There are many things to do to create a new listing, but it is difficult to set the right price for the product. Many shoppers make purchase decisions based on price, so it is very important that goods are priced reasonably. Here is some information on how to price. Why is pricing difficult?
Before discussing how to price, understand why pricing is important. Price indicates the value of your product. As an eBay seller, all you have to do is to find the right balance between high and low prices.
It is very important to determine the appropriate price of the product, because the price determines the likelihood of people buying the product:
Compared with other factors that attract shoppers, such as advertising, promotional offers and social media activities, pricing has a greater impact on profits. A 1% increase in price can increase profits by 11.1%.
Based on how much profit you want to make or guess how much shoppers are willing to pay for the product, arbitrary pricing is not acceptable. The price of a product must reflect the value of the product. If you want to set a good price, you need to do some research and then determine the product price to get enough sales and make a profit.
The following are three methods for researching pricing provided by eBay to support novice sellers.
1. Use eBay’s pricing recommendations
When you first start selling on e-commerce platforms, you will notice how amazing the number of online competitors and competing products is. Even if you can find every product that is similar to yours, it takes a lot of time to determine how to base your competitors Price of the product.
To save your time, eBay provides a pricing recommendation tool. You can use this tool to find the average price of the same product as yours.
After entering the new product, product specifications, listing type (such as a buyout price or auction), and price, eBay will show you pricing recommendations:
eBay provides a price range, you can decide what the price of the product is. This proposal also includes a chart that highlights the possibility of getting sales within this recommended price range. You can adjust the product details to see how the chance of getting a sale changes after the adjustment.
In addition, the "View Sold Items" feature means that you can view similar products that have been sold in this price range. This insight report can increase the likelihood of getting sales.
To help you test whether your pricing is appropriate, eBay will provide additional suggestions based on five different types of prices:
binPrice: Suggested pricing for buy-it-price items and auction items
binPriceRange: Suggested pricing range for buy-it-price items and auction items
listingType: Recommended listing type, for example, Buy it Now or Auction
startPrice: Suggested starting bid for auction items
startPriceRange: Suggested starting bid range for auction items
Depending on whether the product uses a buyout price or an auction price (we will discuss these types later), you can see which product listings are beneficial after adjusting the price. This pricing feature of eBay also helps to ensure that you are eligible to be marked as a top seller, that your pricing is moderate and appears at the top of eBay product search results. This in turn improves your chances of getting more sales, because shoppers will think your product is of good quality.
This tool is only available for eBay sites in the US, UK and Germany.
2. Use a similar listing as a reference
Another way to determine product pricing is to check the number of similar products sold on eBay. You can use this pricing information as a guide for selling your own products.
If you are selling household accessories (such as lamps), you can use the advanced search function to filter the search results by keywords:
If you want to find a specific product, add details such as price range, product conditions, and shipping options. In this way, you can compare your prices with similar products that you sell. This information should be as detailed as possible so that you are more likely to know where the price is set and shoppers will respond.
After adding search criteria, click "Search" to view the results, scroll to the bottom of the results page, and find the "Display Only" section:
Click "Sold Goods" to view recently sold goods, price, time, and check the status of the goods.
You can filter more options from here to find specific products. For example, add color, type, or style filtering options based on the product you want to search for. When you find a product that is similar to your product, use the "sell similar products" option to create a similar listing:
You don’t have to use the same price as your competitors. Instead, using their pricing as a base point, it is more critical to find out how much customers are willing to pay for products in different conditions and shipping options. If the price of your product is lower than the price of your competitors, then use high-quality images to showcase product quality and enhance product value. If your price is higher, make sure that the product description is optimized for sales. For example, provide product selling points so that it is easy to browse the product description, or list the main functions of the product.
3. Choose a pricing strategy according to your listing type
The pricing strategy varies depending on the type of listing you choose. Although it is appropriate to start from a low price when selling products through auctions, this method is not suitable for all buy-it-price commodities, and the price of buy-it-price commodities should be set higher.
Before setting the pricing, please determine the type of listing you want to use. There is a large demand for sales and very unique products. For example, collectibles and antiques that do not need to be sold quickly should be sold through auctions, and products can be sold quickly at a price.
The pricing strategy for each plan is slightly different. Which strategy you choose depends on your product and the goals you want to achieve:
The advantage of auctions is that it is the market, not you, that determines the price. You can set the starting price lower to ensure that your product can attract the attention of buyers. Starting from the reserve price, it is possible to sell for any amount of money. When creating auction products, please set a reserve price, which is the basic amount you are willing to sell the product.
If the auction ends and you do not get the reserve price, there is no need to sell the product. This may be because the reserve price may be too high or not a good time to sell the goods. Another option is to use Buy it Now as an alternative, so that instead of waiting for an increase in bids, shoppers have the opportunity to buy your product at a fixed price.
You have to set the price based on your research. If the sales are not good, you can choose to add the "offer" option in the business information, which can make shoppers more willing to buy your products.
If the price is lower than expected, the price needs to be increased. You and shoppers can negotiate until you get the price you are willing to sell. If you find yourself negotiating a price too much, consider selling it later in order to align with the price people are willing to pay and you can sell more quickly.
Some methods of pricing on eBay
Once the pricing strategy is determined, there are some methods to keep in mind to ensure that your strategy is effective:
Don't set prices too low for the sake of competition. Pricing is related to quality perception, so compared to competitors, the lower the price of your product, the less attractive it is. In addition, lower prices mean less profit: the selling price of a product is lower than its value, and eBay will also charge a 12% value fee for each item you sell.
Include other costs in the pricing. Your pricing should not only be for profit, make sure that your pricing includes packaging costs, product costs and time costs. You spend a lot of time and money to provide products to customers, so include these costs in the sales price.
Consider accepting negotiated prices. When you first started selling products on eBay, you didn't know how much customers were willing to pay, so you would have to spend some time testing different options. At this stage, you can use the "Special Price" option to attract shoppers who are interested in making transactions. If you find a price that is generally acceptable to shoppers, consider using it as your price.
Appropriate pricing is important to eBay, and over time, you can get more traffic, because eBay usually lists products with similar prices at the top of the search results.