Well, when you start to sell in
ebay, your starting price should at least cover your cost of item. It is
very subjective when it comes to pricing. Many factors do contribute to
determine price of an item.
eBay allows you to set a "reserve" price
in addition to the starting price which actually the bidders will see on
ebay. The reserve is actually the minimum price at which you would be
willing to actually sell the item, but the bidders do not know what that
reserve price is. The starting price is actually to stir
interest among bidders, but, with the reserve, you protect yourself from
letting the item go for too little. I personally hate it as a buyer in
ebay, but it is there for you to use.
As for the bidders, it is very frustrating to come back over
and over again during the duration of an auction to
finally enter the winning bid, and then to discover that there was a
reserve which is higher than your final bid. That will really make
bidders frustrated with you. Hence most bidders will not participate in auctions that have
reserves.
I would recommend you to try using the
reserve price to see how the bids go. If there is a good response, then
its good. But also try to sell the same item without reserve price, and
watch the bids again. From experience, the latter will have better bids.
Some people do sell at opening price
below their cost price. However, their shipping cost will be marked up
more than usual. The idea is if the bidders did bid above the cost
price, then the seller will have a profit in the selling price of the
item and shipping. If the bidders only bid below or at the cost price,
then the seller will only get the profit out of the shipping.
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One of the important aspect of selling
in ebay is to get the first bidder to bid, and get the second one as
soon as possible. The more the bidders, the better will be the selling
price. A low start attracts a first bidder and activity breeds more
activity. Remember, for many people, online auctions are entertainment
and they get caught up in the excitement of competition. Hence you want
to do whatever you can to attract a second bidder and a third just to
make it a contest. A low starting price is an excellent way to get that
rolling.
The vast number of participants at eBay
makes this possible. If you get
enough of these bidders banging around and you have enough similar items
for sale, the bidding on any individual item will be random, but over
time the results for a large number of items will be very consistent and
predictable. You then can with confidence, sell valuable items with very
low starting prices. If you browse ebay, you will see what I mean.
Beware of seasonal items since they
might not sell well during off pick season. For example, ski equipment
will not sell at good price during summer since most people are enjoying
the sun. Thus, selling ski equipment during summer will not attract lots
of bidders, and this will result in lower bidding price. |
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