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How To Sell On eBay: Pricing Strategy
Many new eBay sellers make one of two mistakes: either they
overprice items to an unsellable extreme; or they lose money on
every transaction by setting low starting prices with no
restrictions.
In this lesson, I am going to go over which pricing strategies
to use and when if you are using a ten-day auction setup.
Strategy #1
If you are listing a popular item that you are confident will
sell for a high price, one strategy you can use is the ten-day,
one cent starting price, no reserve auction. This is the best way
to start a bidding war: pull in bidders early with a low starting
price and no reserve and give them ten days and two weekends to
battle it out.
Depending on the profit-margin of the item and the quality and
number of your competitors, you may want to consider using
listing upgrades, such as bold, highlight, and feature listing
options to ensure your auction sticks out of the crowd.
Please note that I do not recommend this strategy for
beginners. This is extremely high risk if you do not know how to
take the risk out of it - and this is not something I can teach
you. You must determine this by assessing your own personal
inventory with tests.
Strategy #2
Now, if you are new to eBay or want to list an item with
undetermined popularity, you can use a safer, but potentially as
profitable bidding strategy for ten-day auctions.
You still wont use a reserve with this strategy. But instead
of setting the start price low to encourage a bidding war, you
are going to set your start price to your ideal selling price -
and then couple it with a buy it now price that is slightly
higher.
This will put pressure on the buyer to buy it now instead of
watching. If she waits, she gains absolutely nothing--and she
risks someone else bidding (and ruining the low BIN price) or
just snatching it with the BIN option.
In addition, knowing that she will lose nothing anyway, she
will realize that she can get the item up to ten days sooner if
she uses the BIN option to order it then, rather than waiting for
the auction clock to tick down.
The strategy I described above is very safe. I use it for the
majority of my auctions and I always get positive results. At
worst, it will take me 3-4 weeks to sell an item, but I wont ever
lose money. I just adjust the price to compensate for additional
fees.
Strategy #3
Another effective way to use a ten-day setting is in
conjunction with dutch auctions--or auctions that sell a number
of the same item. Ten-day auctions will give you the longest
amount of time to move the highest amount of products.
You may also want to feature ten-day dutch auctions, depending
on what items you are selling. If you're selling information
products and rely on the quantity of sales for profit, this wont
be effective; but if you're selling a number of expensive, high
profit-margin items, featuring your auction is probably a good
idea.
________________
If none of these strategies works for you, you should consider
the following two things: 1) the price other eBay businesses sell
your product for. If someone else IS selling your product, there
is a reason for it - and it's probably the price. If you cannot
afford to sell at a reasonable price, you need to find a new
source to buy from. And if your product's price is reasonable,
then 2) you need to redesign your auction and find new ways of
pulling in targeted traffic.
http://www.workathomerightnow.net/eBay.html
- Written by Isaiah Hull, author of "How to Profit on eBay In
Seven Days Without Spending A Single Penny." For a limited time
only you can get a pre-publication copy of his book for
ONE-FOURTH the post-publication price!
MORE RESOURCES updated Thu. February / 09 / 2012
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North Central Community Calendar — Feb. 9-15San Antonio ExpressJewelry Exchange and Auction, 19903 Stone Oak Parkway, is hosting live auctions at 7 pm Saturdays. Public peeks at items, ranging from jewelry to collectibles, take place 10 am and 6 pm Fridays and 10 am and 7 pm. Saturdays. |
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TS EXPORT Announces Free Worldwide Access to Japan Car AuctionsDigitalJournal.com (press release)By streamlining the process of participating in Japan car auctions, TS EXPORT has now made it possible for worldwide buyers to import used cars, and other motor vehicles, from Japan. TS EXPORT has announced free and unrestricted access to its online ... |
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Events: Bed HangingsDetroit Free PressWine and Food Tasting: With silent and live auctions. Benefits the St. Patrick's Parish Food Pantry, 6:30 pm Fri. Italian American Club Banquet Hall, 39200 Five Mile, Livonia. 313-833-0857. $50. Must be 21 or older. Winter Ice Carvings & Fireworks ...and more » |
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All players should be allowed to bid in 2G auction: Bharti AirtelSME TimesUnder a fair market mechanism, all players should be given equal opportunity to participate when a 2G auction takes place, leading telecom firm Bharti Airtel said Wednesday. "We are believers of the market mechanism where everybody must have a fair and ... |
 Mid-Day |
Elizabeth Taylor's Rs 108 cr art saleMid-DayPaintings that belonged to Elizabeth Taylor raised $21.9 million (Rs 108 crore) at an auction as investment-conscious bidders bought rare works by major-name artists. £10.1 million (Rs 77.6 crore) with fees, beating a hammer-price estimate.and more » |
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The squabbling conjoined twinsIBNLive.com (blog)As his board's most valuable commercial partner was throwing a tantrum and walking out in a huff, Mr. Srinivasan wasn't even at the auction in Bangalore to attempt a salvage operation. Why? Because fearing allegations of a 'conflict of interest' as he ...and more » |
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Is auction the only way to allocate spectrum?Economic TimesThis is critical to moderate irrational results from auction only. The auction procedure also needs tobe fine-tuned with a market-related mechanism to ensure a level playing field for all service providers. As the allocation of spectrum to service ...and more » |
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Dealing with mortgage defaultZawya (registration)In sum, under both laws, foreclosure of real property requires a formal court action and a sale at a public auction. Under the federal laws, no separate mechanism exists to foreclose on real property outside of enforcement of contractual rights, which, ...and more » |
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The squabbling conjoined twinsCricketnext.com (blog)As his board's most valuable commercial partner was throwing a tantrum and walking out in a huff, Mr. Srinivasan wasn't even at the auction in Bangalore to attempt a salvage operation. Why? Because fearing allegations of a 'conflict of interest' as he ...and more » |
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Keeping them in the familyRegina Leader-PostOn the phone with Jeffrey Hoare Auctions Inc. of London, Ont., was Douglas's daughter, well-known Canadian actress and activist Shirley Douglas. She was bidding on the pieces of family history and, in the end, won the auction with a bid of $20000.and more » |
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Ok, let me just say right up front that I am not against
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Purchases
Paypal is the preferred payment choice for many buyers
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You've heard about it many times in recent months. Being
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More and more, people are becoming aware that they have
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How To Use A WYSIWYG
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As some of you know, I spent many years buying and selling
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