How To Sell On Ebay: Pricing Strategy
Many new Ebay sellers make one of two mistakes: either they overprice items to an unsellable extreme; or they lose money on every transaction by setting low starting prices 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-day auction setup.
If you are listing a popular item that you are confident will sell for a high price, one strategy you can use is ten-day, one cent starting price, no reserve auction. This is best way to start a bidding war: pull in bidders early with a low starting price and no reserve and give them ten days and two weekends to battle it out.
Depending on profit-margin of item and quality and number of your competitors, you may want to consider using listing upgrades, such as bold, highlight, and feature listing options to ensure your auction sticks out of 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 risk out of it - and this is not something I can teach you. You must determine this by assessing 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, but potentially as profitable bidding strategy for ten-day auctions.
You still wont use a reserve with this strategy. But instead of setting start price low to encourage a bidding war, you are going to set your start price to your ideal selling price - and then couple it with a buy it now price that is slightly higher.
This will put pressure on buyer to buy it now instead of watching. If she waits, she gains absolutely nothing--and she risks someone else bidding (and ruining low BIN price) or just snatching it with BIN option.