eBay Success - How to Price Your Items
Many new sellers don't realize how important pricing is when it
comes to eBay auctions. Many don't even realize that 'pricing'
needs to be done. eBay is an auction site after all! But eBay
auctions are not quite the same as the auctions you attend in
the offline world. In fact, quite a bit of work goes into
determining and setting prices.
Essentially, there are only three prices that can be set for an
eBay auction: the 'buy it now' price, the reserve price, and the
starting bid price. Of these three, the starting bid price is
the only one that is required for an eBay auction. The reserve
price and the 'buy it now' price are optional. The starting bid
price is fairly simple - never set it higher than $50 or so - no
matter what your item is really worth. This low opening price
will get bidders to your auction.
Setting low starting bid prices creates the need for a reserve
price. A reserve price is the absolute lowest price that you
want to get for your item. You may sell the item below the
reserve price, but you will not be required to. In other words,
if you set your reserve price at $100, and your highest bid is
only $50, you do not have to sell the item to the highest
bidder. You can close the auction without any negative feedback
or repercussions. Set your reserve price at the absolute lowest
price you are willing to sell your item for. Keep what the item
is worth, as well as what it cost you in mind.
The 'buy it now' option will allow you to set a price, and
buyers can buy the item immediately, without bidding, for that
set price. This option can be used for any type of item, and it
should be set to match your reserve, give or take a few dollars.
This option is great if you have multiple identical items to
sell.
Shipping has a price, and potential buyers take this into
consideration when they are looking at an auction. If you can
see your way clear to offer free shipping, you will find that
people are placing more bids. Make sure that your potential
buyers realize that you are offering free shipping!
Before setting any prices, you need to determine what the item
is really worth. The value of the item in different markets
might be quite high. However, you are selling on eBay, and it is
a different world altogether! Find out the price that similar
items sold for on eBay before setting any prices. If it is a
collectable, or a high ticket item, have the item evaluated to
ensure that you aren't going to lose money!