United States for US$10,000, this would equate to US$150 (15% of 1,000) + US$422.50 (6.5% of 6,500) + US$75 (3% of 2,500), which equals US$647.50.
Under the “Jewelry & Watches” category, however, the seller’s fees are listed at “15% if the total amount of the sale is US$5,000 or less calculated per item, 9% if the total amount of the sale is over $5,000, calculated per item.” For a watch sold for US$10,000, it would then fall in the 9% category and incur a fee of US$900. So, you stand to pay more depending on the category you choose, but I suspect the “Jewelry & Watches” category has more organic visibility and promotion on the platform.
Again, these mathematical breakdowns do not include potential transactional fees posed by platforms like PayPal. However, at the end of September, eBay revealed major news for UK vendors that it is now “free to sell across its categories.” So, also be sure you check the fees particular to your region. The ones listed above are for the United States.
Sell your watch through private/forum sale
The method you stand to make the most money, or at least face the least amount of fees is a private sale. Ideally, you have a buddy who wants to buy your watch, they wire or Venmo you the cash, and it’s case closed. But it is not always that easy. If you don’t know any friends who would be interested, the next step is to list the sale in a forum where watches are routinely sold like Watchuseek, Reddit, or Facebook, etc. The issue here is all the work is on you to list and promote the sale, vet the potential buyers, and mitigate the transaction.
If you do manage to find a buyer you trust and a buyer who trusts you, depending on how you elect to receive payment, you actually stand to receive every cent of the final sale price. For watches that supposedly trade around 10 to 15% or less above retail value, this will be the only sure way to actually see the yield of profit. The problem is this can take time. Patience will be key, but if and when someone expresses interest, it’s the only avenue where you can make a profit on a watch that trades above retail, but in the window margin a platform or vendor would take.
Sell your watch at auction
When you think about auction houses, you typically think of the buyer’s premium as how they make their money. The truth is, there are incurred fees for the seller as well – and it varies case by case. According to the Phillips Auction website: “For every item, Phillips charges the seller a vendor’s commission and sale-related expenses which typically include insurance, transport (when using our shipping partners), any restoration costs and catalogue photography. Our specialists will discuss these charges with you at the time of consignment.”
This means that on top of the sizeable buyer’s premium, auction houses like Phillips also receive commission and compensation for their efforts to catalogue and promote, transport, and potential restoration. These fees vary based on the lot and relationship with the consignor, so there is no fixed formula for seller’s fees – but the good news is that this is all negotiated upfront before the watch is officially consigned.
The auction business, as a result, can be very lucrative, but it should be said that the cataloguing process is labour-intensive. Each auction house has its own systems and fees involved, so just be sure to fully acclimate yourself with them. And with the right watch, the final hammer price may be so substantial that after the fees involved, you stand to make more money. Finally, it’s important to note whether or not an auction house has rolling live auctions like LoupeThis, or predominantly seasonal ones like Phillips, Sotheby’s, and Christie’s, as this will dictate the timeframe between consignment to final sale.
Auctions, particularly ones held by houses that go to great lengths to market and hype their sales, generate buzz in a manner the other methods simply cannot. But it all depends on the watch. Should you take a random Seiko 5 to Sotheby’s? Probably not worth your time or theirs. But, if you’re sitting on a new old stock Paul Newman Daytona, you’d be hard-pressed to get a better sale result than at a major auction house.
Final thoughts
Considering all the above, before selling a watch, make sure you have a grasp on what the market for the watch in question is like, and what value it can realistically sell for. During the selling process, always take into account the time-to-cash ratio and any fees you may conceivably incur. As with any money-making scheme – if it sounds too good to be true, then it probably is.