December 22, 2008
Pricing your items that you want to list on eBay can be difficult for those who have never done it before. List your items too high, and you won’t receive any bidders. List your items too low, however, and you run the risk of not making money – or worse, landing yourself in the negative. If you consistently price your items incorrectly, you can find yourself with little to no business, or owing money at the end of the day. Pricing your items correctly from the get go can severely cut down on how often this happens.
When you have done your research and know what items are popular on eBay, you should know what items you are looking for and their average selling costs. If not, you need to look up the most popular items on eBay by category, narrow down the products that you are interested in selling, and figure out what the average final selling price for each item you are interested in is. When you have a general idea, then you can start looking for where to purchase the item.
Purchasing items to resell on eBay can be tricky. You don’t want to spend too much money up front and risk having overstock that doesn’t sell, but you also don’t want to spend more money on each item by buying less at a time, leaving you a smaller margin of profit. The best route to go is to find an item you want to sell going for at least half the price of what you want to sell it at. This gives you plenty of wiggle room to make money, without setting your starting bid to high.
When you list your items on eBay, list them as low as possible for you to break even. This includes your final value fee, your listing fee, and your shipping costs, along with the total price you paid for one item. If the item you are selling cost you $50, and additional costs, including eBay fees, totals $10, then the absolute lowest starting price for your item should be $60. This way, if only one person bids, you will at least break even on the transaction.
If you are feeling a bit risky, you may even want to list your item slightly lower than what your total costs for it are. Starting your bid lower than the other bids for the same item on eBay can get you more hits, and in turn, more bids. Many sellers often balk at the idea of setting their starting bid too low, but really, these are the sellers who probably see the most money for their auctions. Buyers are drawn to what they think is a deal, and once they get caught in a bidding war, there’s no telling how high the final price could soar.
Be cautious not to set your starting bid too high, or you could effectively drive away potential bidders. Bids that start close to what the final price of the item should be, or bids that are significantly higher than the starting bids for the same items from other sellers, are far more likely to be passed over with no bids.
If you want to make money on eBay while raising the kids, visit http://AuctionPaydayKidsPlay.com to find out how. Vickie Sayce teaches others how to get started on eBay (VickieSayce.com), and has been buying and selling on eBay since 2001. She has written a very informative book on starting an eBay business to make money from home while raising the kids.