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.

Strategy #1

If you are listing a popular item that you are confident will sell for a high price, one strategy you can use is the 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 reserve and 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 want to 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 not something I can teach you. You must determine this by assessing your own personal inventory with tests.

Strategy #2

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 the 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 the buyer to buy it now instead of watching. If she waits, she gains absolutely nothing--and she risks someone else bidding (and ruining the 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 ten days 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 get positive results. At worst, it will take me 3-4 weeks to sell an item, but I wont ever lose money. I just adjust the price to compensate for additional fees.

Strategy #3

Another effective way to use a ten-day setting is in conjunction with dutch auctions--or auctions that sell a number of the same item. Ten-day auctions will give you the longest amount of time to move the highest amount 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 quantity of sales for profit, this wont be effective; but if you're selling a number of expensive, high profit-margin items, 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 at a 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 Profit on 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!

In The News:

De Beers launches new digital auction portal  Creamer Media's Mining Weekly
Rare Books &c. at Auction This Week  Fine Books & Collections Magazine
Joplin City Auction  KoamNewsNow.com

USP on eBay

If you have dabbled at all in the world of... Read More

Selling on Ebay-Get Started in 7 Easy Steps

Ebay auctions are definitely the easiest and fastest way to... Read More

Learn How To Be A Successful eBay Seller

Anyone can sell anything on eBay. Open an account, list... Read More

Your Junk is Another Persons Gold

Saving money can be quite hard to do if you... Read More

How To Increase eBay Profits

Some sell on eBay to clean out their garage or... Read More

How To Write a Traffic Pulling eBay Auction Title

Selling an item on eBay should be simple but it... Read More

Garage Sales, Flea Markets, and Special Events... Oh My!

The activity chart is an ingenious way to find, in... Read More

Profitable Paper Piecing on eBay--Part 1

Why sell paper piecings on eBay?eBay is a great way... Read More

Dropship Your Way To Ebusiness Success

Q: I would like to start my own eBay business,... Read More

How Drop Shipping Works

One of the most frequently asked questions on the Net... Read More

Fed Up With eBay?

For many people, their first experience of working online involves... Read More

Online Auctions: How To Generate Fast Traffic From Online Auctions

Have you ever participated in any online auctions?Yes, people are... Read More

Maria?s New Lifestyle: Short Story About The Benefits Shopping On The Net Has Given

I've got this strange friend; her name is Maria. Maria's... Read More

How To Sell Internationally On eBay Without Risk

Many people just getting started on eBay have reservations when... Read More

Your eBay Username - What Does It Say About You?

Have you tried to register a decent eBay username and... Read More

How I Was Nearly Conned On Ebay

I am not sure how many people have had bad... Read More

Selling Effectively on Ebay Motors

Remember back when selling online was a new experience? Dealers... Read More

8 Top Tips For Successful Art Auction Listings

Why is it that some artists seem to make easy... Read More

5 Sure-Fire Ways to Make More Money on EBay

Have you ever dealt with a salesperson or a waiter... Read More

Everything You Need To Know About Ebay Money Making Opportunities

Ebay money making opportunities are simply the best thing to... Read More

How to Generate Extra Cash in an Instant

With so many out of work, laid off or staying... Read More

Buying At Auction: 6 Hints to Make You a Successful Bidder

Buying at auction, be it for stamps or coins, antiques... Read More

The Secret Of The Ebay Money Machine And How To Get Your Share

If you have all the money you need, then this... Read More

Make BIG MONEY on eBay - Your Unlimited Cash Cow

Let me be brutally honest; until recently, I had never... Read More

How To Save Franchise Fees and Set Up Your Own Ebay Drop Off Store

There has been a flood of publicity generated regarding the... Read More