Published initially on Junelevenco.
This post will share three ways to determine your eBay pricing.
Selling on eBay as a side hustle to earn an extra monthly income differs from decluttering your home by selling your stuff.
The former requires a different strategy from the latter.
The latter is pretty straightforward. You’re usually advised to price your stuff as low as possible so it can sell quickly.
But you need to factor that into your prices to make a profit.
Sometimes, I want to get rid of certain pre-owned items quickly.
So, I priced them significantly lower because they were used.
Sometimes, I have stuff in excellent condition that looks new, and I price it to get at least 85 – 90% of my money back.
For the products I specifically buy to resell, I always factor in my profit, shipping costs, and eBay selling fees in the prices.
Sometimes, I’m tempted to lower my gain to make a quick sale.
But I’ve learnt to be patient and take my mind off it.
More often than not, the product eventually sells.
So, if you’re confused about how to set your eBay prices to make a profit, I have some tips for you.
Here Are Three Useful Ways To Determine Your eBay Pricing.
If you have strictly purchased all the products in stock to resell, you will need to go through trial and error to determine your best method by approaching your pricing strategically.
You don’t want to lose out on that extra income.
I usually use a Google Sheet to document my costs, fees and selling prices.
Via the recommended retail price (RRP)
You probably have seen RRP everywhere but are unsure what it means.
As its full name suggests, it is the recommended retail price that manufacturers offer retailers to sell at.
Knowing these prices will give you an idea of how to price your products on eBay.
When it comes to e-commerce, there’s no control over the pricing.
So you can price your product as astronomically as you want.
This is where competitive eBay pricing comes in.
Yes, it’s nice to make a considerable profit occasionally.
But you have to be realistic.
Do you want one-off sales with ridiculous prices or regular, consistent sales? It’s up to you.
Plus, if you’re not selling vintage or scarce items, the chances that your product, which is five times higher than the RRP, will not sell is pretty high.
Via Competitive eBay Prices
I price my product by comparing eBay’s prices for sold and unsold products.
This gives me an idea of how wide my profit margin can be.
Before setting prices, always check how much and often the product has sold in the past.
Also, check the current listing of unsold products and price yours somewhere in the middle.
You can choose the lowest price so that your listing can be at the top or somewhere in the third to the fourth position, which I find is the sweet spot.
If you want to be braver, set your price to the highest and see if it will sell.
To be safe, make sure there’s an option for a ‘Best Offer’ which is reasonable.
Via The Profit Margin
At the end of the day, you’re an eBay seller who wants to make a profit and earn extra income at the end of the month.
Your pricing must reflect the profit margin you’re satisfied with for that to happen.
So don’t hesitate to price your products accordingly. In my experience, people still buy if they are desperate enough.
Trust me, even as a buyer, I’ve been desperate to buy some items and have paid whatever price the seller asks for.
The product can be delivered to me in the comfort of my home.
If you have a monthly income goal, don’t be afraid to be aggressive with your eBay pricing.
Finally
I hope you have found these tips on eBay helpful pricing.
If you have been confused before now or struggling to hit your target profit margins, I hope you can now.
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