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How To Price Your Item Correctly On Ebay
Many new ebay sellers often fall into the pricing trap. 
Either they price their items too high to be unsellable or 
they price it too low to make any profits.
Some basic information on ebay pricing. Ebay has three 
prices that can be set for an auction.
The "Buy It Now" Price
Allow bidders to buy the item at a fixed price 
immediately without waiting for the auction to end. 
Effectively, it also means the auction will end once it has 
a bidder. The only exception will be in dutch auctions.
The Starting Bid Price
Any auction will require a starting bid price. This is the 
price set by the auctioneer when he/she first lists the 
auction.
The Reserve Price
This is the pre-determined price set by the auctioneer. 
Bids will need to exceed or equal to the reserve price 
before it will be sold. If an auction ends with the reserve 
price not being met, the item will not be sold.
Both the "Buy It Now" and reserve price are optional on 
ebay.
It is important that your starting bid price be set low to 
attract bidders to your auction. My advise would be to 
set the starting bid as $0.99 or lower. As a rule of thumb, 
never set it higher than $50.
What do you do then if you can't sell an item below a 
certain price? The answer is to set a reserve price. That 
way, you do not have to worry about selling an item 
below your profit margin.
Also, it will not affect your feedback rating.
Another potential pricing issue on ebay is shipping. Most 
disagreements between buyers and sellers occur 
because of shipping cost.
My advice would be not to overcharge on shipping since 
most buyers take shipping cost into consideration when 
looking at an auction. Also it is relatively easy for buyers 
to determine the shipping cost since ebay and most 
shipping services such as USPS and fedex provide one.
It is fair for sellers to charge a little for handling charges 
since it take work to package the item and also postage 
fees. Most buyers would understand however if 
possible, try to eliminate handling charges except for big 
and heavy items.
It is also important to first find out the average selling 
price of your item before even listing it on ebay. This will 
tell you the starting price you should list and how much 
is the ending bid.
The most simple way is to browse through the history of 
the item you are planning to list on ebay. You can get a 
feel for how much your item is worth and even 
determine the starting bid by browsing other sellers' 
items.
http://internetbusinessmodels.info/form.php?id=63022 
1

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How To Price Your Item Correctly On Ebay

  • 1. How To Price Your Item Correctly On Ebay
  • 2. Many new ebay sellers often fall into the pricing trap. Either they price their items too high to be unsellable or they price it too low to make any profits.
  • 3. Some basic information on ebay pricing. Ebay has three prices that can be set for an auction.
  • 4. The "Buy It Now" Price
  • 5. Allow bidders to buy the item at a fixed price immediately without waiting for the auction to end. Effectively, it also means the auction will end once it has a bidder. The only exception will be in dutch auctions.
  • 7. Any auction will require a starting bid price. This is the price set by the auctioneer when he/she first lists the auction.
  • 9. This is the pre-determined price set by the auctioneer. Bids will need to exceed or equal to the reserve price before it will be sold. If an auction ends with the reserve price not being met, the item will not be sold.
  • 10. Both the "Buy It Now" and reserve price are optional on ebay.
  • 11. It is important that your starting bid price be set low to attract bidders to your auction. My advise would be to set the starting bid as $0.99 or lower. As a rule of thumb, never set it higher than $50.
  • 12. What do you do then if you can't sell an item below a certain price? The answer is to set a reserve price. That way, you do not have to worry about selling an item below your profit margin.
  • 13. Also, it will not affect your feedback rating.
  • 14. Another potential pricing issue on ebay is shipping. Most disagreements between buyers and sellers occur because of shipping cost.
  • 15. My advice would be not to overcharge on shipping since most buyers take shipping cost into consideration when looking at an auction. Also it is relatively easy for buyers to determine the shipping cost since ebay and most shipping services such as USPS and fedex provide one.
  • 16. It is fair for sellers to charge a little for handling charges since it take work to package the item and also postage fees. Most buyers would understand however if possible, try to eliminate handling charges except for big and heavy items.
  • 17. It is also important to first find out the average selling price of your item before even listing it on ebay. This will tell you the starting price you should list and how much is the ending bid.
  • 18. The most simple way is to browse through the history of the item you are planning to list on ebay. You can get a feel for how much your item is worth and even determine the starting bid by browsing other sellers' items.