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 soldfor 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!
