You will see this in action if you search and find more than one auction for identical items. Have a look at the start prices being used by each seller, whether or not a Buy it Now is available, and which if any of the sellers have used a reserve price.
Every seller is in control of these variables, and how they are deployed can have an impact on the success of the auction.
Hare are some different ideas for you on pricing strategies.
Try setting your start price to the level you would normally have as your Buy it Now price. Then make your Buy it Now price at a slightly higher amount than your start price. The idea here is to entice an interested bidder to make a Buy it Now purchase. This method clearly makes the value of a Buy it Now extra clear, and hopefully makes them willing to pay the extra for the privilege of immediate ownership.
Or, how about taking on your competition head on?
Keep an eye on your competition and, when they start a Buy it Now auction for an item you stock, start an auction for one of those items yourself. Make sure your title is similar to theirs, but price your item slightly lower than theirs. This will mean that your auctions will be listed together in search results, but yours is going to appear to give better value.
Or, try the free shipping option.
Many buyers dislike paying for shipping. So why not incorporate the shipping cost into the price of the item, whether that be by start price or Buy it Now, or both? Then you can make a feature of the fact that the item has free shipping. This has the advantage of "removing" what some consider to be an extra which appears at the checkout stage.
Or, if you're brave, why not just go for it?
In this strategy you list your item for the maximum duration of ten days, ideally starting the auction on a Thursday so that it goes across two weekends and finishes on a Sunday. Plus, set the starting price to the minimum you dare - ideally one penny or one cent. It may be prudent to purchase low cost listing features like bold or highlight, to give your auction a visual boost. What you're attempting here is to give bidders as long as possible to discover your auction, so that a bidding war can take place.
If you get this one right, you can make a much bigger profit than you would have with any Buy it Now price, especially with a medium or high value item.
As in all eBay activity, my advice to you is to keep testing. By all means try different pricing strategies, but keep track of what works and what doesn't. And never put all your eggs into one basket. When testing pricing strategies, don't do it with every auction.
Be sensible, and you should be able to improve the performance of your auctions. But remember, there's no guarantee. So please walk before you run.
All three of these money making models are being effectively used by niche marketers right now!
So don't sit on the sidelines and watch other people take advantage of this social networking system. Start marketing your business on MySpace today.
Reserve Price A Reserve Price is indicated when the item will not be sold at a price lower than a certain set price. Price listing in different categories also plays a critical role.
Why Use a Buy Now Scheme In the “buy now” scheme, a buyer may be prepared to offer a higher price for an item which he badly needs, but since the price is already fixed by the store, he gladly buys the item. Your store loses the difference. Usually this method is used to sell commodity items or fast-moving items for which the demand is on the higher side. The advantages are: 1. You will be able to sell more items because the buyers know once they select the item they are certain that they would receive the same in due course (depending on the delivery terms you have stipulated) and that there is no waiting period. Most buyers are happy with this arrangement. 2. You will be able to compete with others who are not following this method, otherwise, the buyers need to bid for an item and wait and take their chance of clinching their order or not because the item in question will be sold only to the highest bidder. 3. Eventually this will even drive more traffic to your store as the buyers are confident that they can buy items at a reasonable price from your store without having to wait. Remember, Ebay is the largest online marketplace, and not everyone on Ebay has the patience to bid and wait!
When to use Reserve Price Scheme The “Reserve Price” scheme, on the other hand, is used mostly for items which are slow moving or certain unique or rare items known as “collector's items”, antiques and curios, or used items or a “one-off” article meaning no more of the same article is available for sale. The advantages are: 1. Though you have fixed a certain price as the rock-bottom price at which the item in question will be sold, buyers will compete with one another to buy this item, each buyer outbidding the other in the process resulting in more profit for you. 2. Further, since you have fixed a “reserve price”, you have the option to withhold the sale if you are not satisfied with the bids received. 3. If you stock and offer more such items, the buyers will always remember your store whenever they are searching for rare or unique items, increasing your store's popularity.
Your Product on Ebay So, evaluate your item which you are selling on Ebay, will they do better with or without the Buy Now scheme? Of perhaps your product is better off with a solid starting Reserve Price. Either way, there is no absolute right or wrong answer. Test both out and see which one works well for your product if you are not so sure. Remember, anyone can be a Ebay Power Seller! So, Start Selling on Ebay!
Both Khushwants & Amrisa Brown are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.