Starting Prices Make or Break Your Auction
When you’re listing an item, you have the option of setting your starting price at whatever you want, but don’t be tempted to just guess what works best. The tools are available for you to find out how to optimize your starting price, so use them!
You can check into eBay’s completed auctions to see items similar to yours and how much they sold for. This is handy in a couple of ways.
- First, if the winning bids for the items were all around the same price, you’ll know that you can list your item at that price and likely sell it. You may not get a lot of bids this way, but serious buyers will know what your item is worth and bid accordingly.
- Second, you can look at the lowest amount for which a similar item sold. If you set your starting price there, you’ll likely get more bids and created a great chance to encourage a bidding war. Serious buyers will want in because the price is so reasonable and eventually ends up to create a bit of a bidding frenzy resulting in a high closing price for you.
- Third, you do also have the option of starting an item extremely low, say at $0.99 or even $0.01. This can be beneficial because potential bidders will automatically assume that the item is extraordinarily undervalued and be excited at the prospect of scoring an amazing deal, which can also encourage lots of bids.
With the above option, of course, you may worry your item will sell for less than it’s worth. Sellers who are afraid to undervalue their item may be tempted to use eBay’s reserve feature, but I don’t recommend it. Items with a hidden reserve price have more eBay fees attached to them than non-reserve items.
Also, bidders can see when an item has a reserve (although they don’t know what you set it at) and this can discourage bidding by essentially telling buyers that their bid may not be good enough for you. Plus, there’s likely a product just like yours listed without a reserve price, so what’s easiest for the bidder? No reserve, of course! Most people go to auction sites because they enjoy bidding, they love the adrenaline rush. Don’t cheat them out of the thrill!
In my opinion, “Buy It Now” is a better option than setting a reserve because your minimum sell price is obvious and won’t turn off customers. “Buy It Now” does hurt your chances of having a bidding war, but many buyers would rather just purchase an item than deal with the auction process, so it’s an easier way to generate a quick sale. In some cases, items are best offered in a “Buy It Now” format.
Research services like HammerTap and Terapeak have specialized systems for figuring out the optimal price and manner to list specific items (among many other amazing research features). If you want to eliminate guesswork, I suggest investing in one of these amazing tools. If you’re serious about selling, you won’t regret it!
I am very much looking forward to your comments and thoughts. Wishing you rippling success!
Svenja
Have You Twittered Lately?
Hi Svenja,
I should be dipping my toe into the ebay market soon, your blog will be a great resource for me
Best wishes
Ann
Thanks Svenja for the great info. Just like everything in life we have to use a lot of psychology when placing an auction for bidding in order to get the best results.
You’re right about the “buy it now”…I am a long time ebay buyer and have used this function many, many times.
Great advice!
Kathy
Hi Svenja,
Very good points, on auction start listing pices, i totally agree with everything you state, i have noticed that a lot of listings have the auction and BIN selling points in place!
TTFN….Ed.
More useful eBay information Svenja – thanks. I didn’t realise the fees were higher for reserve prices, but I prefer ‘Buy it Now’ anyway. I have my eBay account details, and getting closer to starting, so all this advice is helpful.
John
Hi Svenja,
As always, a very useful post. I have just passed your blog address onto someone who wants to know all about ebay. No better place for them to go!
Enjoy the journey.
Mandy
Hi Svenja, you’re moving now ha ha. Your blog is excellent and for anyone wanting to get started on ebay, this is the place to come.
Congrats on another well written post, excellent stuff my friend.
Respect and Regards, Barry
Hi Ann,
Thank you for your visit. Although eBay has big changes under way, it’s still a great starting point!
I am looking forward to be in touch again soon!
Svenja
Hello Kathy,
Good to hear from you again. Yes, it’s amazing how complex (not complicated) even things like auction listings can be
Many Thanks,
Svenja
Hi Ed,
Thank you so very much for your great feedback! It’s helpful to know that the info provided is useful
Many Thanks,
Svenja
Hi John,
It is always such a pleasure and joy to receive your comments. I am humbled by your continued support and visits to my blog!
With gratitude,
Svenja
Hi Mandy,
Thank you so very, very much for your referral! I greatly appreciate your support. For you to have given my blog info to someone else means the world to me
With heartfelt gratitude,
Svenja
Hello Barry,
Thank you for your thoughts and input! I am very delighted to hear that you find the posts helpful.
Thank you for your continued support and visits
Svenja
Hi Svenja, You post very interesting blogs. Your info on ebay related matters will come in handy.
Good luck on the Masterclass course.
Ray.
Hi Ray,
Thank you for your comment. Sorry for the late reply. Wishing you great success as well
Many Thanks,
Svenja