eBay Success - How to Price Your Items

Many new sellers don’t realize how important pricing 
is when it comes to eBay auctions. Many don’t even 
realize that ‘pricing’ needs to be done. eBay is an 
auction site after all! But eBay auctions are not quite 
the same as the auctions you attend in the offline 
world. In fact, quite a bit of work goes into 
determining and setting prices.

Essentially, 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. 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. 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.

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!

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