When new sellers start an Ebay Auction businesses and start to sell items on Ebay, most do not realize how important the pricing of their items is. Many sellers are not even aware that pricing needs to be done as Ebay is an auction site after all. Usually in an auction situation you simply sell the item to the highest bidder, however Ebay runs their auctions a little different. In the real world and auctioneer waits for an opening bid, however much that might be, whereas Ebay lets you set a starting price to begin from.
In fact a great deal of work goes into deciding and setting prices for items on Ebay auction listings and essentially, there are three different price categories.
What are the three different methods for setting a price for your items on Ebay?
There are only three prices that can be set for an 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.
What is a starting price on Ebay and when should I set one?
The starting bid price is fairly simple – never set it higher than $50 or so – no matter what your item is really worth. This low opening price will get bidders to your auction. Setting low starting bid prices creates the need for a reserve price.
How does a Buy It Now price work on Ebay?
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. 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 potential buyers take this into consideration when they are looking at an auction. If you can see your way clear to offer free shipping, you will find that people are placing more bids. Make sure that your potential buyers realize that you are offering free shipping! Before setting any prices, 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! Find out the price that similar items sold for on eBay before setting any prices. If it is a collectable, or a high ticket item, have the item evaluated to ensure that you aren’t going to lose money!
How does a Reserve price work when should you set one on Ebay?
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 do not have to sell the item to the highest bidder. You can close the auction without any negative feedback or repercussions. Set your reserve price at the absolute lowest price you are willing to sell your item for. Keep what the item is worth, as well as what it cost you in mind.Tips For Ebay sellers on how to avoid problems & failed auction