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:

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CNBC

Bidding is on for the most expensive home ever to hit the auction block
CNBC
Real estate auctions, once used for foreclosures and distressed sellers, is moving upmarket. The number of multimillion-dollar homes being sold at auction has nearly doubled in the past year, according to real estate analysts and auction companies.


Reuters

German officials sound China alarm as 5G auctions loom
Reuters
BERLIN (Reuters) - Senior German officials are planning a last-ditch drive to convince the government to consider excluding Chinese firms such as Huawei from building the country's 5G infrastructure amid concerns this could compromise national security.
German officials raise China alarm as 5G auctions loomNasdaq

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Knoxville News Sentinel

See inside $6M Knox mansion Villa Vista, will sell at December auction
Knoxville News Sentinel
In the market for one of Knoxville's largest homes? You could get a bargain in December. Villa Vista is on the market for $5.79 million, but will be offered at auction at 11 a.m. Dec. 8 at the estate. The mansion, offered by Elite Auctions, will not ...


Robb Report

Academy of Art University Auctions 45 of Its Cars
Robb Report
Stephens' daughter, Elisa (the school's current president), is selling a small portion of the collection during Mecum Auctions' Las Vegas sale, to be held November 15 through 17. Proceeds from the auction of these cars—which carry estimates ranging ...


AZ Big Media

A first-timer's guide to real estate auctions
AZ Big Media
If you've never been to a real estate auction, you're missing out on a fantastic opportunity to experience something unique – as well as a chance to purchase real estate at a steeply discounted rate. But there are also some intricacies that come with ...


WILX-TV

State Capitol auctions off carpet squares from Governor's Office
WILX-TV
Valerie Mervin said, "When the Capitol was constructed in the 1870's, at the end of the project we sold, at auction, out front, the excess building materials." The money raised from the sale will go toward future Capitol restoration projects. Winners ...


Selected Western livestock auctions
Capital Press
Oregon. EUGENE. (Eugene Livestock Auction). Nov. 3. Head Count: 437. Comments: Feeders stronger, especially vaccinated calves. High Dressers: 48.00-55.00. Low Dressers: 40.00-48.00. Top 10 Cows: 55.00. Top Bulls High Dressers: 57.00-63.00.


ArtfixDaily

888 Auctions' November 22 Auction Featuring Fine Art, Jewelry & Chinese Paintings
ArtfixDaily
Richmond Hill, ON – 456 fresh to market items will be available to the highest bidder in 888 Auctions' winter auction featuring the finest in Fine Art, Jewelry & Chinese Paintings. Taking place in the afternoon, discerning collectors and buyers will ...


Barron's

Fall Auctions to Feature Major Works by Hockney & Hopper
Barron's
An impressive slate of auctions driven by several major estate sales—notably the estimated $300 million collection of American 20th century art from the Barney A. Ebsworth estate—will once again test the health of the art market, which has largely ...

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Bloomberg

Tanzania Shuts Cashew Auctions, State Takes Over Purchases
Bloomberg
The state-owned Tanzania Agriculture Development Bank will buy the nuts at 3,300 shillings ($1.45) a kilogram, compared with the 3,000 shillings reserve price set by the government for auctions, Magufuli said at a swearing-in ceremony for two ministers.

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