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!
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