Many online auction marketers do not fully understand how important pricing is when selling products on eBay. Often times, they do not even realize that pricing will make or break them in the competitive eBay environment. In order to be successful in online auctions such as eBay you need do your research and establish a plan that insures your success. This includes setting effective prices.

Basically, you need to establish up to three prices for an eBay auction. They include a buy it now price, a reserve price, and a starting bid price. Of these, the starting bid price is the only one that is required by eBay. The reserve price and the buy it now price are optional. The starting bid price is really quite simple. I recommend that you never set it higher than $50 no matter what your item is really worth. This low opening price will attract bidders to your auction.

One thing to keep in mind when you do this is that when you set a low starting bid price you will need to create a reserve price. The reserve price is the lowest price that you will accept from someone that wants to buy your product. If you choose, you can sell the item below the reserve price but it is not a requirement. For example, 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 simply close the auction without any further obligation on your part. I recommend that you set your reserve price at the absolute lowest price you are willing to sell your item.

The buy it now option permits you to set a price that allows a buyer to purchase your item immediately without bidding. 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 such as information products.

Another item to keep in mind when you are setting your price is that buyers will take shipping prices into consideration when they are looking at an auction item. With that said, if you can offer free or at least low cost shipping you will receive more bids leading to more sales. Make sure that you advertise this low-to-no cost benefit to your eBay auction bidders!

Lastly, before setting any auction price you need to determine what the item is really worth not to mention how much it costs you to buy at wholesale. So, do your research and determine what similar items are selling for on eBay before and factor in your profit margin before setting your price. If you are listing collectables or a high dollar item, I always recommend that you have the item appraised prior to make sure that you do not lose money on the sale.

To Your eBay Auction Success.