Ebay Pricing Strategies

Understanding how to set prices is really important for your eBay business. This article talks about the best ways to decide on prices so you can earn good money and still be competitive. You'll learn how to look at what others are charging, set prices that attract customers, and use smart strategies to get the most sales and profits.

Once you have an item you want to sell on eBay, it is important to know what kind of price to ask for it.  There are a few different methods I use to price and item:

1. Start by looking at similar items on eBay.
2.  Note their prices and condition.
3.  Find items similar to yours and see what kind of condition other listings are in. 
4. Look at what kinds of prices are asked for items similar to yours.
5. Use a critical eye to decide if you item is in better or worse condition that similarly listed items.

Ask Yourself:   Would a buyer see my item as in better or worse condition than the others that are listed for sale?

Ask Yourself: Is my item New or Used? 

Ask Yourself: Will the BRAND of my item help or hurt the price?

Next, it is important not to rely on the items that are currently for sale as your only method for deciding on a price for your item.  Looking at what similar items as yours have sold for on eBay.

Ebay keeps data on sold items for 90 days. This is a good indicator to see what an item has sold for lately.

1. Search eBay for the product you are listing to sell.
2. Scroll down the left sidebar and select New or Used (Preowned)
3. Scroll down the left sidebar and select Sold Items
4. This will populate the eBay page that shows you all of the items with your search terms that have sold in the last 90 days.

For a More In Depth Look at Finding, Sorting, and Analyzing SOLD LISTINGS ON EBAY,  click here.

Ask Yourself: How many items similar to mine have sold?

Ask Yourself: What are the condition and range of prices for product listings similar to my item?

Sometimes the item you are selling cannot be found on eBay.  There are a few different factors to take into account if you are unable to find the thing you are trying to sell on eBay. 

Your item may be:

• called something else 
• rare or scarce
• One of a Kind (OOAK)
• illegal 
• Not allowed or restricted to sell on eBay

1. Try different search terms on eBay. 
2. Sometimes things go by different names and depending on the person, different keywords or search terms are used to find the item.

When I can't find an item I am trying to sell on Ebay, either in active listings or completed and sold listings, I turn to Google.

1. Search Google for the item
2. Look at the Shopping Tab - Sometimes the item I am researching is being sold on another platform.
3. Look at the Images Tab - If the item I am researching cannot be found on the Shopping Tab, I will look at the images to see if I can find it on another website to gather more information about it.

If I am still unable to find the item because of scarcity or uniqueness, this is what I do:

1. Critically look at the item and think about the type of buyer that would want it
2. Ask myself a few questions:

• Is there a large market for this?
• What kind of money do people in this niche generally spend on items?
• How long am I willing to keep this item?
• What kinds of words can I use to get my item found by the right people?
• How much money do I have invested in the item?
• What's the lowest amount I will take for this item?

Sometimes things we find are either illegal to sell or have restrictions on eBay.  

1. Counterfeit items, certain artifacts, and other items are illegal to sell on eBay.  
2. eBay has a list of prohibited and restricted items which can be found here: What can't be sold on eBay

• Cost-Plus Pricing: Calculate your total costs (item cost, eBay fees, shipping) and add a desired profit margin.
• Competitive Pricing: Price your items in line with competitors, especially for common products. Slightly lower prices can attract more buyers.
• Psychological Pricing: Consider pricing items at $19.99 instead of $20. It’s a small difference, but psychologically, it feels cheaper.

• Auction vs. Buy It Now: Use auctions for rare or highly sought-after items. Fixed prices (Buy It Now) work better for common items where demand is predictable.
• Seasonal Adjustments: Adjust prices based on demand during different seasons. For instance, beach gear can be priced higher in the summer.

I don't frequently use eBay's pricing recommendations, but the platform will give you suggestions for how other similar item are priced.

• eBay's Pricing Recommendations: Utilize eBay's suggested pricing based on similar items and market trends.
• Promotions Manager: Use this tool to create special offers, like discounts on multiple items, to encourage higher order values.

• Bundle Items: Offer related products together at a slightly lower price than if bought separately.
• Limited Time Offers: Create a sense of urgency with temporary price reductions.
• Free Shipping: Include shipping costs in your price and offer ‘free shipping’. This is psychologically appealing to buyers.
• Make Offer: Turn on the "Allow Buyer to Make Offer" when listing your item.  Buyers can then send you an amount in order to start a price negotiation for an item.

• Keep an Eye on the Competition: Regularly check how competitors’ prices are changing.
• Be Flexible: Don’t hesitate to adjust prices based on the response from buyers and changes in the market.

There's no one-size-fits-all approach to pricing on eBay, but by understanding the market, calculating costs carefully, and using a mix of strategies, you can set prices that attract customers and maximize your profits. Keep experimenting and adjusting until you find the sweet spot for your products.