After analyzing a number of cases it is evident that many new sellers don’t realize how important pricing is when it comes to placing eBay auctions. Many of them 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 the right prices for items to be auctioned.
Essentially, there are only three prices that can be set for any 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, but very useful. The starting bid price is fairly simple, never set it higher than $50 or something like this, no matter what your item is really worth. This low opening price will get bidders attention on your auction.
Setting low starting bid prices, specially for valuable items, 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 are safe and you won’t have to sell the item to the highest bidder. You can close the auction without any negative feedback or repercussions. Always set your reserve price at the absolute lowest price you are willing to sell your item for. Consider always what the item is worth, as well as what it cost you, so you won’t lose money.
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. It is more like a common shopping experience.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 it’s important that buyers know it. Most potential buyers take this charge into consideration when they are looking at an auction. If you can see your way clear to offer free shipping, that’s great and you will find that people are placing more bids. Always make sure that your potential buyers realize that you are offering free shipping.
Before setting any prices and go and list an item in Ebay, 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! It is usually cheaper in Ebay than anywhere else. Find out the price that similar items sold for on eBay before setting any prices and consider if you will make any profit. If it is a collectable, or a high ticket item, have the item evaluated to ensure that you aren’t going to lose any money!
If you want to learn more bout Ebay and how to sell and buy like the pros. You should visit:
http://www.ebay-auction-advice.com
