Business

How to price what you sell on eBay

One of the most important decision-making areas for sellers on eBay is “Prices”. How much should I sell my item (s) for? Consider the following questions. And when addressing these questions, always ask yourself the reason behind your answers:

o Do you have a general pricing philosophy?

or, what is it? (high, medium or low range)

o What are the characteristics of the people who will buy from your eBay auctions?

o Why will they buy at your auction? (for low prices, for convenience, for service, etc.)

o How will you calculate the prices?

o When setting prices, will you take into account all of your operating costs? (including your own salary)

o Will your prices be “fair” to the customers who will buy from your eBay auction?

o What does the term “fair” mean to you?

o Will you visit similar auctions to check your competitors’ prices?

o Will you use odd prices ($ 4.95, $ 4.97, $ 9.95, $ 9.97) instead of even prices ($ 5.00, $ 10)?

EBay pricing settings

Fair prices – From your perspective, fair should mean “your prices reflect your operating overhead structure” in a way that allows you to make a satisfactory profit without making a profit, that is, overcharging the customer.

You should use calculations of sales price = 100%, with sales price = cost of goods + desired profit = 100%.

Odd prices – Although the impact of strange prices on customer behavior may be overrated, there is an important reason to use this practice. Consumers are more likely to believe that you have planned your prices very carefully and that you have worked hard to keep prices as low as possible.

Competitor prices – When setting your prices, you should look at similar auction items and check the competitors to make sure their prices are consistent with your pricing philosophy and the market. Review the notes you took when you went through the Going, Going, Gone pages and gathered first-hand information on what items are selling, the sale price, and the number of deals;

Low prices – Consider putting a low price on your items to attract bidders, especially if you have an item that you know or suspect will sell quickly. Start at $ .01 to attract bidders.

Reserve price – If the item is valuable and you know it will sell, you can put a reserve price on it. This way, you can still start your auction at $ .01 to attract bidders, but avoid losing the transaction.

EBay Category – Consider placing your item in an unconventional category to attract more bidders and a higher final price. But make sure you don’t violate eBay Category listing policies.

Consider eBay fees and merchant vendor fees in your pricing

As a seller, you need to learn and understand the types of fees you will pay for using eBay tools. You should also know what fees PayPal or your chosen merchant provider will charge to service your transactions. Types of fees to know and consider when pricing your items:

or Insertion fees: There is a non-refundable insertion fee for listing your item on eBay. Insertion fees vary depending on the type of listing;

or Imaging services: If you use eBay Photo Services, you can choose between different functions. The first image is free;

or Final value rates: When your listing is complete, you will be charged a final value fee based on the final sales price (or “final value”) of the items you have sold;

or List of upgrade fees: As a seller, you can choose several optional features to help promote your ad. These fees are non-refundable;

or PayPal fees: Sellers have the option of listing on PayPal. PayPal collects Premier and Business accounts to receive payments. Personal accounts are free, but may not receive credit card payments. Fees are assessed at the time of transaction and will be deducted from your PayPal account;

or Other merchants: The rates are similar to those of PayPal;

Reduce eBay fees as a cost of entry

You can slightly lower eBay insert fees and final value fees by lowering the auction price of your items and charging a handling fee, especially if the product you are selling is delivered via compressed file or file transfer, for example, downloading software or e-book via email.

EBay policy guidelines allow for reasonable shipping and handling fees. BUT please be aware of eBay’s Fee Avoidance Policy, which clearly states that Sellers must refrain from activities that circumvent eBay fees, including listing items in a way that allows them to circumvent eBay fees and low prices. , but excessively high shipping or handling costs.

Don’t get into the habit of overcharging your customers for shipping and handling costs, as this could affect your credibility and potential repeat business. It is also unethical! You must charge what it normally costs you to pack and ship. This is a gray area, so be careful.

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