LootMarket has very good price discounts compared to Steam Market prices. Yes it is legit, but you can read other posts to get that.
Here, we are going to discuss why their prices are so low.
Here, we are going to discuss why their prices are so low.
1) Their commission rate is lower than Steam's.
LootMarket's commission rate starts at 10% and can be lowered eventually to 5%. Steam's is always 15%. That difference of 5-10% allows sellers to sell, instantly, more competitive prices.
2) Their market uses cash instead of Steam Funds.
Traders profit with lower margins because they do not need to pay commission to people who are willing to convert their items into real cash.
3) Their is an easier buy order and order placing system on LootMarket.
Buy orders can be spammed more readily and easily on LootMarket. This causes more competition to force prices down.
4) There are deflation panics
Sometimes trades may be afraid the price will drop and they will lose their money. They competitively undercut each other rapidly, dropping the price for hours/days/weeks only because LootMarket traders are panicing.
5) Less liquidity than Steam's market.
People are more competitively undcutting each other due to the importance of getting the few buyers there are. This is just because LootMarket is is a newer site.
4) There are deflation panics
Sometimes trades may be afraid the price will drop and they will lose their money. They competitively undercut each other rapidly, dropping the price for hours/days/weeks only because LootMarket traders are panicing.
5) Less liquidity than Steam's market.
People are more competitively undcutting each other due to the importance of getting the few buyers there are. This is just because LootMarket is is a newer site.
