As an eBayer since 2000, I admit there is considerable temptation to set a high opening bid for an eBay auction. After all, who wants to put an item on eBay that cost $500 and have someone win it for $25? You won’t be in the online auction business for long with that kind of turnaround.
However, setting a low starting bid does have its advantages, and fortunately eBay provides measures to allow you to guarantee you won’t make less than a certain dollar amount if anyone bids on your auction.
To begin with, eBay charges fees for pretty much everything associated with your auction. Many of these fees are standard, like the fee to include one or more pictures with your auction, or the fee to get an “enhanced listing” for your auction. One eBay fee that fluctuates is the listing fee. The listing fee is based on a percentage of the starting auction bid. So, setting a high opening bid on your item will raise the amount you will spend in your listing fee. Since the listing fee is nonrefundable, you’ll want to minimize it as much as you can.
Don’t worry about a low starting bid for your auction item. To begin with, if the item is in high demand (like the Nintendo Wii, for example), the chances of the bids coming in fast and higher are pretty good. Also, eBay allows you to set a minimum bid on your auction which is known as a Reserve Price. The way a Reserve Price works is simple: suppose you are selling an item for $500 and you don’t want to make less than $500 in the auction. When you add the item to eBay, you set the Reserve Price at $500, so even if people bid on your auction, you are not obligated to sell the item to anyone for less than your Reserve Price, which is $500 in this case. This allows you protection over your investment. Of course, setting a Reserve Price does incur another fee on eBay, but it is pennies compared to what you can potentially lose by selling an item for much less than you bought it.
The method I most often use for setting auction prices on eBay is to start with a Reserve Price of the minimum amount I’m willing to sell the item for, and then put the opening bid at $0.01. That allows me protection over my final profit, the lowest listing fee possible, and an exciting auction for people to see and try to win. Would you buy ANYTHING if it only cost a penny?
And that is just one pricing strategy on eBay for you to consider. Best of luck!
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Knowing the best way to price your auctions is the first step to success on eBay. Get started with an Online Auction Guide at http://prhsolutions.com/ebayauction/ Article Source: http://EzineArticles.com/?expert=Paul_Heingarten |
