Let me ask you a question: How many times have you gone on eBay and seen an auction that was selling an item for 1 cent? Well, I can honestly say that I’ve seen this hundreds of times, and people still do it to this day. What is the “secret” behind these 1 cent auctions? Well, I will give you an idea of ​​what the strategies of these sellers are.

But before I dive into your reasons for holding 1-cent auctions, you need to understand something. Never copy a competitor or someone else who is not in your niche by bidding for 1 cent if you don’t know what they are doing. Sure you can get sales (and you’ll probably get a lot of sales)… but what good are sales if your profits are still negative? So don’t do it if you don’t know what you’re doing.

But like I said, I am going to reveal to you what some of the strategies of these sellers are so that you can use this technique effectively as well. It will make sense when you learn what the strategy behind it is, and because of that, you will probably have the opportunity to earn the sales that other people get. Here is the first strategy of the 1 cent auction:

1) Internal sales

“Inside sales” are sales from regular customers. In any business (offline or online)… 80% of your total business profit will come from the sales of your regular customers. So the more you can sell to these people, the better. They are free to trade, you can increase your prices, and they will gladly buy from you again because you have shown that you have quality items for sale.

Extend this technique to marketing to your customer list over the next 2 years, and you could potentially earn hundreds if not thousands of dollars from your regular customers…all from your 1 cent auction. But this is not the only reason why people hold 1-cent auctions. Here’s another reason:

2) To increase bids

I’ve seen reputable people on eBay sell the latest and greatest new cell phones, and they always start their auction at 1 cent. By the end of the 7 day listing, the cell phone will have sold for over $200…with around 30-40 offers on the phone. This is a bit of a risky option, but most of the time, if you do your homework correctly and have analyzed your niche correctly… it could work most of the time.

Now you can always set a value where, if your 1 cent auction doesn’t reach AT LEAST a certain sales figure, you can discard the auction and start over. The person with the highest bid would not be allowed to have the item. This is called a “reserved auction.”

1-cent auctions can yield good results if you have a great product, an attractive sales page, and a good strategy to make the auction profitable for years to come. So keep these things in mind.

Good luck selling on eBay today.