eBay Pricing Strategies
By Allen Owen
There are many ways to price your items on eBay to make money.
Not all strategies will work for every type of product. This article
strives to describe the various pricing methods that are available for
eBay. (continued below ...)
By Allen Owen
There are many ways to price your items on eBay to make money.
Not all strategies will work for every type of product. This article
strives to describe the various pricing methods that are available for
eBay. (continued below ...)
Low Starting Price: Items that are popular generally do better price
iPods, name brand clothing, digital cameras, etc. By starting at a
lower bid price, the item's final sell value will be driven higher For
expensive items that are not popular or are specialized, this might
not work. You might not get enough bids to even reach your cost
and you may lose money. A possible solution is to place a Reserve
Price on the auction. A Reserve Price is the minimum price you are
willing to accept for the item. You set a reserve and then start the
auction at a low price. Bids will be posted, but if the bid is below the
reserve price, they will be notified in their bid confirmation. New
bidders will not see a notice about a reserve price unless they bid
under the reserve price. They will see the current bid price, however.
Cost-Based Starting Price: This is just starting your auction at your
cost of the items you are selling. This way you won't lose money if
you don't have a lot of bids. The disadvantage to selling at cost is
the higher listing fees and you will not attract as many bidders.
Buy-It-Now Pricing: The Buy it Now price is the lowest price you are
willing to take for the item during the auction. After the first bid is
placed, the Buy It Now price will disappear. This is a good way to
turn over inventory quickly and allow you to grow your business. Buy
It Now seems to work best when you list in conjunction with cost
based pricing. If you start too low, you will attract bidders quickly but
lose your Buy It Now(BIN) price. Because the main advantage of BIN
is faster inventory turn over, it is best to set your BIN price at an
average level, not the high end. This will encourage more impulse
buyers and more sales. Another way to encourage buyers to use
BIN is to offer an incentive for them to use BIN, such as free
shipping.
Second Chance Offer: A few years ago, eBay offered a feature called
the Second Chance Offer(SCO). It was designed to allow the
second highest bidder a chance to buy at their losing bid in the
event the winning bidder did not pay. It was very successful and was
modified so that sellers could offer an under bidder a chance to buy
at their bid price if you have more than one identical item to sell.
Simply put, from one auction you can make multiple sales and
more money. The best thing is you do not have to pay any additional
listing fees even though you will pay the final value fee.
There are without a doubt more ways to price your items on eBay,
but these are some of the better ones.
http://www.thedigitalresevoir.com/
iPods, name brand clothing, digital cameras, etc. By starting at a
lower bid price, the item's final sell value will be driven higher For
expensive items that are not popular or are specialized, this might
not work. You might not get enough bids to even reach your cost
and you may lose money. A possible solution is to place a Reserve
Price on the auction. A Reserve Price is the minimum price you are
willing to accept for the item. You set a reserve and then start the
auction at a low price. Bids will be posted, but if the bid is below the
reserve price, they will be notified in their bid confirmation. New
bidders will not see a notice about a reserve price unless they bid
under the reserve price. They will see the current bid price, however.
Cost-Based Starting Price: This is just starting your auction at your
cost of the items you are selling. This way you won't lose money if
you don't have a lot of bids. The disadvantage to selling at cost is
the higher listing fees and you will not attract as many bidders.
Buy-It-Now Pricing: The Buy it Now price is the lowest price you are
willing to take for the item during the auction. After the first bid is
placed, the Buy It Now price will disappear. This is a good way to
turn over inventory quickly and allow you to grow your business. Buy
It Now seems to work best when you list in conjunction with cost
based pricing. If you start too low, you will attract bidders quickly but
lose your Buy It Now(BIN) price. Because the main advantage of BIN
is faster inventory turn over, it is best to set your BIN price at an
average level, not the high end. This will encourage more impulse
buyers and more sales. Another way to encourage buyers to use
BIN is to offer an incentive for them to use BIN, such as free
shipping.
Second Chance Offer: A few years ago, eBay offered a feature called
the Second Chance Offer(SCO). It was designed to allow the
second highest bidder a chance to buy at their losing bid in the
event the winning bidder did not pay. It was very successful and was
modified so that sellers could offer an under bidder a chance to buy
at their bid price if you have more than one identical item to sell.
Simply put, from one auction you can make multiple sales and
more money. The best thing is you do not have to pay any additional
listing fees even though you will pay the final value fee.
There are without a doubt more ways to price your items on eBay,
but these are some of the better ones.
http://www.thedigitalresevoir.com/
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