Today we going to talk about one of the important element of eBay, pricing, a lot of new seller didn’t realize how important of it when come to eBay auctions. Many of them just neglect pricing and simply put one figure as they like. Pricing not only will affect your listing fee but also will affect your listing ability to draw or bring more bidders.
There are only three types of pricing can be set for eBay auction, which is: starting bid price, reserve price and buy it now price. Of these three types of pricing, the starting bid price is the only one required for an eBay auction, the rest is optional.
Starting Bid Price
For starting bid price, place your item price below the upper limit of the specified range of price as the listing fee is difference for each range of pricing. For example, if you plan to sell your item for $ 1, place it at 99 cent as the listing fee for 99 cent is only 15 cent (from 1 cent to 99 cent), if you price your starting bid price at $ 1 then the listing fee will cost you for 35 cent which is approximate double you need to pay for that 1 cent difference. No matter how high values of the items that you plan to sell, the highest recommended starting bid price is $ 50. Why? Because low opening price will anchorage more bidder to bid. Besides that, for your information, for the same items, didn’t means that the one that start will lower price will get sell because price is only one of the factor that under customer consideration only. Therefore don’t try to start any price war as it only will lower you profit.
Reserve Price
Setting low starting price for high values item create the need of reserve price. You have to pay a certain amount of fee for using reserve price. What is reserve price? Reserve price means the lowest price that you want to sell for your items. For example, if you set your auction reserve price for $ 100 and the highest bid is only $ 50, you don’t have to sell your item to the highest bidder. You can close the auction without worry any negative feedback. But please be caution when using this option because most of the bidders don’t like reserve price. It also will drive bidder away if he or she keep bidding but can’t reach your reserve price. So, if any bidder asking you the reserve price, please tell him/her the value that you put.
Buy It Now
Buy it now is an option that allowed you to set a price which buyer can immediately buy your item without bidding and waiting the auction to end. It should be set higher than your starting bid price, usually few dollars more.
Another thing that buyer consider is your shipping cost. Don not over charge your shipping cost as it only will drive the potential customer away. If you can offer free shipping it would be better as free shipping will drive more bidders to your auction.
It is important to determine how much your item worth before you start any pricing. Do some researches on the price for the similar items sold in eBay will help you to get better idea on how should you price your item.
Tags: auction, bid price, bidder, buy it now, price, prices, pricing, starting bid price
