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How To Sell On Ebay: Pricing Strategy
Many new Ebay sellers make one of two mistakes: eitherthey overprice items to an unsellable extreme; or theylose money on every transaction by setting low startingprices with no restrictions.
In this lesson, I am going to go over which pricing strategies to use and when if you are using a ten-dayauction setup.
If you are listing a popular item that you are confidentwill sell for a high price, one strategy you can use isthe ten-day, one cent starting price, no reserve auction.This is the best way to start a bidding war: pull in bidders early with a low starting price and no reserveand give them ten days and two weekends to battle it out.
Depending on the profit-margin of the item and the quality and number of your competitors, you may wantto consider using listing upgrades, such as bold, highlight, and feature listing options to ensure your auction sticks out of the crowd.
Please note that I do not recommend this strategy for beginners. This is extremely high risk if you do not know how to take the risk out of it - and this is notsomething I can teach you. You must determine this byassessing your own personal inventory with tests.
Now, if you are new to Ebay or want to list an item with undetermined popularity, you can use a safer, butpotentially as profitable bidding strategy for ten-dayauctions.
You still wont use a reserve with this strategy. But instead of setting the start price low to encourage a bidding war, you are going to set your start priceto your ideal selling price - and then couple it witha buy it now price that is slightly higher.
This will put pressure on the buyer to buy it nowinstead of watching. If she waits, she gains absolutelynothing--and she risks someone else bidding (and ruiningthe low BIN price) or just snatching it with the BIN option.
In addition, knowing that she will lose nothing anyway,she will realize that she can get the item up to tendays sooner if she uses the BIN option to order it then,rather than waiting for the auction clock to tick down.
The strategy I described above is very safe. I use it for the majority of my auctions and I always getpositive results. At worst, it will take me 3-4 weeksto sell an item, but I wont ever lose money. I justadjust the price to compensate for additional fees.
Another effective way to use a ten-day setting is in conjunction with dutch auctions--or auctions thatsell a number of the same item. Ten-day auctions willgive you the longest amount of time to move the highestamount of products.
You may also want to feature ten-day dutch auctions, depending on what items you are selling. If you're selling information products and rely on the quantityof sales for profit, this wont be effective; but ifyou're selling a number of expensive, high profit-marginitems, featuring your auction is probably a good idea.
If none of these strategies works for you, you should consider the following two things: 1) the price other Ebay businesses sell your product for. If someone else IS selling your product, there is a reason for it - and it's probably the price. If you cannot afford to sell ata reasonable price, you need to find a new source to buy from. And if your product's price is reasonable, then 2) you need to redesign your auction and find new ways of pulling in targeted traffic.
http://www.workathomerightnow.net/ebay.html -Written by Isaiah Hull, author of "How to Profiton Ebay In Seven Days Without Spending A Single Penny." For a limited time only you can get a pre-publication copy of his book for ONE-FOURTH the post-publication price!
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