eBay Success - How to Price Your Items

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!